By Anna Wise

Copyright independent

Recruitment giant Hays has warned that Britain is becoming an “unattractive” environment for businesses seeking to hire permanent staff.

This trend is primarily driven by mounting wage pressures, including the national minimum wage increase in April, and recent tax hikes such as national insurance changes.

As a result, companies are increasingly exploring automation and offshoring strategies, opting to digitalise or outsource work that is not considered essential for human involvement.

Hays noted a decline in employee loyalty, with staff preferring project-based work, while cost of living worries are making workers less confident to move jobs, lengthening vacancy fill times.

To remain competitive, Hays advises UK employers to embrace new workforce models that combine permanent, contract, and project-based roles, alongside investment in both their people and digital assets.