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The importance of new hire retention in 2025

Why is new hire retention important in 2025?The recruitment landscape has evolved rapidly over the past few years, and it shows no signs of slowing down. As a global talent solutions provider focused on growth and innovation for our clients, we understand the critical need for organisations to focus on new hire retention. As the labour market becomes increasingly competitive and employee expectations shift, companies must prioritise retaining their newly hired talent or face costly repercussions. According to an article in HR Executive, organisations lose an average of 17 out of every 100 employees within their first year, which can have a significant effect on recruitment, HR and the wider organisation. Onboarding and the new hire experienceThe experience of new hires is crucial in determining their long-term commitment to an organisation. A positive onboarding process not only helps employees acclimate to their roles but also fosters a sense of belonging and engagement with colleagues from their first day. In fact, according to research, effective onboarding may improve retention by up to 80%. As indicated in the report, onboarding should include comprehensive training sessions that cover culture in addition to policies, mentorship programmes that pair new hires with experienced staff, as well as frequent one-on-one meetings during the first few months. In 2025, organisations that invest in comprehensive onboarding programs will likely see higher retention rates, as these initiatives help new employees feel valued and supported. The cost of turnoverHigh turnover rates can be financially detrimental to organisations. The costs associated with recruiting, hiring and training new employees can quickly add up. According to industry estimates, replacing a single employee can cost up to 50% to 200% of their annual salary when factoring in recruitment processes, training and the loss of important skills, knowledge and experience. By focusing on retention strategies, companies can mitigate these costs and maintain a more stable workforce. Employee expectations and company culturePeople are increasingly looking for workplaces that align with their values and offer opportunities for growth and development. Businesses that prioritise a strong company culture and provide clear career advancement paths will be more successful in retaining their talent. This means fostering an inclusive environment where employees feel empowered to share their ideas and contribute to the company's success. The trends in the current working landscape show that businesses need to boost their employee satisfaction to retain more staff, and some of the best ways to do this is by focusing on work-life balance, a commitment to inclusivity and career development opportunities. The role of technology in retentionAdvancements in technology are set to play a significant role in enhancing the employee experience in 2025. Tools that facilitate communication, feedback and recognition can help create a more engaging work environment. For companies that want to see improved retention rates, mentorship programmes, continuous learning opportunities and performance tracking are some of the best approaches to leverage technology. Enhancing retention for 2025 and beyondAs we kick off 2025, it is imperative for organisations to recognise the importance of new hire retention. By investing in the employee experience from day one and implementing effective retention strategies, companies can build a loyal workforce that drives long-term success. Embracing this focus not only benefits individual employees but also strengthens overall organisational performance in an increasingly competitive market. Revolutionise your approach to talent acquisition! Get in touch with Auxo for innovative talent strategies to attract and retain top talent for your business.

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Reduce IR35 risks and enhance workforce compliance with MSPs

The complexity of managing contingent workforce compliance can be overwhelming for organisations in the UK, particularly when it comes to critical areas like IR35. Auxo’s Contingent Workforce Solutions (CWS) use innovative Managed Service Programmes (MSPs) to transform this challenge into a strategic advantage while reducing your compliance risks.What is IR35 in the UK? IR35 is a UK tax legislation introduced in 2000 to prevent contractors from exploiting tax loopholes by operating through limited companies while essentially functioning as employees, resulting in lower tax payments. Since April 2021, medium and large organisations in both private and public sectors must determine their contractors' employment status and ensure appropriate tax deductions, including income tax and National Insurance Contributions. What are the risks of IR35? Businesses that misclassify contractors under IR35 legislation can put themselves at serious risk, which can impact revenue and operational efficiency. The financial exposure can result in organisations facing significant tax liabilities and National Insurance Contribution demands, along with associated penalties and interest charges from HMRC. Aside from the immediate financial implications, organisations face other serious repercussions, including: Disruption to business continuity during HMRC investigations Resource drain from managing compliance challenges Potential loss of key contractor talent Damage to the employer brand and market reputation Reduced ability to attract top contingent talent Increased operational costs and financial inflexibility The Auxo XPO advantage Our MSPs delivered under Auxo XPO’s CWS offers a comprehensive solution to these compliance challenges, including: Expert classification management Tailored IR35 assessment frameworks Balanced risk approach to maintain talent access Strategic guidance on contractor engagement models Comprehensive compliance control Centralised workforce management Standardised compliance processes in line with labour lawsReal-time tracking and reporting systems Total compliance managementOur MSP solution extends beyond IR35 to address the full spectrum of workforce compliance requirements, including: Expertise in diverse labour regulations Standardised processes across all compliance areas Proactive risk management and mitigation Regular compliance audits and reporting With Auxo XPO, your organisation can transform its compliance management from a risk factor into a strategic advantage, ensuring both regulatory adherence and operational efficiency. Our robust MSPs provide the framework, expertise and systems needed to navigate complex compliance requirements while maintaining business agility. Through our comprehensive approach, we help your organisation minimise risks, protect its reputation and maintain access to vital contingent talent. Revolutionise your approach to contingent talent acquisition! Get in touch with us to find out how Auxo XPO can transform your talent strategies while keeping you compliant.

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What do recruitment agencies do in the UK?

What do recruitment agencies do?Recruitment agencies like Auxo and our specialist sector brands play a crucial role in the job market, acting as intermediaries between job seekers and employers, as well as offering innovative talent solutions to help organisations optimise their workforces and processes. To clear up common misconceptions and answer the most frequently asked questions, we’ll explore what recruitment agencies do in the UK, how we operate and the benefits we offer to both candidates and businesses. What is a recruitment agency?A recruitment agency is an external organisation that helps employers find suitable candidates for job vacancies. At Auxo, we manage the hiring process on behalf of companies, which can include sourcing candidates for permanent, temporary or contract roles, as well as providing Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO) and Contingent Workforce Solutions (CWS) with innovative Managed Service Programmes under our Auxo XPO suite. In the UK, there are approximately 30,000 recruitment agencies, with a significant concentration in major cities. Auxo Group is headquartered in Watford, with a further 14 locations across the UK, including Manchester and Central London. How do recruitment agencies work?Recruitment agencies mainly work by connecting job seekers with employers looking to fill positions. Here’s a brief overview of our process: Client engagement: we first engage with employers to understand their hiring needs and company culture. Candidate sourcing: we then source candidates through various means such as job boards, social media, referrals, our own talent pool and networking initiatives. Screening and interviews: we screen applicants through preliminary interviews and assessments before presenting a shortlist to the employer. Facilitating interviews: we coordinate interviews between the candidates and the employer and often provide interview preparation support to candidates. Can I give my CV to a recruitment agency?Yes, you can register and submit your CV to any one of our specialist brands in the education, healthcare, engineering, technology and construction sectors. This allows our recruiters to match your skills and experience with available job opportunities and even offer additional services such as CV writing assistance. Is it worth registering with a recruitment agency?Yes, registering with a recruitment agency offers many great benefits: Access to job opportunities: we often have exclusive access to job openings that are not advertised publicly.What are the benefits of using a recruitment agency?Using a recruitment agency offers several advantages: Time efficiency: our recruiters save you time by filtering out unsuitable applications and only presenting relevant opportunities. Personalised service: our recruiters take the time to understand not just your career goals but your unique personal preferences as well, helping you find the best fit possible. Market insights: our recruiters have access to industry trends and salary benchmarks that can help you negotiate better offers. Reduced hiring risks: our recruiters minimise the risk of bad hires by leveraging their expertise in candidate screening.Recruitment agencies serve as valuable resources in navigating the job market, especially with the evolving nature of the landscape in recent years. If you’re seeking employment or looking to fill vacancies within your organisation, understanding how agencies operate can help you make better informed decisions.An expert recruitment partner you can trust.Auxo is a trusted global talent solutions provider driven by our passion for growing and transforming industries and the people who power them every day. Having built a solid reputation and unmatched experience across multiple industries, we provide specialist talent acquisition to our partners within the healthcare, technology, engineering, education and construction sectors, and have expanded our services to include innovative CWS (MSP), RPO and BPO solutions. If you’re looking for a trusted partner to help you achieve your career or corporate recruitment goals, get in touch with us for expert advice and unmatched service.

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What is DEIB in talent acquisition?

The principles of Diversity, Equity, Inclusion and Belonging (DEIB) are becoming increasingly important for businesses that want to attract and retain skilled talent. Recent trends show that more organisations are recognising the value of these concepts and have started to integrate them into their recruitment strategies to foster a more inclusive and equitable workplace. Judging by current global market trends, organisations that lack DEIB concepts in their talent strategies may be at risk of losing out on highly skilled talent who can grow their businesses and ensure they are ready to tackle future challenges, so it’s crucial to understand DEIB and its place in talent acquisition strategies.Understanding DEIBDiversity refers to the variety of identities and backgrounds within a workforce, including race, ethnicity, gender, age, sexual orientation, disability status and more. It is essential for organisations to actively seek qualified diverse candidates to enhance creativity and innovation. Equity goes beyond mere equality - it ensures that all individuals have fair access to opportunities and resources based on their skills and performance. In recruitment, this means implementing practices that address barriers and promote equitable outcomes for all candidates. Inclusion involves creating an environment where everyone feels valued and respected. An inclusive workplace encourages diverse perspectives and fosters collaboration among team members.Belonging is the emotional aspect of inclusion. It ensures that employees feel accepted and integral to the organisation. A strong sense of belonging leads to higher engagement levels and employee satisfaction.Why is DEIB important in talent acquisition?Incorporating DEIB into talent acquisition strategies offers numerous benefits:Enhanced innovation: diverse teams bring unique perspectives that lead to innovative solutions.Broader talent pool: a focus on DEIB expands the candidate pool, increasing the likelihood of finding the right fit for roles.Improved employee engagement: inclusive practices foster a sense of belonging, leading to higher engagement and retention rates.Stronger company reputation: organisations committed to DEIB are often viewed more favourably by potential employees and clients alike.Emerging trends in DEIB for 2025As recently outlined in an insightful blog on HR Exchange Network, several key trends are shaping the DEIB landscape in talent acquisition:Integration of AI and technology: organisations are leveraging AI-driven tools to analyse diversity data, identify biases and foster equitable hiring practices. Technology plays a crucial role in ensuring virtual inclusion in hybrid work environments. This was a theme at LinkedIn’s Talent Connect 2024. As observed by Jackye Clayton in her event coverage on LinkedIn’s Talent Blog, “Are these tools being evaluated for fairness? Are they genuinely supporting DEIB goals or undermining them? I hope that Talent Connect attendees and other recruiting professionals can continue to grapple with these questions and share best practices as they emerge so that we can all use AI to mitigate bias rather than inadvertently increase it.”Focus on psychological safety: creating an environment where employees feel safe to express their thoughts is gaining popularity. This trend shows that belonging should be a core goal of diversity efforts.Financial wellness as part of DEIB strategy: recognising the link between financial stability and employee engagement, organisations are focusing on equitable pay practices and financial education as part of their DEIB initiatives.Focus on neurodiversity and disability inclusion: embracing diverse cognitive styles is becoming integral to DEIB strategies. Organisations are moving towards inclusive design in both physical and digital spaces.Data-driven strategies: real-time data is being used to measure progress in DEIB initiatives. Organisations are shifting from input metrics to outcome-based metrics that focus on tangible results like retention rates.Inclusive leadership development: accountability for DEIB outcomes is being integrated into leadership development programmes. Leaders are being trained to foster an inclusive culture across all organisational levels.Global awareness and competency: as companies expand globally, there is an increasing need for leaders to develop cultural awareness. This enhances relationships across diverse regions and fosters an inclusive workplace culture. DEIB for long-term business successAs organisations strive for long-term success, integrating DEIB principles into talent acquisition is essential. By embracing diversity, ensuring equity, fostering inclusion and cultivating belonging, companies can build vibrant workforces that drive innovation and growth. The trends shaping DEIB in 2025 highlight the importance of evolving strategies that align with your broader organisational goals. At Auxo, we believe that a commitment to DEIB not only enhances recruitment efforts but also strengthens organisational culture. We’ve seen firsthand how businesses who put these into practice can create workplaces where every individual feels valued and empowered to contribute their best, which ultimately contributes to organisational success.Ready to optimise your workforce for the future?Contact us and gain access to a diverse pool of highly skilled talent from across the globe.

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Balancing Culture and Efficiency

As a leading solutions provider, we know that talent is the cornerstone of organisational success, but it has become increasingly challenging for leaders to balance a strong workplace culture with operational efficiency. The recently released 15th Annual Pulse of Talent report from Dayforce, Inc. has shed light on this balancing act, offering useful insights into what employees value most and how organisations can align with these values to create high performing, engaged workforces. The culture-efficiency equationAmy Cappellanti-Wolf, Chief People Officer at Dayforce, said, “cultivating a strong culture is a constant balancing act between productivity and agility and creating a space where people can do their best work”. The report highlights that organisations investing in aligning benefits, technology and initiatives with employee needs gain a competitive edge in attracting and retaining top talent. However, with leaders under increasing pressure to justify their spending, these culture-centric investments must also drive measurable outcomes. Key drivers of positive workplace cultureThe Workplace Culture Index introduced in the report categorises employees into three groups: Culture Promoters, Culture Passives and Culture Detractors. According to the findings, Culture Promoters, who are the most positive about their workplace, rated their organisations significantly higher than Culture Detractors in three key areas: 1. Empowering productivity through technology85% of Culture Promoters say they have the technology needed to perform efficiently, compared to just 39% of Culture Detractors. Additionally, 67% of Culture Promoters believe AI will positively impact workplace culture, versus only 31% of Culture Detractors. 2. Aligning benefits with employee needs82% of Culture Promoters feel their company’s benefits meet their needs effectively, compared to just 21% of Culture Detractors. 3. Providing flexibility and building trustFlexible work options were a standout factor: 57% of Culture Promoters report flexibility in how they work (vs. 28% of Culture Detractors). 54% report flexibility in when they work (vs. 33% of Culture Detractors).54% report flexibility in where they work (vs. 30% of Culture Detractors).91% of Culture Promoters feel trusted by their employer, compared to only 29% of Culture Detractors. Bridging the AI perception gapA key finding from the report is the disparity between how executives and employees perceive AI in the workplace. Executives were significantly more likely than workers to believe AI is used responsibly (44%), understand its applications (48%) and view it as a tool for better decision-making (48%). This gap highlights the need for intentional communication and education around the role of AI in driving efficiency while supporting culture. Businesses that proactively address these concerns are better positioned to foster trust and engagement across all levels of their workforce. Why culture matters more than everNearly seven in ten respondents (69%) said they have turned down or would turn down a job opportunity if the culture did not feel like the right fit. This rises to 75% among employees under the age of 35. Improving company culture has numerous benefits: 51% of respondents said it would increase engagement.47% said it would improve mental health and reduce burnout.46% said it would motivate them to work harder. These findings emphasise that investing in culture isn’t just about employee satisfaction—it’s about building a resilient, productive workforce equipped to meet organisational goals. Partner with Auxo to drive culture and efficiencyThe Pulse of Talent report shows that organisations that prioritise aligning employee needs with operational goals will not only attract top talent but also create thriving workplaces where people can do their best work. As leaders navigate this balancing act, Auxo is here to provide the guidance and tools needed to succeed in a dynamic business environment. Get in touch with us to ensure you attract and retain the skilled talent you need:

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Summary of the 2024 Autumn Budget's impact on the UK Recruitment Industry

The 2024 Autumn Budget presented by Chancellor Rachel Reeves has significant implications for the UK economy, particularly in the realms of taxation and recruitment. This budget, the first for the Labour government in over a decade, aims to address the fiscal challenges inherited from previous administrations while setting a course for future growth. As a leading recruiter and talent solutions specialist in the UK and across the globe, we have looked at the budget and broken down the key highlights and impacts on the recruitment sector. Tax increases and reformsTo balance a £40 billion fiscal gap, the government has implemented several tax increases, including raising capital gains tax (CGT) rates from 10% to 18% and from 20% to 24%, effective immediately. Additionally, inheritance tax thresholds will remain frozen until 2030, which could impact estate planning for many families. The Chancellor also announced an increase in employer national insurance contributions from 13.8% to 15%, alongside a reduction in the earnings threshold at which these contributions applySupport for householdsThe budget includes measures aimed at easing the cost of living, such as a £500 million investment to build 5,000 new affordable homes and an extension of the Household Support Fund. This fund will provide local authorities with resources to assist vulnerable households with essential expenses like food and utilities.National living wage increaseThe national living wage will rise by 6.7% to £12.21 per hour starting in April 2025, benefiting over three million low-paid workers. This increase is part of a broader strategy to enhance living standards amid rising inflation and economic uncertainty.Impact on the Recruitment industryThe recruitment sector has reacted positively to certain aspects of the budget, particularly regarding infrastructure investment and wage increases. However, there are concerns about the implications of increased employer national insurance contributions on hiring practices:Increased costs for employers: the hike in national insurance contributions is expected to raise costs for businesses, potentially leading to cautious hiring practices. Recruitment firms may face challenges as companies reassess their staffing needs in light of higher payroll expenses.Opportunities in infrastructure: the commitment to substantial infrastructure investment is likely to create new job opportunities across various sectors. Recruitment agencies may see increased demand for skilled labour as projects roll out over the coming years.Focus on skills development: the budget has underscored the need for enhanced skills training within the workforce. As industries evolve and adapt to new technologies, there is a pressing demand for skilled workers. Auxo is poised to play a crucial role in bridging this skills gap by connecting employers with qualified candidates.Key takeawaysThe 2024 Autumn Budget has a crucial impact on the UK economy and its recruitment industry. Although there are plans for infrastructure investment and wage increases aimed at supporting households, the implications of rising taxes and national insurance contributions may pose challenges for employers and recruiters alike. As businesses navigate these changes, collaboration between government, industry leaders and talent solutions specialists like Auxo will be essential in fostering a resilient workforce capable of driving future growth. The effectiveness of these measures will ultimately depend on their implementation and the government's ability to sustain momentum in addressing both economic stability and workforce development needs.Contact us now to find out how we can help you navigate these changes and achieve success now and in the future:

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