Recession has changed employment landscape

The recession has dramatically altered the UK workplace landscape, according to a new survey of key workplace trends.

The research from the CBI and recruitment experts Harvey Nash has shown that employers and staff are working together to protect businesses and jobs by increasing flexible working and freezing pay and recruitment.

According to the research, almost two thirds of employers have made or are considering making significant changes to the way they organise their workforce and working patterns. Overall, the survey found that more flexible working hours, extended shut-downs, extra holiday and cuts in paid overtime have all become more common.

The UK-wide survey, questioned 704 respondents who employ a total of 3 million people. The research revealed that 45% of employers have increased flexible working among staff to reduce hours and meet employee requests for a work-life balance, with a further 24% considering or intending to make increases

The recession and rising unemployment have also taken a severe toll on pay packets, with over half of employers (55%) indicating that they were going to freeze pay during the next pay round, while 39% expect to make a modest increase. Meanwhile, nearly two thirds of employers have frozen recruitment either across the whole organisation (30%) or in parts of it (31%). This news will likely cause great concern for those already struggling to meet loan and mortgage repayments.

John Cridland, CBI Deputy Director-General, said:

“This has been a particularly bruising recession, but one of its most positive and striking aspects has been the commitment of many businesses and their staff to work together to try to trim costs and save jobs. The UK’s flexible labour market has proved a huge asset during these testing times, and flexible working changes have enabled employers and staff to create leeway on working hours.”

“While pay and recruitment freezes should disappear as the economy recovers, the spirit of flexibility and the willingness of many staff to engage positively with employers on these issues will hopefully be a more permanent benefit of the UK economy.”

Albert Ellis, CEO of Harvey Nash, said:

“The recession has led to fundamental changes in the way employers recruit, motivate and develop employees, and UK plc must act fast to keep highly skilled talent in the UK labour market. Otherwise, we run the risk of conceding out competitive edge to other countries.”

“Without a more proactive approach to training, accommodating and retaining talent, businesses risk missing out on the next generation of skills needed to compete. We have a wealth of knowledge, experience and skills in the UK that must be nurtured and developed, even in troubled times, for the future of the British economy.”