On Wednesday 5th February, ACR had the pleasure of hosting an insightful in-person event focused on Pay, Recruitment, and Employment Law, in partnership with the fantastic Roythornes Solicitors and Paydata. Packed with essential updates, challenges, and smart solutions, it delivered practical insights to help businesses stay ahead of the curve. We’ve pulled together the key takeaways from each session to arm you with the tools and knowledge you need to thrive in 2025 and beyond.
Event Overview
The event featured the following sessions designed to address key concerns for UK businesses:
The Recruitment Landscape - ACR
Employment Law Changes and Compliance - Roythornes
Pay Plans and Expectations - Paydata
Panel Discussions and Networking Opportunities
Each session highlighted critical updates and forward-looking strategies with expert speakers sharing their insights.
Top Challenges in Recruitment and Retention for 2025
Current Job Market Data
The UK labour market is undergoing major changes, and businesses need to adapt to stay ahead. Here are some key insights you can’t afford to miss:
Current vacancies total 812,000 (Oct-Dec 2024).
The Human Health & Social Work sector saw the steepest rise in demand, with vacancies increasing by 4.6%.
Meanwhile, Manufacturing (-11.3%) and Construction (-11.1%) reported sharp declines in job openings.
The average time to hire rose to 5.1 weeks, resulting in delays for crucial projects.
The Growing Cost of Hiring
The financial impact of recruitment continues to intensify, with the average cost per hire reaching £6,125 and rising further for managerial roles. Beyond direct expenses, businesses are also grappling with indirect costs like lost productivity, delays, and intensive onboarding processes, which total approximately 20-30% of an employee's salary.
Workforce Expectations
Key shifts in workplace demands include a focus on flexible work models, purpose-driven roles, and career development opportunities. Businesses that fail to provide these essentials risk losing talent to competitors.
Talent Shortages
Critical sectors, particularly technology, sustainability, and green jobs, are facing acute skills gaps due to the fast pace of innovation and an ageing workforce. Upskilling and timely hiring are essential to address these shortages effectively.
Employee Retention
Retention challenges continue to plague businesses as employees seek meaningful growth opportunities. Career development and strategies to prevent burnout are critical to improving employee satisfaction and loyalty.
Employment Law Updates for Business Owners
One of the most anticipated sessions of the event was the discussion on the latest employment law changes taking effect in 2025. The updates include changes brought by the Employment Rights Bill 2024, significant legislative milestones, and compliance requirements businesses need to meet.
1. Sexual Harassment and Preventative Duties
From October 2024, employers are legally required to take all reasonable steps to prevent workplace sexual harassment. Businesses must develop robust anti-harassment policies, provide staff training, and establish systems for reporting and managing complaints.
2. The Employment Rights Bill 2024
The Employment Rights Bill introduces pivotal reforms aimed at improving job security and fairness. Key changes include:
Zero-hour contracts ban to improve worker predictability.
Day-one rights for unfair dismissal protection and flexible working requests.
Enhancements to family-friendly rights, including neonatal care leave and bereavement leave.
Action Point: Start revising your contracts and internal policies now to align with these changes before further consultations and enforcement in 2026.
3. Neonatal Care Leave and Pay
Coming into force on 6 April 2025, this act entitles parents to up to 12 weeks of statutory neonatal leave for babies requiring hospital care—further cementing employee rights to family-life balance.
Trends in Pay Plans and Workforce Compensation
2025 Pay Award Predictions
With inflation stabilising, national pay awards are projected to modestly decrease. However, additional influences—such as union negotiations and external market data—continue to shape pay adjustments. Locally, pay freezes are expected to rise from 1.2% in 2024 to 2.4% in 2025.
The Impact of the National Living Wage
Rising National Living Wage rates exert pressure on businesses employing junior staff, particularly in sectors such as retail and residential care. By 2025, much of this increase will directly impact wage budgets, requiring firms to carefully reallocate resources.
Strategic Solutions for 2025
To tackle these challenges, our speakers offered practical strategies that can implemented by businesses immediately, including:
Enhancing Employee Experience through competitive benefits, DEI initiatives, and a strong organisational culture.
Upskilling Workforces to meet demands for specialised expertise, such as AI and sustainability roles.
Leveraging AI Tools to streamline recruitment processes, identify top candidates efficiently, and support talent retention.
Fostering a Positive Employer Brand that appeals to increasingly discerning job seekers.
What were the key takeaways?
This event underscored the importance of proactivity in cultivating a compliant and competitive workforce. Businesses that adapt to changing labour market trends, legal obligations, and employee expectations will position themselves as leaders in their respective industries.
If you're unsure where to begin, reaching out to knowledgeable recruitment and legal experts can give you a head start. ACR is always ready to support you with expert advice, tailored recruitment services, and ongoing updates tailored to your business needs.