A recent survey by digital staffing agency Coople has highlighted a significant communication gap within UK businesses regarding economic conditions and their potential impact on staff and the company.
The study, which involved 1,000 UK business leaders, found that 18 percent of businesses are not engaging in open discussions with their employees about the future.
Of the 82 percent of business leaders who are communicating with their teams, the methods of communication vary widely.
Team meetings are the most preferred approach, with 41 percent opting for this method. Email updates and company-wide meetings are used by 33 percent, while 30 percent choose one-on-one discussions.
Age and Communication Trends
The survey revealed age-related differences in communication practices. Younger business leaders are more inclined to discuss the company’s future with their staff. Only 9 percent and 10 percent of those in the 25-34 and 35-44 age brackets, respectively, avoid such conversations.
In contrast, the percentage is much higher among older leaders, with 26 percent of those aged 45-54, 33 percent of those aged 55-64, and 51 percent of those aged 65 or over not engaging in these discussions.
Economic Conditions and Staffing Adjustments
The survey also explored how economic conditions have influenced staffing decisions. A quarter of business leaders reported making redundancies, while 19 percent have paused hiring. However, 56 percent have not altered their staffing levels.
Redundancies were more common among business leaders in London, with 45% of them making such cuts. Younger business leaders were also more prone to make redundancies, with 30 percent of those aged 25-34 and 41 percent of those aged 35-44 reporting layoffs, compared to only 4 percent of those aged 55-64 and 2 percent of those over 65.
Adopting Alternative Staffing Solutions
In response to economic pressures, 35 percent of business leaders have turned to alternative staffing solutions such as agencies, freelancers, and contractors. Of these, 85 percent found these measures effective.
The trend was particularly pronounced among London-based leaders and those under 45, with 45 percent of those aged 25-34, 47 percent of those aged 35-44, and 52 percent of London-based leaders using these alternative models.
Hiring Priorities and Strategic Focus
When making hiring decisions, 33 percent of business leaders prioritised employee performance and productivity. Future growth projections were the main concern for 25 percent, while cost-saving measures were crucial for 22 percent. Industry trends influenced only 15 percent overall, though 23 percent of London-based leaders considered them important.
The survey also highlighted a balanced approach towards cost-cutting and workforce development during economic instability. While 33 percent of leaders valued both equally, 30 percent prioritised cost-saving, and 14 percent focused on workforce development.
The economic strain
Rufus Hood, Country Manager UK at Coople, commented on the findings: “These are definitely difficult times for UK businesses, with a full quarter of those we surveyed implementing redundancies, and nearly as many, at 19 percent, stopping hiring. It’s highly likely that these decisions were influenced by the strain of the current economic environment, with rising costs from suppliers and inflation affecting many businesses.
“A higher percentage of these companies were in London or were led by younger business leaders – these are more likely to be startups or other businesses operating in competitive, and sometimes, volatile spaces.
“Over a third of the business leaders we surveyed had tried alternative staffing solutions, like working with agencies, freelancers, and contractors. We were pleased to see that so many of these companies found it effective, with 85 percent saying that these tactics helped. At Coople, we believe that flexible working is the best way to stay adaptable and agile, taking on additional support from trusted temporary staff when you need it.”
