UK managers gloomy outlook for 2018

 

The latest annual Future Forecast research from the Chartered Management Institute (CMI) gives a clear insight into how managers across the UK feel about prospects in 2018.

With just 28% of those surveyed expecting any kind of economic growth in the year ahead, it’s apparent that many are bracing themselves for a tough 12 months.

The research indicates that much of the negativity continues to be driven by the uncertainty of Brexit knocking confidence in the workplace.

Brexit’s further dampening of any expectations of growth comes after another year of stagnancy – 62% managers said that they saw neither growth nor decline in their organisation in the last 12 months.

The 28% of managers who do predict some kind of economic growth in the coming year is down by 13% (from 41%) on the pre-referendum figure.  

A substantial 75% of businesses report that that their focus in 2018 is not investing in growth but controlling costs.

And while recruitment issues cause 78% to struggle to find skilled workers, this figure jumps to 82% of managers who report difficulty in hiring new leaders.

Surveying more than 1,000 managers from the public, private and charity sectors, the results reveal that optimism is at its lowest level for 4 years. More than a quarter of those managers report a decreased sense of job security following the Brexit decision.

And while driving productivity is a priority for 62%, just 39% cite investing in growth as a priority and less than a quarter intend to expand into global markets.

In recruitment and employment terms, the outlook is even more challenging: workforces are already stretched and access to fresh talent is set to become even more restricted. 78% say they continue to struggle to recruit new talent, however just over half say that ‘developing people’ is a priority and just 19% say they will make use of the Apprenticeship Levy.

The CMI is calling on employers to continue to invest in their workforce as the single best strategy to maintain momentum in the workforce. Petra Wilton, CMI Director of Strategy and External Affairs, says: “Now more than ever great leadership and management are needed to lift the nation out of the productivity rut. According to CMI research, a highly-skilled manager can add nearly £400,000 of value to their employer, with leadership and management development boosting company performance by 23%.

“Employers can break the downward cycle by investing in the next generation of leaders. Harnessing the Apprenticeship Levy and getting involved with the National Retraining Scheme will help school leavers, graduates and workers alike develop the world-class skills we need to make us a global powerhouse.”

Find out more here

 

Wednesday, 10 January 2018

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