There is little evidence of improvement in the quality of management in the UK over the last decade – and it is one of the reasons behind the UK’s long-standing productivity weakness compared to the likes of the US and Germany. According to the CIPD report ‘Are UK organisations getting better at managing their people?’ while 65 percent of employees are generally satisfied with their line manager and largely trust them and value their honesty, only 33 percent say they trust their senior management. It found that management processes are not always applied consistently or fairly and this is one reason why there is a lack of trust in senior leadership. These are deep-rooted problems and the solutions are largely down to organisations, says the CIPD, which is urging the Government to consider ways in which it can raise awareness of the challenges and potential approaches to tackling them, not least in its capacity as an employer.

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The economic impact of unfilled job vacancies on the UK economy may be leading to a staggering annual cost of over £18bn. Research by job site Indeed, claims that falling unemployment and robust job creation is resulting in many businesses finding it a challenge to locate and secure the right employees. This inability to find and recruit the right hire for a role is impacting on both the business itself and the wider economy in two major ways. For the employer, failing to effectively resource a business slows both production and profits, while in the wider economy unearned wages reduce consumer spending power and contribution to economic growth. ‘Empty desks’ in the real estate sector are having the greatest impact on the UK economy, due to high levels of contributed economic value (the goods and services that could be produced if the position were filled).

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David Cameron has begun the week with dire warnings on the fragility of the global economy, but UK workers are (or were) feeling more optimistic. According to an annual report, there’s been a significant uplift in optimism, stability and dynamism, compared to the same time last year. The Workforce View 2014/15 by ADP, which measures the views and attitudes of more than 2,500 UK workers, suggests that the positive economic outlook reported so far in 2014/15 has filtered down to employees. The study shows that more than three quarters of workers (77%) now feel optimistic about their next 10 years at work, up from 64 per cent in 2013 and just 59 per cent in 2012. Over a quarter (26%) of respondents went further, saying they are ‘very optimistic’ about the years ahead – double the figure reported just one year ago (13%). Workers say they are more confident about job security (36 per cent), feel that career opportunities are growing again (35%) and sense the economy is improving, thereby benefiting their careers (32%). (more…)

There is little appetite among workers to switch employer, despite the growth in employment prospects in the UK. This is according to the CIPD quarterly Labour Market Outlook report which suggests that employment will again grow strongly in the final quarter of 2014 but wage growth is likely to remain subdued. The latest report shows that near-term employment expectations have risen to a seven year high, which can be partially attributed to fewer employers looking to make redundancies, as well as an expected continuation of the trend for many employers to be hiring new staff. The proportion of employers reporting hard-to-fill vacancies is broadly unchanged (44%) and two fifths of these are reported as ‘skill shortage’ vacancies. With over three-quarters (77%) of employees saying that they aren’t currently looking to change employers, there is a resultant reduction in churn amongst the existing workforce. This, combined with a growing number of EU immigrants and older people seeking work and an ongoing skills shortage, goes some way to explaining weak pay growth. (more…)