A recent survey conducted by digital staffing agency Coople has revealed that nearly 20% of UK businesses are not engaging in open discussions with their employees about the economic challenges and the potential impact on jobs and the company’s future.
The study, which surveyed 1,000 UK business leaders, highlighted that 18% of companies are not addressing the current economic situation with their staff. Among the 82% who do, various methods are employed: team meetings (41%), email updates and company-wide meetings (33%), and one-to-one discussions (30%).
Generational Differences in Communication
The survey found that younger business leaders are more likely to engage in these crucial conversations. Only 9% of leaders aged 25-34 and 10% of those aged 35-44 refrain from discussing economic impacts with their employees. This contrasts sharply with older business leaders, where 26% of those aged 45-54, 33% of those aged 55-64, and 51% of those aged 65 and over do not communicate these issues to their staff.
Economic Conditions and Staffing Adjustments
In response to challenging economic conditions, a quarter of UK business leaders (25%) have made redundancies, and 19% have paused hiring. Nonetheless, a significant 56% have not altered their staffing levels.
The impact is notably more pronounced in London, where 45% of business leaders have implemented redundancies. Younger leaders are also more inclined to make staff cuts, with 30% of those aged 25-34 and 41% of those aged 35-44 taking such measures. This is in stark contrast to the 4% of leaders aged 55-64 and just 2% of those aged over 65 who have made redundancies.
Exploring Alternative Staffing Solutions
Amidst these economic pressures, 35% of business leaders have turned to alternative staffing solutions, such as staffing agencies, freelancers, and contractors. Of those who utilised these methods, a substantial 85% found them effective.
The trend towards alternative staffing is more prevalent among younger leaders and those based in London. 45% of leaders aged 25-34, 47% of those aged 35-44, and 52% of London-based leaders have adopted these flexible staffing models. This inclination suggests that newer companies and those operating in fast-paced markets are more likely to explore non-traditional staffing solutions.
Priorities in Hiring Decisions
When asked about their priorities in hiring decisions, 33% of business leaders cited employee performance and productivity as their top consideration. Future growth projections were important to 25% of respondents, while 22% focused on cost-saving measures. Only 15% regarded industry trends as a key factor, although this was more significant for London-based leaders, 23% of whom considered it a priority.
In terms of broader economic strategy, 33% of business leaders believed that both cost-cutting measures and workforce development were equally important. However, 30% prioritised cost-saving over workforce development (14%).
Expert Commentary
Rufus Hood, Country Manager UK at Coople, commented on the findings: “These are undoubtedly challenging times for UK businesses, with a full quarter of those we surveyed implementing redundancies, and nearly 20% halting hiring. These decisions are likely driven by the current economic strain, including rising supplier costs and inflation.
“A higher percentage of these companies were in London or were led by younger business leaders – these are more likely to be startups or other businesses operating in competitive, and sometimes, volatile spaces.
Over a third of the business leaders we surveyed had tried alternative staffing solutions, like working with agencies, freelancers and contractors. We were pleased to see that so many of these companies found it effective, with 85% saying that these tactics helped. At Coople, we believe that flexible working is the best way to stay adaptable and agile, taking on additional support from trusted temporary staff when you need it.”
This survey highlights the varied approaches UK businesses are taking in response to economic challenges, with communication and flexibility emerging as key strategies for navigating uncertain times.