The spiralling cost-of-living crisis in the UK is forcing a quarter of British workers to change careers, revealed a new study.
The research carried out by productivity platform ClickUp found that 26% (7.7m million) of people are planning to change jobs as a direct result of the crisis. In fact, 68% of these people are looking to do so within the next 6 months. As a result, the UK is set to face “unprecedented upheaval as people look for better paying jobs”, noted the study.
The data reveals how British workers are being forced into this position, with 88% (26.1 million people) unsure whether their current job can sustain them through the cost-of-living crisis. Significantly, 42% (12.5m) say it has put a lot of pressure on them to earn more. The top drivers for this sentiment were the rising cost of energy (31%), the rising cost of everyday living goods (30%), and wages not rising fast enough (16%). The recent sharp drop in the value of the pound was also cited by 4% of people.
REVIEWING PAY
The findings also offer an insight into how businesses can proactively manage the issue of workers leaving for higher-paid jobs, establishing a link between those who are best protected from the cost-of-living crisis and those working in highly productive organisations. Ultimately, the more productive businesses are, the more profitable they will be, and the more they can pay their staff.
“The cost-of-living crisis will significantly impact employee turnover as people will look for higher paying jobs to try and offset the higher costs they are faced with. Retaining and attracting top talent is now an even higher priority for businesses across the country,” shared Natasha Wallace, International People Operations Partner, at ClickUp. “Offering competitive pay is increasingly more important, however in order to do this businesses need to be as efficient and profitable as possible, which is driven by improved productivity. A more productive workplace also enables employers to further invest in and empower employees; for example, financial and wellbeing workshops, enhanced benefits, and career development, which can all help manage the concerns around the cost-of-living crisis.”
HIGHER STAFF TURNOVER & SHORTAGES
Britain is set for high levels of worker turnover and potential worker shortages. ClickUp’s research reveals that some people are looking for higher-paying jobs within their same industry or skillset, while others are looking to leave their field entirely to start a new career.
Businesses in the IT and hospitality industries are set to feel the most disruption in general; each with 39% of their workforces saying they plan to change jobs. Those with employees working as drivers (36%), in business services (33%) and construction (33%) will also be significantly affected. Of these people, 44% of IT professionals are looking for roles in the same field, indicating a relatively high degree of staff turnover within the industry, compared to only 20% of hospitality workers.
However, this still leaves a significant number of IT professionals wanting to leave their role or field entirely, with 16% of those looking for higher-paid jobs seeking managerial and other senior positions and 11% considering becoming finance professionals. Yet this pales in comparison to hospitality, which could see an exodus of employees moving away from the industry, with healthcare and social work (20%) and administrative roles (17%) their most likely destinations.
TALENT SOLUTIONS
A major difference between those who are looking for better-paid jobs as a result of the cost-of-living crisis, and those who aren’t, is whether they work in a highly productive organisation. Of those who believe their employer ranks high in productivity, 57% say they are not looking for a higher-paid job, which is 11% above the national average of 46%. This drops to 39% (7% below the national average) for those who believe their employer ranks low in productivity.
In addition, 19% of those who believe their employer ranks high in productivity said they were completely confident that their current job can sustain them through the cost-of-living crisis. This is 7% above the national average of 12%. In comparison, only 8% of people who believe their employer ranks low in productivity are completely confident (4% below the national average).
COMPETITIVE SALARIES
Organisations with high productivity levels are better positioned to provide more competitive salaries to their staff, as their workforce provides comparatively high levels of output for the hours they put in. This makes a business more efficient and profitable as a result, and could be the key to attracting and retaining talent in the current climate.
“The cost-of-living crisis is significantly reshaping the UK workforce and what candidates are looking for in new roles,” added Wallace. “People are re-evaluating their current jobs on a massive scale, however, businesses can proactively manage this. There is a clear link between high productivity and higher wages; by directly addressing and improving their own productivity, businesses can ultimately increase employee satisfaction and begin to pass the financial benefits on to their employees should they wish to do so.”
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