Employees confident about global job market despite political uncertainty

 

Employees feel confident about the global economy with positive perceptions about job opportunities and job seeking activity on the rise, according to research by insight and technology company CEB.

The research showed confidence rose by three per cent in the fourth quarter of 2016. Following the findings, CEB warned that with workers feeling more empowered to seek out new opportunities, employers must focus on strategies to retain their top employees.

Despite the recent political and economic shifts in the UK and US, Europe and North America saw the biggest increases in employee perceptions of job opportunities, hitting a six-year and two-year high respectively.

Despite concern that uncertainty around Brexit would prompt a UK hiring freeze, improved perceptions among UK employees has boosted job seeking activity. Employee perceptions of job opportunities in the UK rose by four per cent in Q4 2016, and one in five workers are more positive about their career prospects.

At the same time, levels of intent to stay in current roles have dropped to 24%, the lowest point since 2014, suggesting workers are actively looking for jobs in other organisations.

Job seeking activity also increased significantly in several territories. The US and Germany saw a rise of more than seven per cent in job searching, while India, Canada, the UK and Japan all experienced increases of more than five percent.

Along with rising confidence in new opportunities, the findings suggested employees are less satisfied with their current jobs, with fewer respondents intending to stay in their current roles over the next 12 months.

CEB advised that, with more employees considering and seeking new jobs, organisations must focus on employee motivation and satisfaction in order to retain them.

It recommended that employers should be transparent about compensation and rewards, in order to avoid a gap between employee expectations and reality. In addition it advised organisations to provide opportunities for career progression, citing findings that showed 40% of employees say a lack of future career opportunities is the number one reason they will leave a job.

Brian Kropp, HR practice leader at CEB, said: “Employees believe the labour market is more robust and they're exploring new opportunities. We've talked about employees quitting in seat the last few quarters, but now we're seeing these individuals take action by looking for new jobs.

“In an active labour market, employers must focus on employee retention in the face of increasing turnover. Turnover will rise, but leaders can stave off attrition by ensuring employees feel valued and understand long-term career prospects with the company.”

Monday, 27 March 2017

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