A survey conducted by digital staffing agency Coople has shed light on the communication and staffing challenges faced by UK businesses amidst current economic conditions.
The survey, which included 1,000 UK business leaders, reveals that a significant number of companies are not engaging in open conversations with their employees about the future of the company.
Lack of Open Communication
According to the survey, nearly 18% of UK businesses are not having open discussions with their staff about the economic situation and its potential impact on jobs and the company. Among the 82% of businesses that do communicate, the methods vary:
- 41% use team meetings.
- 33% utilise email updates and company-wide meetings.
- 30% opt for one-to-one discussions.
Younger business leaders are more proactive in discussing these issues. Only 9% of leaders aged 25-34 and 10% of those aged 35-44 avoid such discussions, compared to 26% of leaders aged 45-54, 33% of those aged 55-64, and 51% of those aged 65 or over.
Impact of Economic Conditions
Economic pressures have led to varied responses among UK businesses. A quarter (25%) of business leaders have made redundancies, while 19% have paused hiring. However, 56% of businesses have not altered their staffing levels.
Redundancies are more common among London-based businesses, with 45% reporting such measures. Younger business leaders are also more likely to have reduced staff, with 30% of those aged 25-34 and 41% of those aged 35-44 taking this step. This is in stark contrast to the 4% of leaders aged 55-64 and 2% of those aged over 65.
Adoption of Alternative Staffing Solutions
To adapt to economic challenges, 35% of business leaders have turned to alternative staffing solutions, such as staffing agencies, freelancers, and contractors. Of these, 85% found these solutions effective.
The survey indicates that younger business leaders and those based in London are more likely to use alternative staffing models. 45% of leaders aged 25-34, 47% of those aged 35-44, and 52% of London-based leaders reported utilising agencies, contractors, and freelancers. This trend suggests that newer companies and those in fast-moving markets are more inclined to adopt flexible staffing solutions.
Key Hiring Priorities
The survey also explored factors influencing hiring decisions among business leaders. The most popular considerations were:
- 33% prioritised employee performance and productivity.
- 25% focused on future growth projections.
- 22% considered cost-saving measures.
- 15% looked at industry trends.
Business leaders in London were more likely to consider industry trends, with 23% citing this factor.
When asked to choose between cost-cutting measures and workforce development during economic instability, 33% of respondents said both were equally important. However, 30% prioritised cost-saving, while 14% focused on workforce development. This suggests that while cost reduction is a primary concern, employee performance remains a crucial factor in hiring decisions.
Insights from Coople
Rufus Hood, Country Manager UK at Coople, commented on the findings, saying, “These are definitely difficult times for UK businesses, with a full quarter of those we surveyed implementing redundancies, and nearly as many at 19% stopping hiring. It’s highly likely that these decisions were influenced by the strain of the current economic environment, with rising costs from suppliers and inflation affecting many businesses.
“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.”