The past few months have posed significant challenges for employers and staff, who are now facing pressures that were largely uncommon just a few years ago.
Growing a workforce has become increasingly difficult with recruitment hurdles, post-Budget tax pressures in the UK, technological advancements, legislative changes and the need to adapt to new ways of working .
The latest research by Hays, drawing on responses from over 10,000 employers and professionals, highlights critical changes that businesses need to address to maintain a satisfied and productive workforce in 2025.
Careers: Workers are experiencing what has been coined ‘Great Dissatisfaction’. Nearly half of workers (48 per cent) say they’ve experienced a lack of career progression opportunities within their organisation, up from 32 per cent in 2023. This stagnation is causing employees to feel stuck, demotivated, and unable to advance their careers either within or outside their current roles. It’s a real risk for employers – as soon as workers feel more confident to move jobs, employers are likely to see resignations.
Employers realise its time to address dissatisfaction within the workforce before it spirals. They are focusing on creating clear career paths as staff need to see their future direction, even if promotions and pay rises aren’t on the horizon at present. Staff are looking for opportunities to learn and to progress which boosts morale and productivity.
AI and Future Employment: AI advancement are making workers nervous, according to Hays research 41 per cent are worried about losing their jobs. Yet, in reality only 12 per cent of employers think AI will replace roles in their organisation. There’s a clear disparity in how staff and employers view the impact of AI.
To alleviate this, employers are starting to tap into the strong interest in upskilling. Nearly three-quarters of professionals want to upskill in AI, which would give employers a chance to build AI expertise within their teams and empower the staff.
While there are other key areas to focus on, such as, pay transparency and skill strategies these critical areas are vital for growth. By prioritising career development, flexible work arrangements and AI upskilling, employer will have a resilient and motivated workforce.
Hybrid work is still relevant: Despite the never-ending debate hybrid working remains popular. According to research, 43 per cent of workers are currently working in a hybrid way, compared to 41 per cent who are in the office full-time.
London remains the most popular location for hybrid work., with over half (57 per cent) of professionals working in a hybrid way and 29 per cent working fully in the office.
Although there are nuances across professions, one knows that offering flexibility through hybrid work can support employee wellbeing and attracts and retains top talent. Plus, over half (51 per cent) of workers polled last year said that they wouldn’t accept a job without hybrid working.
By embracing flexible working, businesses can foster a more inclusive and adaptable work environment that meets the diverse needs of their workforce. However, after Covid gradually became a thing of the past – having said that, apparently, it has not been totally eliminated. But UK companies are beginning to favour more in-office working patterns.
A number of firms are making the switch from two days a week to three in the office. The Big Four banks have told the staff that its new hybrid working policy would require them to spend at least three days a week with clients or in the office.
Other companies have begun to order their staff to return to in-office work five days a week, hoping a more in-person collaboration, ultimately aiding in a much-needed productivity boost. A Centre for Cities report suggested that home-working might be part of the explanation for a shortfall in productivity, particularly in London.
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