Later today, the Chancellor will release his Autumn Statement which will aim to stabilise the UK economy and reduce inflation – it is anticipated that around £30bn in spending cuts and £24bn in tax rises will be announced.
Ahead of the Statement, ClickUp, has released brand new research which reveals the real impact of the looming recession and economic uncertainty the UK’s workforce is currently facing.
The research found that 26 percent (7.7m million) of people are planning to change jobs as a direct result of the crisis.
With 68 percent of these people looking to do so within the next 6 months, the UK is set to face unprecedented upheaval as people look for better-paying jobs.
The data reveals how British workers are being forced into this position, with 88 percent (26.1 million people) unsure whether their current job can sustain them through the cost-of-living crisis.
Significantly, 42 percent (12.5m) say it has put a lot of pressure on them to earn more. The top drivers for this sentiment were the rising cost of energy (31%), the rising cost of everyday living goods (30%), and wages not rising fast enough (16%).
The recent sharp drop in the value of the pound was also cited by 4 percent of people.
In addition, the data offers an insight into how businesses can proactively manage the issue of workers leaving for higher-paid jobs, establishing a link between those who are best protected from the cost-of-living crisis and those working in highly productive organisations.
Ultimately, the more productive businesses are, the more profitable they will be, and the more they can pay their staff.
Natasha Wallace, International People Operations Partner, at ClickUp said:
“The cost-of-living crisis will significantly impact employee turnover as people will look for higher paying jobs to try and offset the higher costs they are faced with. Retaining and attracting top talent is now an even higher priority for businesses across the country. Offering competitive pay is increasingly more important, however in order to do this businesses need to be as efficient and profitable as possible, which is driven by improved productivity. A more productive workplace also enables employers to further invest in and empower employees; for example, financial and wellbeing workshops, enhanced benefits, and career development, which can all help manage the concerns around the cost-of-living crisis.
Britain braces for worker turnover and worker shortages
Britain is set for high levels of worker turnover and potential worker shortages. ClickUp’s research reveals that some people are looking for higher paying jobs within their same industry or skillset, while others are looking to leave their field entirely to start a new career
Businesses in the IT and hospitality industries are set to feel the most disruption in general – each with 39 percent of their workforces saying they plan to change jobs.
Those with employees working as drivers (36%), in business services (33%) and construction (33%) will also be significantly affected.
Of these people, 44 percent of IT professionals are looking for roles in the same field, indicating a relatively high degree of staff turnover within the industry, compared to only 20 percent of hospitality workers.
However, this still leaves a significant number of IT professionals wanting to leave their role or field entirely, with 16 percent of those looking for higher-paid jobs seeking managerial and other senior positions and 11 percent considering becoming finance professionals.
Yet this pales in comparison to hospitality, which could see an exodus of employees moving away from the industry, with healthcare and social work (20%) and administrative roles (17%) their most likely destinations.
Productivity provides a solution
A major difference between those who are looking for better-paid jobs as a result of the cost-of-living crisis, and those who are not, is whether they work in a highly productive organisation. Of those who believe their employer ranks high in productivity, 57 percent say they are not looking for a higher paid job, which is 11 percent above the national average of 46 percent.
This drops to 39 percent (7% below the national average) for those who believe their employer ranks low in productivity.
In addition, 19 percent of those who believe their employer ranks high in productivity said they were completely confident that their current job can sustain them through the cost-of-living crisis. This is 7 percent above the national average of 12 percent. In comparison, only 8 percent of people who believe their employer ranks low in productivity are completely confident (4% below the national average).
Organisations with high productivity levels are better positioned to provide more competitive salaries to their staff, as their workforce provides comparatively high levels of output for the hours they put in. This makes a business more efficient and profitable as a result, and could be the key to attracting and retaining talent in the current climate.
Natasha Wallace continues: “The cost-of-living crisis is significantly reshaping the UK workforce and what candidates are looking for in new roles. People are reevaluating their current jobs on a massive scale, however businesses can proactively manage this. There is a clear link between high productivity and higher wages; by directly addressing and improving their own productivity, businesses can ultimately increase employee satisfaction and begin to pass the financial benefits on to their employees should they wish to do so.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
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