300 UK HR decision-makers were asked to share their views on the most pressing workplace issues for their organisations in the year ahead (to July 2026). The majority cited at least two or more causes for concern (five was the average).
Recruitment – attracting and engaging skilled candidates – was revealed as the biggest worry for UK businesses, with 29% of those surveyed calling this a major challenge.
A similar number of respondents (28%) expect employee retention to prove challenging, while others are bracing for rising costs and budget squeezes (27%).
Many (26%) also believe that their organisation may struggle to satisfy employees’ remote or hybrid working expectations going forward.
Using AI, pay rise requests, and staying compliant (three distinctly different organisational ‘challenges’) were tied for fifth place in Ciphr’s poll. One in four (25%) HR professionals anticipate difficulties with ensuring good AI practices, meeting salary expectations in a continuing cost-of-living crisis, and getting ready for the Employment Rights Bill.
Other big concerns included providing employees with: regular training and development (23%), a good work-life balance (23%), an inclusive workplace (22%), and new benefits and rewards (22%).
 
Top 10 challenges facing UK employers in the year ahead

• Recruiting enough qualified talent (29% of surveyed HR professionals)
• Retaining employees / keeping top talent (28%)
• Managing rising costs / budget shortfalls (27%)
• Meeting employees’ remote or hybrid working expectations (26%)
• Ensuring effective, secure and ethical use of AI (25%)
• Meeting employees’ pay expectations (25%)
• The Employment Rights Bill – preparing for (and complying with) new employment legislation and reforms (25%)
• Investing in / providing regular and ongoing employee training and development opportunities (23%)
• Providing a good work-life balance for employees (23%)
• Ensuring a positive and inclusive workplace culture (22%)
• Investing in new employee benefits and rewards (22%)

 
Employers' top priorities when it comes to their workers

• Providing a good range of employee benefits (46% of surveyed HR professionals)
• Ensuring a positive, respectful and healthy work environment / culture (45%)
• Providing flexible working / a good work-life balance for employees (45%)
• Paying a good / fair average wage (42%)
• Providing regular employee training, upskilling opportunities, and career advancement (42%)
• Ensuring all employees are treated fairly and equally, with no favouritism (41%)
• Protecting employees’ health and safety at work (40%)
• Providing job security to employees (40%)
• Supporting employees’ mental health and wellbeing at work (39%)
• Providing a good employee experience (39%)

Ciphr commissioned OnePoll to conduct an independent survey of 300 HR decision makers (employed at UK organisations). The survey ran between 22-28 July 2025.