3. Flexible and hybrid working arrangements
The majority of respondent employers, 66 per cent, have a formal policy in place to define hybrid and flexible working. For many employers, navigating flexible and hybrid working arrangements following the pandemic has been a challenge. Front-line workers are inherently more limited in terms of what they can access in terms of flexible working arrangements, as certain employees are required to be in the office or onsite to fulfil their role.
However, employers are having to be more innovative when it comes to employees and their ability to shape their working arrangements, which is highly valued by staff. 53 per cent are given the ability to swap shifts, and 40 per cent can input into shift and rota schedules, while 43 per cent have flexibility in their start and finish times.
Hybrid working and flexible working arrangements continue to be a delicate balancing act between the business needs of employers and the wishes of employees. Defining a policy that works not necessarily across a whole organisation, but works based on different teams and their requirements is something that may require trial and error to reach an equitable and motivating solution. Even for those who have a formal policy in place, it is important to understand that there is often no ‘one size fits all’ approach.
The challenge to remote-based working is the effect this has on culture and career progression. Younger generations, in particular, often learn by osmosis. With fewer chances to shadow in person, and for teams as a whole to chat generally, the effect on culture is an important consideration. One third of companies currently tracking on-site attendance. Over half are not tracking attendance, while three per cent are planning to implement monitoring of their employees’ presence in the office. There is a greater onus on leaders and managers to be intentional about facilitating more opportunities to collaborate and facilitate cohesive teams.
4. Recruitment and retention
There is an ongoing shortage of skills across the labour market. Whilst employers continue to compete for top talent, fewer respondents have experienced retention problems overall. 41 per cent have experienced difficulty in retaining people, which has significantly reduced from 64 per cent in spring 2023.
In the next six months, the labour market is set to remain competitive, but fewer people anticipate retention difficulties. 40 per cent is a significant contrast to levels reported in spring 2023, where 61 per cent anticipated retention challenges.
Over the last two years, there has been a steady decline in recruitment challenges. At the height of recruitment difficulties being experienced by employers, our spring 2022 survey highlighted how 85 per cent of respondents were experiencing difficulties in recruiting people. This has reduced to 61 per cent of respondents reporting challenges in the last six months.
Fewer respondents expect recruitment challenges over the next six months in comparison to the height of the buoyant labour market in 2022. 54 per cent anticipate recruitment difficulties in the next six months, in comparison to 86 per cent in spring 2022.
Half of employers are offering salaries to new recruits that conflict with those paid to existing employees. This demonstrates how higher salaries are being used as a recruitment tool, with 78 per cent offering new recruits up to 10 per cent more than they pay to current incumbents and 20 per cent having to offer up to 20 per cent more.
