London, 28th August 2024 – UK organisations are facing a talent cliffedge as the outlook for the UK economy starts to brighten, with nearly half (49%) of employees saying they would feel more motivated to leave their jobs once the economy improves. That’s according to Workforce Pulse 2024, an annual study conducted by Europe’s leading HR software company for SMEs, Personio.
Lower interest rates signal economic improvement, hinting at the end of the “Big Stay,” according to research on UK workers. Over half (53%) of employees intend to job hunt within the next year, regardless of the economy. Alarmingly, 70% of these individuals are motivated by improving economic conditions.
Meanwhile, many businesses are aware that a wave of resignations may be on the horizon, but others may be set for a surprise. Almost 49% of employers expect higher churn in the next year, while 25% anticipate it will decrease or remain steady.
Lenke Taylor, Chief People Officer at Personio, said: “Persistent talent shortages mean hiring and keeping the best people is already a challenge for businesses today. And our Workforce Pulse report suggests that retention is about to become even tougher as economies improve. To effectively navigate these challenges, employers need to be proactive. Now is the time for organisations to look beyond talent strategies for the here and now, and think long term about how they can sustainably invest in employee experience, and ultimately their talent retention.”
Job fulfilment critical for employees
60% of employers worry about declining employee engagement over the past year, signaling a looming talent crisis.
The data suggests a lack of fulfilment at work could be triggering low engagement and a potential retention drop-off. Nearly half (47%) of employees said work is no longer a priority for them. Additionally, a third (33%) would accept lower salaries for a more engaging job.
Nearly 45% of employees feel dissatisfied and want to switch careers or industries.
Work-life balance a top priority
However, the research also highlights a clear path for organisations wishing to retain talent. 60% of employees prioritise work-life balance, just behind salary/bonus (65%). And almost half (47%) feel that work is not a major priority for them in life.
Tied to work-life balance, it’s clear that people prioritise a pleasant experience at work. Employees value low stress (45%) and a friendly culture (44%) more than career progression (32%) and impact (27%).
Lenke Taylor continued: “Organisations should recognise that employees’ priorities greatly impact their relationship with work. The best employers are listening to what is changing for their workforce and are taking meaningful steps to unlock employee engagement. This could be through workplace policies, holistic benefits packages or career and skills development programmes. Employers that work with their employees to drive greater engagement will be better placed to navigate the latest shifts in workplace attitudes and needs as talent and productivity race up the agenda once again.”
For further insights, expert commentary and detail on talent and engagement in UK and European businesses today, download Personio’s “Workforce Pulse 2024” here.
