Budget constraints and rising expectations force employers to change in 2025

Published date: December 23, 2024

The 2025 Robert Walters Salary Survey reveals that organisations are experiencing increasing challenges in talent management. Tight budgets, higher employee expectations and increasing retention issues are putting pressure on the labour market. Özlem Simsek, managing director at global talent solutions specialist Robert Walters, explains.

More junior professionals due to budget constraints

As many as 57% of surveyed employers are considering replacing experienced employees who leave of their own accord with junior professionals, mainly due to budget constraints. Only 43% insist on prioritising experienced talent. Özlem Simsek explains: ‘A lot of organisations may have to be more creative with their budgets in 2025. Attracting and training junior talent can not only save costs, but also be a sustainable investment in the future. In addition, using temporary staff can provide a flexible solution to budgetary challenges.’

Rise in rejected job offers

Almost half of employers saw an increase in the number of rejected job offers over the past year. The main reasons for this are:

Failure to meet salary expectations (63%)
Acceptance of a counter-offer (33%)
Decision to stay with current employer (30%)
Insufficient cultural fit or career opportunities (25%)

Applicants look beyond salary alone. They want an attractive total package, including career opportunities, a good team culture and work-life balance. Employers who do not cater to this risk losing talent.

‘To avoid rejections of job offers, it is important to address candidates' priorities during the interview process. Listen to what they consider important and respond accordingly. Emphasise the existing benefits of flexible working conditions, opportunities for personal development and a clearly defined career path. In addition, speed is crucial in a competitive job market. Make sure a strong offer comes quickly to the table, so candidates are less inclined to consider better opportunities elsewhere,’ advises Özlem.

Replacements fail to leave

More than half of surveyed employers indicated that departing colleagues are not always replaced. In fact, this happened regularly at 16% of organisations in the past year. The main reasons for this are:

Budget constraints or cost savings (32%)
Lack of available talent (25%)
Restructuring or downsizing (18%)
Confidence in the capacity of the existing team (18%)

What does this mean for 2025?

Employers face the great challenge of controlling costs, attracting talent and retaining employees. Transparent communication, flexible working conditions and a strong work culture are essential in this respect. ‘In 2025, everything is about balance. Employers who invest in a culture where employees feel heard and supported will be stronger in the battle for talent. Organisations that embrace this approach will be better able to adapt to the challenges of the changing labour market,’ Özlem concludes.