The UK scale-up visa in 2025: should retail businesses consider this visa an option for hiring staff

Having approximately 7.4% of businesses in the United Kingdom struggling to find experienced and qualified staff despite the option of a UK Scale-Up visa begs the question ‘Should retail businesses consider this visa an option for hiring staff?’

7.4% meant that 104,000 positions were unfilled in the retail industry and this challenge can be attributed to factors such as limited career progression, high turnover rates, perception of low pay, need for available flexibility, and seasonal fluctuations in demand.

Instead of constantly leaving those positions unfilled, retail businesses should consider using the UK Scale-Up Visa. Since retail businesses are considered growing UK business (i.e. scale-up companies), this visa type allows skilled foreign nationals to work for them for a while.

The uniqueness of this visa lies in its flexibility as it allows the skilled foreign worker to change jobs, become self-employed, or leave their sponsored employer without needing further sponsorship from the original company.

If a retail business needs a skilled worker for more than six months, will the UK Scale-Up Visa still be the best option for them? This article will explain the pros and cons of a UK Scale-Up Visa and why retail businesses should consider it as an option for hiring staff.

Key Takeaways

●     Only businesses that have shown consistent and significant growth in a period of three years and have experienced 20% annual increase in either employee count (after having ten employees initially) or turnover that can get licence from the UK Home Office to employ UK Scale-Up Visa skilled workers.

●     With a job offer (from a recognised ‘scale-up’ business in the UK), a salary threshold of £36,300 annually, proof of English proficiency, and a ‘Certificate of Sponsorship’ from their employer, a skilled worker can be qualified for a UK Scale-Up Visa.

●     Beside the key feature of providing flexibility in the job market, this visa type does not need updating and offers a pathway to long term residency in the UK through Indefinite Leave to Remain (ILR).

Other beneficial features will be discussed in this article.

●     The factors that differentiate a Scale-Up Visa from a Skilled Worker Visa are the employment status after the initial period, the length of the visa, and the salary requirement.

Why Retail Companies Should Consider the Scale-Up Visa in 2025

As opposed to 2021/2022 statistics, where over 2.7 million people were employed, recent figures show that retail employment has dropped by 5%.

The reasons for this drop have been attributed to Brexit, low wages, changing demographics, the low footfall in city centres and shopping centres, and the increasing number of vacant stores that are in direct competition with the hospitality sector for jobs.

Hence, if the workers that retail businesses need are not available in the country, then business owners should consider hiring international staff. Hence, should retail businesses use the UK Scale-Up Visa for hiring in 2025?

Generally, retail businesses should hire international staff if they wish to have access to a wider talent pool, fill missing skill gaps, and have diverse people with skill sets and perspectives in their organisation.

Specifically, an international staff with a UK Scale-Up visa saves the employer money because they get to pay lower sponsorship fees. Also, the employer is usually exempted from the Immigration Skills Charge.

Continuously, the duty to comply with the Home Office sponsorship licence lasts only 6 months.

How Retail Businesses Can Benefit From the UK Scale-Up Visa

While skilled workers can enjoy the benefits of a UK Scale-Up Visa, retail businesses also enjoy certain benefits from employing these skilled workers.

Employing skilled workers with Scale-Up Visa helps them to fill roles that require specific skills or experience. Examples of such roles include multilingual customer service, e-commerce management, visual merchandising, etc.

This visa type also allows employers to attract global talent for management and leadership positions. It further makes the recruitment process faster and more streamlined than other visa routes.

The concerns that retail businesses face that make them seek to hire international talent include cost, administrative burden, employee retention, skills shortages, cybersecurity threats, etc.

What Retail Employers Need to Know About the UK Scale-Up Visa in 2025

Before hiring skilled workers, here are what retail employers need to know about the UK Scale-Up Visa in 2025:

●     The business must be approved by the Home Office.

●     The retail business has to provide a certificate of sponsorship (CoS) to the potential employee.

●     The employee must prove that they are proficient in English language (speaking and writing).

●     TB certificate.

●     Required age is from 18 years and above.

●     There has to be an offer from the business owner to the employee.

●     The job role must be among the eligible occupations.

●     The job must meet the minimum salary requirements of £36,300.

How Retail Businesses Can Leverage the UK Scale-Up Visa for Staff Recruitment

The UK Scale-Up Visa has both pros and cons that it holds for both retail businesses and employees.

The advantages are that the employees can easily switch roles without needing a new visa, the worker can apply for ILR after five years of continuous residence, and the worker can bring over his/her family members as dependents.

For the retail business, the application fees and sponsorship costs cost lesser than the Skilled Worker Visa.

Meanwhile, the disadvantages are that the employer never knows how long the employee will stay after the first six months elapses. Employers also have the duty to comply with the sponsor licence requirements which is not always easy.

For the workers, they need to prove their qualifications and experience to meet the visa’s skill level requirements.

Regardless of the above mentioned pros and cons, businesses can still leverage the UK Scale-Up Visa for staff recruitment.

Step-by-Step Guide For Retail Businesses Hiring Through the Scale-Up Visa

For retail businesses to legally hire a skilled worker through the scale-up visa, they need to have their business endorsed by an approved body, offer a job to a foreign national who meets the visa requirements and issue a CoS to the candidate.

Conclusion

Hiring workers through Scale-Up Visa is beneficial for retail businesses that wish to solve their staffing shortages and attract international talent.

Organisations that are not sure about how to go through the process can consult or hire immigration experts to help them out.