The CIPD and Omni RMS's latest survey of over 1,000 UK employers finds almost half are increasing in-house training as recruitment gets harder and employment costs climb.
Almost half of UK employers have stepped up how much they invest in developing existing staff over the past year. That's according to the CIPD's latest Resourcing and talent planning report, supported by Omni RMS.
Now in its 25th year, the survey draws on responses from 1,014 UK-based HR and people professionals. It finds organisations rethinking how they attract, retain and develop talent as the labour market cools and businesses prepare for new measures introduced in the Employment Rights Act 2025.
We found that 48% of employers have increased their efforts to develop talent in-house over the last year. It's one of the most common steps organisations are taking to hold onto skilled staff, with 44% saying retention has got harder.
Recruiting isn't getting any easier either. 58% of employers report a rise in unsuitable candidates applying for roles, and 53% of those who tried to recruit in the last year found it hard to attract the right people, particularly for senior and skilled positions.
For a growing number of organisations, building skills in-house is becoming a more reliable route to the talent they need than competing in a tighter external market.
"It's clear that the best way for organisations to weather these storms and stay competitive is by investing in their people."
Cost is a big part of this story. Most employers expect the Employment Rights Act 2025 to increase their employment costs: 14% say by a large extent, and 40% to some extent.
That's already shaping hiring decisions. 26% of employers expect to recruit fewer people because of the anticipated cost of the new legislation, and a fifth (20%) say they're less likely to hire workers who need extra support as a result.
For people professionals, the practical priority is managing that transition: reviewing workforce plans early, and building the in-house skills that reduce reliance on external recruitment.
It's not all caution. Over half of employers (52%) already offer apprenticeships, and 43% run graduate programmes. A fifth (20%) plan to recruit more 18 to 24-year-olds over the next year, mainly to secure a future talent pipeline and build digital skills.
Routes like these matter more as the market tightens. They give employers a way to build capability, rather than compete for a shrinking pool of experienced candidates.
"In a complex labour market, attracting quality candidates remains challenging, while rising application volumes make identifying critical skills harder. Success requires long-term workforce planning, robust assessment and evidence-based decisions about how capability is developed, attracted and assessed. "
The findings point to a shift: from competing for scarce talent externally, to building it internally. That means:
This is the 25th year we've run this report, and the findings suggest resourcing strategy is shifting again, this time toward developing the talent organisations already have.
The full Resourcing and talent planning report 2026, supported by Omni RMS, sets out these findings in more detail, along with practical recommendations for strengthening your workforce planning.
In a tight labour market, how can people professionals build trusted pathways that grow talent from within and strengthen resilience. Is internal mobility being overlooked as a powerful way to close skills gaps?
Explore our resources for further information on essential skills for employees and the UK Skills policy.
Analysing people, data and strategy to ensure organisations have the right skills and capacity to meet future goals.
