ClickUp, the productivity platform that brings work together in one place, has released a study revealing the impact of the cost-of-living crisis on the UK’s workforce. It found that 26 per cent (7.7m million) of people are planning to change jobs as a direct result of the crisis. With 68 per cent of these people looking to do so within the next 6 months, the UK is set to face unprecedented upheaval as people look for better-paying jobs.
The data reveals how British workers are being forced into this position, with 88 per cent (26.1 million people) unsure whether their current job can sustain them through the cost-of-living crisis. Significantly, 42 per cent (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 per cent of people.
In addition, the data offers 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.
Natasha Wallace, International People Operations Partner, at ClickUp said, “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. 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 well-being workshops, enhanced benefits, and career development, which can all help manage the concerns around the cost-of-living crisis.
Businesses in the IT and hospitality industries are set to feel the most disruption in general - each with 39 per cent of their workforces saying they plan to change jobs. Those with employees working as drivers (36%), in business services (33%), and in construction (33%) will also be significantly affected. Of these people, 44 per cent 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 per cent of hospitality workers.
A major difference between those who are looking for better-paid jobs because 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 per cent say they are not looking for a higher-paid job, which is 11 per cent above the national average of 46 per cent. This drops to 39 per cent (7% below the national average) for those who believe their employer ranks low in productivity.
In addition, 19 per cent 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 per cent above the national average of 12 per cent. In comparison, only 8 per cent of people who believe their employer ranks low in productivity are completely confident (4% below the national average).
Natasha added, “the cost-of-living crisis is significantly reshaping the UK workforce and what candidates are looking for in new roles. People are reevaluating 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.”