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Tag: ONS

Job-to-job moves at a record high of almost 1 million – driven by resignations

Economic activity decreases again

According to the latest Labour Force Survey (LFS) from the ONS, its estimated that for the period of January to March 2022 there was a decrease in the unemployment rate, while the employment and inactivity rates increased.

Even though the market is contracting, the employment rate increased by 0.1 percentage points on the quarter to 75.7%, however this is still below pre-pandemic levels. According to figures, the increase in the employment rate was driven by the movement of people aged 16 to 64 years from unemployment to employment. However, there was also a record-high movement of people from economic inactivity into employment with total job-to-job moves also increasing to a record high of 994,000, driven by resignations rather than dismissals, during the January to March 2022 period – the Great Resignation continues…

The estimated number of payrolled employees for April 2022 shows a monthly increase, up 121,000 on the revised March 2022, to a record 29.5 million.

The unemployment rate for January to March 2022 decreased by 0.3 percentage points on the quarter to 3.7% and for the first time since records began, there are fewer unemployed people than job vacancies.

Tania Bowers, Global Public Policy Director at APSCo commented on the skills shortages: “The skills shortages in the UK are reaching concerning levels and this latest data shows the scale of the pressure on employers and the staffing sector as demand continues to outstrip supply. We’ve seen some encouraging signs from the Government, including the highly skilled immigration visa which was announced by the Chancellor earlier this year.

“However, we are concerned that the absence of the Employment Bill in the Queen’s Speech is an indication that the immediate skills crisis has slipped off the priority list for the Government. At a time when the job market is growing at unprecedented rates and competition is rife, more appropriate regulation is needed for the modern labour market.”

Economic activity 

The economic inactivity rate increased by 0.1 percentage points to 21.4% in January to March 2022 and this recent inactivity is believed to be driven by those aged 50 to 64 years.

The number of job vacancies in February to April 2022 rose to a new record of 1,295,000. However, the rate of growth in vacancies continued to slow down.

Kate Meadowcroft, Employment Partner at legal business, DWF, commented on the UK Labour Market figures regarding increased pay: “Undoubtedly the cost-of-living crisis and soaring inflation will have a knock on effect on the labour market.  ONS figures have previously shown that although wages have risen, once you consider inflation pay is actually falling. Employees will be seeking out the most attractive rewards packages in order to combat the financial repercussions of the turbulent economy.

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600,000 more inactive workers than pre-pandemic 

ONS stats show increase in economic inactivity

The latest figures from the ONS have been released and what stands out is that even though average pay rises for the first quarter are at an average of 4% (excluding bonuses), this appears well below inflation. However, in real terms (adjusted for inflation), growth in total pay was 0.4% and regular pay fell on the year at negative 1.0%. Strong bonus payments over the past six months have kept recent real total pay growth positive but employers may find it even harder to retain talent through salary increases alone as the cost-of-living crisis continues in the UK.

The latest Labour Force Survey (LFS) showed that for December 2021 to February 2022 the employment rate remains unchanged on the quarter, while the unemployment rate decreased. Over the same period, the economic inactivity rate has increased slightly which signals a slight dip in the economic rebound following the end of the pandemic with inactivity increasing by 0.2 percentage points to 21.4% from December to February 2022.

There was a noteworthy increase, albeit small, in the number of payrolled employees for March 2022 which is up 35,000 on the revised February 2022 to a record 29.6 million.

The report showed that once again, the number of job vacancies in January to March 2022 rose to a new record of 1,288,000, with the rate of growth in vacancies continuing to slow down.

Jon Keeble, employment partner at DWF commented on the latest report: “The latest ONS labour market figures demonstrate continued resilience in the labour market. The highlights for the period between December 2021 and February 2022 show a largely unchanged employment rate of 75.5%.

“With legal requirements largely removed across the UK and a shift over to personal responsibility we are very much in the phase of having to live with COVID-19. Although employers are now faced with a number of practical challenges as we enter this next chapter, the relaxation of restrictions should have a positive effect on the labour market.

“We are yet to see what impact the cost-of-living crisis will have on the labour market and whether the Chancellor’s Spring Statement and the rise in the National Minimum Wage will provide sufficient support.  Undoubtedly, employees who are struggling to cope financially will be seeking out those employers, which are able to provide the most attractive rewards package.”

James Reed, Chairman of Reed.co.uk, also commented: “The economy is facing a crunch point as businesses contend with serious challenges, from rapidly rising inflation to severe labour shortages. The jobs boom that began last year continues to be reflected in the ONS’s labour market statistics. With job postings on Reed.co.uk in March increasing 18% year-on-year and 14% month-on-month, this trend shows little sign of slowing. But with economic growth now as low as 0.1% and unemployment at historic lows, the jobs boom is in danger of becoming a jobs overload.”

“The difficulties businesses now face in hiring staff, are having a knock-on effect on supply chains, production output and the quality of goods and services. This is slowing the UK’s economic recovery from the pandemic.

“There are now 8.8 million people who are economically inactive in the UK, which is 600,000 more than at the start of the pandemic. This is a symptom of what I call ‘The Great Lie Down’, with many workers leaving the workforce altogether, some through long term sickness and others preferring early retirement or different lifestyle choices. If these workers are to be coaxed back, they will need convincing with attractive employment arrangements, higher wages and better conditions and benefits.

“Currently, less than 20% of these people who are economically inactive say they would like a regular, paid job. However, if it was possible to help this group find work then that would be of great benefit to both them and the economy.”

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Latest ONS report states increased employment rate

Number of self-employed workers remains low  

The latest Labour Force Survey (LFS) has been released and contains estimates for November 2021 to January 2022. The survey has shown a continued recovery in the labour market. The employment rate has increased on the quarter with a decrease in the unemployment rate. However, economic inactivity has increased slightly on the quarter.  

The UK employment rate increased by 0.1 percentage points on the quarter to 75.6%. Full-time employees drove the increase in the employment rate during the latest three-month period. While the number of part-time employees decreased strongly during the pandemic, there’s been a steady increase in these figures since April to June 2021.  

 

Self-employed data raises concerns around the UK’s skills stability 

The number of self-employed workers remains low following decreases through the coronavirus pandemic. 

Tania Bowers, Global Public Policy Director at the Association of Professional Staffing Companies (APSCo), raised concerns around the UK’s level of self-employed professionals and made comment: “The continued increase in vacancies being reported by the ONS is a trend we expect to see continue for some time yet and has arguably become the ‘norm’ for the staffing sector over the last year. However, the fact that the data does also show that the number of self-employed workers remains low following decreases during the pandemic is a real concern given the tight labour market we’re experiencing. With highly skilled resources scarce, the UK’s economic recovery rests on the ability to tap into flexible resources. However, since the roll out of Off-Payroll, Brexit and following significant challenges during the pandemic, the self-employed have increasingly been driven to alternative employment routes.” 

The ONS stated that its most timely estimate of payrolled employees has shown another monthly increase (up 275,000) in February 2022 to a record 29.7 million. 

The unemployment rate decreased by 0.2 percentage points on the quarter to 3.9%, while it’s reported that economic inactivity rate increased by 0.1 percentage points to 21.3%.  

During the pandemic, increases in economic inactivity compared with the previous three-month period were largely driven by those aged 16 to 24 years. However, interestingly the LFS has shown that the number of economically inactive people aged 16 to 24 years has been decreasing since early 2021, with those aged 50 to 64 years driving the recent increases in economic inactivity.   

According to the survey, the number of job vacancies in December 2021 to February 2022 rose to a new record of 1,318,000. This is an increase of 105,000 from last quarter, with half of the industry sectors showing record highs. However, the rate of growth in vacancies has continued to slow down. 

Average total pay increase (including bonuses) was 4.8% and growth in regular pay (excluding bonuses) was 3.8% among employees in November 2021 to January 2022, according to the ONS. In real terms, with figures adjusted for inflation, growth in total pay was 0.1% and regular pay fell on the year at negative 1.0%; strong bonus payments over the past 6 months have kept recent real total pay growth positive. Previous months’ strong growth rates were affected upwards by base and compositional effects. These initial temporary factors have worked their way out. However, ONS is now comparing the latest period with a period where certain sectors had increasing numbers of employees on furlough because of the winter 2020 to 2021 lockdown, so a small amount of base effect will be present for these sectors. This will not be to the degree we saw when comparing periods at the start of the coronavirus pandemic. 

 

Challenging period ahead 

Neil Carberry, Chief Executive of the Recruitment & Employment Confederation made comment: “Businesses across the country are doing what they can on pay, both for existing staff and to help them hire in a jobs market experiencing a severe labour shortage. But rising inflation both makes that effort hard, and reduces the gains workers feel from pay rises. In real terms, average pay has fallen compared to last year. Now is not the right time to be increasing taxes on work for both companies and workers. Ahead of the spring statement, we’re urging the Chancellor to delay the upcoming rise in National Insurance – the UK’s biggest business tax, as well as an additional income tax for workers. 

“A key way to reduce the pressure on our economy and keep inflation down will be to focus on ensuring employment rates and hours worked recover to pre-pandemic levels. Inactivity is still rising, so firms and government need to work together to address this. Recruiters have a key role to play here, from helping government with activation schemes to supporting employers with new forms of job offer to tempt people back into work.” 

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ONS cites increased economic inactivity   

Payrolled employees reached a record 29.5 million  

According to the latest Labour Force Survey (LFS) published by the ONS, economic inactivity has increased by 0.1 percentage points to 21.2%.   

The increase in economic inactivity since the start of the pandemic was largely driven by those who are economically inactive because they are students or for “other” reasons, revealed the survey. In the latest three-month period however, those who are inactive because they are students continued to decrease, while the increase was driven by those who are inactive because of long-term sickness and “other” reasons.  

The UK employment rate, however increased by 0.1 percentage points on the quarter to 75.5%, while the number of self-employed workers remained low following similar decreases seen during the pandemic. The number of employees increased to another record high and job-to-job moves also reached record numbers in October to December 2021, driven by resignations.   

The survey revealed that the number of payrolled employees also increased monthly in January to a record of 29.5 million while unemployment decreased by 0.2 percentage points to 4.1%.   

Growth in average total pay (including bonuses) was 4.3% and growth in regular pay (excluding bonuses) was 3.7% among employees in October to December 2021. In real terms (adjusted for inflation), total and regular pay fell on the year at negative 0.1% for total pay and negative 0.8% for regular pay. Previous months’ strong growth rates were affected upwards by base and compositional effects. These temporary factors have largely worked their way out of the latest growth rates, however, a small amount of base effect for certain sectors may still be present.  

Kirstie Donnelly MBE, CEO of City & Guilds commented: “With just 4.1% of the population unemployed, we are now nearly back to pre-pandemic levels of unemployment, but we’re by no means back to normality. The labour pool has shrunk dramatically thanks to the double impact of Brexit and the pandemic on our non-indigenous workforce. And the number of open job vacancies continues to increase as businesses struggle to recruit the skilled talent they need – now standing at a record 1,298,400, according to the ONS.”    

Paul Modley, Director of Diversity, Equity & Inclusion at AMS also made comment: “We are seeing more and more talent acquisition leaders encouraging hiring managers to rethink their qualification requirements which can often inadvertently limit the intake pool. While there is often a temptation to use language such as ‘demonstrate superior skills’ in a job description, by making small changes to use inclusive wording such as ‘demonstrate competence in…’, employers are far less likely to put off some candidates from applying. By challenging the language used in job specifications, businesses can make an immediate impact on their ability to tap into a wider talent pool at the very beginning of the recruitment process.”  

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ONS cites decreased economic activity  

Growth in total pay increased by 4.3% 

According to the latest Labour Force Survey (LFS) published by the ONS, economic inactivity has increased by 0.1 percentage points to 21.2%.  

The increase in economic inactivity since the start of the pandemic was largely driven by those who are economically inactive because they are students or for “other” reasons, revealed the survey. In the latest three-month period however, those who are inactive because they are students continued to decrease, while the increase was driven by those who are inactive because of long-term sickness and “other” reasons. 

The UK employment rate, however increased by 0.1 percentage points on the quarter to 75.5%, while the number of self-employed workers remained low following similar decreases seen during the pandemic. The number of employees increased to another record high and job-to-job moves also reached record numbers in October to December 2021, driven by resignations.   

Decrease in unemployment  

The survey revealed that the number of payrolled employees also increased monthly in January to a record of 29.5 million while unemployment decreased by 0.2 percentage points to 4.1%.  

Growth in average total pay (including bonuses) was 4.3% and growth in regular pay (excluding bonuses) was 3.7% among employees in October to December 2021. In real terms (adjusted for inflation), total and regular pay fell on the year at negative 0.1% for total pay and negative 0.8% for regular pay. Previous months’ strong growth rates were affected upwards by base and compositional effects. These temporary factors have largely worked their way out of the latest growth rates, however, a small amount of base effect for certain sectors may still be present. 

Kirstie Donnelly MBE, CEO of City & Guilds commented: “With just 4.1% of the population unemployed, we are now nearly back to pre-pandemic levels of unemployment, but we’re by no means back to normality. The labour pool has shrunk dramatically thanks to the double impact of Brexit and the pandemic on our non-indigenous workforce. And the number of open job vacancies continues to increase as businesses struggle to recruit the skilled talent they need – now standing at a record 1,298,400, according to the ONS.”  

Paul Modley, Director of Diversity, Equity & Inclusion at AMS also made comment: “We are seeing more and more talent acquisition leaders encouraging hiring managers to rethink their qualification requirements which can often inadvertently limit the intake pool. While there is often a temptation to use language such as ‘demonstrate superior skills’ in a job description, by making small changes to use inclusive wording such as ‘demonstrate competence in…’, employers are far less likely to put off some candidates from applying. By challenging the language used in job specifications, businesses can make an immediate impact on their ability to tap into a wider talent pool at the very beginning of the recruitment process.” 

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Job vacancies rise to pre-pandemic levels

But will Omicron undo gains made in the economy?  

According to the latest unemployment stats released by ONS, there were 29.4m employees in the UK. This is an increase of 257,000 on revised October 2021 figures and up 424,000 on pre-pandemic February 2020 figures.

However, ONS stated that redundancies made at the end of the furlough scheme could be included in the Real Time Information (RTI) data for a few more months. But responses to the business survey, stated that redundancy numbers are likely to be a small number of those employees still on furlough at the end of September.

The latest Labour Force Survey indicates that employment rose by 0.2 percentage points from August to October with the number of part-time workers decreasing dramatically during the pandemic.

Decreasing employment rates among young people (those aged 16 to 24 years) have been notable during the pandemic, with unemployment and economic inactivity rates increasing by more than for those aged 25 years and over. But according to the survey, there was an increase in the employment rate and a decrease in the unemployment rate to below pre-coronavirus rates.

Numbers of job vacancies continued to rise to a new record of 1,219m jobs – that is an astounding increase of 434,500 from pre-COVID figures of January to March of 2020.

Neil Carberry, Chief Executive of the Recruitment & Employment Confederation (REC), commented: “The issue of labour shortages is hugely challenging for employers right now, as vacancies continue to hit new highs and unemployment remains low. But the real elephant in the room is rising inactivity and a smaller UK workforce – people either not in the UK or not looking for work. Reflecting this, overall hours worked are still well below our pre-pandemic numbers. This is a huge challenge to business and government. New approaches to recruitment and workforce planning are needed – and genuine partnership between government and employers on skills, unemployment support and sensible immigration rules.

“We don’t know yet how the Omicron variant will affect the jobs market, but it is clear that supporting businesses to retain staff and maintain cashflow was a successful strategy in 2020, and we may need to dust off those plans again if we are headed for a longer period of restrictions.”

James Reed, chairman of Reed, also commented: “There’s been plenty of talk from doomsayers that the Omicron variant will plunge us back into economic despair, but the outlook appears much more optimistic now compared with the first COVID-19 wave we faced in March 2020.”

He continued: “While some may want you to think the omicron variant has tipped the battle against COVID-19 in the virus’s favour, the reality is that, according to our jobs data, there are better opportunities and better negotiations for workers to have with employers than ever before. It’s currently the best time in fifty years to look for a new job and I’d urge anyone thinking of a change in career to begin their search for a fresh start in the new year.”

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Employment and pay are rising, confirms ONS

Unemployment has decreased since the ending of COVID-19 restrictions but may rise again as furlough scheme ends

The latest labour market overview from the Office of National Statistics (ONS) for August reports that the number of payroll employees rose by 182,000 in July 2021, although this remains 201,000 below pre-pandemic levels.

Commenting on the survey, Bev White, CEO of tech recruiter Harvey Nash Group, said: “The ONS data shows the jobs market has well and truly bounced back. However, we’re also seeing persistent skills shortages holding businesses back. Two thirds of IT leaders say skills shortages are hampering them. The most acute shortages are in cyber security, Big Data/Analytics and – worryingly for the first time in the top three – DevOps, which is crucial to the fast development of systems and software.”

The REC’s latest Jobs Recovery Tracker reported that there were a total of 1.65 million active job adverts in the UK in the first week of August – the second highest weekly figure since December 2020. There were around 204,000 new job adverts posted in the same week, the fourth highest weekly figure since the start of the pandemic.

The massive uptick in job adverts since the relaxation of COVID-19 restrictions means that employment has increased while unemployment has decreased since the end of 2020. With an approximate 953,000 job vacancies listed from May to July 2021, a record high, vacancy estimates are set to continue to rise. However, as the end of the furlough scheme looms, it remains to be seen whether the decline in unemployment, as reported by ONS, will continue.

Commenting on the ONS figures, Simon Wingate, Managing Director of Reed.co.uk said: “Our data has shown a jobs boom since the initial lockdown restrictions were lifted in April and this continued into July with over 326,000 new jobs posts added – a 179% year-on-year increase. The key challenge for employers now is finding the staff to fill the roles. Increased wages – as witnessed by the ONS data – will go a long way, but people across the country may still be hesitant about changing careers.”

Inflated salaries

The ONS survey highlighted a marked increase in the average total pay (including bonuses) of 8.8% and regular pay (excluding bonuses) increased by 7.4% during April to June 2021. However, it must be noted that the annual growth of the average employee pay is being affected by temporary factors that have inflated headline growth – for example, where there has been a drop in the number of lower-earning employee jobs therefore increasing average earnings during the pandemic.

Matt Weston, UK Managing Director of global recruitment firm Robert Half, said: “The rise in pay rolled employment sits hand in hand with a sharp drop in those using the furlough scheme, indicating continued recovery in the UK jobs market. The increase in median monthly pay also falls in line with the shift towards a talent-driven recruitment market, where candidates have greater influence when agreeing terms with a new employer.”

Harvey Nash CEO Bev White added: “We’ve been seeing a significant uptick in salaries for key IT roles and this looks set to continue. Candidates and targets with the right experience have strong bargaining power, which they’re leveraging. We’ve seen especially pronounced rises for front-end developers and anyone working with data. This isn’t just confined to London and the South East – it’s happening across the country with London-style salaries being offered much more widely, along with flexible and remote working options. Tech talent is essential to an ever-wider number of businesses, but it’s costing them ever more too.”

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UK jobs market turns a corner as economy reopens

The UK looks set to avoid the mass unemployment predicted at the outset of the pandemic if the latest Office for National Statistics (ONS) figures are anything to go by.

While employment had generally been falling and unemployment rising since the onset of the crisis, the situation was reversed in the first quarter of this year, with the ONS describing the jobs market as showing “some early signs of recovery”.

The employment rate was up on the previous quarter, rising to 75.2%, while the unemployment rate fell over the same period to 4.8%.

HMRC figures were also indicative of a recovery under way, with the number of payrolled employees rising by 97,000 in April, marking the fifth consecutive monthly rise. However, it’s worth noting that this total is still 772,000 lower than the pre-Covid-19 level.

In response to the figures, Neil Carberry, Chief Executive of the Recruitment and Employment Confederation (REC), said: “Today’s figures show the labour market remained very resilient during the latest lockdown, and even show the beginnings of the recovery in hiring that business surveys are suggesting.

“The fact that the number of payrolled employees increased during January-March alongside the headline employment rate is also a positive sign. With the announcement of lockdown easing in February and restrictions starting to lift in March, business confidence has grown, and we can see that in the growing number of job vacancies – especially in sectors like hospitality.”

Employer optimism at eight-year high

This positive sentiment was backed up by the CIPD/Adecco Labour Market Outlook for spring 2021.

This survey of 1,000 employers found that optimism about hiring among employers had risen to the highest level for eight years.

The report also noted that employers across all three major sectors – private, voluntary and public – were all planning to add more jobs than they cut, and that the buoyancy even extended to hard-hit sectors such as hospitality and retail.

Only 12% of employers were planning redundancies in the next three months, taking this measure below the pre-pandemic level of 16% for the first time since the crisis began.

There was also good news for employees on pay, with basic pay expectations set to increase from 1% to 2% in the next 12 months.

However, Gerwyn Davies, Senior Labour Market Adviser at the CIPD, said employers needed to consider more than just pay when hiring.

“More jobs and improved pay prospects should give us all reason to cheer, but a solid jobs recovery must be focused on better jobs, not just more jobs,” he said. “To offset the emerging threat of recruitment difficulties, employers should be reviewing not just their recruitment practices, but also the quality of work they offer – such as employment conditions, the possibility of promotion, training opportunities and the right balance of flexibility and security. There’s more to good work than raising wages.”

Recruitment difficulties ahead?

This idea that employers will need to work hard to attract workers was something Pertemps chairperson Carmen Watson also picked up on as the company released the CBI/Pertemps Labour Market Update.

“There is still a reluctance from employees to seek new roles as they remain concerned over job security. Recruitment firms will play a key role in engaging and securing key talent for organisations,” she said.

Tania Bowers, Legal Counsel and Head of Public Policy at the Association of Professional Staffing Companies (APSCo), added that the government also had a role to play in helping the jobs market recover: “In order to continue on this positive trajectory, working practices and employment law need to be fit for the modern world. How businesses are run and how recruitment is managed is different in a remote working environment and it’s critical that the relevant authorities are providing the necessary support that organisations currently need.

“The recent delay to a return to in-person Right to Work checks is one move that APSCo has welcomed – though we are urging the Home Office to prioritise the adoption of technology to switch to digital checks.”

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Companies losing ‘corporate memory’ as older workers leave

While young people have been hit hardest by the pandemic on the employment front, the long-term impact might turn out to be greatest on those aged 50 and over.

A report released by the Office for National Statistics (ONS) last week found that those in the 50-plus age group had been more affected than those in the middle age groups and that many were worried about their future.

This group had the highest increase in redundancies in the three months ending in February this year and was also the most likely to be working fewer hours than normal during the period.

The long-term implications of the recent trend could have a profound impact, with the ONS report stating that, “older people who become unemployed are more likely to be at risk of long-term unemployment than younger people”.

Furlough end looms large

According to the ONS, more than a quarter of furloughed workers (1.3 million) are aged 50 and over and 30% of those people think there is at least a 50% chance they will lose their job when the scheme ends.

Indeed, outplacement specialist Renovo recently warned that while the current labour market appears relatively robust, the true impact of the pandemic will not be felt for another six to 12 months.

Rhys Moon, director at Renovo, said: “It’s impossible to tell how large our economic injury is, until we rip off the government’s furlough plaster.”

But while ripping off the plaster will undoubtedly impact older workers themselves, other experts have pointed out that it is companies too that lose out when experienced workers leave.

Sarah Loates, of Loates HR Consultancy, said: “We have seen a mass exodus of older workers, with companies haemorrhaging corporate memory, as employees leave with know-how gleaned over many years.

“Older workers are an untapped goldmine of talent, with a wealth of experience, life skills and wisdom.

“Employers should consider simple strategies ranging from targeted attraction campaigns and flexible roles to intergenerational learning, such as reverse mentoring, whereby more tech-savvy employees train older workers.”

Are employers missing a trick?

Indeed, Paula Gardner, Founder at Redundancy Recovery Hub, pointed out that tech skills can be learned, whereas the knowledge gained by many years of experience in a particular job often cannot.

She added that this was particularly relevant given the fact that many companies were planning on adopting hybrid working going forward. A Microsoft report in March predicted hybrid working was the next great disruption, revealing that 66% of business leaders were considering redesigning their office space for hybrid work.

“I would say that older employees are probably the ones best suited to a hybrid model of working. They no longer have small children and can get on with their work from home with the space and peace and quiet to perform well,” said Gardner.

“They have learned their craft so don’t need that ‘learning by osmosis’ that younger people often do. They can just get on with it. They also have years of business wisdom and people skills behind them. Companies just need to recognise this.”

Karen Watkins, Founder at Rowan Consulting, pointed out that while HR teams undoubtedly have a role to play in making sure older workers are not lost to businesses, the government should also be doing more.

“When you consider the huge amount of funding and focus that has gone into the younger generation in terms of the Kickstart and various apprenticeship schemes, there does appear to be a huge gap in initiatives that cater for this potentially forgotten generation,” she said.

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Return to office could spark mass resignation

One in four UK workers say they will resign from their job if flexible working policies are revoked, a new survey reveals.

As the government prepares to lift England’s lockdown, a study by HR software company Personio found that employers could face revolt if they insist on a return to a 9-to-5 office routine.

Over half of employees have seen a change in working hours as a result of the pandemic; 29% are working for longer, but 37% are working fewer hours.

Appino surveyed over 1,000 full-time UK employees and HR professionals on behalf of Personio to investigate the impact of Covid-19 on the UK workforce and to find out if companies are prepared for a long-term digital shift. And while 41% believe their employer is likely to permanently retain the flexible working hours introduced as a response to the pandemic, more than a third (37%) feel their company is avoiding implementing new hybrid working paradigms and is persisting with compulsory attendance.

However, only 12% of surveyed employees are dissatisfied with the way their employers have looked after them in these uncertain times.

Flexible working hours and mental health

Almost half of all UK employees (43%) are able to work from home, while a third (31%) also said they have been offered flexible working hours, and 22% were introduced to new digital tools to aid communication and organisation.

One in three (34%) have been offered equipment such as chairs and tables. A third (33%) indicated that they are being offered mental health support and a quarter (26%) say they are being provided with on-going coaching on the challenges of managing a work-life balance.

A shift to a hybrid working model

While 43% of UK employees say their employers have implemented hybrid working practices that are enabling them to work from anywhere, 32% are unsure if flexible working hours will become a permanent part of their company’s day-to-day operations.

“Covid-19 forced employers to introduce and trial new flexibilities to the daily work routine in an exceptionally short period of time,” said Ross Seychell, Chief People Officer at Personio. ”In most cases, it hasn’t had a negative impact on individual or company productivity. Employees across the world have now seen how flexible working could look in future, and quite rightly they will expect their company to have a plan for this.

“Now, businesses must work towards implementing the tooling and technology in the long-term to ensure they can continue to attract and retain the best talent in a hybrid world of work.”

Tech talent want to work from home

Following the release of ONS jobs data which found that UK Tech has created more than 100,000 jobs since the start of the pandemic, a new survey from Harvey Nash Tech has found that technology companies may need to dramatically scale back their office space, as staff want to mainly WFH post Covid-19. Preliminary data found that:

  • Over three quarters (79%) of tech workers (the equivalent of over 1 million people working in the sector) want to continue working the majority of the week (3-5 days) from home after the pandemic and 95% want to work 2-5 days a week from home. This compares with only 42% of tech professionals working 2-5 days a week from home prior to the pandemic.
  • ‘Work location and remote working’ have been identified for the first time as one of the top three most important factors when looking for a new job in tech, second only to pay. The top three are now – remuneration, work location and remote working, and a strong culture & strong leadership. Over a third (38%) of tech professionals also reported that homeworking during the pandemic has increased the distance they are prepared to live from the office by a little (12.59%) or significantly (25.44%).

With the equivalent of 1 million UK tech workers aiming to continue working the majority of the week from home after the pandemic, Harvey Nash believes that this will not only have a huge impact on tech office space and hubs, but it will also drive many more remote jobs particularly in areas such as cyber-security, data analysis, software engineering /development, and those with skills in AI and machine learning.

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