December 20, 2017
CIPD predicts tighter labour market and continued poor productivity next year
There is little evidence that the pay squeeze will end soon, with only falling inflation likely to lead to meaningful wage increases next year. This is according to a CIPD analysis, which predicts that 2018 will see pay, productivity and migration top the agenda as the UK looks ahead to its exit from the European Union. It adds that the UK workforce could tighten, and with increased constraints on labour supply, 2018 could be the year that the UK finally runs out of people to fill jobs, despite unemployment levels being unlikely to see much change. There are also indications there will be no improvement in productivity, with continued stagnation in UK productivity, which will remain well below pre-crash levels. In the CIPD’s annual labour market predictions, Ian Brinkley, Acting Chief Economist, anticipates a flattening of employment growth and weak pay growth as the UK continues to struggle with its productivity problem.
Just over half (51 percent) of firms across the UK will grow their workforce in the year ahead, with confidence highest amongst small and mid-sized firms (58 percent) according to the latest CBI/Pertemps Network Group Employment Trends Survey. But the survey warns that delivering further jobs growth depends on businesses being confident they can remain competitive if they choose to base staff in the UK. Nearly two thirds (63 percent) currently believe that changes in the UK labour market will contribute to Britain becoming a less attractive place to invest and do business over the next five years – up from 50 percent last year and 25 percent in 2015. Skills gaps were the single most prominent worry facing firms, with nearly four in five (79 percent) respondents highlighting this as a worry – up from 64 percent in 2016. Access to overseas workers is a big contributor to this, with nearly half of respondents (49 percent) identifying uncertain access to labour supply – up from 35 percent in 2016 as a concern.
With 
It appears to have been a challenging year for HR professionals, as a new survey suggests nearly three quarters (72 percent) of participants in a recent survey feel slightly or significantly more over-stretched in their role compared to last year. Forty four percent believe the workforce does not have enough support to thrive, and a further 23 percent don’t feel confident that their organisations are doing enough to address this issue. Research from a survey of HR people conducted by Cascade HR found that 32 percent of HR managers have found employment legislation harder to navigate. However, a reassuring 61 percent of HR professionals now feel ‘somewhat prepared’ for GDPR, which has understandably taken up a lot of preparatory time and resource as 2017 has unfolded. In fact, only 15 percent of HR professionals surveyed feel significantly or slightly underprepared, which seems to contradict national statistics on a business-wide level.
Chilly offices mean that over half (57 percent) of office workers say they’d be more productive working from home when the weather gets colder. Their main reason is that too many workplaces (50 percent) do not handle weather complaints effectively. According to Office Genie’s survey of 1,105 British office workers, only 6 percent of employers encourage staff to work remotely in the colder weather. Bosses are also reluctant to let employees work flexibly instead of freeze, with only 16 percent of companies adopting flexible working patterns in the colder months. Even simple provisions such as supplying additional heaters are not in place in 70 percent of offices – failing to comply to the government’s Health and Safety Executive’s advice. Of the 1,105 office workers we surveyed, 50% said complaints about office temperatures aren’t dealt with effectively by management. And while HSE guidelines state workplaces shouldn’t dip below 16°C but when we asked workers their ideal office temperature, 20°C was the resounding answer.
December 19, 2017
We need to have an honest conversation about presenteeism
by Steve Brewer • Comment, Flexible working, Workplace design
More →