Rising costs forcing companies to think flexibly

Two in three (67%) UK companies consider providing flexibility to their staff is essential if they’re to efficiently retain and entice expertise, based on a brand new report. Companies realise they can not compete on wage alone and as a substitute providing flexibility is vital to serving to firms handle the rising prices of operating their companies. Over half (52%) of companies have elevated salaries to draw proficient staff, however say wages rises can’t proceed on the price they’ve been going.

The second ‘Future World of Work’ report from Sonovate explores what flexibility means to companies and staff all through the UK, and the way companies are using flexibility to stay aggressive in what’s been a candidate’s market throughout 2022. It brings collectively quantitative analysis from 4,000 folks and 500 small and medium-sized enterprise homeowners, in addition to qualitative interviews with senior thought leaders from the way forward for work, employment and fintech sectors.

With half (49%) of companies saying they’ve been working in ‘a candidate’s market’ – one which favours candidates over firms – companies are having to suppose extra creatively about what versatile advantages they’ll supply to draw, retain and reward their staff. Seven in ten (70%) companies surveyed say probably the most expert folks know their price and can solely work underneath situations that go well with them.

The usage of flexibility extends additionally to retaining the very best folks already working in everlasting positions. Over a 3rd (35%) of companies report a rise within the proportion of their everlasting workforce requesting to change to contract or non permanent roles.

Providing higher flexibility is sensible for a lot of companies from monetary and operational, in addition to recruitment, views. The report finds that companies are more and more turning to completely different types of flexibility to draw and retain employees, notably the place it isn’t possible to compete on salaries in a excessive inflation, recessionary market. Greater than 4 in ten (43%) companies have raised wages for expertise however say they can not afford these inflated salaries for lengthy.

The types of versatile working most favoured by the UK’s companies embrace permitting staff to decide on their very own hours (58%), accepting requests to maneuver from everlasting to non permanent contracts (58%), and offering staff with utilities and web subsidies to earn a living from home (additionally 58%). Different standard choices amongst companies embrace enabling staff to decide on which, or what number of, days they work (56%), and imposing a partial earn a living from home coverage (54%).

These broadly tally with the wishes and expectations of staff. Sonovate’s analysis finds that 30% of freelance staff need to select their very own hours, in addition to what number of and which days they work. Three in ten (27%) need to have the ability to work half time in the event that they want to, and 25% are eager to earn a living from home once they need to.

Richard Prime, Co-Founder & Co-CEO of Sonovate, feedback on the findings: “As the price of residing disaster deepens and creates new dynamics and expectations, our understanding of what flexibility means and the way it works is quick evolving. Flexibility goes far past the place and when folks work; it encompasses insurance policies that allow staff transfer between everlasting and non permanent contracts, wider profit packages for longer-term contractors to match their everlasting colleagues, and the suitable know-how to allow versatile working and immediate pay.

“The fact we’re seeing on the bottom places paid to the suggestion {that a} price of residing disaster or excessive inflation setting will stem the tide of staff requesting and even demanding higher flexibility from the companies they work for. The way forward for work is reworking month to month proper in entrance of us. Macro market occasions that we would suppose would hinder the shift to a brand new world of labor are as a substitute accelerating and shaping working habits in fascinating methods.

“For a lot of companies, 2022 was the 12 months of the candidate’s market; it stays to be seen whether or not that can proceed into 2023. Both approach, if 2023 heralds higher development, decrease inflation and extra stability, it’ll be fascinating to see how flexibility extends its attain additional and forces extra companies to suppose creatively about how they entice, recruit and retain.”