Despite the fact that the United Kingdom unemployment rate is at its lowest since the 1970s, new research reveals workers are financially squeezed, impacting life both inside and outside the workplace.
The UK Pay Experience Report, released today by global human capital management (HCM) company Ceridian HCM Holding Inc. (NYSE: CDAY; TSX: CDAY) and conducted by Hanover Research, explores what UK employees really think about their compensation and payroll experiences, including:
- Prevalence of stress: 42 per cent of workers describe themselves as feeling moderately, very or extremely stressed about pay and money issues on a regular basis.
- Pay Transparency: Only 26 per cent of workers are completely satisfied when it comes to transparency of information about their pay.
- Fairness of Pay: 31 per cent of employees strongly agree to being paid fairly based on industry standards. Meanwhile, only 19 per cent said they are completely satisfied with their compensation.
Prioritizing employee wellness
At a time when job vacancies are reaching new heights, organisations should take employee financial wellness initiatives into consideration to attract and retain top talent. With nearly one-in-four UK employees (24 per cent) living payslip-to-payslip, payday can be a source of anxiety as people struggle to make ends meet. Respondents said for any large, unexpected expenses, they would have to resort to their credit card (23 per cent) or borrow money from family and friends (11 per cent), compounding their worries.
The survey shows some employers may have opportunities to do more to support their people, with one-in-three (34 per cent) believing their employers do not care about their financial wellbeing, and only 18 per cent believing they care “very much.”
“In a diverse and competitive labour market, employee wellness programmes can’t remain static – they should evolve to meet the needs of today’s employees who are increasingly burdened by financial pressures,” said Ross Tracey, Managing Director, Ceridian Europe. “Today’s progressive employers should implement actionable financial wellness strategies into their benefits programmes to win top talent and retain their current workforce.”
When the grass looks greener
According to the report, a large proportion of UK employees are open to new job opportunities with 71 per cent saying they would at least consider a new position. In detail, the survey shows 37 per cent of respondents are either looking actively or casually, and another 33 per cent would still consider a new position if they were approached.
One of the most striking lessons conveyed by the research is the need for employers to cultivate loyalty and engagement at the very outset: 63 per cent of UK employees surveyed know within a year whether they will stay with a company long-term, and nearly one-third (31 per cent) know within the first three months.
Of those who said they weren’t satisfied with their job, pay was the most cited reason for job unhappiness at 44 per cent.
“Pay is still the top contributor to job unhappiness,” said Tracey. “However, if people feel they have purpose, the power to do their job, and they feel they’re being invested in, it’s hard to give that up. While past generations may have tended to stick around, our data shows that today’s employee will seek out work that gives them joy and satisfaction.”
To learn more about the UK Pay Experience Report, visit www.ceridian.com/uk/resources/2019-pay-experience-report.
About the survey
The research was conducted by Hanover Research through an online survey in March 2019. A total of 1,000 full-time and part-time employees, and those who work contract or freelance in the United Kingdom, were asked about their pay experience.
Ceridian. Makes Work Life Better™.
Ceridian is a global human capital management software company. Dayforce, our flagship cloud HCM platform, provides human resources, payroll, benefits, workforce management, and talent management functionality. Our platform is used to optimise management of the entire employee lifecycle, including attracting, engaging, paying, deploying, and developing people. Ceridian has solutions for organisations of all sizes. Visit Ceridian.com or follow us @Ceridian.