HR roles now among the most competitive in the UK

Funding Circle revealing that HR is now the most oversubscribed job sector in the UK, with an estimated 129 applicants per vacancy. For small businesses, especially those without dedicated recruitment teams, this surge in competition is making it increasingly challenging to hire the right talent quickly.

HR has emerged as the most competitive job sector in the UK, according to new research. With an estimated 129 applicants per vacancy, HR positions are proving harder to secure than any other role—posing a significant challenge for SMEs that need skilled people to drive their growth.

The analysis, based on job search volumes and live vacancies across 14 sectors, reveals that HR, retail, and hospitality roles are the hardest to land, while design, IT, and law face talent shortages.

Key findings:

HR, retail, and hospitality top the list as the most competitive job sectors in the UK right now, with more than 100 estimated applicants for each available role. These industries combine high interest with relatively few open roles, creating intense competition and low chances of success for applicants.

Despite having 4,961 live HR roles, there are over 118,800 annual job searches for positions in this sector, meaning an estimated 129 applicants per role. That results in a less than 1% chance of securing a role for each applicant, making HR the most oversubscribed job category in the market right now.

HR shortages create a recruitment paradox

In many ways, HR is the growth engine of any business. But when these roles are the most competitive to fill, SMEs are left without the people they need to manage recruitment, onboard effectively, and support staff retention. That creates a bottleneck across the business. The report highlights that SMEs often face hundreds of applications for a single HR role—many of which may be mismatched—putting pressure on small recruitment teams or even single-person HR functions.

Talent Shortages: Where Job Seekers Have the Upper Hand

On the other end of the spectrum, tech, legal, education, and design roles show much higher chances of securing a job, with fewer than 15 applicants per role on average:

 

  • Design jobs: With only 7 applicants per role, candidates in this creative sector face far less competition.
  • Law and education: Despite their niche nature, these sectors offer a 10-15% success rate, far above the average.
  • IT roles: One of the least competitive fields, with an 8% success rate, likely due to high demand and a digital skills shortage.

If you’re hiring in these areas, expect candidates to be selective. Competitive salaries, flexible working conditions, and a strong culture are essential to secure top talent in these fields.

4 Ways SMEs Can Hire to Meet Demand

 

1. Focus on Roles That Unlock Growth

Prioritise roles that:

 

  • Support sales and customer delivery
  • Improve efficiency (e.g., operations, admin, finance)
  • Help retain clients or upsell (e.g., account managers)

Use your hiring budget where you’ll see the clearest ROI.

2. Be Flexible with Roles

In a tough employment market, it’s crucial that businesses offer flexibility:

 

  • Offer hybrid/remote work where possible
  • Use freelancers for project-based needs
  • Hire part-time or fractional roles to access senior talent without full-time cost

3. Differentiate with Your Offer

You might not outpay big firms, but you can outoffer them:

 

  • Emphasise purpose and impact
  • Offer autonomy and varied responsibilities
  • Provide learning budgets and growth pathways

4. Speed Up the Hiring Process

In-demand candidates won’t wait around. Streamline your process by:

  • Using templates for job specs and interviews
  • Setting clear timelines

The full guide, How SMEs Can Hire to Keep Up with Demand, is available from Funding Circle:

https://www.fundingcircle.com/uk/resources/leadership/hiring-staff/how-smes-can-hire-to-keep-up-with-demand/

 

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