Most workers avoiding moving jobs due to low pay, research suggests

June 25, 2019

More than half (57 per cent) of UK workers are not moving jobs because the salaries on offer are too low, research has revealed, pointing to a vicious cycle of wage stagnation and lack of labour market movement.

The survey of 2,000 UK workers by CV-Library found that despite not changing roles or organisations, 87 per cent were actively seeking alternative employment and 71 per cent were nevertheless confident about their job hunt.

Meanwhile, three-quarters (74 per cent) of the 200 UK employers also surveyed as part of the research said they planned to increase their hiring efforts in the next six months, however the jobs site suggested these plans may not come to fruition if they fail to provide the financial rewards employees are looking for.  

Lee Biggins, founder and CEO of CV-Library, said although record high employment rates were positive for employers looking to retain key members of staff, it also meant fewer workers were actively looking for work which could slow down company growth when it came to new hires.

He added that the war for talent was as competitive as ever, meaning businesses had to pull out all the stops in order to impress potential recruits – even if they couldn’t up wages.

“While it’s not always an option to offer sky-high salaries, consider what else you can do to sway candidates,” said Biggins. “A bigger holiday allowance, the opportunity to work from home and better workplace perks are all areas that can impact someone’s decision on whether to join your company or not.”

The survey showed a quarter of employers were nervous about attracting talent in the current economic climate (27 per cent), with two in five stating that low budgets were preventing them from hiring.

In April, the Office for National Statistics (ONS) released figures revealing UK wage growth was in fact stagnating because of slow movement in the jobs market, suggesting a vicious cycle of low wages and a tight labour market.

Jon Boys, labour market economist at the CIPD, said low wage growth and a slow-moving jobs market were two sides of the same coin: “The post-crash economic recovery has been characterised by record high rates of employment but stagnant pay growth. This is not what the textbooks say should happen: tight labour markets should equal rising wages.” he said.

“A lack of job moves could be holding back pay, which tends to rise more when changing job than when staying with the same employer – a disloyalty bonus. When job-to-job moves are high the economy is efficiently moving people to where they are most productive and naturally workers capture some of this productivity through their wages.”

The ONS research showed just 10.9 per cent of workers changed employer in 2017 and 2018 – a higher rate than the post-recession low of 5.7 per cent but still sluggish enough to impact wages despite record levels of employment.

At the same time, unemployment fell from 3.9 per cent to a record 3.8 per cent – the lowest since 1974.

The ONS suggested the low levels of job switching indicated people considered it too risky to change employer.

It also suggested wage growth was failing to keep up with the rising cost of living. An analysis of ONS data by the BBC in April found council tax increases would affect millions, rising on average 4.7 per cent at the start of the financial year, with gas and electricity prices for more than half of British households also going up by approximately £117 per year.

Earlier this month, research from the Institute of Fiscal Studies (IFS) revealed Britain had seen a dramatic rise in the number of working poor since the 1990s.

It found that between 1994 and 2017, the share of poverty accounted for by working households jumped from 37 per cent to 58 per cent, and claimed that stagnating pay growth and higher rents were the reason 8 million working households were now in poverty.

Source Link: https://www.peoplemanagement.co.uk/news/articles/most-workers-not-moving-jobs-low-pay-research-suggests

RECENT POSTS

New Employment Rights Bill: Key Updates and Impact on Recruitment

READ ARTICLE

October 11, 2024

Switching off from job boosts productivity - No 10

READ ARTICLE

September 13, 2024

Candidate shortage afflicts two-thirds of businesses

READ ARTICLE

May 7, 2024

Will Britons work until they’re 71? Expert examines proposed pension age rise

READ ARTICLE

May 7, 2024

World Mental Health Day - Over eight in ten businesses seeing increased employee demand for more work wellbeing benefits

READ ARTICLE

October 10, 2023

9 Do’s and Don’ts of Asking Questions in Job Interviews

READ ARTICLE

September 4, 2023

TUC warns better regulations are needed to protect workers against AI

READ ARTICLE

July 24, 2023

UK businesses struggle to recruit staff needed to fill key roles

READ ARTICLE

July 24, 2023

UK wage growth rises at fastest pace in two years

READ ARTICLE

June 16, 2023

Workplace AI: How artificial intelligence will transform the workday

READ ARTICLE

May 23, 2023

Workplace words glossary: A dictionary of the most used slang words in the workplace

READ ARTICLE

May 23, 2023

10-Step Checklist Before You Send Your Application

READ ARTICLE

February 7, 2023

ATS systems and your CV: 5 things you need to know

READ ARTICLE

February 7, 2023

National Apprenticeship Week – start your career and earn while you learn

READ ARTICLE

February 7, 2023

UK staff to have right to ask for flexible working from day one in job

READ ARTICLE

December 7, 2022

Qatar World Cup: Bosses issued advice over staff wanting to watch games during work

READ ARTICLE

November 21, 2022

‘Fully remote’ roles face steep decline in popularity

READ ARTICLE

November 21, 2022

Two-thirds of UK workers think work-life balance is more valuable than pay

READ ARTICLE

June 14, 2022

Taking a Step Back

READ ARTICLE

March 18, 2022

War for talent

READ ARTICLE

March 18, 2022

Choosing the right industry: how to decide if a job is right for you

READ ARTICLE

March 18, 2022

At What Age Is It Too Late For A Career Change?

READ ARTICLE

January 6, 2022

Four things to remember when dressing for a job: a guide for modern workers

READ ARTICLE

January 6, 2022

Digital right-to-work checks to become permanent from April

READ ARTICLE

January 6, 2022

Flexible working not a given right for employees

READ ARTICLE

December 14, 2021

5 of the WORST career mistakes you could make in 2021

READ ARTICLE

January 12, 2021

HMRC to waive fines for taxpayers who file late returns due to Covid

READ ARTICLE

January 12, 2021

What can you do to boost your new year job search?

READ ARTICLE

January 4, 2021

How to Make Your Job Application Stand Out from the Rest

READ ARTICLE

October 28, 2020

List Recruitment Evesham - We are back!

READ ARTICLE

July 16, 2020

Terry List

READ ARTICLE

July 3, 2020

Has the bounce back begun? Jobs decline slows for first time in a month

READ ARTICLE

June 2, 2020

Home office ergonomics: how to work from home without breaking your back

READ ARTICLE

April 24, 2020

Sick pay from day one for those affected by coronavirus

READ ARTICLE

March 5, 2020

How to love your job

READ ARTICLE

February 14, 2020

An employer’s guide to LGBT inclusion in the workplace

READ ARTICLE

February 7, 2020

Bereaved parents to get two weeks’ paid leave

READ ARTICLE

January 24, 2020

2020's top in-demand jobs

READ ARTICLE

January 7, 2020

Job Hunting in December

READ ARTICLE

December 2, 2019

British workers reject 9-5 as the way to make a living

READ ARTICLE

November 22, 2019

Navigating end of year office celebrations

READ ARTICLE

November 19, 2019

Record low business confidence denting ambitious hiring plans

READ ARTICLE

October 31, 2019

Banning out-of-hours email likely to be harmful to some employees

READ ARTICLE

October 18, 2019

How to improve your Linked In profile

READ ARTICLE

October 9, 2019

What to check for in your contract before taking a job

READ ARTICLE

September 26, 2019

Experience or education: which is more important?

READ ARTICLE

September 11, 2019

1 in 5 Employees Quits Job Over Poor Payroll Experience

READ ARTICLE

September 5, 2019

How to manage your references

READ ARTICLE

September 5, 2019

How to leave a job without burning bridges

READ ARTICLE

August 19, 2019

UK Heatwave: What Are Your Rights At Work?

READ ARTICLE

July 24, 2019

Two million workers could receive statutory sick pay for first time

READ ARTICLE

July 16, 2019

Countdown to IR35 Legislation in the private sector begins

READ ARTICLE

July 16, 2019

Up to a third of new employees aren’t passing their six-month probationary reviews

READ ARTICLE

July 9, 2019

Employer confidence beginning to show signs of improvement

READ ARTICLE

June 27, 2019

How to write a job advert (with examples)

READ ARTICLE

June 27, 2019

What to ask in an Engineering Interview?

READ ARTICLE

June 27, 2019

Worker confidence in the UK jobs market falls

READ ARTICLE

June 26, 2019

The best jobs for work-life balance in the UK

READ ARTICLE

June 26, 2019

Most workers avoiding moving jobs due to low pay, research suggests

READ ARTICLE

June 25, 2019

Over-50s ‘driving UK’s jobs miracle’

READ ARTICLE

June 25, 2019

Government calls on more women to take up engineering careers

READ ARTICLE

June 25, 2019

We have moved!

READ ARTICLE

August 30, 2018

Candidate shortage threatens the job market 'feel-good factor' – REC

READ ARTICLE

August 22, 2018

UK unemployment is at an all-time low

READ ARTICLE

August 14, 2018

List attains REC Audited status

READ ARTICLE

August 7, 2018