hudson update q4 2011
TRANSCRIPT
the hudson updateeMpLoYee tRends – england’s north, Midlands, home Counties & south West
Q4 - 2011
Contents
intRoduCtion
aBout hudson
hiRinG tRends in the MidLands & noRth oF enGLand
hiRinG tRends in the hoMe Counties & south West oF enGLand
eMpLoYee tRends: that FRidaY FeeLinG
ouR ReCoMMendation
ContaCt us
2
4
6
8
10
18
20
intRoduCtion
Welcome to the hudson
update. in this edition,
for the third time, we
include hiring expectations
and employee trends in
england’s home Counties
and south West alongside
the Midlands and the north.
the findings in this report
relate to expectations for
Q4 2011 and are based
on in-depth research of
the region, conducted by
interviewing clients across
a broad spectrum of
industries and job sectors.
the survey was completed
by nearly 300 employers.
the top three highest
respondent groups were
Professional Services
(16.9%), Retail (10%), and
Information Technology
(9.4%). there was also
significant representation
from Financial Services/
Insurance, Construction
and Manufacturing,
with an even spread
amongst the remainder.
the vast majority of
respondents (72%) were
from companies with 250
people or more.
the hudson update
is issued quarterly and
provides periodic research
and analysis of employer
expectations. References
to historical data will be
made so that comparisons,
trends and predictions may
be identified across the
industry.
2
the industry sectors
surveyed across the north,
Midlands, home Counties
and south West of england
were:
∟ advertising/
Marketing/Media
∟ Construction/
property/engineering
∟ education
∟ energy & Resources
∟ Financial services/
insurance
∟ FMCG
∟ healthcare (public
sector)
∟ information
technology
∟ Manufacturing
∟ not-for-profit
∟ pharmaceutical
∟ professional services
∟ public sector
∟ Retail
∟ telecommunications
∟ tourism & hospitality
∟ transport
∟ utilities
∟ Wholesale/distribution
With over 2,000 employees
in approximately 20
countries, hudson is
one the of the world’s
leading providers of
permanent recruitment,
contract professionals,
outsourced solutions
and talent management
services.
From single placements to
outsourced solutions, we
help our clients achieve
greater organisational
performance by assessing,
recruiting, developing
and engaging the best and
brightest people for our
business.
Beyond placing candidates
into contract, interim, and
permanent roles, we help
clients implement effective
long-term recruiting and
retention strategies. Our
underlying goal is to
improve performance at
every level.
aBout hudson
4
hudson uK & ireland
operates across 10 offices,
all providing localised
specialist services to each
market.
in the english Regions, we
specialise in the following
functions; Accounting
& Finance, HR, IT,
Legal, Marketing &
Communications, Public
Sector, Sales and Supply
Chain & Procurement.
our client list is varied,
ranging from privately
owned businesses and
sMes through to Ftse
100 and household Blue
Chip companies.
hiRinG tRends in the MidLands & noRth oF enGLand
With more economic
turmoil looming, permanent
hiring across the wider
uK seems to have come
to a standstill. employers
are likely to wait to see
what the near future holds,
before making long-
standing hiring decisions.
however, optimism in the
Midlands and north defies
this and is holding strong,
despite the widespread
concern that the road to
recovery for the uK will be
long and treacherous.
it was positive to see
that permanent hiring
expectations in the
Midlands and north
showed strong growth in
the lead up to the year
end – up 12.3% to 28.5%
from 16.2% on the previous
quarter. With european
economic stability in
question, this untypical
resilience could be the
result of continued demand
for exports from this region
further abroad.
the contractor perspective
was not as optimistic
however; with employers
expecting a net increase
of just 1.2% - a significant
decline in growth of 9.9%
on forecasts for quarter
three this year. speculation
may reveal that employers
are displaying some
trepidation around hiring
contractors, following
the agency Workers
Regulations which came
into force on october
1st this year. however,
employers should feel
confident knowing that
with the right recruitment
partner, contractors remain
a highly viable source of
specialist skills at critical
times, particularly as head
count may soon come
under the microscope once
more.
a net INCREASE oF 28.5% in PERMANENT hiRinG eXpeCtations FoR Q4 2011
a net INCREASE oF 1.2% in CONTRACT/TEMPORARY hiRes eXpeCted
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no change
decrease
increase
no change
decrease
increase
does YouR teaM/Business unit eXpeCt to inCRease/deCRease its PERMANENT staFF LeveLs in YouR CountY in the peRiod FRoM noW untiL the end oF deCeMBeR 2011?
40.5%
15.5%
44%
does YouR teaM/Business unit eXpeCt to inCRease/deCRease its CONTRACTINg/TEMPORARY WoRKFoRCe in YouR CountY in the peRiod FRoM noW untiL the end oF deCeMBeR 2011?
58.3%
21.4%20.2%
hiRinG tRends in the hoMe Counties & south West oF enGLand
With speculation of a
double dip recession
looming, employer caution
is on the rise in this region.
as such, this market is not
as immune to the wider
uK market implications
as its more northern
counterparts. here, the
expected growth of hiring
in the home Counties and
south West of england
continues to slow further
across both permanent and
contractor hiring.
organisations should take
heed though, employers
in the home Counties
and surrounds are still
expecting a net increase
of 13.8% in permanent
hires between now and
the end of the year. Whilst
down 14.1% on a projected
increase of 27.9% in
quarter three this year, it
suggests confidence in the
market still remains higher
than the uK as a whole.
the contractor market
here has shown
significantly smaller
growth expectations
consistently throughout
2011 and continues to do
so. expected growth for
this quarter sits at less than
1%, a decline of 1.1% on
last quarter.
a net INCREASE oF 13.8% in PERMANENT hiRinG eXpeCtations FoR Q4 2011
a net INCREASE oF 0.9% in CONTRACT/TEMPORARY hiRes eXpeCted
8
does YouR teaM/Business unit eXpeCt to inCRease/deCRease its PERMANENT staFF LeveLs in YouR CountY in the peRiod FRoM noW untiL the end oF deCeMBeR 2011?
no change
decrease
increase
59.4%
13.4%27.2%
does YouR teaM/Business unit eXpeCt to inCRease/deCRease its CONTRACTINg/TEMPORARY WoRKFoRCe in YouR CountY in the peRiod FRoM noW untiL the end oF deCeMBeR 2011?
no change
decrease
increase
65.7%
17.6%16.7%
eMpLoYeetRends: that FRidaY FeeLinG
For most of us, the working
week starts on Monday
and ends on Friday. this
means focus can fall off as
pre-weekend anticipation
mounts. Few can claim to
be immune, but do relaxed
Fridays have a direct
impact on the bottom
line? should employers
regard a Friday fall off in
productivity as a problem?
Or does a chilled end to
the week pay dividends
on other days and in other
ways? We set out to find
out…
When asked about
shortened hours on a
Friday, 40.5% of employers
- a significant minority -
say they offer some kind
of concessionary hours.
they range from 6.9%
authorising a rare early
finish (for example in the
lead-up to Christmas) to
16.8% operating shortened
hours every Friday
throughout the year.
however a majority of 56%
said Friday hours were the
same as the rest of the
week.
10
does YouR oFFiCe have shoRtened houRs on a FRidaY?
Yes: every Friday, throughout the yearYes: every Friday but only in summerYes: occasionally (for example as a reward, or preceding a firm-wide event)Yes: rarely (for example only in the lead up to Christmas etc)
no never
other
Yes: however it varies across different teams
56%
3.5%
2.4%
5.8%
16.8%
8.6%
6.9%
“FRIdAY HOuRS ARE dIFFERENT” REPORT 40.5% OF EMPLOYERS
“ouR FRidaY is 30 Minutes shoRteR than the Rest oF the daYs in the WoRKinG WeeK.”
“We aLLoW FRidaY aFteRnoons oFF FoR ReLiGious Reasons.”
“theRe’s the oppoRtunitY to Leave FRoM 3.30pM on a FRidaY, usinG CoMpanY FLeX tiMe.”
“We’Re MoRe ReLaXed aBout hoMe WoRKinG on a FRidaY.”
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about the consequential
benefits of having a more
relaxed working atmosphere
on a Friday, only 11.1%
reported no benefits at all to
a more relaxed atmosphere.
so it seems that a great many
employers are benefiting from
an upbeat Friday vibe with
zero impact on productivity.
When coupled with the
not insignificant 9.2% of
employers who say their
employees work harder at the
end of the week, it appears
that a general rise in spirits
may have very little adverse
impact on productivity. viewed
in the context of the range
of benefits that a lightened
atmosphere brings, feel-good
Friday is confounding bleaker
employer expectations.
hoW pRoduCtive is an aveRaGe eMpLoYee on a FRidaY When CoMpaRed to anY otheR daY oF the WoRKinG WeeK?
45%40%35%30%25%20%15%10%5%0%
sign
ifica
ntly
less
pro
duct
ive
Mar
gina
lly le
ss p
rodu
ctive
slig
htly
less
pro
duct
ive
exac
tly th
e sa
me
Mor
e pr
oduc
tive
oth
er
hoWeveR 49.1%
RepoRt eitheR no
Loss oR inCReased
pRoduCtivitY
the Friday feeling has no
impact at all on productivity
in the eyes of 39.9% of
employers. this is particularly
interesting when viewed in
the light of responses to our
follow-on question: when we
went on to ask employers
almost half our employers, at
48.5%, acknowledge some
Friday decline in workforce
productivity. however 27.4%
describe the decrease as
‘slight’ and 16.2% believe it to
be ‘marginal’, with only 4.9%
reporting that significantly less
gets done as the weekend
approaches.
pRoduCtivitY: onLY 4.9% saY ‘siGniFiCantLY Less’ Gets done on a FRidaY
“depends on YouR natuRe/WoRK ethiC and the tYpe oF WoRK You do – soMe joBs don’t aLLoW a WindinG doWn.”
“noRMaL untiL LunChtiMe – Less pRoduCtive aFteRWaRds.”
“dRive to Get eveRYthinG CoMpLeted But onCe done, the daY sLoWs doWn.”
15
however the knock-on effects
don’t stop there. over a third
of our employer respondents
reported that
∟ a relaxed Friday left
their employees feeling
generally happier
throughout the week
host oF BeneFits to ReLaXed FRidaYs
WhiCh oF the FoLLoWinG do You BeLieve to Be ConseQuentiaL BeneFits oF havinG a MoRe ReLaXed WoRKinG atMospheRe on a FRidaY?
60%
50%
40%
30%
20%
10%
0%
empl
oyee
s go
into
the
wee
kend
fe
elin
g po
sitiv
e ab
out t
heir
wor
k en
viron
men
t
∟ employees socialise
more on a Friday which
enhances working
relationships and/or
collaboration.
so by promoting a chilled
atmosphere one day a week,
could hR make significant
savings on team-building
events and away days? it’s
food for thought.
there were pluses for
productivity too, with 26%
agreeing that employees are
more productive in the lead
up to Fridays, to allow them
to relax more at the end of the
week. For those who favour
the carrot over the stick,
Fridays appear to have a lot
going for them. they even play
a part in reducing employee
burn out in the opinion of
17.6% of our employer group.
When asked about the
consequential benefits
of having a more relaxed
working atmosphere on
a Friday, employers were
overwhelmingly upbeat.
The biggest plus, agreed
53.6% of employers was
that employees go into
the weekend feeling
positive about their work
environment.
empl
oyee
s be
com
e ge
nera
lly
happ
ier t
hrou
ghou
t the
wee
k du
e to
bet
ter w
ork-
life
bala
nce
empl
oyee
bur
n ou
t is
redu
ced
empl
oyee
s ar
e m
ore
prod
uctiv
e in
th
e le
ad u
p, to
allo
w th
em to
rela
x m
ore
at th
e en
d of
the
wee
k
empl
oyee
s so
cial
ise
mor
e on
a
Frid
ay in
the
offic
e w
hich
en
hanc
es w
orki
ng re
latio
nshi
ps
and/
or c
olla
bora
tion
ther
e ar
e no
ben
efits
of a
mor
e re
laxe
d at
mos
pher
e on
a F
riday
i don
’t kn
ow
oth
er
16
pRoduCtivitY WouLd
eitheR staY the saMe
oR inCRease, saY
54.9% oF eMpLoYeRs.
Granting Friday afternoons off
would decrease productivity
in the view of 35.8%. Co-
incidentally exactly the same
number of respondents
believe productivity would be
unaffected by reducing the
working week to four and
an half days. the employer
contingent that think half
day Fridays would increase
productivity amounted to
19.1% - nearly one in five of
all questioned.
WouLd You Give FRidaY aFteRnoons oFF FoR a YeaR?
We asked employers what
they thought the effect on
productivity would be if they
gave their workforce Friday
afternoons off for a full twelve
months.
What eFFeCt do You BeLieve GivinG eMpLoYees FRidaY aFteRnoons oFF FoR a YeaR WouLd have on totaL PROduCTIvITY in the saMe peRiod?
40%
35%
30%
25%
20%
15%
10%
5%
0%
it w
ould
incr
ease
pr
oduc
tivity
prod
uctiv
ity w
ould
re
mai
n th
e sa
me
it w
ould
dec
reas
e pr
oduc
tivity
i don
’t kn
ow
oth
er
What eFFeCt do You BeLieve GivinG eMpLoYees FRidaY aFteRnoons oFF FoR a YeaR WouLd have on staFF RETENTION in the saMe peRiod?
60%
50%
40%
30%
20%
10%
0%
“haLF daY FRidaYs WouLd inCRease pRoduCtivitY” saY 19.1% oF eMpLoYeRs
it w
ould
incr
ease
st
aff r
eten
tion
staf
f ret
entio
n w
ould
re
mai
n th
e sa
me
it w
ould
dec
reas
e re
tent
ion
i don
’t kn
ow
oth
er
MiniMaL iMpaCt on
pRoduCtivitY
While the figures alone
hint at a slight falling off
of productivity as the
weekend approaches,
employer comments are
encouraging, describing
a drive among employees
to meet their deadlines,
before enjoying the
Friday feel-good factor.
Revealingly over a quarter
of employers agree
that one of the benefits
of a relaxed working
atmosphere on a Friday
was that employees were
more productive in the lead
up to the last working day
of the week.
Most interesting, bordering
on revolutionary, was
the finding that 19.1%
of employers believe
that giving employees
Friday afternoons off for
ouR ReCoMMendation
houRs don’t have to
Be shoRteR
of the employers we
questioned, a 56% majority
didn’t offer shorter Friday
hours, even before holiday
periods. however almost
9 out of 10 employers
identified a range of
benefits associated
with a relaxed working
atmosphere on a Friday.
(While only 11.1% felt
there were no benefits to
less formal Fridays.) so
employees didn’t have
to be among the 16.8%
enjoying regular shorter
Friday hours - or shorter
hours at all - to feel the
Friday benefit.
iF FRidaY didn’t eXist,
hR WouLd have to
invent it.
Before you ask, this
recommendation wasn’t
written on a Friday. We’ve
been heartened and a little
surprised that Friday came
out of this research quite as
well as it did. For feedback
from our employer group
not only clears Friday of its
troublesome reputation as
a day on which behaviour
needs to be ‘managed’: it
goes on to establish it as a
proven and powerful tool in
any employer’s armory.
18
19
a year would boost annual
productivity, while 35.8%
thought it wouldn’t impact
on productivity at all. so this
research could be used to
explore the option not merely
of relaxed, but of altogether
radically reduced Fridays as a
boost to productivity.
tanGiBLe teaM-Wide
BeneFits
it was when questioned about
the consequential benefits
of having a more relaxed
working atmosphere on a
Friday, that we saw the flip
side of our much-maligned
end to the working week. the
employee benefits that go
with a lessening of perceived
pressure read like an hR
wish list. employers told us
their employees go into the
weekend feeling positive
about their work environment
become generally happier
throughout the week due to
better work-life balance are
more productive in the lead
up, to allow them to relax
more at the end of the week
socialise more on a Friday in
the office which enhances
working relationships and/or
collaboration are less prone to
burn out.
hoW to MaKe FRidaY
WoRK FoR You
For the vast majority of
employees, Friday at work
feels different in a good
way. as an employer it
makes sense to be closely
associated with the valuable
consequential benefits that a
rise in mood brings.
it appears that the employee
experience of Friday at
work may play a role in the
‘psychological contract’: the
informal and often unvoiced
assumptions on the side
of both employee and
employer that can optimise
individual and organisational
performance.
acknowledging the many
advantages of ‘the Friday
feeling’ could be the first step
in an employer harnessing and
optimising the raised spirits
shared by their workforce.
employers who have been
anxious about being seen
to condone a ‘slackening
off’ on a Friday, may wish to
think again. (equally those
employers who have been
feeling jittery with Christmas
coming, may want to re-
evaluate their approach in the
light of the increased loyalty,
enjoyment, team-building and
positive work associations
that an employer-approved
wind-down can bring.)
Balance appears to be the
key here, but employers who
can position themselves
as valuing their employees
professionalism in getting their
work done in good time on a
Friday, while playing an active
part in promoting a relaxed
atmosphere, may reap the
greatest benefit.
Retention
the last piece of evidence
in favour of being seen to
support a lighter mood on a
Friday is perhaps the most
conclusive. harvard Business
school has shown that the
cost of re-hire is three to
five times an annual salary
package. this research shows
that giving Friday afternoons
off for a year may be an
unnecessarily radical retention
tool. employers tell us that
encouraging upbeat Fridays
and promoting a more relaxed
mood going into the weekend
can enhance employees’
working lives throughout the
week, without a cut in hours. a
cost-effective and ‘ground up’
retention strategy if ever there
was one.
ContaCt us
We hope you found this
report interesting and
informative. to discuss the
hudson update in more
detail, or for a confidential
discussion about any of
your recruitment needs,
please get in touch with
your local hudson contact:
JAMIE WILLSBirmingham t: 0121 600 7739 e: [email protected]
dONNA WEEdON Leeds t: 0113 366 3270 [email protected]
NIALL PATTLEManchestert: 0161 832 7728 e: [email protected]
gARY FAYMilton Keynes t: 01908 547 817 e: [email protected]
JEMMA RAWLINSReading t: 01189 522 466 e: [email protected]
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