Redundancies Predicted By 26% Of Employers
New research just published by Ayming UK as part of its 'UK HR Barometer 2023' has found that just over a quarter of employers (26%) anticipate that they may need to make redundancies during 2023.
In addition to the redundancies issue, the report also found the following:-
- 49% of respondents are looking to cut costs and overheads
- 37% of employers says that they will be reducing their recruitment activity
- 29% of the respondents indicated that they would be reducing contractual benefits
- 27% of employers stated that they would be freezing pay
The main reason why employers are having to contemplate redundancies is the economic fallout from the cost of living crisis
Other trends detected by the survey include:-
- 89% of employers report a fall in employee motivation over the last 3 years, an issue we recently highlighted in our article on 'quiet quitting' and 'resenteeism'. However, employee wellbeing remains a priority for employers
- 62% of respondents conveyed that they were in favour of remote working
- 64% of employers support a move to a 4 day working week
- 30% of respondents are planning to introduce various forms of artificial intelligence (AI) and automation in 2023, which will replace jobs and increase redundancies. Indeed, the increasing move towards AI /automation is one of the reasons why many employers support the move towards a 4 day working week, as it will enable employees to do the same amount of work in fewer hours
Commenting upon the findings in relation to redundancies, the Partner of People, Performance and Development, Scott Ward, states the the report "reflects a significant shift in the employee-employer relationship. Whereas 2022 saw employees in an unusual position of power as firms battled for talent, 2023 is seeing a reversal of this dynamic. This puts employers on a collision course with their staff. The job buoyancy of the last two years means employees expect more money and a better work-life balance. But the downturn in the job market makes it harder for those expectations to match up to the reality."
Ward adds that: "Artificial Intelligence is starting to have a tangible impact. Chat GPT has already been a force for disruption, but that will likely accelerate as businesses learn how to harness it. Although this might contribute to redundancies in some areas, it could equally improve work life, making tasks more efficient and allowing people to focus on more rewarding work.....The case for a four-day week was already strong, but AI could really seal the deal for workers and trigger a widespread transition to a shorter work week."
Staff Becoming More Reliant Upon Employers To Fund Essentials
New research just released by Perkbox has found that staff have becoming much more reliant upon supermarket related rewards issued by their employers to fund their grocery shopping.
Data from Tesco, Sainsbury's, and Asada revealed that in the year to February 2023, the use of these rewards increased by 27%, with 26% of employees confirming that they have been adversely impacted by the increase in food inflation, and with 22% struggling to pay bills. Indeed, the sheer scale of food inflation means that for 38% of workers, over a quarter of their household budgets are now spent on food
Commenting upon the findings, the CEO of Perkbox, Gautam Sahgal, states: "Our data clearly shows the impact of rising food prices, which are pushing employees to the limit and impacting their ability to cover their basic costs. This further emphasises how important the role is of employers in supporting their workforce through times of economic difficulty."
Sahgal adds: "There are many ways businesses can do this outside of obvious solutions such as salary increases, including a specialised rewards and benefits programme to celebrate great achievements, values and milestones.....Businesses that adapt to the needs of their workforce, particularly during economic uncertainty, will find they can beat the competition in the battle to attract and retain the best talent."
