Thursday 30 October, 2025
Employers Favour Hiring Returners and Older Workers to Bridge Skills Gaps
A new study by independent consultancy Barnett Waddingham (BW) has revealed that a majority of UK employers are increasingly turning to returners and older workers to fill skills gaps in their companies. The research, conducted by Censuswide, surveyed 500 senior HR professionals, business owners, and CEOs, with at least 350 being from senior HR functions.
According to the findings, 40% of UK employers are actively hiring individuals returning from a career break, while around a third (31%) are actively hiring or looking to retain (37%) older workers. This trend is a reflection of the mounting pressures faced by businesses, both internally and externally.
Internally, a growing number of people are choosing to delay their retirement and continue working for longer. Earlier this year, 36% of employees said they were considering delaying their retirement due to financial reasons or because they wanted to continue working. Employers are also facing challenges such as staff lacking necessary skills (77%), rising mental health issues among employees (73%), and long-term sickness (68%).
Externally, talent pipelines are under strain. Immigration policies implemented earlier this year have reduced the availability of jobs eligible for skilled worker visa sponsorship, causing 64% of employers to worry about the shrinking availability of overseas talent. Additionally, declining birthrates and other factors impacting younger workers’ approach to employment have led to 62% of employers being concerned about the future availability of domestic talent.
To combat these challenges, employers are increasingly turning to retention strategies. The study found that in the past year, 84% of employers have increased the amount they pay their staff, 81% have invested more in their values and purpose, and 79% have increased training for mid- and senior-level staff.
Julia Turney, Partner and Head of Platform and Benefits at BW, commented on the findings, saying, “The labour market has bared its teeth yet again – bringing some new, and some familiar, challenges for businesses to contend with when tackling their balance sheets.” She added, “But businesses aren’t standing still: they’re investing in their people and looking to older workers and returners to bridge the gaps.”
Turney also emphasized the importance of data and analysis in understanding the shifting makeup of the workforce and effectively targeting investments to retain talent and minimize risk.
The study also found that while 16% of employers expect to lose employees due to visa and immigration changes, 45% offer visa sponsorship and have no plans of stopping, and 39% are increasing salaries to attract and retain skilled overseas workers.
About Barnett Waddingham (BW)
BW, which is now part of Howden, is a leading UK consultancy focusing on risk, pensions, investment, and insurance. The company works with a diverse range of clients in the private and public sectors, including 22% of FTSE 100 and 15% of FTSE 350 companies.
With over 1,750 employees across multiple UK offices, BW is committed to its promise of doing the right thing for its clients. This value is embedded in all aspects of the business, which allows the company to take a long-term view and provide strategic solutions to its clients.
