One in three UK employees (35 percent) are expecting a pay rise in the next 12 months, and of those that are, around half are expecting an increase of just two percent or less. In a sign that the recruitment market could heat up in 2015, 39 percent of employees said that they would look for a new job if they do not get a pay rise in the next 12 months. Whilst it is unlikely that all of these employees will carry this through- if they did it would have a huge impact on retention and recruitment costs for UK businesses as this is a total of 12 million UK employees. In fact, recent figures from Oxford Economics suggest that it costs businesses £30,000 to replace an employee in terms of loss of productivity and recruitment.
These are the findings of the Glassdoor UK Employment Confidence Survey (Q4 2014), suggesting that UK employees are feeling more concerned about redundancy than three months ago, combined with a general feeling that they might get more money elsewhere.
This survey tracks employee sentiment every quarter and monitors four key indicators of employee confidence: salary expectations, job market optimism/re-hire probability, job security and business outlook optimism. It is conducted online by Harris Interactive, on behalf of Glassdoor among more than 2,000 people within Great Britain.
Forty one percent of men are worried about being made redundant compared to 29 percent of women. This is a significant difference and might be explained by the fact that there are more women than men in part-time jobs generally, and only 28 percent of part-time employees fear redundancy compared to 38 percent of full-time workers.
In terms of regional UK differences, forty seven percent of employees in the North East are concerned about being laid off, whereas in Wales, just 21 percent of employees are concerned. This significant difference could be reflective of company redundancy announcements about layoffs in the North East area.
Job Market Optimism
Thirty four percent of those unemployed but looking for work report optimism that they could find a job matched to their experience and most recent compensation level in the next six months, however this is a drop of seven percentage points since Q314.
When it comes to existing employees (both full and part-time), 30 percent think that they could find a job in the next six months. Optimism amongst this group has also dropped, but only by one percentage point, and in fact has held steady all year.
One in three employees (34 percent) think that their company’s business outlook will improve in the next six months, up slightly from 32 percent last quarter. Employees in London are the most optimistic, as almost half (46 percent) believe that their company’s business outlook will improve in the next six months. This compares to just 20 percent of employees in the South-West, making this the most pessimistic region.
Check out more from our Q4 2014 Glassdoor UK Employment Confidence Survey, including our survey supplement, which provides a detailed breakdown of results.
Glassdoor publishes the UK Employment Confidence Survey each quarter, helping job seekers, employees and employers monitor and track employee confidence in the UK and how it relates to business, jobs, companies, careers, hiring and more.