UK businesses are on the brink of a retention crisis as employees plan to leave.
- Nearly half of employees intend to find new jobs this year, posing a challenge for leadership.
- Despite this, 60% of executives believe their organisations are future-ready.
- A disconnect exists between leadership perceptions and employee experiences.
- HR professionals are caught in the middle, experiencing significant pressure to mediate.
An alarming number of UK employees are considering a change in their employment status, as reported by recent research from Octopus Money. Nearly 46% of employees have expressed an intention to search for new job opportunities within the year, indicating a brewing crisis that senior leadership seems woefully unprepared for. This evolving situation challenges the foresight of 60% of executives who maintain that their organisations are adequately equipped to engage with the workforce of the future.
A substantial disconnect is apparent between the confidence of company executives and the lived experiences of their employee base. According to the study, 42% of executives have prioritised operational costs over workforce retention, a sentiment corroborated by 52% of HR leaders who note the C-suite’s inattention to retention concerns. The issue is compounded by financial constraints, which hinder the ability to provide desired pay increases, leaving many employee retention strategies dependent on non-monetary benefits, which appear to be insufficient.
Further deepening the divide, 42% of executives acknowledge the ineffectiveness of their benefits in retaining staff, yet there is a lack of consensus regarding the cause. While 31% of executives believe that employees do not attempt to engage with available benefits, a stark contrast is seen in the employee perspective, with 80% affirming their understanding but devaluing the offerings.
HR departments find themselves in the challenging position of arbitrating between disconnected C-suite perspectives and employee dissatisfaction. With 62% of HR professionals highlighting increased pressure to deliver impactful employee experiences, there is a noticeable disparity in how HR’s role and contribution are perceived. Although 65% of executives credit HR with enhancing the employee value proposition, many employees remain unconvinced, as illustrated by 63% who see little added value from HR’s efforts.
Moreover, HR professionals themselves exhibit higher tendencies towards employment mobility, with 57% contemplating job changes compared to the 46% of the general workforce. This suggests a potential dual loss for companies, risking not only key talent but also those tasked with employee mediation.
Ultimately, it is imperative that businesses reassess their retention strategies to align leadership perceptions with employee realities.
