June 7, 2017
Firms remain optimistic despite political uncertainty, Brexit and automation 0
Britain’s start-up businesses are more optimistic about the future than those in the US, Europe and Asia, despite the uncertainties caused by Brexit, according to research by EY. According to the company’s Growth Barometer, half of UK businesses less than five years old expected to grow by more than 11 per cent this year. Almost a quarter were forecasting growth of more than 26 per cent. The findings are based on a survey of 2,340 middle market executives across 30 countries, reveal that in spite of geopolitical tensions, including Brexit, increasing populism, the rise of automation and artificial intelligence (AI) and skilled talent shortages, 89 percent of executives see today’s uncertainty as grounds for growth opportunities. What’s more, 14 percent of all companies surveyed have current year growth ambitions of more than 16 percent.
One of the biggest concerns cited by many of those being polled on their views during the General Election campaign has been the high cost of living compared to wages. Now a new report claims that over half (55 percent) of employees are experiencing financial problems, which are affecting their behaviour, relationships and ability to perform at work. Although the nationwide study of the financial wellbeing of UK workers The DNA of Financial Wellbeing 2017 report, claims that nearly a third (32 percent) cite finance as their biggest concern; 66 percent of HR directors, think that financial worries are not of concern to their employees. The findings from Neyber, a financial wellbeing company, shows that 47 percent of workers are borrowing money to meet their basic financial needs, with 25 percent borrowing on a credit card, followed by 13 percent through a bank overdraft and 13 percent borrowing from friends and family. Meanwhile, an increase in so-called zero hour contracts means that nearly half (47 percent) of workers in the North and Midlands have an income fluctuation of more than 10 percent each month.
Seven in ten UK employees – equivalent to 18 million nationally – have gone to work feeling unwell when they should have taken the day off, while less than a quarter (23 percent) say they have taken a day off work sick when they were not actually unwell, indicating that UK employees are three times more likely to go to work unwell than they are to ‘pull a sickie,’ a new report claims. The fourth edition of the Aviva Working Lives Report, which examines the attitudes and experiences of employers and employees on issues affecting the present and future of the UK workplace – also carries a wake-up call to businesses, as more than two in five (43 percent) employees feel their employer puts the results of the company ahead of their health and wellbeing as more than two in five (41 percent) say their work will pile up if they are off sick.
The UK economy is about to be hit by a fall in basic pay awards and real wages warns the CIPD, which has found that employers’ median basic pay expectations in the 12 months to March 2018 have fallen to 1 percent compared to 1.5 percent three months ago, which is lower than at any time during the past three and a half years. The findings from the latest CIPD/The Adecco Group Labour Market Outlook survey are consistent with recent Labour Market Outlook reports, which have indicated a slowing in the rate of basic pay growth, and with official labour market data. The report also found that 12 percent of private sector firms say the UK’s decision to leave the European Union has led them to consider relocating some or all of their business operations abroad. Popular relocation destinations include the Republic of Ireland (18 percent), Germany (17 percent) and France (13 percent).
