Top takeaways for business from the 2020 Employment Trends Survey

The 2020 Employment Trends Survey tracks key labour market trends, gathers data on the challenges facing UK firms, and asks businesses how they are responding.

By reading the survey results, you’ll get insight into the key issues facing businesses and the strategies those firms are adopting to adapt to a new normal.

Here are some of the key takeaways for business:

• As expected, following the coronavirus pandemic, respondents’ hiring expectations are weaker compared to 2018 (+34%) and 2019 (+28%) but remains in positive territory. Over one in three respondents (35%) expect to grow their workforce in the next 12 months, a lower percentage than in 2019 (43%). Meanwhile, 27% of respondents anticipate that their workforce will be smaller next year – giving a balance of +7%
• A third of respondent firms (33%) expect to freeze pay for their employees at their next pay review, while nearly three in ten (29%) expect to raise it in line with inflation
• In light of the coronavirus pandemic, half of respondents are taking steps to protect jobs and reduce redundancies. Within this group, nearly half of respondent firms (46%) have reduced working hours while 43% have reduced bonuses. Meanwhile, a quarter (26%) have reduced overtime and pay premiums. Looking ahead, the same proportion of firms are planning to take steps to protect jobs in the future (50%). Within this group, 37% are considering reducing working hours while 34% are considering reducing bonuses
• Nearly two-thirds of respondent firms (63%) say that the UK labour market has become either a slightly less attractive or a much less attractive place to invest and do business over the past five years, continuing the declining trend from previous years. The main current threats to the UK’s labour market competitiveness are believed to be access to skills (54%), the ability to move UK-based workers across the EU (53%), and access to labour supply (36%).

Download the full Employment Trends Survey

This year’s report, in partnership with Pertemps Network Group, also covers:

• Business hiring expectations for permanent, temporary and entry-level recruitment
• Firms’ views about the Low Pay Commission’s approach to the minimum wage
• Business views on the attractiveness of the UK labour market in the future and threats to competitiveness
• Steps companies have taken to protect jobs amidst the health and economic crisis
• Business approach to employee engagement in light with the coronavirus pandemic
• How businesses have addressed the experiences of BAME colleagues in the workplace
• Firms’ priorities for the year ahead.