Less than half (40%) of UK workers feel the New Deal for Working People will positively impact them, while 44% believe it will have no impact
Many (36% on average) don’t understand their employers’ existing position on various aspects of the deal
Continued fall in productivity highlights a bigger issue to tackle in order to boost living standards and bolster the UK’s economy
Employees are broadly lukewarm about the New Deal for Working People, recently published in the King’s Speech as the Employment Rights Bill, but many are unaware of their current employer’s stance and offering. That’s according to the latest Robert Half Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr).
According to the data, less than half (40%) of the UK workforce anticipates that the New Deal for Working People will have a positive impact on their daily lives, while almost half (44%) are uncertain as to the impact of the proposals. Just 9% said it would have a negative impact on their working lives. It should also be noted that the younger generation is more optimistic about the potential impact of the New Deal, with 51% of those aged 18-34 indicating that it will have a positive effect. However, the data suggests that there is a lack of clarity around existing access to many of the measures. According to the data, over a third (36% on average) of UK workers are unsure if aspects of the New Deal were already available to them. This suggests that employers could see a limited impact of the potentially costly changes unless they better communicate with staff.
Skills and productivity remain of significant concern for the growth of the UK economy. The study revealed that labour productivity, measured by output per hour worked, fell by 0.3% on an annual basis in Q2 of this year. According to Robert Half, this suggests that skills are still a big problem for the UK. As a result, a thoughtful discussion with all parties – including businesses – is needed to ensure the UK aligns resources in the most effective way for all to keep pace with the global economy. As Matt Weston, Senior Managing Director UK & Ireland, at Robert Half explained, skills create an economy that will benefit workers and businesses, boosting productivity, wages and GDP in the longer term: “We welcome any changes that boost the wellbeing of the workforce, however it is interesting to note that such a large proportion of UK employees are largely lukewarm to the impact that the New Deal will have on their job. While we expect that younger workers are more likely to welcome change given that they will be employed for a longer period, the fact that so many are unclear as to what their employer currently offers suggests a level of mis-communication exists. “Nonetheless, there has to be a more mindful consideration that the proposed changes will have a cost and resource implication for businesses. And aside from a need for a gentle and staggered roll out of any changes, the skills agenda absolutely must be part of the conversation. Productivity and skills must be addressed to organically boost income alongside new means of protecting workers and safeguarding their employment rights. That includes ensuring a greater partnership with employers on the emerging Growth and Skills Levy too.”
Ends
In partnership with the Centre for Economics and Business Research, the quarterly Robert Half Jobs Confidence Index is the most authoritative report on the key socio-economic factors influencing confidence in the UK labour market. The Jobs Confidence Index (JCI) is made up of four equally weighted pillars, each measuring a factor which contributes to jobs confidence. These are:
1. Job security confidence
2. Pay confidence
3. Job search and progression confidence
4. Macroeconomic confidence
The JCI takes a positive or negative number, where numbers above zero signal that jobs confidence is higher than the long-term average, and numbers below zero show it is lower. The JCI can take any number, but it usually stands between -30 and 30, showing that confidence is close to a normal level when it is within this range.
Robert Half (NYSE: RHI) is the world’s first and largest specialised talent solutions and business consulting firm, connecting highly skilled job seekers with rewarding opportunities at great companies. We offer contract talent and permanent placement solutions in the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support, and we also provide executive search services. Robert Half is the parent company of Protiviti, a global consulting firm that delivers internal audit, risk, business and technology consulting solutions. In the past 12 months, Robert Half, including Protiviti, has been named one of the Fortune® Most Admired Companies™ and 100 Best Companies to Work For and a Forbes Best Employer for Diversity. Explore talent solutions, research and insights at www.roberthalf.com/gb/en.
