Category: Employers

74% feel unsupported as wages aren’t keeping up with increasing cost of living  

In CV- Library’s survey of over 4,000 workers by website, it was revealed that 89% of employees either don’t know whether they will receive a pay increase or have already been told that they won’t receive one.

With increasing pressure on budgets and wages not matching the increasing cost of living, the study found that only 11% of employees know that they will get a pay rise. Eighty-one percent believe that the topic is being ignored, and 8% already know that they will not receive a pay increase.

As a result, almost 74% feel unsupported and believe that their employers are unsympathetic regarding the rising pressure on household budgets.

Lee Biggins, CEO and founder of CV-Library comments: “There is no doubt that rising costs and global uncertainty are beginning to impact the job market. Whilst businesses need to balance their own increased costs with the salary needs and expectations of their staff, it’s vital that they take action and at least open lines of communication with their employees.”

“With unfilled vacancies still high it will be tempting for professionals to look elsewhere if they don’t have any clarity and continue to feel unsupported. We’re beginning to see evidence of this with number of new CV’s registered on CV- Library last month up 13.4% year on year.”

Share this article on social media

Companies offer or re-commit to championing parental leave

A resource from McKinsey and Company entitled Women in the Workplace 2021 has shared data suggesting that women were even more burned out as of late 2021 than they were in 2020. The research also revealed that burnout was ramping up faster among women than in men with childcare-related worker attrition remaining a human resource issue.

Around a third of women surveyed stated that they “have considered downshifting their career or leaving the workforce this year,” compared to the one-fourth of women who told McKinsey the same early on in the pandemic.

In a market that is talent-strapped, employers have had to be very creative when conjuring up ways to better retain parents. Many companies have offered or re-committed to championing parental leave so that workers aren’t forced to choose between caring for their families and nurturing their careers. Labor experts also have called attention to the nuance involved in such considerations, including regard for LGBTQ+ parents who need leave and further attention paid to mothers who are black and their higher rates of burnout.

According to the survey, some companies have taken a step further by offering stipends for in-home childcare or daycare. Others still have implemented “returnships” for caregivers — primarily, women or birthing parents — to become reacquainted with the workforce after a years-long childcare hiatus.

But flexibility in their workflow and scheduling remains one easily implemented solution that managers and HR teams can offer parents today.

McKinsey commented in its 2021 report: “More than three-quarters of senior HR leaders say that allowing employees to work flexible hours is one of the most effective things they’ve done to improve employee well-being, and there are clear signs it’s working. Employees with more flexibility to take time off and step away from work are much less likely to be burned out, and very few employees are concerned that requesting flexible work arrangements has affected their opportunity to advance.”

The one caveat? Ensure that employees are given clear boundaries along with their flexibility, to thwart an “always-on” approach to work. It’s important to not only offer flexibility but also to support staff wellbeing in order to avoid burnout.

Share this article on social media

Talent shortages continue to hinder the market

According to the Institute for Supply Management’s “Services ISM Report on Business” activity in the US services economy expanded in April, but growth decelerated from March.

The report revealed that the Services PMI index fell to a reading of 57.1% in April from 58.3% in March. Readings above 50% indicate expansion.

According to Anthony Nieves, Chair of the ISM’s Services Business Survey Committee, a restricted labor pool is what impacted the index along with a noted slowing of new orders

Anthony Nieves made comment: “Business activity remains strong; however, high inflation, capacity constraints and logistical challenges are impediments, and the Russia-Ukraine war continues to affect material costs, most notably of fuel and chemicals.”

Data for the report is based on a survey of purchasing and supply executives across the US. A few firms surveyed for the report commented on labor concerns.

“Talent shortages continue to make it difficult to get work done at companies across many industry sectors,” said one firm. “Light industrial labor is in high demand, but supply gaps still exist. Wages continue to rise in nearly all labor categories, contributing to the rise in prices of goods and services.”

Another respondent commented: “Inflation, supply chain issues and access to qualified workers continue to be issues. There are still lingering effects from the pandemic, although those seem to be subsiding. The future impacts of the war in Ukraine are unclear.”

Share this article on social media

Paid sick leave tops the list

HR and payroll software provider CIPHR recently polled 1001 people about which benefits, perks, and incentives are the most important for employees. According to the new research, 67% of employees said that paid sick leave matters most to them. Next on the list were flexible working hours at 57% and pension contribution matching at 46%.

Also important was mental health and wellbeing support, at 40%. This comes as no surprise after the pandemic and the ever-rising cost of living.

The order of importance depends largely on the individual being surveyed. For example, pension contribution matching is higher on the priority list than flexible working hours for those over 45 (59% vs. 45%). However, the opposite applies to respondents under 45 (57% vs. 42%).

Gender also played a role, where female respondents valued childcare assistance over a market value salary (27% vs. 21%). On the other hand, more men placed more importance on a performance bonus over a market-value salary (45% vs. 34%).

The top 15 benefits and perks were as follows:

  • Paid sick leave (67%)
  • Flexible working hours (57%)
  • Pension contribution matching (46%)
  • Mental health and wellbeing support (40%)
  • Performance bonus (39%)
  • Four-day work week on full-time pay (37%)
  • Extra holiday allowance (32%)
  • Employee discounts scheme (30%)
  • Flexible working location (27%)
  • Market-value salary (26%)
  • Childcare assistance (23%)
  • Health insurance or cash-back plans (21%)
  • Extra paid day off for birthdays (21%)
  • Extended paid parental leave (20%)
  • Death benefits (18%)
  • Unlimited paid leave (18%)

In a separate survey of 332 UK-based businesses, CIPHR found that employers only rated six of the 24 benefits in the same order as employees.

The top 10 benefits that employers think matter most to employees are:

  • Mental health and wellbeing support
  • Flexible working hours
  • Paid sick leave
  • Flexible working location
  • Performance bonus
  • Four-day work week on full-time pay
  • Extra holiday allowance
  • Health insurance or cash-back plans
  • Childcare assistance
  • Pension contribution matching
  • Market-value salary

Matt Russell, Chief Commercial Officer at CIPHR, commented: “It is surprising to see such a disconnect between the benefits that employees value and what employers think – especially given how important good rewards and benefits packages are to attracting and retaining top talent and for supporting a great employee experience.”

“There is no one model or benefits scheme that works for every organisation. Employers need to spend time listening to their own employees to understand their needs and priorities and what benefits they want and value. For example, things like employee discounts, childcare assistance, and health or dental insurance, can go a long way to helping employees through the current cost-of-living crisis. And, what was once more important, pre-2020, has now been superseded by other benefits that reflect the growing shift to remote working and the desire for more flexibility at work.

“It won’t always be possible to deliver on every specific benefits request but organisations that can act on employee feedback, wherever possible, and provide agile and flexible benefits schemes are more likely to have a happier and engaged workforce.”

The significant differences between what employees actually value and what employers think their employees will value, indicate that organisations may be missing valuable opportunities to improve employee experience and engagement.

Share this article on social media

New research reveals which jobs are at risk

According to new research, 37% of employees believe that their current job is threatened by automation and digital transformation. Based on survey results of over 1,000 UK workers, HR software provider CIPHR has released a list of the occupations that are the most and least likely to be replaced by technology or machines.

In the survey, respondents were asked to rate the likelihood that their occupation could become automated. Thirty-three percent of women and 43% of men believe that it is very likely that automation could replace their jobs. Further findings revealed that 54% of respondents aged 18 – 24 believe that their jobs may not exist in the future compared to 27% of those over 45.

To measure how closely people’s perceptions were to the likelihood of automation making people’s jobs redundant, CIPHR compared the survey results to a report Office for National Statistics (ONS). Across all the occupations included in the study, the findings showed a notable difference between workers’ perceptions and ONS researchers’ predictions.

A significant number of people vastly underestimated or overestimated the probability of their work becoming automated, suggesting a misconception about which jobs and associated tasks are susceptible to automation.

According to the research, 60% or more of jobs such as kitchen and catering assistants, cleaners, and sales and retail assistants are at risk of automation. Still, many people in these roles believe that the likelihood of this happening is relatively low.

Of the jobs considered to have a low risk of automation (30% or less), such as nursing, IT directors, and accounting, many people doing these jobs fear that their roles are at risk.

The research showed that, on average, people in more labour-intensive, non-desk based roles are more likely to underestimate the impact of automation (69%) than desk-based workers (49%).

There were similar results findings when looking at salaries. Many more people earning over £40,000 a year are more likely to overestimate the likelihood of automation taking over their jobs compared to employees earning under £31,285 (76% vs 29%).

The occupations with the smallest difference between perception and probability included:

  • Human resource managers and directors (29% think their job is likely to be automated)
  • IT user support technicians (27%)
  • Programmers and software development professionals (27%)
  • Restaurant and catering managers and proprietors (38%)
  • Bookkeepers, payroll managers and wages clerks (55%)

Claire Williams, Chief People Officer at CIPHR, comments: “Almost every industry has been transformed in some way by technology. And while digitalisation and automation have brought many positive benefits to organisations, such as improved efficiencies and productivity, streamlined processes, and reduced costs and timesaving, there is still much uncertainty about how it will impact people’s jobs in the long term.

“The challenge is to get the right balance of technology and people. Employees need to feel valued, that their roles have been enhanced by technology rather displaced by it. People often underestimate the human skills that they bring to their roles – the many parts of their jobs that can’t easily be replaced by algorithms and AI. The workplace and job roles will continue to evolve with technology, so employers need to consider the best ways to upskill and reskill their existing employees to keep up with these changes – making sure that they have the capacity, skills and capabilities to do their jobs and progress in their careers.”

Based on the survey results, many employees are unprepared for the changes ahead in their working lives. But even if occupations can become fully automated, it doesn’t mean they will. Instead, more than likely, roles will evolve, and new roles will be created.

 

 

Share this article on social media

New survey looks at popular issues facing the future of work

According to Emburse’s new YouGov survey of 1,000 British office workers, it was found that 68% of British office workers would consider working from the office full-time if their commute was fully paid for. However, 27% of respondents wouldn’t consider coming back into the office full time, even if costs were covered by their employers.

The survey revealed that two-thirds agreed that Wednesday was the best day to work from the office if given a choice. On the other hand, Friday was the least popular office day at only 10%.

The top incentive to go back to the office was a four-day workweek (59%). Other findings related to incentives included:

  • Fully-paid commute: 52%
  • More paid holidays: 51%
  • Employer-paid lunch in the office: 30%
  • Reimbursement for lunch expenses: 24%
  • Paid childcare on workdays: 14%

The survey also found that most are not concerned about proximity bias, but 24% worry about career prospects.

Kenny Eon, GM and SVP EMEA at Emburse, commented: “The impacts of COVID and the Great Resignation mean that companies need to be more employee-centric in their approach, and humanising the workplace has never been more important. Part of this means ensuring team members get the best possible work environment. Whilst working remotely is certainly convenient for employees, there are clear benefits of having in-person interactions, as well as the cultural importance of bringing teams together. Data clearly shows that they are more productive than audio or video meetings, so there needs to be a balance between convenience and productivity. A relatively small investment from employers could have a significant impact in driving more in-office collaboration.”

“Given the sharp increase in the cost of living, businesses should consider how they can support staff by reducing the financial burden of attending the office in-person. Reimbursing travel and lunches can certainly help do this. It also doesn’t have to mean endless time on paperwork, as expense apps can make the process easy for both the employee and the finance team.”

With inflation reaching a 30-year-high of 7% and national insurance hikes, clearly, commute costs are deterring workers from returning to the office.

Employers will need to observe and respect their employees’ preferences to create a hybrid working arrangement to shape and maintain a productive workforce.

 

Share this article on social media

Best locations for digital nomad lifestyle revealed

According to Instant Offices, there are currently 35 million digital nomads globally and it is predicted that one billion people could live and work as digital nomads by 2035.

A digital nomad is a remote worker who travels and works simultaneously. They can work from anywhere, allowing them to spend anything from a few months to years traveling. According to research, 80% of digital nomads prefer to stay in one location for 3-9 months.

The research found that 51% of digital nomads are in digital marketing, computer science, and creative industries.

In a list of the top 80 locations ranked according to factors such as affordability, weather, and broadband speed, popular tourist cities such as London, Paris, and Venice are relatively low on the list. The top 10 digital nomad locations are:

  1. Lisbon, Portugal
  2. Bangkok, Thailand
  3. Thessaloniki, Greece
  4. Dallas, USA
  5. San Antonio, USA
  6. Seville, Spain
  7. Seoul, South Korea
  8. Sydney, Australia
  9. Athens, Greece
  10. Budapest, Hungary

This trend is increasing, fuelled by advances in technology, remote working, and workplace culture.

Share this article on social media

Employers are warned against ignoring value of wisdom and experience

A recent article by Andrea London has highlighted concern that the new world of remote working is resulting in increasing polarisation of the labour market in the UK and an increase in the “generational skills gap” and whether older workers can keep up with technical advances.

She mentions that even if people over the age of 55 don’t have the “skills of the future”, they do have valuable wisdom, experience, skills, and attributes that took years to develop and should not be ignored. These benefits influence all in the workplace, and she warns that companies may not realise the value of an age-diverse workplace until it is too late.

The writer goes on to warn of the likelihood of an increasing number of unfair dismissal incidents, such as the recent Williams -v- Lyons Holiday Parks [2022] case, where Mrs. Williams, a 60-year-old worker, was dismissed because she wasn’t receiving enough “likes” on social media.

According to London, a possible leveller is “proximity bias” – where those we see more often are looked upon more favourably. For example, in a hybrid working model, those in the office, such as more mature staff members, may be more likely to be presented with tasks as opposed to those working remotely. Unfortunately, as businesses adapt, proximity bias may disappear, and the benefits of this may be short-lived.

In her article, Andrea London, partner at Winckworth Sherwood, wrote: “When Mark Zuckerberg in 2007 (in)famously said to a room full of budding entrepreneurs that “young people are just smarter” – he maybe did not realise the damage his narrative would cause – that youth has become synonymous with technological skill and to be “old” is to be technically illiterate. This is a misguided belief – but unfortunately, in our increasingly technological workplaces, this is an increasingly held viewpoint.”

“Despite the legal protections; ageism and its legal counterpart; age discrimination remains challenging for employers. What is really needed is a change in attitude and perception – such that age is part of any diversity and inclusion programs – but this will take time. Employers who are increasing their technology or operating any hybrid workplace model need to be aware that whilst in theory the future looks bright, they wouldn’t be there save for the past and should remember how they got there and whom in their workforce, assisted with that progress.”

The older workforce are an untapped talent resource as reported on in TALiNT International. At a time when employers are strapped for experienced professionals, employers should look to the over 55s to plug skills gaps in their businesses.

 

 

 

Share this article on social media

Study finds that young investment professionals have highest levels of trust

According to the CFA Institute’s 2022 Enhancing Investors’ Trust Study, levels of trust in the financial services industry have reached an all-time high in 2022. The study measures trust levels in financial services among retail and institutional investors in 15 markets, as well as the factors that drive trust.

Some of the findings included:

  • Levels of trust increased from 65% to 86% across all generations of institutional investors in 2022.
  • Millennials, especially 25-34-year-olds, have the highest trust (72%) in financial services.
  • Technology plays an important role in enhancing trust by allowing advisers and managers to offer transparency, simplify access to markets and products, and align product offerings with clients’ needs.
  • Over 70% of millennials prefer technology platforms and tools over human help with their investments strategy.
  • Only 30% of respondents over the age of 65 prefer technology platforms.
  • 58% of retail investors with advisers are keen to try new investment products compared to 37% of investors without an adviser.
  • 56% of retail investors believe that access to technology platforms and tools to execute their investment strategies will be more important than access to human assistance in the next three years.
  • 92% of retail investors aged 25-34 trust digital nudges or push notifications from providers about new investment opportunities.
  • 80% of respondents trust the completeness and accuracy of information from retail apps.
  • 75% stated that retail tools and apps increased the frequency of trading.

Rebecca Fender, CFA, Head of Strategy & Governance for Research, Advocacy and Standards at CFA Institute, and lead author of the Trust Study, commented: “The highs we’re now seeing in investor trust are certainly cause for optimism, but the challenge is sustaining trust even during periods of volatility. Our ongoing examination of the dynamics required to build and maintain investor trust reveals what investors need from their advisors and managers through the highs and lows of market cycles. Technology, the alignment of values, and personal connections are all coming through as key determinants in a resilient trust dynamic.”

“The under-44s, and particularly millennials, are leading the way in their use of technology and in their desire for personalized products. This investor cohort has relatively high trust in robo-advice, digital apps, and digital nudges such as alerts about new investment opportunities, and they are using online platforms to execute their investment strategies. They are also eager to use investment products that allow them to invest in line with their personal values, including sustainability and ESG preferences. Climate change and clean energy are the top ESG priorities for retail investors, while institutions are focusing on data protection and privacy, and sustainable supply chain management.”

With the first generation of digital natives now a part of the financial services market, it seems that technology is fast becoming the default way to execute investment strategies.

Share this article on social media

43% set to quit jobs for improved working conditions

EY has released their 2022 Work Reimagined Survey, showing that 43% of employees are likely to quit their jobs, motivated by higher salaries, better career opportunities, and increased flexibility.

The survey canvassed over 1,500 business leaders and 17,000 employees across 22 countries and 26 industry sectors and found that employees have significant influence amid a shrinking labour market and rising inflation.

According to the survey, 35% of employees say that their main motivation for quitting their jobs is a desire for higher pay. This is likely due to record inflation numbers in many countries. Twenty-five percent are looking for career growth, while 42% believe that pay increases will address high staff turnover. However, only 18% of employers agree with this statement.

Last year’s survey found that flexible working arrangements were the biggest driver in employee moves. However, with many companies now offering some flexibility, remote work is less of a factor, at 19%. Seventeen percent say they would leave for well-being programs.

When looking at age groups in the various countries, the survey found that 53% of Gen Z employees and millennials in the US are the most likely to quit their jobs this year. In addition, across all sectors, 60% of employees with technology and hardware jobs are eager to leave.

Despite an improved outlook on company culture, many employees are keen to job hunt. In contrast, employers are less confident about company culture. Similarly, while many employees feel that the new ways of working increased their productivity, employers’ confidence in productivity decreased from 77% to 57%.

In looking at growing skills and the talent gap, findings among employers are:

  • 58% agree that it is important to have a strategy that matches talent and skills to business needs.
  • 74% are prepared to hire employees from other countries and allow remote work if their skills are critical or scarce.
  • 21% believe that improving opportunities to build skills will help address turnover.

In respect of flexible working models, the survey shows that:

  • 22% of employer respondents want employees back in the office five days a week.
  • Reluctance to work remotely among employees fell from 34% to 20%.
  • 80% of employees would like to work remotely at least two days per week.

The survey also examines whether new ways of working boost culture and productivity. It reveals that 32% of “optimist” employers have improved culture and productivity by ensuring that their leaders understand company issues, external practices, and strategies. Other drivers of success are hybrid work, investing in on-site amenities, enhancing workplace technology, and empowering employees.

Liz Fealy, EY Global People Advisory Services Deputy Leader and Workforce Advisory Leader, commented: “This latest survey shows that employees around the world are feeling empowered to leave jobs if their expectations are not met. As employers have increasingly provided flexible work approaches, higher pay is now the biggest motivation for changing jobs, particularly given rising inflation and available unfilled roles.”

Roselyn Feinsod, EY Work Reimagined Leader, commented: “We are seeing a top third of companies successfully navigating these divergent positions on pay, career opportunities and flexibility. They have moved from ‘resistance’ to ‘renaissance’ and that’s a win-win for their companies and their workforce. Organizations have to work to retain their employees, instill trust and provide a package that takes into account total pay, career path and flexibility to balance market concerns and risks.”

Share this article on social media