The British workforce is experiencing a noticeable shift. Even before the pandemic, the UK had been grappling with productivity problems. Now, the post-pandemic landscape has brought new challenges such as ‘burnout’, ‘quiet quitting’, and ‘Great Fatigue.’ This has led to questions about a motivation freefall in the workforce.
It’s not hard to understand why. People in the UK are grappling with a cost-of-living crisis, diminishing public services, and continued political and economic turbulence.
Adding to the complexity is the fact that employee/employer relations are currently at a turning point. While 2022 saw employees in a unique position of power as businesses competed for top talent, 2023 appears to be experiencing a reversal of this dynamic due to the recession and resulting cost-cutting measures.
The ripple effects of Covid-19 meant businesses had to introduce a wide range of measures to retain and attract much-needed staff as employees re-evaluated what was important to them, including work-life balance and better mental health. But now, within a matter of months, businesses are reviewing their post-pandemic arrangements and benefits.
This has created a growing mismatch between employees’ expectations and the realities catching up with them. Tension is bubbling to the surface and employers face a challenge in balancing what’s good for business with employee demands. For example, is remote working getting the best out of employees?
However, there is cause for optimism. The pandemic still sparked a seismic ideological shift whereby businesses now have to consider the wellbeing of staff and, at the same time, are more open to change, which could transform the world of work as we know it. After all, there is growing recognition that what is good for employees is good for business.
In Ayming’s second UK HR Barometer, we tap into motivation in the UK and the changing relationship between employees and employers as the UK tackles the prospect of a recession. As was the case with managing the impact of Covid-19, the responsibility to find solutions to employee motivation falls on HR teams. So how do employers rise to the challenge and keep their workforce motivated?
Some of the key findings from this edition of the UK HR Barometer include:
There is resilience in HR budgets: HR budgets have remained largely intact and are also set to rise next year. HR has historically been at risk of budget cuts during economic downturns, but this suggests that HR has retained the elevated status explored in last year’s report and HR teams continue to take on new responsibilities.
Current economic challenges starting to bite: However, it is not all good news. Nervousness around the economy means the number of organisations planning to increase budgets has dropped nine points. Additionally, budget rises need to be taken in the context of inflation, with 41 per cent of organisations expecting budget increases of 10 per cent or less.
There has been a drastic swing in hiring practices: Whereas the last few years have been an employee’s market with firms battling for talent, the pendulum has swung the other way. Recruitment is down seven points, slipping from joint-first to joint-fifth place, while retention is now the greater priority and up five points.
Organisations are focusing on internal improvements: With recruitment less of a priority, teams are prioritising training and wellbeing above all as companies take steps to retain and upskill their existing workforce.
Wellbeing is still high on the agenda and will likely stay there: While financial pressures might once have encouraged cuts to wellbeing, it remains a top priority, showing the pandemic has triggered a permanent shift and organisations now recognise the importance of a healthy workforce.
There has been a steady improvement of L&D platforms: Use of L&D platforms is remarkably consistent with last year, but with a slight uptick of two points on last year. However, the emphasis on training paired with HR departments assessing what is working well and what’s not means platforms are evolving fast.
There is a missing link in priorities which organisations need to align: Although wellbeing and training are ranked as top priorities, culture and engagement feature at the bottom, which indicates a misconception. Firms need to work on the culture and engagement to achieve wellbeing and training objectives.
Download your copy of Ayming’s second HR Barometer today to dive deeper into these and other insights from your peers.
The post The HR Landscape: Economic challenges starting to bite British workforce appeared first on Ayming UK.
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