What the UK’s Economic Growth Plans Mean for Recruitment and Salaries in the Membership Sector

How might the Government's latest growth plans shape hiring trends and wage growth for the membership sector in 2025?

Here’s something to think about: despite economic uncertainty, nearly two in five UK business leaders are planning to expand their permanent headcount in 2025. That’s encouraging, but what does it really mean for recruitment and salaries - especially for membership organisations? 

With Chancellor Rachel Reeves recently unveiling her latest plans for economic growth, the focus is on investment, infrastructure, and making the UK a more attractive place to do business. These plans have the potential to shape hiring trends, wage growth, and how organisations in the membership sector approach recruitment. Let’s break it down. 

The economy is growing, but inflation worries linger 

The UK’s economy is expected to grow by 1.7% in 2025, up from 0.8% in 2024. A large part of this is being driven by increased government spending, infrastructure projects, and policies aimed at attracting investment. 

Chancellor Reeves' plans have included: 

• Backing the Oxford-Cambridge Growth Corridor, turning it into a hub for science, research, and technology. 

• Easing planning rules to speed up infrastructure projects. 

• Releasing corporate pension surpluses to encourage investment. 

• Investing in regional development, particularly outside London and the South East. 

However, inflation is still a concern, expected to hover around 2.7% throughout the year. Rising costs, particularly wage increases driven by inflation and higher employer contributions, will continue to put pressure on recruitment budgets. 

Salaries: some gains, but not for everyone  

Salaries are expected to rise in some areas, but not across the board. Just under half of companies are planning to increase pay this year, and many cite attracting and retaining talent as a top reason. But, not every role or sector will benefit equally: 

• In-demand roles (finance, compliance, digital transformation) will see the biggest salary jumps - 5-7% increases are expected. 

• Public sector-adjacent roles may benefit from government spending, but wage growth could be slower due to budget constraints. 

• Entry-level and administrative positions may not see significant pay rises, as organisations look for opportunities for automation and efficiency. 

On average, a professional can secure a 10-15% pay increase for the same job role at a different company, with this doubling for in-demand roles or scarce talent. For membership organisations, this presents a challenge 0 competition for skilled talent is fierce, particularly in roles requiring expertise in finance, policy, or governance. While budget constraints may limit salary increases, retention strategies such as career development, flexible working, and meaningful benefits will be more important than ever in keeping top talent engaged. 

For more insights on how membership organisations can boost their employee offering beyond salary, see our blog on reward strategies in the membership sector.

Our 2025 Salary Guide for the membership sector is out now, offering additional insights into salaries and benefits.

Hiring trends indicate more caution and more flexibility 

Reeves’ plans are focused on long-term economic growth, but immediate hiring trends are still shaped by inflation, cost pressures, and business confidence. While the UK economy is projected to grow, businesses are still being cautious with their hiring strategies and looking for more ways to remain agile. What about in the membership sector? 

• A shift to temporary and contract roles: Many businesses are opting for project-based hiring while they consider their long-term recruitment plan. This is particularly relevant for membership organisations, where funding cycles and membership renewals can impact financial planning. 

• Hybrid working debates continue: Employers are increasingly pushing for office-based work, but employees continue to prioritise flexibility. For membership organisations, hybrid and remote working can be a powerful retention tool, particularly for roles in member engagement, communications, and policy.  

• The AI and automation question:  Digital transformation isn’t slowing down any time soon, and organisations are increasingly looking for tech-savvy professionals who can streamline processes and improve efficiencies. This makes digital skills a key asset for both job seekers and employers, particularly in membership organisations where automation can significantly enhance both operational efficiency and member experience.  

What should membership organisations should do next? 

With economic changes on the horizon, membership organisations need to stay agile and proactive in their recruitment strategies. Here’s how: 

Adapt hiring strategies 

With competition for skilled professionals increasing, membership organisations should: 

• Offer meaningful benefits, not just salary increases. Workplace flexibility, wellbeing support, and professional development opportunities can make all the difference. 

• Consider contract or project-based roles that give you access to specialist skills with less risk than a full-time hire.  

Prepare for wage growth (or find alternatives) 

If increasing salaries isn’t an option, membership organisations should focus on: 

• Upskilling and career development - helping employees grow within the organisation reduces turnover and increases engagement. 

• Investing in technology to improve efficiency and ease workload pressures on existing teams. 

Keep an eye on policy changes 

Government policies, tax changes, and funding allocations could all affect recruitment budgets and salary expectations. Staying informed and keeping your recruitment strategies flexible will help to make sure you have the right people in place to deliver the best possible experience for your members. 

The ending note 

As usual, the UK’s economic growth plans bring both opportunities and challenges. While investment and infrastructure projects might create more jobs, rising costs and inflation will continue to shape hiring decisions in 2025. 

For membership organisations, it’s important to remember that flexibility, career development, and a strong workplace culture all play a huge role in retention - especially when budgets are tight. 

If you're looking for a clearer picture of salary trends and insights in the membership sector, keep an eye out for our 2025 Salary Guide, launching this February, where we’ll be breaking down the latest insights on pay, hiring, and benefits. Follow us on LinkedIn here, or sign up for updates below to be kept in the loop.