Employees are broadly lukewarm about the New Deal for Working People, recently published in the King’s Speech as the Employment Rights Bill, but many are unaware of their current employer’s stance and offering. That’s according to the latest Robert Half Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr).
Limited impact expected
According to the data, less than half (40%) of the UK workforce anticipates that the New Deal for Working People will have a positive impact on their daily lives, while almost half (44%) are uncertain as to the impact of the proposals. Just 9% said it would have a negative impact on their working lives.
It should also be noted that the younger generation is more optimistic about the potential impact of the New Deal, with 51% of those aged 18-34 indicating that it will have a positive effect.
However, the data suggests that there is a lack of clarity around existing access to many of the measures. According to the data, over a third (36% on average) of UK workers are unsure if aspects of the New Deal were already available to them. This suggests that employers could see a limited impact of the potentially costly changes unless they better communicate with staff.
Making the investment pay for all
Skills and productivity remain of significant concern for the growth of the UK economy. The study revealed that labour productivity, measured by output per hour worked, fell by 0.3% on an annual basis in Q2 of this year.
According to Robert Half, this suggests that skills are still a big problem for the UK. As a result, a thoughtful discussion with all parties – including businesses – is needed to ensure the UK aligns resources in the most effective way for all to keep pace with the global economy.
As Matt Weston, Senior Managing Director UK & Ireland, at Robert Half explained, skills create an economy that will benefit workers and businesses, boosting productivity, wages and GDP in the longer term:
“We welcome any changes that boost the wellbeing of the workforce, however it is interesting to note that such a large proportion of UK employees are largely lukewarm to the impact that the New Deal will have on their job. While we expect that younger workers are more likely to welcome change given that they will be employed for a longer period, the fact that so many are unclear as to what their employer currently offers suggests a level of mis-communication exists.
“Nonetheless, there has to be a more mindful consideration that the proposed changes will have a cost and resource implication for businesses. And aside from a need for a gentle and staggered roll out of any changes, the skills agenda absolutely must be part of the conversation. Productivity and skills must be addressed to organically boost income alongside new means of protecting workers and safeguarding their employment rights. That includes ensuring a greater partnership with employers on the emerging Growth and Skills Levy too.”
