Tag: great resignation

1.3m UK SMEs have lost talent in 2022 because employees feel undervalued.

Twenty-four percent of UK SMEs have lost undervalued talent in the past 4-6 months, according to research commissioned by digital gifting company Prezzee.

The research also revealed that in organisations of more than 250 staff, 4 in 10 HR Directors have changed or are looking at different ways to reward staff – regardless of where their staff work.

Even with the Great Resignation, 35% of SMEs admitted that employees get the same rewards, regardless of location, job title, or other contributing factors. This, despite differing hobbies and passions. Furthermore, the budget for rewarding staff isn’t used to its full potential as 66% said their team didn’t attend events or rewards weren’t received how they would like.

When looking at why so many employees don’t engage with reward schemes and events, the research showed that 80% of HR Directors don’t understand their employees’ interests well enough.

The data also showed that there is too much pressure solely on the shoulders of HR Directors to get this right. For example, only 16% of SMEs have created teams of employees at multiple levels to decide the rewards and incentive strategy to increase happiness and staff retention.

James Malia, UK MD of Prezzee, said: “When times are tough, as they undoubtedly have been over the past two years, reward and incentive strategies are more important than ever. They’re a clear way to showcase how highly a company values its staff and as our data reveals, when not done well it directly results in people leaving for greener pastures.

“It’s therefore important that businesses are doing everything they can to support employees during the cost of living crisis. It doesn’t need to be a huge change in strategy either, the trick is to offer personalised rewards and incentives regularly – rather than making people wait a year for bonuses. It’s then that people will realise quite how highly businesses value them, especially when these incentives come at a time when money is tight, as it is for many during the current cost of living crisis.

“Times of financial difficulties can be hard to open-up about, especially within the place of work, so HR and line managers need to be one step ahead of their employees.

Indeed, the future of loyalty incentives should revolve around personalised, thoughtful rewards that highlight how much businesses care about their employees. Those companies which change their ways now will find themselves in a much stronger position come 2023.”

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A recession should not have any impact on staff turnover or retention

Predictions of a spiralling economic crisis will be another blow to businesses’ hiring headway but according to Steven Jagger, founder of tech recruitment firm Maxwell Bond business leaders should “revamp” their culture in order to weather the looming recession and avoid a Great Resignation 2.0.

The arrival of the so-called Great Resignation this year hit the headlines and saw UK businesses’ staff turnover and attrition rates hitting record levels. But experts are forecasting another blow once the impacts of inflation, the cost-of-living crisis, and the recession come into full force.

Steven Jagger, Founder, Maxwell Bond commented: “An economic crisis shouldn’t leave you clutching at straws and panicking. Staff will always be loyal – if you give them reason to be. Employees don’t leave workplaces and colleagues – they leave bad leadership, toxic culture, or a lack of vision for your team and business. Ask yourself, when was the last time you looked at these and revamped your vision?”

Jagger was quoted saying that while a recession would be another blow to businesses when they’re already down, it shouldn’t have any impact on staff turnover or retention if your business’s culture is right.

The founder of the award-winning tech and digital recruiter whose clients include the BBC, Reckitt Benckiser, Barclays, TalkTalk, and Mastercard, believes talent retention “is a skill in itself” and that many leaders “fail to see the importance of it in times of adversity”.

Jagger continued: “By industry standards, we should have experienced higher attrition rates than we have to get to these numbers, but we founded the company on the values of prioritising people, especially our staff, above anything else.

“A recent Deloitte report shows only 56 per cent of employees think their company’s leadership cares about their wellbeing – contrasted to 91 per cent of leadership believing their employees think they care. This disconnect is a big player in staff turnover.

“Companies need to go the extra mile to attract and retain candidates if they want to hit their hiring aspirations, stay ahead of their competitors, and weather the incoming storm. In times of adversity, it’s understandable that survival instincts are to slash headcount and starve spending – but this short-term logic leaves firms bare once the turmoil is over.

With that being said, he understands employers can be afraid of the “T word” (turnover), wrongly perceiving that it reflects their leadership and values: “Some level of turnover, whether facing economic hardship or not, is part of any healthy organisation. If you train people up, they may leave to progress further and take on a higher role or they may be poached by another company for their skills and talents.

“Either of these scenarios means that as their employer, you did your job properly. Remember: running water never goes stale.”

But Jagger says to take heed: “Retaining someone who doesn’t fit the company values can easily make the whole infrastructure fail,” he says. “Put a bad apple amongst good apples, the good ones will eventually turn bad and leave.”

Maxwell Bond has grown by 4,000 per cent since its inception five years ago, despite weathering numerous economic crises, and has seen a further 45 per cent increase just in the last six months. The firm took no financial support from the government during the pandemic.

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UK vacancies up 48% year-on-year

The locations with the highest rates of jobseekers have been revealed in a new study. London, Manchester, Birmingham, and towns on London’s commuter belt topped the list. The study results indicate that as offices reopen and daily commuting re-commence, workers are searching for roles closer to home.

The research by job search engine Adzuna also revealed that every advertised London-based job ad received an average of 65 views during April – indicative of high job churn in the capital city and centre of the Great Resignation in the UK.

Second on the list of jobseeker activity was Manchester, with over nine views for every job listing. Birmingham was third at over seven views per ad.

Edinburgh, Scotland, and Cardiff, Wales, also featured on this list, with view rates of 2.5 and 1.83, respectively. Northern Ireland, however, didn’t feature on the list – possibly showing that the Great Resignation has not reached them yet.

Further findings for April 2022 included:

  • Advertised vacancies in the UK were up 48% year-on-year, to 1,298,581.
  • Over half a million vacancies were on offer across London and surrounding areas.
  • The average advertised salary in London and surrounding commutable areas was £45,515.
  • The average advertised UK salary was £36,587 in April. This is 3% lower than 12 months ago (£37,898).
  • The number of advertised vacancies has exceeded the number of job seekers for the first time.

The study also revealed a growing interest in jobs within commuter towns. Slough and Heathrow experienced the fourth-highest jobseeker activity level. While traditionally, workers in these locations would have commuted into London, they are now looking for jobs closer to home. Job ads, on average, received over four views per posting in these areas.

There was also high jobseeker demand in other commuter towns around London:

  • Chelmsford (2.47)
  • Reading (2.45)
  • Guildford and Aldershot (2.07)
  • Luton (1.88)
  • Crawley (1.87)

The commuter belt towns accounted for a fifth of the list of top 30 UK towns and cities with the highest jobseeker activity.

Looking across the UK, England had the highest activity from jobseekers, with an average of 3.6 views per job ad. Rates were much lower across the rest of the UK with Scotland at 0.26, Wales at 0.11 and Northern Ireland at only 0.03.

Paul Lewis, Chief Customer Officer at Adzuna, comments: “London is at the core of the Great Resignation in the UK, but our data reveals the trend is spreading out fast. In particular, jobs in commuter towns are seeing high interest levels driven by a renewed interest from Brits to spend more time at home. As offices have reopened and commutes have restarted, workers are looking for close to home options that will continue to give them the flexibility they got used to over the pandemic and various lockdowns, be that picking the kids up from school, or simply working flexible hours. The return-to-office is a huge driver of the current high movement between jobs, and companies offering fully remote options, or even much publicised ‘work from anywhere’ policies, are stealing a march on the competition and coming out on top.”

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Good management key to staff retention following the Great Resignation

New research from people analytics company, Visier, has revealed that 43% of UK employees admit to having quit their jobs due to bad management. A further 53% are currently seeking new roles due to their current manager.

In the study of 2,100 workers, 85% agree that good management is key to their happiness at work. Four in ten said they stayed in jobs longer than they planned because they had good relationships with their managers.

The majority of employees surveyed believe that flexible working is beneficial for both workers (74%) and businesses (69%). But while staff enjoy flexible hours and remote work,  it is clear that lack of face-time has been damaging for employee-manager relationships. The main contributors to this are:

  • Lack of face-to-face meetings (51%)
  • Increased working from home (44%)
  • An over-reliance on emails (44%)

Only 48% of workers are comfortable discussing their personal lives with their managers, indicating that leaders are struggling to build strong relationships with their teams.

Daniel Mason, VP EMEA of Visier, commented: “The old cliché – people don’t leave jobs, they leave managers – rings true, and the pandemic has made it harder for leaders to develop personal relationships with employees.”

“This isn’t a case of leaders becoming bad managers overnight, but instead, they are making difficult decisions with less information available to them.”

“The move to remote and hybrid working has starved managers of the opportunity to observe and meet with team members. Face-to-face interactions and other natural moments to develop a rapport are fewer, so managers should look to enhance their toolkit with data and insights to better understand and anticipate employee needs.”

When asked to identify the most valuable traits of a good manager, the most popular responses were as follows:

  • Treating people well (47%)
  • Listening to workers (47%)
  • Showing respect to all members of staff (47%)

On the other hand, the attributes of a bad manager were:

  • Failure to listen (49%)
  • Being unapproachable (47%)
  • Treating other members of staff differently (43%)
  • Shouting at the team (42%)

The most important factors for happiness in the workplace were:

  • Enjoying their work (45%)
  • Good pay (39%)
  • Good colleagues (35%)

Further data revealed that:

Sixty-two percent of the respondents felt that they currently had a good manager, and 45% believed that they could do the job better themselves. This group was questioned as to how they would improve, and their responses were:

  • 53% said they understood the concerns of other employees
  • 46% would treat all members of staff with equal respect
  • 36% would make an effort to get to know the people they manage better

Mason continues: “Businesses have spent the past few decades using data and other innovations to improve customer relationships and increase revenues. Many organisations are yet to harness these methods to better understand their most important asset – employees.”

“Every organisation already has a wealth of people data scattered throughout. Modern tools and analytics can find and organise this data to generate people insights to help you better understand and manage talent. When these insights are combined with other types of data from across the organisation, the result can drive more impactful business outcomes and unlock the next wave of growth and success.”

With employers struggling to fill vacancies and retain key talent following the Great Resignation, it’s clear that good management is essential to staff retention.

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Employers must adapt to hybrid working to stave off loss of talent

An employee benefits survey conducted by London- and Machester-based tech recruitment firm Burns Sheehan, PixelMax, has revealed that only 4% of employees want to return to the office full time, 82% of employees prefer a hybrid model while 59% rate work-from-home flexibility as the number one choice in employee benefits. Following these findings, PixelMax, a British tech company believes that the virtual workplace is the solution to stemming the supposed “Great Resignation”.

They say that survey results show that if employers don’t empower their employees and adapt to rapidly changing working landscapes, they will lose their existing talent and fail to attract new talent.

The Great Resignation continues to make headline news since record numbers of staff are reported to either leave, walk out of their jobs voluntarily, or opt to work part time as they re-evaluate their work/life balance following the turmoil of the pandemic.

Other results to come out of the employee benefits survey found that 25% of those polled wanted a learning and development budget, 22% a clearly defined career path, 19% favouring an annual bonus, 17% wanting childcare flexibility and least important, 12% wanting share options.

During the pandemic, employees were just expected to adapt to a new regime of working fully remotely, with employers not aware of the consequences and underlying issues that would affect their employees. Many were suffering from Zoom and Teams fatigue, isolation, burnout, disengagement with their office workplace and a lack of social interaction with colleagues. This in itself brought to the surface many issues of wider mental health aspects and well-being, with many employers not understanding how this was impacting on their workforce. Many employees complained of not being able to detach themselves from their work and home life and feeling that they were not able to switch off, while others missed the office culture. The culmination of these issues resulted in the Big Resignation.

Rob Hilton CEO and Co-Founder of PixelMax, commented: “In order for business and industry to retain the best talent, they need to rethink the workplace environment. It needs to reflect a modern hybrid of the office and remote working from any location but interconnected within a platform that is engaging to all employees and makes them feel connected to their work colleagues, whether that be in the physical sense in the office or from their remote location.”

Employers need to radically rethink how to manage staff both in an office environment and remotely. Throughout the pandemic, employers were slow to adapt the workplace environment and to understand the wider issues their employees were facing in remote working environments. If employers don’t act quickly, they will get left behind because hybrid working is expected by employees.

Burns Sheehan Co-Founder, Jon Sheehan, also weighed in: “The tech hiring market has been the busiest Burns Sheehan have ever seen. I’ve never seen anything like this in the market before; most candidates will have four to five job opportunities and firm job offers on the go within 24 hours. This isn’t even about bigger salaries; that’s just a side perk. Employees are much more focussed on their work-life balance and wider aspirations in the working environment.

“This is very much an employees’ market, driven by employees calling the shots. Many are opting for a virtual workplace model, where they have the option to work from home and the office of their choosing, but also still to remain connected to the office environment even whilst working remotely. If employers don’t embrace this new model of working, then the ones who have adapted quickly to change will have the commercial advantage of hiring and retaining the best talent.”

 

 

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Half of workforce looking to reskill

In the latest survey from CV-Library, it’s been revealed that ‘The Great Resignation’ is set to continue with more than two thirds of the UK professional workforce saying they’ll look for a new role in 2022.

More than half of the workforce (57.6%) is planning to reskill or retrain next year with belief that it will make them more employable.  Other factors driving the reskilling are a desire for a more meaningful career, better long-term job security and being unable to find a suitable job with their current skills.

The top five reasons for moving on in 2022, according to the CV-Library survey were:

  1. 1%: want/need a career change
  2. 3%: higher salary
  3. 7%: the uncertainty of the pandemic delayed an inevitable decision
  4. 9%: more flexible working opportunities
  5. 2%: burnout

Lee Biggins, CEO and founder of CV-Library commented: “Employers can take action to prevent increased staff turnover. Offering top salaries is the obvious choice but investing in training and upskilling, offering remote working opportunities, and building strong internal teams, look to be the smartest moves businesses can take in 2022.”

Ken Brotherston, Managing Director at TALiNT Partners doesn’t necessarily agree. He weighed in: “Whilst I might quibble about the percentage of people claiming they will look for a new job, I do agree that there are a range of underlying challenges for employers which need to be addressed and that there is no single solution.”

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