Some recent figures from Deloitte, paint a more cautious picture for UK businesses in 2025, with some CFOs and finance leaders expecting cost-cutting in the year ahead. But the economy is growing, and while hiring slowed towards the back end of 2024, this year, we’re seeing positive signs that the tides have turned. With lowering interest rates, household balance sheets now net positive once again, and investors back seeing the UK as a good place to see returns, the turbulent waters of 2024 and the post COVID-era are behind us.
The upcoming rise in employers’ National Insurance Contributions means that many CFOs are faced with finding ways to reduce costs in other areas. But that doesn’t mean hiring will slow—instead, it places even more emphasis on retention and making the right hiring decisions.
According to studies by the Recruitment and Employment Confederation (REC), getting the hiring process wrong can cost businesses up to £132,000. This isn’t a time for costly mistakes, making it essential to refine recruitment strategies and ensure businesses are creating an environment where employees want to stay. As 2025 unfolds, CFOs will increasingly prioritise more effective recruitment processes, along with building ways to increase the retention of their current teams.
Shifting priorities
Finance leaders know that hiring and onboarding new employees is costly, both financially and in terms of productivity. While the economy is stabilising on an upward trajectory, retaining and developing existing talent is an essential strategic approach to long-term success.
While Deloitte’s findings highlight cautious hiring trends, there are opportunities for businesses to:
- Strengthen talent retention strategies to keep their best employees engaged
- Enhance learning and development programmes to upskill existing teams
- Invest in workplace culture to attract and retain top talent in the long run
Why retention matters
If you’ve read some of our recent blogs you’ll know that the role of finance teams and finance leaders is expanding. Sustainably-minded finance professionals are in demand. With green finance regulations evolving and ESG considerations becoming standard practice, businesses cannot afford to lose the ESG talent they have.
Here are a few things that CFOs and employers can do to help secure their top talent:
Financial incentives
After a period of high wage inflation, CFOs expect labour cost pressures to ease, which could help businesses better manage their budgets and profitability. Instead of reacting to soaring wage demands, businesses can introduce structured pay increases and performance-based rewards that align with long-term goals. This can help retain key employees while maintaining financial stability.
If salary increases aren’t possible, there are other non-monetary perks businesses can introduce, such as hybrid or remote work options, additional paid leave, mental health days, wellness programmes and team-building activities.
Create a genuine workplace culture
Businesses that create flexible, purpose-driven, and engaging work environments will be able to retain top talent better than those companies that don’t. However, these efforts must be genuine and authentic otherwise it could have the complete opposite effect.
The Deloitte article says that CFOs anticipate the Bank of England to lower interest rates by 75 basis points to 4.0% by the end of 2025. This could reduce borrowing costs for businesses, making investment and expansion more affordable.
Continued professional development
With external hiring under pressure, companies will need to develop internal career progression pathways to ensure employees stay and grow. Investment in ESG qualifications, sustainability leadership training, and green finance expertise will help organisations future-proof their workforce while giving employees meaningful career development.
Employees want to be invested in
With hiring slowdowns, businesses must recognise that their employees have options. Retaining top talent isn’t just about salaries; it’s about offering meaningful career growth, purpose, and a supportive environment. This year is an opportunity for individuals to assess what matters most in their careers. The best employers don’t just offer jobs, they offer long-term growth, development, and purpose.
Businesses must make sure they are prioritising learning and development, actively investing in employee well-being, and truly valuing their people, even in challenging times.
The road ahead
Economic cycles fluctuate, but what remains constant is the need for talented, engaged, and committed professionals to drive businesses forward.
Rather than viewing the research from Deloitte as cutbacks, businesses should see it as a chance to strengthen their inner core. They should invest in their workforce to thrive in the long-term, refine their culture, and rethink their recruitment processes to ensure they find the people who are the right fit.
Your partner in sustainable finance
At Core3, we believe in recruitment that goes beyond short-term placements. We work with businesses that understand the value of retention and long-term investment in their people. If you want to build a resilient, purpose-driven finance team, we can help you attract, retain, and develop the right talent for long-term success.
Get in touch today, and let’s build a sustainable future together.
