While there are encouraging signs that the UK workforce feels as or more valued than last year, the What's Working? report suggests strong possibility of a "post-recession reshuffle" which will see large numbers of permanent workers leave their jobs to pursue careers in contracting.
This impending "permanent exodus" is the most striking information to come out of the report and, although a displacement of full-time staff might seem a worrisome prospect, it may well be good for British industry.
Those companies wishing to avoid their permanent workers heading for pastures new will have to redouble efforts toward engagement and ensure employees are given appropriate, appealing projects and benefits.
Healthy competition for British technical talent will help raise standards for workers and likely see increased investment in the technology sector.
The report, based on survey results of nearly 500 technology professionals, indicates there is increased confidence in the jobs market. Many permanent and contract workers believe the market is improving and, after several uncertain years, employers seem ready to recruit again - 63% expect to recruit new permanent workers within the next year.
Just over half (54%) of permanent workers report workload increase, with 43% citing increases in work-related stress. 42% say job satisfaction has decreased yet more than three quarters (81%) feel as or more valued by their employer than this time last year. Despite feeling valued, 53% replied that they feel likely to look for a new job within six months. A mistake that some businesses may be making is confusing feeling valued with employee engagement; if rewards and growth potential offered are not satisfactory, workers will look elsewhere.
Employers appear to recognise the importance of career progression and a good benefits package, rating these respectively the 1st and 2nd most important factors in attraction and retention. However, their provision falls short of their perceived importance - 48% of permanent employees are less than satisfied with their existing benefits package and 63% feel they do not have enough opportunity to develop their career in their existing role.
This last statistic contrasts sharply with that of contractors, where 68% feel their existing client does offer career progression. This figure suggests that contractors are being given projects that make the most of their abilities, perhaps affording them exposure to new technologies, allowing them to expand their skillset as they work. Like their permanent counterparts, contractors reported increased workload but only 28% feel stress levels have increased. 81% report their job satisfaction has stayed the same or increased over the last year.
And as for benefits packages? One of the primary differences between contracting and employment, businesses are failing to offer packages that inspire their permanent workforce. The three most commonly offered benefits are contributory pensions, personal health insurance and life insurance. These are low down on the list of most desired benefits by employees, who cite their top three preferences as share options, non-contributory pension and family health cover. Evidently misunderstanding what is important to their workers, many businesses seem to believe subsidised gym membership is more important to employees than family health cover or non-contributory pensions.
Decreases in job satisfaction, increases in workload and stress, and dissatisfaction with benefits will combine to create an unstable permanent workforce. Many disgruntled employees working alongside content contractors will realise their temporary counterparts are better paid and given more satisfying work. It is this that will lead them to look for new opportunities - and most likely into contracting.
What can be done to avoid this expected exodus? GCS advise businesses to make sure maximum investment is being made in existing employees, to learn which benefits matter most to their permanent workforce and satisfy these wherever possible - in short, to maximise engagement via rewards, training and career progression. If employees have no reason to leave, they generally won't.
David Bloxham (pictured) managing director GCS
