Category: Employees

According to research by Barclays Bank “UK small and medium-sized businesses (SMEs) could hire as many as 3.5m people in the next three months”.

According to the Barclays Business Barometer, nearly three-in-five (57 per cent) reported revenue growth last quarter, marking the highest level in 18 months.

It says, many are turning to innovative “technology investments to increase productivity (45 per cent), as well as future-proof their company (44 per cent)”.

At the same time the ONS (Office for National Statistics) has reported that core inflation had dropped to 6.8% in July, down from 7% the previous month and 7.3% in May.

Staffing Industry Analysts, which researches recruitment trends, has also reported “Employer hiring confidence has grown in almost every sector across the UK, rising by 8% since last quarter to 29%, according to the latest ManpowerGroup Employment Outlook Survey for Q3.

This was particularly true in the communications sector but also in financials and real estate, it said.

Manpower’s real time vacancy data showed “vacancies are down on the year but up month on month throughout 2023.

Are you feeling more confident that the worst may be over after the last couple of difficult years?

Let us know what you think.

If you want to talk to someone about your future growth strategy message, call or email K2.

The World Health Organisation defines burnout as “a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed”.

It has become increasingly prevalent as the lines between work and home have become more blurred and the UK’s economic problems have made life harder for businesses.

In July 2023 the Guardian reported that “More than half of workers (55%) reported that work had become more intense and demanding” according to TUC research.

And in May statistics from the ONS (Office for National Statistics) revealed a rise in the numbers of workers not seeking work for health reasons. It blamed the uplift on “conditions related to mental health, particularly in the young”.

Burnout saps the energy, increases stress and sufferers lose the ability and energy to effectively meet the demands of their jobs.

As a business owner why should you do something to help employees to avoid burnout?

Well as the above statistics indicate it could make recruitment more difficult.

Burnout in employees also reduces productivity. 

You can use a wellbeing plan to identify what good wellbeing looks like for you, as well as what it looks like when things aren’t so good. You can also use it to encourage employees to assess their own wellbeing.

You could also introduce stress risk assessments for identifying a risk, then explore ways of removing or reducing the risk.

Most importantly, communicating these with employees and engaging them in working together on ways to minimise stress as well as looking out for each other’s mental wellbeing could help to minimise the chances of burnout before they can take a firm hold.

The development of monitoring tools to keep track of remote workers began during the Covid lockdowns.

However, as hybrid and remote working have continued the increased sophistication and use of such software has continued.

But in essence it is a number crunching exercise and relying on algorithms and statistics alone can easily mislead managers.

The statistics should be understood in the context of the role, and can lead to unrealistic activity goals. They should be used with caution. 

If they are not, then they can alienate the most dedicated of workers.

Surveillance is not only about logging. It has the potential for it to be used against workers.

Calculating productivity by such things as the numbers of clicks and keystrokes on the computer without reference to quality is counterproductive.

It makes employees fearful and worried about being watched.

Excessive monitoring can be counterproductive for companies too: it is associated with potentially lower productivity and higher staff turnover rates.

Essentially what it boils down to is trust and a degree of understanding about how people manage their time.

Employees need to feel respected, valued and trusted if you want them to be at their productive best.

It can be a challenge to recruit and retain the best staff, especially at the moment, but can offering perks really make a difference?

Online recruiters Glassdoor argues that many workers will tolerate less pay if other perks and benefits fill in the gap.

Among the top perks it lists are free bicycle repairs on site, a day off for Christmas shopping,  four free weeks of holiday for four years work, free on-site dentistry and free day-care for new parents.

But although they may be appreciated how important are they?

It is argued that a benefits package can Improve workplace morale, reduce stress and associated staff absences, boost productivity, help set the tone for your company’s internal values and ethos and can also both reduce staff turnover by helping to retain existing staff and make recruiting top talent easier.

But to be truly effective perks and benefits must offer something employees will actually value and which will help them.

In this context perhaps arguably free day-care is one of the most appreciated.

However, the work perks most appreciated by employees vary with age.

According to Glassdoor, again, younger workers (aged 18-24) particularly prioritise retailer and restaurant discounts, free coffee and tea, help with housing, additional holiday days for long service, free taxis if you need to stay in the office late, clothing allowance, phone allowance/work phone and free/on-site gym and classes among other things.

As they get older, their needs change and are likely to be reflected in their choices of most valued perks so for 35-45 year-olds the choices are likely to prioritise flexible working hours, enhanced pension contribution, unlimited holiday days, free coffee and tea, additional holiday days for long service, private health care, dental care and free eye tests.

By the time they are over 55 their highest priorities include flexible working hours, enhanced pension contribution, private health care and additional holiday days for long service.

The point about offering perks and benefits to employees is that they can not only demonstrate that the employer values its people and understands the pressures on them.

This can only help with both recruitment and retention.

Infections have been climbing again thanks to new variants and reportedly cases have risen by 29% in the UK in the last week.

The NHS is also struggling with large caseloads at a time of year when it usually has a respite.

Yet reportedly one in four people who have Covid are going to work.

While it is understandable that businesses facing a perfect storm of rising costs, supply chain issues and recruitment difficulties may be reluctant to let people take time off work, there is still much they can do to protect people.

Firstly, after two years of survival during lockdowns by using remote working, businesses can still allow people with Covid to return to remote working.

While regulations regarding Covid may have been removed, businesses should still be ensuring their workplaces are as safe as possible.

This means ensuring there is plenty of fresh air circulating, providing hand sanitisation stations and asking people to wear masks to protect themselves and others, especially in customer-facing roles.

Given the current difficulties in recruiting staff it makes sense for a business to demonstrate that it has employees’ wellbeing at heart.

Our Board Briefing is still worth a read.

The numbers of employee-owned businesses have more than doubled in a year, according to the Employee Ownership Association (EOA).

There are now more than 1,000 Employee Owned businesses in the UK, it says, compared with 500 in 2020.

As trading conditions become increasingly difficult thanks to a combination of factors, including the war in Ukraine, post-Covid supply chain disruption and the difficulty in recruiting skilled people, employers have turned to EOTs (Employee Owned Trusts) as a way of both spreading the risks in business and in keeping and rewarding staff for loyalty during the pandemic.

There are also tax benefits from turning a business into an EOT.

But there are a number of things to consider in structuring and formalising an EOT and it is important to understand exactly what a business is getting into.

The questions, according to accountants Price Bailey include:

• What is the commercial purpose of an EOT?
• Is it suitable for my business?
• Who will be the controlling party?
• Who will manage the EOT?
• What is the market value of the company and what are the value of shares to be sold?
• How will the share purchase be funded? And if the company is going to fund it, over how many years?

Businesses that have successfully converted to EOTs reportedly say that it improves social responsibility and keeps staff informed and engaged. It can also improve productivity.

If you are struggling with managing your business might an EOT be the way forward?

Could taking on apprentices be a better business solution to the staffing crisis during the current economic uncertainty?

It is understandable that following the easing of all the Covid pandemic restrictions businesses should be keen to go all-out for growth and therefore recruiting qualified staff.

But recruitment itself is currently a problem and in the face of all the other pressures including supply chain issues, rising energy prices and of course the Ukraine war, perhaps a slower, steadier approach would be more sensible.

Consolidating the current business and planning ahead would ease some of the pressure and this is where taking on apprentices may be a better way forward.

For businesses that are below the threshold of a £3 million payroll there is no apprenticeship levy and there is financial help for both taking on and training apprentices. There is a £1000 incentive payment for taking on an apprentice.

Then, depending on the size of your business, you pay just 5% towards the cost of training and assessing an apprentice and the government will pay the rest up to the funding band maximum.

If you employ fewer than 50 employees, the government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged 16 to 18 or 19 to 24 with an education, health and care plan provided by their local authority or has been in the care of their local authority.

You must pay them the national minimum wage for their age group but if they are under 25 and on an approved Government apprenticeship scheme you don’t pay NI.

The FSB has a lot of useful information on its website to help smaller employer considering the apprenticeship route.

Thinking longer term could be a good way of protecting your business and preparing it for future growth.

Restrictions may have been lifted but Covid levels in the community are still high and this can cause problems for both employer and their employees.

If someone contracts Covid the advice still is to self-isolate for at least five days.

However, this could result in employees losing three days of the statutory sick pay available from the Government, leaving them with just two days sick pay if they abide by the rules. SSP in the UK is just £96.35 per week.

To make matters worse, lateral flow tests are no longer free, so there is also a risk that someone with mild symptoms that are similar to a cold may not test themselves at all, carrying on working and risking spread of the illness to other colleagues.

In a previous post we advised employers to complete a health and safety risk assessment that includes the risk from COVID-19, provide adequate ventilation, clean more often and to ask people with COVID-19 or any of the main COVID-19 symptoms to stay away and enable them to work remotely.

But is there more employers can do to protect their businesses and their workforce in this situation?

Here are a couple of suggestions:

Firstly, employers can protect their workforce and help individuals to isolate if necessary by buying stocks of Lateral Flow Tests and making them available to employees.

Secondly, if they have a workplace sickness scheme, it may be worth introducing sickness pay from day one in the specific case of a Covid infection.

The benefits are obvious albeit you may have to pay a little to reap them.  

It will encourage employees to do the right thing while protecting their income.

It will protect the rest of the workforce and ensure minimal disruption to production and at the same time will send out a message to employees that you do value them and care about their welfare.

Given the difficulties businesses are having in recruiting and retaining staff, it will help you to keep loyal employees.