Threat to employers and workforce productivity

A survey by King's College London and law firm Speechly Bircham reveals that employers are facing a sustained increase in workplace unrest as austerity measures, longer working hours, stress and a genuine skills gap take their toll on the UK workforce. The State of HR Survey report highlights the full extent of the problems faced by employers, as they struggle to find ways to address gender pay inequality and are unprepared for upcoming changes to the default retirement age. New immigration caps are further hampering their efforts to plug the skills gap: 42 per cent of respondents employing non-EU workers reported that the immigration cap is having a negative impact on their business, with 33 per cent of businesses citing an increasing skills shortage (compared to 22 per cent in the previous year). Key findings of the survey, based on responses from 550 senior HR professionals with a combined workforce size of more than two million, include: - Lean workforces damage performance and could lead to a rise in tribunals and industrial action. More than 50 per cent of organisations surveyed reported an increase in staff working hours, while pay rises and bonuses continue to be withheld. Longer working hours were found to be significantly correlated with increased absence, sickness, stress-related problems, and increased employee grievances. HR managers also anticipate that future increases in working hours are linked with higher staff turnover and workplace unrest.