Recent data indicates that UK employees are largely uncertain about the impact of the recently proposed New Deal for Working People, with many unclear about their current workplace rights.
The New Deal, introduced in the King’s Speech as the Employment Rights Bill, aims to enhance worker protections, but according to the latest Robert Half Jobs Confidence Index (JCI), many workers are unsure how these changes will affect them.
According to the JCI, only 40% of the UK workforce believes the New Deal for Working People will positively impact their daily lives. A further 44% are uncertain about the impact, while just 9% anticipate a negative effect. The younger generation, particularly those aged 18-34, shows more optimism, with 51% expecting a positive impact from the New Deal.
Despite these varied expectations, the data also reveals a significant knowledge gap among workers regarding their current employment rights. On average, 36% of UK workers are unaware of whether aspects of the New Deal are already available to them through their employers. This suggests that unless employers improve communication with their staff, the potentially costly changes introduced by the New Deal may have a limited impact.
Addressing the Skills and Productivity Challenge
The Robert Half study also highlights a broader issue concerning the UK economy—labour productivity. In Q2 of this year, productivity, as measured by output per hour worked, declined by 0.3% on an annual basis. This decline underscores ongoing concerns about the skills gap in the UK workforce.
Matt Weston, Senior Managing Director UK & Ireland at Robert Half, emphasised the importance of addressing these skills shortages to drive long-term economic growth. “Skills create an economy that will benefit workers and businesses, boosting productivity, wages, and GDP in the longer term,” Weston said. He acknowledged the need for changes that improve workforce wellbeing but cautioned that these changes must be implemented thoughtfully to avoid placing undue strain on businesses.
Balancing Workforce Wellbeing with Business Needs
Weston also pointed out the need for a balanced approach to implementing the New Deal for Working People. While younger workers may be more open to change, the overall lack of awareness among employees about their current rights suggests a gap in communication between employers and staff. He noted that any changes introduced by the New Deal would have cost and resource implications for businesses, making it crucial to roll out these changes gradually.
Weston also stressed the importance of incorporating the skills agenda into the conversation about worker rights and productivity. He argued that improving productivity and skills organically would lead to increased income and better protection for workers. “That includes ensuring a greater partnership with employers on the emerging Growth and Skills Levy too,” he added.
As the UK moves forward with the New Deal for Working People, ensuring clear communication and addressing the skills gap will be key to realising the potential benefits for both workers and businesses.
