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Business Careers Output Recruitment Working Culture

Employment, how long do people stay in jobs for?

The answer is not long. Employment has been hit hard over the last couple of years for sure. The impact of Brexit, the Pandemic now a cost of living crisis; it’s no wonder how many people’s careers have been affected.

So what has been the effect? We conducted a poll on LinkedIn and Facebook where people shared with Find Your Flex how long they have been in their current role.

Grass growing under foot? Chance would be a fine thing!

That pretty much sums it up. Out of all our respondents only 11.5% have been in a job for 5 or more years.

Now, it’s not uncommon for people to not want to stay in one job for too long. Or they may even be talented enough to move up the employment ladder quickly.

However, over 11% is alarmingly low especially when you consider the last two years worth of lockdowns. In the height of a pandemic it’s highly unlikely most people outside that margin left their jobs for a promotion or a better offer.

Is there an Employment issue?

When 27.9% have been employed for less than a year? And the same amount of people claimed they had only been employed in their current role between 1-2 years totaling almost a 56% all together. I would say so.

As this implies that the turnover for employers must be high. As employment lasting only 2 years or less cannot be considered normal.

Especially when half of those numbers are within the last 12 months where we have had no lockdowns. Furthermore, according to our Prime Minister employment is at an all time high!

This is further supported by job vacancy numbers which reached a record high between February and April.

The number of job vacancies in February to April 2022 rose to a new record of 1,295,000; an increase of 33,700 from the previous quarter and an increase of 499,300 from the pre-coronavirus.

So clearly there is an employment issue because these stats don’t add up… or do they?

High Employment + Short Range Job Longevity = Widening Pay Gap

A couple of weeks ago, I read an article on the BBC that reported the pay gap between bosses and staff is widening.

And just like that, everything makes sense! Stats that show employment is at an all time high. The majority of people in our polls saying they have held a job for less than 2 years, this is the end result and it makes sense.

How does that work? Well look at it this way: if an entry level employee joins a company how long does it take them to really start working their way up the company ladder, a year or 2? And how many more years before they have really progressed within the organisation?

The problem is; from our stats paired with government research, people are not in the role long enough to really climb the ladder. Whether the working culture is so bad employees leave by choice or they are let go by the company.

Either way that usually means they will be starting a similar role in another organisation. Probably around the same level of the role they left and on a similar rate of pay…

Yet little changes for the business (in the short term), they quickly replace the staff they have lost with new eager workers. Then in the next 6 to 24 months they repeat the process. Productivity is maintained.

There is little-to-no cost in promoting staff to higher paid, yet business and profits may continue to grow and therefore higher executive salaries increase. And this could be one reason why the gap is widening.

Yes the employment rate is great, but the wages are low and during a cost of living crisis that’s a huge employment problem. And it can result in severe consequences for businesses operating this way.

What is the impact for Businesses?

No good ever came from a company having a high attrition rate. It signals to three vital components of business; job seekers, target audiences and potential partners that they do not value staff.

It is never long before high staff turnover leads to a bad business reputation and raises flags for the aforementioned parties. Job seekers do their research, if they see employees don’t last long and why; they won’t want to work for an employer like that.

The same goes for potential business partners, in a society that is focusing more on the way staff are treated, companies won’t want to be guilty by association. Or partner with organisations whose values do not align with their own.

Productivity may be maintained in the short term through eager new employees wanting to impress. But this will ebb away when managers and other employees grow demoralised by having no consistent team and the constant need for training. Then you will see the quality of service decrease.

The Great Resignation and The Big Quit

Now this may come across laying the blame at the door of businesses. That wouldn’t be totally fair; brexit, the pandemic, the current cost of living crisis, these have had an effect on employers and they have had to make tough decisions.

Many businesses have struggled to weather these storms and are now trying to recover, which is not easy. However, the grace period where understanding of companies having high attrition as a result of lockdowns is quickly coming to an end. It will soon be an unacceptable excuse as to why businesses can’t or rather won’t retain staff.

Last year we talked about the ‘Great Resignation’ where employees where seriously considering quitting their role at the time. That seem to have happened if we look at the results of our polls.

This year I have read about a similar movement called ‘The Big Quit’ with employees having similar intentions.

And with job vacancies being at a record high it shows they are following through (although of course the government puts the positive spin on that as a high growth.)

Employees are making their positions clear; provide opportunities or they will look elsewhere and businesses can’t afford to not respond.

The ‘Mutable’ Solution

That’s not as simple as businesses saying “okay we’ll start promoting, raising salaries and providing more flexible working”. That’s neither practical nor sustainable to do all at once.

But there is a solution, one that solves this problem in the present and future. Businesses need to start aiming to become ‘Mutable’.

What is ‘Mutable’? It means being in a stage of constant transformation. Where rather than businesses competing with others they constantly compete with themselves.

This starts with having staff work to an output model rather than an hourly rate. This would especially work well for companies struggling with high attrition.

By buying into a shared workforce, a company can have employees complete weekly tasks and once they are finished the employees have the ability to earn even more elsewhere. Which would fix the turnover issue.

The future of employment, the future of working and the future of business is vastly different from the present. The future is ‘Mutable’. For more information on starting your Mutable journey click here.

Categories
Equality and Diversity Future of work

Transparent Salaries Scheme to close Gender-Pay Gap

On International Women’s Day 2022, a government pilot scheme was announced aiming to lessen the gender-pay gap for women. By having employers have totally transparent salaries in job descriptions.

This is definitely a step in the right direction. Find Your Flex have participated in research and are always aiming to be a driving force in eradicating the gender-gap. This will undoubtedly make a positive change in this area, but in other areas as well.

The main aim of this scheme is to remove barriers for women, which is excellent and more than needed. But transparent salaries will have other positive impacts too on job seekers in general.

Although this is a positive step in the right direction, there are questions that this raises. Such as; should this only be a pilot scheme? What are the all round impacts of transparent salaries for employees and job seekers? And what more needs to happen in this area?

How will the Transparent Salaries Scheme affect the Gender-Pay Gap?

First and foremost; transparency in general within the workplace has a positive affect on the removal of all inequality. However, in terms of the gender-pay gap, transparent salaries put men and women on an equal playing field from the get go.

If the salary is transparent in the job description, that means there is little to no chance that the employer is going to pay a man more than a woman for the same role. Whereas, if the salary is advertised as Negotiable or On Application, there is no telling what an employer factors in when deciding what your salary is going to be.

By being transparent, everyone who applies knows they will be getting paid the same regardless of gender. Information is key, and Minister for Women Baroness Stedman-Scott appears to take this stance during her announcement of the scheme:

The UK can only grasp its full potential by championing its brightest and best, and ensuring everyone, regardless of their background, has the opportunity to succeed.

We believe that increased pay transparency will build on positive evidence of the role information can play when it comes to empowering women in the workplace.

It certainly empowers a woman to know what they are going to be paid if successful when applying for a role. If an employer offers less than what was advertised, the applicant is in a position to challenge that.

Though positive, should this have happened sooner?

While we all recognise this is a positive move in the right direction towards gender-equality in employment. Not to put a negative spin on it, but it is important to point out that this is a move that should have happened long ago.

Why is it important to point this out? Because we measure the speed of progress by how long it takes to achieve certain milestones in the present. In reality, making salaries transparent in job descriptions is a really simple yet effective move. One that could have been implemented much sooner.

The conversation on transparent salaries decreasing the gender-pay gap and discrimination has been ongoing for years. Many employers who adopted a transparent salary policy have advocated it’s use to eradicate discrimination.

In 2016 Huffington Post spoke to several business leaders and owners who advocate transparent salaries. Ian Pearman, who at the time was the CEO of one of the UK’s biggest advertising agencies and he put it in the simplest terms:

Nothing is more corrosive than the sense that there is inequality in the system. And layered on top of that may be specific concerns relating to gender and race – ‘Am I paid less because I am a woman? Or from an ethnic minority?’ With transparency, these questions don’t even occur.

When you put it like that, it seems obvious that all organisations should have transparent salary policies. And if you think 2016 is as far back as this goes, you’d be wrong.

In the same article the global food shop Wholefoods stated they have been making the salaries of their employees public since the 1980’s! Yet in 2018 there were still arguments being made against all companies implementing this.

Is there an argument against transparent salaries?

That depends on your point of view. In an article by Time which was published in 2018, with the pros and cons were being weighed up. With the pros still being the eradication of discrimination, closing of the gender-pay gap and employee benefits.

Some of the supposed drawbacks included; risking pitting employees against each other due to jealousy and businesses struggling to hire people to lower rate roles.

In response to the latter; if a business is really struggling to secure applicants, the role must be extremely unappealing and not just from a salary standpoint. If increasing the salary is not possible then there needs to be other benefits to the role that will make up for the lower salary.

As for the former; jealousy and resentment in the workplace is a whole separate issue. If it exists within your organisation there will likely be more to it than just salaries alone. Sadly this is sometimes unavoidable whether employees know each other’s salaries or not.

Though these are challenges, they really cannot be used as excuses in the face of eradicating discrimination and closing the gender-pay gap. It may mean more work for HR department and recruitment but in the long term every company would be better off.

Why is this only a pilot scheme?

Judging from what we have laid out already, you may be wondering why the government is only rolling out a pilot scheme. If the pro’s are so vast and con’s are so minimal shouldn’t a full scheme/legislation be implemented?

That is certainly the hope for the future. However, because this scheme has been planned to achieve a certain goal i.e closing the gender-pay gap, a lot goes into this.

Existing policies, practices and processes may need to change and then if after a set amount of time has past, the scheme will be reviewed. If the objectives have been achieved and the overall outcome is positive then it may lead to a wider scheme or piece of legislation being implemented.

So what could this lead to? If a wider scheme is introduced many big companies will ensure their salaries are transparent. Any companies that don’t will look increasingly unethical. Possibly gaining a bad employer reputation if they don’t make the shift.

Of course the main hope is that a major piece of legislation is passed which will require all UK businesses to be transparent and state salaries on job descriptions. Then they will obligated to do so which would be a major victory for employees and job seekers alike.

Transparent Salaries will not only help close the Gender-Pay Gap, but benefit job seekers in general

Although this scheme is being piloted in an attempt to close the gender-gap. The fact of the matter is that it is a huge step in the right direction for job seekers in general.

In August of last year, Find Your Flex conducted our own research into this topic. We asked whether job applicants are put off applying for a role where the salary is not stated in the job description. Over 4,000 people voted and the overwhelming majority said they would be put off.

They expanded on their reasons providing view points that gave us an understanding of what is important to job seekers.

So why are transparent salaries vital in job descriptions? The most obvious answer is that pay is one of the most important parts of the job for applicants.

What we are paid is what facilitates our lives, so we need to know if the role we are applying for will continue to do this. Not stating a salary from the beginning puts the applicant at a disadvantage.

If the salary is stated as negotiable or on application, the employer holds all the cards. Offering applicants different salaries for whatever criteria they see fit. This is why transparent salaries are not only a tool to combat a gender issue, but discrimination in general.

For all an applicant knows, they are being offered less because of their gender, age, race, experience-level, who knows? If the salary is not stated only the employer knows, how is that fair or right?

Now job applicants will know from the beginning what their salary will be. They know it will be based on their ability to do the job and nothing else. And they will know whether or not the job is worth applying for without wasting their time.

A step in the right direction

All in all, this is a step in the right direction to close the gender-pay gap, erase discrimination from the workplace and empower job seekers.

Should this have happened sooner? Yes it absolutely should. And it does show that as far as progress goes, both the government and employers have a ways to go. We know what the issues in both the workplace and in the employment process are, so it should not have taken this long for this scheme to arise. The time for action is now.

Although, as the old cliche goes: better late than never. And we do want to stress that this is a positive development, if not only for the scheme itself but hopefully the domino effect it will cause.

We are looking forward to what effect this scheme will have on the future of working and we will be watching this space very closely in the meantime.

Thank you for reading, if you would like to find out what more Find Your Flex has to say on this and other topics click the link here.

Categories
Careers Students and Graduates

After Graduating: Getting that first step on the job ladder

The first thing on a graduates mind when leaving university is getting their dream job. Yet, this is not as easy as it seems. This blog post we will discuss steps graduates should take both during and after graduating to get that first step on the job ladder.

Do more than study hard.

It can seem logical while in university to put your entire focus on your studies and nothing else. This way you come out with the best degree. That should grab an employer’s attention, showing them you are hardworking, dedicated and know your stuff right?

No. That may seem blunt, but it is important to rid yourself of that style of thinking as it is self-sabotage. Yes, you should put as much effort as you can into achieving the best grade possible. But your degree alone will not get you your dream job.

This doesn’t make your degree is any less valuable and it will still count for something when an employer is looking at your CV.

The Paradox of Experience.

There is a lot of competition for job roles out there and for employers their main focus is one word. If you haven’t got it, it can become public enemy number one when trying to secure a decent job role in your desired field. That word/attribute is; experience.

This is becoming an all too essential requirement in job descriptions these days. It can lead to hair pulling frustration for graduates when reading job descriptions. You have all the knowledge and skills, then the bottom of the page and it reads: “A minimum of 1 years experience required”.

For graduates experiencing this first hand, you realise the paradox you are presented with. How can you gain experience for a job if you can’t get a job to gain the experience?

Overcome this barrier (early on).

The answers are hard to swallow for those who are looking for work after graduating. It is important to gain access to these while still studying. The best way to gain experience is through securing work placements, internships or voluntary work.

Most of these will take up a decent amount of your free time and most of these positions are unpaid. Yet, you will find that in the long run the experience you gain from these opportunities is worth far more than any wages the company would pay. The more experience you have on your CV the better.

Though you should do this after graduating, it would be better to secure this kind of work while studying. Most universities have resources or facilitators that can help to secure these roles. Don’t let experience become the biggest road block on your career journey; it can be a difficult one to overcome.

Apprenticeships After Graduating

For a graduate fresh out of university, their primary goal is full time employment. Though as discussed before, a degree isn’t a guarantee that you will secure a role, especially in the field you are aiming for. Even experience through work placements and voluntary work may not be enough.

If you have a specific job in mind, the internship/apprenticeship route might be the best option to get you there. For some graduates this can be frustrating, apprenticeships can feel like a career path that you choose instead of university. This is not the case, from 2017 to 2018, a 34.37% majority of apprentices in the UK were aged between 19-24, a further 18.55% being 25-34 year olds.

Apprenticeships have their own advantages that can be used in conjunction with the knowledge you gained from your degree. They answer key parts of job descriptions. Tending to be more specified to roles and they answer that experience need. With an apprenticeship you learn the job while doing the job, which is becoming more and more appealing to employers.

 See an opportunity for what it is.

It is important graduates don’t let preconceived views of apprenticeships deter them. There is no reason why you shouldn’t seek to gain an extra qualification; it makes your CV look better not worse. Society has made university the more encouraged path of higher education for years. The truth of matter is, apprenticeships are equally rewarding in terms of gaining employment.

This is a stigma that is changing, so don’t let this influence you when deciding whether to go down this route. It is understandable that beginning an apprenticeship after graduating from years of study can feel like spending more time in education. A frustration to some who hoped to be done with education and want to start work.

However, with an apprenticeship you are working. And your getting paid to learn the job whilst you are in it, so it is not the same. There is also unavoidable factor that with some companies it is the best/only way in. If in the end it gets you the dream job you’ve always wanted, why wouldn’t you take this opportunity that lies before you?

Don’t limit yourself.

Do not place restrictions on yourself while looking for work. You may have secured your degree in your chosen subject with one specific job in mind. Yet, the chances of you walking straight into that job after graduating, are slim to none.

This of course depends on what your personal dream job is. If it requires a certain level of experience, you need to lower your expectations. Some employers want to see your skills and experience demonstrated in another role. They may see potential in graduates, but sometimes they want more than that. You must also be prepared.

If you are adamant about only applying for one specific type of job, you are limiting the number of opportunities that will come your way. What if the job you want isn’t out there right now? If you do nothing else in the meantime, you’re even less likely to secure that role when it does appear. Those gaps in your CV don’t go unnoticed.

Be Flexible in your choices.

There is no reason why you can’t get a different job in the same sector your desired job is in. You will gain invaluable skills and experience which can only benefit you. Employers will be drawn to fact that you have spent time working in the industry and will have an idea of how things work.

Though, you should still not rule out working in a different industry than the one you are aiming for. A diverse knowledge and skill set will look impressive on your CV. When applying for other roles you can make these transferable to said role. Employers will see you as versatile, someone who is looking to develop a broad skill set which can be appealing to them.

The Job for you is not always the Job you want.

There is a personal aspect to keep in mind, it’s a bit cliché, but it rings true; when job searching after graduating, be careful what you wish for. Gearing your education and focus towards a certain job, that does not mean it will be what you thought if/when you get it.

That may sound negative, and an attempt dissuade you from your dreams, but that’s not the case at all. It means you may think a certain job is perfect for you and when you finally get into it, it doesn’t fit you as well as you might have thought.

Which is why it’s important to pursue other job opportunities. You may find that a job you were not dreaming of, is more comfortable and rewarding than the one you were aiming for.

Where to look?

Finally, it’s important to use every resource out there to gain employment. Don’t just think indeed and total jobs are your only options. Check company websites, jobs boards and that ever growing behemoth social media.

There are job boards that target specific niche target audiences. Don’t avoid these if you feel you don’t fall into that category, you might find a job you know you can do well, so go for it!

Your career journey begins after graduating. And there are infinite roads with their own twists and turns. Don’t be afraid to divert from you planned course to explore them, you may find it suits your far better!

You can start by looking here: https://jobs.findyourflex.co.uk/jobs/

Here’s another blog advising how to create a good Linkedin Profile: Top 10 Tips for a Compelling LinkedIn Profile

emails suck right? Not ours.

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