UK productivity is widely acknowledged as lagging behind other countries. Compared with the rest of the G7, the UK had below average productivity growth in both output per hour and output per worker terms in 20151. Businesses are currently facing three core challenges in maximising productivity. And all three are directly linked to people risks:
1. The workforce is getting older;
- 69% of 50-to-64-year-olds today are in paid work compared to 83% of their younger counterparts2.
- By 2025, there will be 750,000 fewer people aged between 16 and 49, but 3.7 million more people aged between 50 and 643.
- 32% of British workers feel exhausted by juggling career, family, friends, social life, fitness, health and other commitments, and don’t think they will want to work later in life4.
2. Absence rates are rising;
- One in four people have considered resigning due to stress5
- One in five take a day off work due to stress6
- 70 million working days are lost each year due to mental health-related conditions7
- Between 2010 and 2016 the number of working days lost to stress, depression and anxiety increased by 24%8
3. Employee engagement levels;
- 48% of people do not feel empowered to create their own career success9
- 96% of employees want to be recognised and rewarded for a wider range of contributions10
Improving the wellbeing of your business
It’s evident that addressing these issues is vital. After all employee churn not only affects morale, the cost implications can also have a direct impact on profits. Oxford Economics estimated the true cost to replace an employee in 2014 was more than £30,00011. As the years have increased it is likely that these costs will also have increased.
Unsurprisingly, employee benefits are central to retention and recruitment. It’s something 70% of directors agree upon as being a critically or highly important12 way of showing you care. In fact having a good work-life balance is highly valued in the UK. 38% of people rate this as an important element of a job and 65% of people would be prepared to take a pay cut to have a better mix1.
Strategies to manage people risks
Our short video looks at the issue of people risks and the sort of strategies you can implement to help improve employee engagement, productivity and ultimately profitability.
Some key questions to ask yourself are:
- Do you understand the value of health and wellbeing initiatives to your employees and the business?
- Do your employees appreciate the investment in benefits?
- Does the structure of your benefits meet all employees’ needs rather than a few?
If you answered ‘no’ to any of these questions, you might want to consider reviewing your employee benefits programme. Contact us to find out more about how we can help you.
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2, 3, 4, 6, 7,8 http://www.director.co.uk/in-association-with-unum-why-health-of-your-business-depends-on-you-2839/
9, 10 https://www.mercer.com/content/dam/mercer/attachments/global/Talent/talent-trends/gl-2017-mercer-global-talent-trends-infographic-uk.pdf