The UK economy has proved more resilient than initially thought in September, with business activity continuing to grow solidly. According to the Bank of England’s chief economist, many economic business commentators underestimated the strength of the rebound. What does that mean for jobs though? Some businesses are still cutting jobs, albeit at the slowest pace since March.
However, recruiting top talent and niche skills beyond COVID-19 is potentially going to be even tougher than it was before. The world of work has changed forever.
According to recent research, at least half of the UK’s workforce is planning a job change once COVID-19 has passed. This is a seismic shift.
This is being driven by a desire for flexible working arrangements and a better work/life balance.
The coronavirus crisis forced tens of thousands of businesses to adopt remote working overnight. Many of these employees are now looking to continue with flexible working post-COVID-19, indeed, even ignoring continued lockdowns, many firms were finding it hard to get their workers back into the office.
At least three-quarters of employees have said that continued flexible working would have a positive impact on their morale when lockdown restrictions ease.
On top of the home working challenge, many employees are now looking to switch jobs, due to a perceived lack of employee benefits. Almost unbelievably, 50% of businesses currently offer no tangible employee benefits to their staff. Income protection is the most sought-after benefit, followed by health insurance.
The COVID-19 crisis has been devastating for the job market and will continue to be so, it will be several months before the full extent of the economic effects will be known.
As firms try to find their feet in this new normal, they must recognise that loyal hardworking employees need to be at the heart of their plans if they are to survive and hopefully thrive as the economy starts to grow once again.
Given that so many UK employees are revaluating their working lives and already considering seeking new employment, employers will have to adapt quickly and be prepared to embrace significant change if they are to ensure that their workforce doesn’t disappear over the horizon.
Employers who want to achieve increased productivity and improved morale among their staff must embrace the new ways of working. Providing a better work-life balance to employees and finding new and innovative ways of incentivising staff. Failure to do so will result in many businesses being left behind and they will be unable to retain key staff or attract more discerning new employees to join them as new vacancies are created.