Key Takeaways:
- Speed and competitive salaries are crucial in hiring: Slow hiring processes lead to higher turnover, increased costs, and lost candidates. Meeting salary expectations is a top challenge for nearly half of hiring managers.
- Hybrid work flexibility is in demand, but at a cost: While most employees prefer working in-office three days or less per week, many hiring managers are willing to pay more for increased office presence.
- Skills gaps are a growing concern: AI and automation are creating new skill needs, while retirements are exacerbating the issue. Companies are addressing this through contract talent, upskilling, and rehiring retirees as consultants.
To compete for top talent in today’s challenging market, hiring teams will have to speed up the hiring process and offer competitive salaries.
A long hiring process results in higher turnover (45%), increased recruitment costs (42%), and lost candidates (39%), according to more than 2,500 hiring managers surveyed for Robert Half’s 2025 Salary Guide. And almost half (48%) of respondents say that meeting salary expectations is one of their top hiring challenges.
Managing demands for hybrid work
Flexibility is another important differentiator when it comes to attracting applicants. Employees seem to prefer hybrid work arrangements, with 63% wanting to work in-office three days or less each week. However, two-thirds (66%) of hiring managers say they’re willing to pay more to get new hires to spend more time in the office. Nearly 60% would pay up to 20% more for employees who come in four or five days a week.
Bridging skills gaps
For 54% of hiring managers, AI and automation have created a need for new skills. As a result, 37% have used contract talent to help with AI tasks.
Retirements are also contributing to skills gaps, prompting 45% of respondents to invest in training and upskilling their current workforce and 41% to rehire retirees as part-time consultants.
Explore the full 2025 Salary Guide for more salary and hiring trends.
