Hiring optimism in Scotland dips as Hays encourages employers to aim for long-term staff retention

• Optimism for the economic environment among employers in Scotland has dipped from 31% in 2025 to 26% for 2026, although hiring continues
• Significant workforce mobility expected in Scotland as 57% of professionals report they expect to move jobs next year
• 58% of Scotland employers cite recruiting the right talent as their key external challenge
• Talent retention (57%), skills shortages within current teams (51%) and managing change (46%) are other key concerns
• Hiring should be based on potential, not just skills, says Hays

Long-term optimism for the economic environment has dropped among Scotland employers in the last 12 months to 26%, compared to 31% in 2025. This is higher than the rest of the UK where only 15% of employers are optimistic, compared to 34% UK-wide in 2025.

The research, from Hays recent Salary & Recruiting Trends guide for 2026, reports cautious optimism in the short-term as employers continue to hire, but pessimism in the long-term as employers respond to cost pressures, revisions to workforce strategy and the uncertain economic outlook.

Current priorities for organisations are operational efficiency (73%), revenue growth (62%) and customer experience (42%), with recruiting the right talent at 53% being the top recruitment challenge. Regardless of short and long-term challenges, Keith Mason, director at Hays Scotland, believes that employers are still not majoring enough on the employee proposition when attracting talent.

“There’s been quite a culture shift since the pandemic, and employers need to focus much more on their employee value proposition than they did before to differentiate their organisation,” he says.

“Yes, salary is important, especially as the cost of living is rising. But professionals are looking more closely at what they need from a role. Our research found that 57% of professionals in Scotland are planning to move jobs next year – this is a striking figure that signals a period of significant workforce mobility. This level of intent suggests that employees are increasingly reassessing their career paths, driven by factors such as better pay, improved work-life balance, and opportunities for growth.”

The research also shows that 74% of employers in Scotland are planning to hire in the next 12 months which is the same as in 2025. 70% plan to hire permanent staff, with 27% planning to hire contract, freelance, interim or temporary workers. And as the debate continues on the benefits or otherwise of hybrid working, Mason believes that this issue needs to be managed carefully.

“This discussion has to be based on productivity – not time,” he says. “The research shows that profit growth is a key priority for organisations, but this only comes with efficiency and productivity which shouldn’t be based on the time someone spends in an office or working from home. And an effective workplace culture can’t thrive if too many people are absent. Hybrid working therefore needs to be managed with care, striking a balance between organisational priorities and employee expectations.”

Skills shortages within current teams are also a challenge according to 51% of respondents, highlighting a need for employers to identify future managers and leaders.

“It’s important to remember that the notions of ‘talent’ and ‘skills’ are very different. You can teach people skills, but you can’t teach talent as this is a natural attribute in a person. Be mindful of hiring for potential, for example, identify today the people who will be able to lead tomorrow. Only 16% of employers said that applicants need a university degree – it’s the talent to go further that often matters more.”

Other expected challenges for employers in Scotland are the rising costs for businesses (48%), managing risk and cyber security (32%), keeping up with technology innovation (27%) and keeping up with, and implementing, new legislation (15%).

To request access to the Hays Salary & Recruiting Trends guide, click here.

About the research: The survey on which these findings are based was conducted between 19^th August 2025 and 9^th September 2025 and received 5,136 responses from employers and employees working in a range of organisations and sectors across the UK, including 360 in Scotland.