Tag Archives: employees

Fair and flexible labour market: building back better

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Much has been reported on the recovery from the pandemic and how things can be ‘built back better’ but what about those groups that have been disproportionately affected?

Recent research has highlighted the unequal impacts the pandemic has had on particular groups within the labour market.  From the lowest paid to part-time workers and women, research has considered how things could be moved forward so that those that have borne the brunt of the economic impact are not left behind. In this blog, we take a look at some of these publications, each of which highlights the need to create a fairer and more flexible labour market.

Low paid workers: new settlement needed

The Resolution Foundation’s latest annual Low pay Britain report has warned that the low paid are at greatest risk of becoming unemployed once the furlough scheme ends in September.

Despite the positive backdrop for low paid workers in the run up to the crisis with a fast rising minimum wage following the introduction of the National Living Wage (NLW) in 2016 – which has driven the first sustained fall in low pay for 40 years – the Covid-19 crisis has adversely affected the low paid to a much greater degree than the higher paid. The research showed that workers ranked in the bottom fifth for pay were three times more likely to have lost jobs, hours or have been furloughed than the top paid fifth. Low paid workers are also more likely to work in the sectors most impacted by the pandemic – hospitality, leisure and retail.

As the economy reopens, however, so too do the sectors most restricted over the past year which improves the prospects for low paid workers. Indeed, they are now returning to work fastest. In April alone, almost a million workers came off furlough – more than half of them employees in hospitality, leisure or retail.

But while the report highlights the positive prospects for the low paid, it also addresses several key issues that policy makers will need to consider if the low paid are to benefit from the recovery. Major risks for the low paid are identified:

  • higher unemployment
  • decreasing job security
  • infringements of labour market rights

It argues that low paid workers’ relative unemployment risk after the pandemic is likely to be particularly high given the possibility of structural change concentrated on low paying sectors. And if unemployment rises, it is noted that job quality and infringements of labour market rights are likely to deteriorate.

The Resolution Foundation calls for a new settlement for low paid workers, arguing that “policy makers must look beyond the minimum wage – to job security and labour market regulation – for ways to ensure it’s a recovery that benefits low paid workers”.

Part-time employees: must be included in the recovery

As we move towards the end of restrictions and of the furlough scheme, cracks have also started to emerge for part-time workers, who have been “clinging on in a volatile labour market” according to recent analysis by the Timewise Foundation.

This report notes that part-time employees are one demographic that hasn’t had the same level of scrutiny in the literature as other disproportionality affected groups.

The experience and outlook for part-time employees appears “particularly bleak” according to the report. Despite the furlough scheme being effective in protecting millions from unemployment, it is argued that it is actually masking significant challenges – most notably for part-time workers. The disproportionate impact on part-timers has seen them face higher levels of reduced hours and redundancy. They are also less likely than full-timers to return to normal hours and to hang on to roles during lockdowns.

Evidence shows 44% of part-time employees who were away from work during the first lockdown continued to be away from work between July and September 2020, when restrictions began to temporarily ease. This compares to 33.6% of full-time employees.

The majority (80%) of part-time workers also do not want to work more hours but as Timewise data shows, only 8% of jobs are advertised as part-time – “simply too big a problem to ignore”.

In response to the analysis, a vision for change is set out, focusing on creating a fair and flexible labour market that will:

  • support those in everyday jobs to access flexibility
  • help the millions of people who want or need to work flexibly to find flexible opportunities
  • remove some of the barriers to support those trapped in low-paid work and unable to progress

Women: promoting a gendered recovery

Women have also been disproportionately affected in the labour market, particularly as they are often employed in low-paid and part-time jobs within shutdown sectors such as hospitality and retail, which are notoriously characterised by job insecurity.

This was highlighted in a recent briefing paper by Close the Gap and Engender which looked at the impacts of Covid-19 on women’s wellbeing, mental health, and financial security in Scotland. The paper confirms pre-existing evidence that women have been particularly affected by rising financial precarity and anxiety as a result.

The closure of schools and nurseries and increased childcare disproportionately affected women’s employment and women’s propensity to work part-time places them at greater risk of job disruption. The data shows that young women and disabled women are being particularly impacted by the pandemic.

Key findings include that women are more likely than men to be receiving less support from their employer since the first lockdown, and were significantly more likely than men to report increased financial precarity as a result of the crisis – this was particularly the case for young women and disabled women. Timewise points to the potential for this to add to a growing child poverty crisis.

Similarly to the above reports, which call for the specific affected groups to be included in any future employment strategy, this report concludes by highlighting the importance of a gender-sensitive approach to rebuilding the labour market and economy.

Final thoughts

While furlough has undoubtedly protected many within those groups who have been disproportionately affected by the pandemic, this is only temporary and as all three reports above suggest, these groups are at greatest risk of unemployment and job insecurity when the scheme finally ends.

The research clearly calls for a fairer and more flexible labour market with stronger and better rights for all workers. Failure to address this in the attempt to build back better will only serve to increase the inequalities that already exist in the labour market.

The reports highlighted in this blog post have recently been added to The Knowledge Exchange (TKE) database. Subscribers to TKE information service have direct access to all of the abstracts on our database, with most also providing the full text of journal articles and reports. To find out more about our services, please visit our website: https://www.theknowledgeexchange.co.uk/

Further reading on employment issues from The Knowledge Exchange Blog:

Living and working in an ‘age of ambiguity’

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The pandemic is having a wide ranging impact on all aspects of people’s lives. From the massive shift to home working for many to the furlough scheme for others, employees have experienced a fundamental shift in the way they work and live.

According to a recent survey of workers, employee happiness has declined and there has been an increase in presenteeism during the pandemic, as the boundaries between home and work, which were once certain, have become blurred.

Blurred lines and a culture of presenteeism

The survey by Aviva, polled 2,000 employees in February 2020 and again in August 2020, finding that most people were happier before the pandemic and that a culture of presenteeism had emerged. Key findings included:

  • More than half (52%) agree the boundaries between their work and home life are becoming increasingly blurred – up from 40% in February.
  • The number of employees who are completely happy almost halved: 20% in February vs. 13% in August.
  • 43% of employees ranked their mental health between ‘very bad’ and ‘fair’, compared with 38% in February.
  • 84% say that they would carry on working even if they felt unwell.

A significant trend of presenteeism and the ‘always on’ culture was highlighted by the survey. The increased uncertainty and heightened anxiety has led to many employees working longer hours and taking fewer sick days. In February 2020, 67% of employees took zero sick days over a three month period; this increased to 84% in August.

Employees may feel the need to prove their productivity while working from home, particularly if they feel their jobs are at risk. But such e-presenteeism is likely to have a negative impact on productivity and inevitably mental wellbeing. According to the report “the ambiguity experienced is compounding behaviour that is detrimental to long-term employee wellbeing.”

Young people (18-25) were found to be particularly affected, with 53% reporting feeling anxious compared to the national average of 34% and 17% ranking their mental health as bad compared to an average of 11% across all age groups.

There have been changes in employee self-determination across the board and the main priorities for employees have shifted as they are increasingly looking for a greater work-life balance over salary – a trend which has increased since the pandemic struck.

Employer considerations

Most employers have implemented new ways of supporting employees, which has been welcomed, but the survey highlights that more needs to be done. Despite a majority of employees believing employers have made some effort to adapt, there is still a loss of motivation among employees. Just 15% of employees agree that their employer is trying really hard to understand what motivates them and only a quarter (26%) agree their employer is genuinely concerned about their wellbeing.

With research confirming a conclusive link between wellbeing and productivity – employees are 13% more productive when happy – no organisation can afford to ignore the issue of employee wellbeing.

Indeed, employee wellbeing was already rising up the corporate agenda pre-Covid-19 but the pandemic has propelled it further into focus for many organisations.

It is argued that a new partnership is required between employees and employers. Personal control surpasses employer control when it comes to what employees want and there is clear evidence that more tailored support, rather than a one size fits all approach, is required.

Aviva’s report argues that “now more than ever there is a case for employers to embrace the ‘Age of Ambiguity’ to support their workforce with their mental health, physical and financial wellbeing.” To this end, Aviva recommends five ‘employer considerations’:

  • Understand how they can deliver on emerging flexibility needs.
  • Personalise mental health and wellbeing support.
  • Create sense of purpose, clarity and autonomy in the workplace.
  • Prepare workers for fuller working lives and the transition from work to retirement.
  • Create more targeted interventions by understanding personality types.

Towards a happier future

As all personality types were found to desire flexibility, it is suggested that prioritising employee wellbeing as a ‘need to have’ rather than a ‘nice to have’ and incorporating flexibility into working life could be a way forward for businesses when it comes to recruiting and retaining the best workers.

The ‘age of ambiguity’ could be the perfect opportunity for businesses to make the necessary changes to support their employees, helping them to improve their physical, mental and financial wellbeing – for mutual benefit.

The pandemic has thrust the world of work into a period of intense change and uncertainty, but many of the trends were already underway, particularly the shift in employee outlook. Employees’ desire for flexibility continues to grow as they seek a better work-life balance and there is no sign of this abating. The Aviva survey has shone a spotlight on this trend and suggests that “employers who embrace their employees’ desire for long term flexibility will see the benefit of a healthier and happier workforce” – leading to a happier future for all.

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An ageing workforce and growing emotional demands call for more sustainable employment

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People Turning in Gears - Synergy

As a result of the global demographic challenge of an ageing population and the increasing diversity of working life, there has been a growing focus on sustainable work over the life course which has also placed greater emphasis on the importance of the quality of work and working conditions. As more and more people are having to work longer before retirement, it is important that they are able to do so.

A recent Eurofound report examined working conditions and their implications for worker’s health. Its findings confirmed a clear link between working conditions and the health and well-being of workers, highlighting the need to make work more sustainable.

Working conditions, health and wellbeing

Eurofound’s report found that this relationship can be depicted in a model based on the European Working Conditions Survey (EWCS), showing that health outcomes are the result of two processes: health-impairing processes (exhaustion) and motivational processes (engagement).

Health-impairing processes are associated with exposure to adverse work demands which tend to increase exhaustion, while motivational processes are associated with access to work resources that support engagement.

Such demands can include:

  • physical risks
  • work intensity
  • work extensity (long working hours)
  • emotional demands
  • social demands

Such resources can include:

  • social resources
  • work resources
  • rewards

It is noted in the report that the demand and resources model partly explains how well-designed jobs – characterised by high rewards, high work and social resources and suitable levels of demands – translate into better health: “Whereas job demands are linked to higher levels of exhaustion (which, in turn, are related to poorer health), job resources are associated with higher levels of work engagement (which, in turn, are related to better health and well-being).”

It is therefore suggested that as job control, social resources and rewarding working experiences all have positive effects, employers should be encouraged to introduce initiatives that focus on motivational aspects of work.

As recently highlighted, the discipline of worker health has traditionally focused on worker exposures to various workplace hazards. However, this has more recently broadened to include the concept of worker well-being, which is seen as increasingly important. Not only is it important for the individual but it is an important determinant of productivity for enterprise and society as well. Indeed, the Eurofound report highlights this growing importance.

Emotional demands

While the report notes that physical hazards have a direct effect on worker’s health and wellbeing and are undoubtedly remain important, these have not increased, but emotional demands have. This, it is argued, underlines the growing importance of psychosocial risks. It argues:

“In the context of ageing societies and services-dominated economies, it becomes more pressing to address these risks as the incidence of exposure increases.”

Other research has also highlighted the significance of emotional demands at work in relation to health. One recent study in the Danish workforce, for example, found emotional demands at work predicted a higher risk of long term sickness absence.

With the growing need for long-term care in ageing societies, it is argued that these demands are likely to increase further and, therefore, require particular attention. Different groups of people also face varying demands and are considered in the report. In particular, gender differences are considered throughout – highlighted as significant in some areas

Gender

The report found that men tend to report better health and wellbeing, and fewer health problems and better sleep quality than women. Men were also found to report fewer days of sickness absence and fewer days of presenteeism.

This is consistent with other research findings that show ill-health is more prevalent in women. One study exploring the association between work-related stress in midlife and subsequent mortality, and whether sense of coherence (measured as meaningfulness, manageability and comprehensibility) modified the association, found that occupation-based high job strain was associated with higher mortality in the presence of a weak sense of coherence – a result that was stronger in women than in men.

The Eurofound report findings show that as women often work in sectors like health or education, they are especially exposed to the psychosocial risks associated with these emotionally demanding jobs.

The report also notes that workers under 25 are most likely to face high demands while having the least access to work resources, and health sector employees in particular, face high emotional and social demands. It is therefore suggested that there should be investment in working conditions for particular risk groups, such as occupations requiring lower skills levels, reporting job insecurity, or witnessing workplace downsizing. Measures to promote high union density, good employment protection and gender equality which are likely to improve working conditions and contribute to workers’ health and wellbeing are also highlighted.

Way forward

The findings of the Eurofound report, and indeed other research, highlight the need to look beyond the ‘traditional’, narrower framework of occupational health and safety to include the psychosocial risks such as emotional demands, along with motivational aspects of work. This calls for a reduction in health-impairing conditions and a fostering of health-promoting ones.

Of course, the world of work will continue to change, particularly in an increasingly digital world. However, striking the right balance between demands and resources through coordination between different policy fields could contribute to a higher quality of working life that is sustainable, regardless of the ever changing environment.

Follow us on Twitter to see which topics are interesting our Research Officers this week. If you enjoyed this article you may also like to read:

Diversity and inclusion in the workplace: more than just demographics

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The experts are in agreement: having a diverse workforce can drive innovation, improve performance and attract top talent.  As such, diversity and inclusion (D&I) is a ‘hot topic’, with many top organisations identifying it as a key element of their corporate strategy.

But what does effective D&I look like in practice?  In this blog, we will look at how to implement effective D&I initiatives in the workplace.

 

Progress still needed

While organisational diversity has improved in recent years, there is still a long way to go.

Action has been most visible in regards to gender.  However, although female employment rates have increased, male and female experiences of progression within the workplace are still vastly different.  For example, in 2018, FTSE 100 CEOs were still more likely to be called Dave or Steve than to be female.

Progress has been less tangible in regards to race and ethnicity.  A recent study by the Chartered Management Institute (CMI) found that while 75% of FTSE 100 companies set progression targets for gender, only 21% did the same for BAME. Indeed, only 6% of top management jobs are held by Black, Asian and minority ethnic (BAME) leaders, whereas BAME groups make up 12% of the working population.

There is a similar lack of representation among disabled and LGBT employees.  This only increases when considering intersectionality – that is, employees who identify with more than one protected status.

 

Diversity and inclusion are separate concepts

Many organisational diversity initiatives have proved unsuccessful.  Where have they gone wrong?

Firstly, being a truly inclusive organisation is about more than just hiring a diverse workforce.  Diversity alone does not guarantee that every employee will have the same experience within the organisation.

A first step towards implementing an effective D&I strategy is to understand that diversity and inclusion are related, but distinct, concepts.

As the recent CIPD report on ‘Building inclusive workplaces’ explains:

  • Diversity refers to the demographic differences of a group. It usually references protected characteristics in UK law: age, disability, gender, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.
  • Inclusion, on the other hand, is often defined as the extent to which everyone at work, regardless of their background, identity or circumstance, feels valued, accepted and supported to succeed at work.

Thus, effective organisational D&I is more than just demographics.  Put simply ‘Diversity is the mix. Inclusion is making the mix work’.

 

Copy and paste mistakes

Another key mistake that many organisations make is ‘copying and pasting’ initiatives from another organisation into their own situation.

Just because a D&I initiative has been successful elsewhere does not mean that it will be effective in a different organisational context.  It is essential that D&I initiatives are tailored to suit individual organisational contexts.  Much will depend on the unique structural and individual barriers to inclusion that are faced in an organisation.

 

Addressing the barriers

Thus, it is crucial that organisations identify and tackle these specific barriers to inclusion.

Structural barriers may include a lack of flexible working opportunities, or a lack of BAME representation on recruitment selection panels or within senior management and HR.

Individual barriers may include prejudice and bias (both conscious and unconscious).  For example, the TUC Racism at Work survey found that 65% of BAME workers have suffered harassment at work within the last five years, while 49% had been treated unfairly.  Similarly, an NIESR study found that 23% of LGBT employees had experienced a negative or mixed reaction from others in the workplace due to being LGBT or being thought to be LGBT.

 

Tackling prejudice and bias

Addressing employees’ unconscious bias is one way to help tackle this.  Unconscious bias training involves teaching people about the psychological processes behind prejudice and techniques that can be used to reduce it. Research has found that unconscious bias training can be effective in increasing people’s awareness and knowledge of diversity issues.

However, evidence of its impact on attitudes and behaviours is less conclusive, so it is not a panacea.

 

Making the mix work

So what else can organisations do to help foster inclusion?

Research has found that there are several key aspects that contribute to individual feelings of inclusion.  In particular, individuals must feel valued for their uniqueness, and they must feel able to  be their authentic selves at work, regardless of any differences between them and other team members. This, in turn, leads to a sense of belonging, without the need to conform to ‘group norms’.

Individual feelings of inclusion are influenced both by the behaviours of others at work, as well as informal and formal organisational practices.

Some good practice examples of organisational inclusion include:

  • Fair policies and practices
  • Ensuring the availability of specific practices, such as flexible working, that can support inclusion
  • Involving employees in decision making processes and networks
  • Actively taking feedback on board
  • Ensuring that leaders are role models for inclusion
  • Genuinely valuing individual difference, not just hiring for representation

Other practices that may help promote inclusive working environments include mentorship, sponsorship and the creation of inclusive employee networks.

 

Learning from good practice

The good news is that an increasing number of organisations are working towards becoming truly diverse and inclusive.  Awards and certifications such as Business in the Community’s Race Equality Award, EDGE certification for gender equality, and Stonewall’s Workplace Equality Index for LGBT inclusion, all highlight the positive work that is being done.

For example, Pinsent Masons – currently the number 1 employer in the Workplace Equality Index – have worked to remove barriers to employment for trans individuals, provided support for LGBT women to overcome the ‘double glazed glass ceiling’ and facilitated the creation of an LGBT and allies employee network.

 

Inclusion leads to better, fairer workplaces 

Successful D&I cannot be measured by demographics – it is not enough to just have the right numbers on paper.  Every employee must feel valued as an individual and have equal access to opportunities.  In order to achieve this, organisations must look at their own contexts and develop initiatives that tackle the individual and structural barriers to inclusion that have been identified.  Listening to feedback from employees, and genuinely valuing and acting upon their input, is essential.

Becoming more inclusive is not only a moral obligation, it also has profound business implications – a recent study found that the potential benefit to the UK economy from full representation of BAME individuals across the labour market through improved participation and progression is estimated to be £24 billion per annum.  Thus, inclusive organisations are not only better and fairer places to work, but can also achieve better performance and innovation.

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Beneath the headlines: record high employment rate, but what’s more important – quantity or quality?

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Competition for new jobs

The UK employment rate has hit a joint record high of 76.1%, according to the latest official figures. The unemployment rate was estimated at 3.8%; it has not been lower since 1974. The economic inactivity rate was also close to a record low.

It’s not surprising that such record figures are often highlighted as ‘good news’ headlines. However, there has also been an increasing focus on quality of work over the past decade and the impact this has on people’s lives – reflecting concerns regarding developments in working practices, as highlighted by a recent City-REDI briefing paper. It has therefore been argued that the record employment rates are not necessarily representative of a ‘good news’ story.

Concerns

Concerns over working practices include the rise of the gig economy, unequal gains from flexible working, job insecurity and wage stagnation, to name but a few. The City-REDI paper outlines a number of ongoing concerns related to:

  • weak productivity growth;
  • employment insecurity and precarity;
  • in-work poverty;
  • skills shortages and skills polarisation; and
  • the impact of automation, technological change and the gig economy on the nature and experience of work.

Indeed, analysis has shown that much of the recent rise in employment is due to a ‘surge in low-value work’, which is holding back productivity growth. Many people are stuck in low paid insecure work, all of whom are contributing to the high employment rate.

Recent research from the Joseph Rowntree Foundation has reported that four million workers live in poverty, a rise of over half a million over five years – meaning in-work poverty has been rising even faster than employment. The causes of this increase include poorly paid jobs – particularly under temporary and part-time contracts – and a lack of progression routes for people in low-skilled work.

In addition, the rising gig economy shows no signs of slowing down, more than doubling in size over the past three years and now accounting for 4.7 million workers, according to a new report. An interesting finding of the report is that the majority of gig economy workers use this platform to supplement other forms of income, suggesting that workers are not getting enough of an income from their primary employment.

It has also been shown that advances in technology have pushed some workers into poorer quality jobs than those lost, something which cannot be addressed without some kind of policy intervention.

Health impact

Not only is poor quality work bad for the economy, it is also bad for people’s health.

A recent report which examined the impact on social inequalities of policy initiatives and reforms to extend working lives in five European countries, highlighted that working conditions are also known to influence post-retirement health, and for those with lower socioeconomic status, workplace arrangements may be causing or contributing to poor health.

A number of studies have highlighted the link between good work and health and wellbeing. As stated by a What Works for Wellbeing briefing paper, “Being in a job is good for wellbeing. Being in a ‘high quality’ job is even better for us.” It has also even been suggested that being in a poor quality job is actually worse for health and wellbeing than remaining unemployed.

Moves towards improving quality

Recent developments in the UK to address such challenges for the future and quality of work include:

  • the establishment of The Work Foundation’s Commission on Good Work in 2016, which aims to better understand the factors shaping change, and the nature and scale of opportunities and risks, so as to promote policies to achieve ‘good work’;
  • The commissioning and publication of the independent Taylor Review of Modern Working Practices in 2017 which called for policy to address the wider issue of creating quality jobs for all; and
  • the Government’s Good Work Plan, published in December 2018, which sets out the reforms planned to help improve quality of work – the first time the UK Government placed equal emphasis on the quality and quantity of work.

In addition, the Chartered Institute of Personnel and Development (CIPD) launched the UK Working Lives survey, the first robust measurement of job quality in the UK. This has since contributed to government thinking and recommendations around ‘good work’ in response to the Taylor Review.

Despite the widespread agreement over the need to adopt ‘good work’ principles, however, there remains no agreed set of indicators of exactly what it encompasses nor metrics for measuring progress towards it.

What is good work?

As the City-REDI briefing paper and other studies indicate, defining good quality work is complex as quality means different things to different people.

A range of factors contribute to different people’s perception of quality and fulfilling work, including pay, flexibility, security, health and wellbeing, nature of work and job design. The CIPD survey highlights seven dimensions of job quality:

  • pay and benefits
  • employment contacts
  • job design and nature of work
  • work-life balance
  • work relationships
  • voice and representation
  • health and wellbeing

Of course, there is no one size fits all solution.

Final thoughts

While productivity and employment rates undoubtedly remain important, they alone are clearly not enough to understand the health of the labour market; the quality of work also needs to be considered.

As shown by the visible shift from quantity to quality of work in recent years and the recent developments from the government and others, ‘good work’ is undeniably on the policy agenda. However, as the City-REDI paper suggests, there should be a focus on promoting ‘good work’ amongst the most disadvantaged groups such as the young, people with disabilities and those working in hotels and restaurants. It is also suggested that there is scope for further research on good practice in promoting ‘good work’ in establishments of different sizes and in different sectors.

As highlighted in the Taylor Review, “All work should be fair and decent with realistic scope for development and fulfilment.”

You may also be interested in some of our previous employment-related posts:

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Breaking down barriers: helping disabled people enter and sustain employment

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“We have a moral duty to remove the barriers to participation for people with disabilities, and to invest sufficient funding and expertise to unlock their vast potential.” Professor Stephen Hawking (2011)

In the UK, the disability employment gap – the difference in the employment rate of disabled and non-disabled people – has remained largely static for over a decade.

Just 48% of disabled people are in employment, compared to 80% of non-disabled people.  Employment rates are even lower for people with certain disabilities, such as learning disabilities (6%), and for people with autism (32%).

There are a number of reasons for this.  These include the personal barriers that people with disabilities face when working, a lack of appropriate support to help them into and remain in work, negative attitudes from employers and recruitment agencies, inaccessible workplaces and inflexible working practices.

Perceived barriers and prejudice

Employers are often wary of hiring people with disabilities.  A recent poll found that as many as 22% of employers openly admitted that they would be less likely to hire a person with disabilities.  Many more may have felt similarly but were less willing to admit to it.

According to research by the Centre for Social Justice, 63% of employers feel that there are significant barriers to employing someone with a disability.  These include:

  • concerns about their ability to do the job
  • the costs of making reasonable adjustments
  • the inconvenience of making reasonable adjustments
  • fear of increased possibility of litigation
  • concerns about their ability to integrate into the team
  • concerns about a potentially negative customer reaction

Given these negative attitudes and perceptions, it is no wonder that as many as 1 in 5 (21%) disabled people hide their disability from employers, and over half (58%) feel that they are at risk of losing their jobs because of their impairments.

Benefits for employers

In truth, research has found that there is a “compelling case” for hiring disabled people – although few (9%) employers recognise this.

Becoming more disability-friendly can significantly increase an employer’s potential talent pool – around 1 in 5 working age adults in the UK have some kind of disability.

The majority (around 80%) of disabled people acquire their disability during the course of their working life.  There are clear benefits to retaining an experienced, skilled employee who has acquired an impairment – not least avoiding the costs and inconvenience involved in recruiting and training new staff.

Research has also found other benefits. These include:

  • higher rates of retention, lower absenteeism and good punctuality
  • improved employer loyalty and commitment
  • improving access to disabled customers
  • improving staff relations and personnel practices
  • improving the public image of the company as a fair and inclusive employer
  • bringing additional skills to the business, such as the ability to use British Sign Language (BSL)

Adjustments often low cost

Research has also found that employers frequently overestimate the costs of reasonable adjustments. Indeed, according to ACAS, only 4% of reasonable adjustments do cost, and even then the average is only £184 per disabled employee.

In any case, the government’s Access to Work scheme is specifically designed to cover the majority of the costs associated with making reasonable adjustments, including the provision of special aids and equipment, adaptations to equipment, travel to and from work, and support workers.

However, not enough employers know about the Access to Work scheme; only 25% are aware of it.

Free support and advice

According to Acas, there are many things that employers can do to become more ‘disability-friendly’.

These include helping people to gain employment, by tackling unconscious bias, adapting recruitment processes, creating an inclusive workplace culture, providing appropriate training and support for line managers, as well as addressing basic issues such as access to buildings (particularly older buildings where adaptations are more difficult/costly).

Once in work, it is important to maintain an open dialogue between managers and employees in order to develop an awareness of individual needs and potential adaptations.

Wellbeing initiatives, and clear and consistent attendance management/return to work policies, including ‘keep in touch’ days during any period of absence, can also help disabled people to avoid ‘falling out of work’.

Employers can obtain support on attracting, recruiting and retaining disabled people in the workplace through the government’s Disability Confident scheme. They can also make use of Fit for Work – a national occupational health service that is free at the point of delivery.

A better workplace for all

While not all disabled people should be expected to work, a significant majority would like to work more.

Closing the disability employment gap is important – not just for the individuals involved, but for businesses themselves and the wider economy.  Social Market Foundation research has found that halving the gap and supporting one million more disabled people into work would boost the economy by £13 billion.

There are some promising signs of progress.  Organisations as diverse as Barclays, Channel 4 and the Civil Service have all established innovative approaches to employee disability support and management.  Such initiatives not only help disabled employees directly, but also serve as a benchmark of what other employers can do to encourage and support disabled people within their organisation, and raise awareness of the benefits of employing disabled people for the organisation itself.

In many cases too, the improved working practices associated with becoming disability-friendly are of benefit not only to disabled employees, but to all employees, customers and service users too.

You may also be interested in our previous blog posts on supporting neurodiversity and mental health in the workplace.  

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Opportunity or necessity… what’s fuelling the growth in self-employment?

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With unemployment reaching its lowest level since 1975, it may seem like the state of the labour market has improved in recent years. However, a closer look at the statistics suggests that this is not necessarily the case.

The strong performance in the labour market in part reflects the growth in self-employment, which has been a distinguishing feature of the labour market’s recovery since the last recession.

Growth in self-employment

There were almost 750,000 more self-employed in the UK workforce at the end of 2014 than at the start of the global financial crisis in 2008, representing a high proportion of the total net growth in jobs over this period. Self-employment accounts for over 15% of those in work in the UK – 4.8 million of a workforce of around 32 million. Between March 2008 and March 2017, self-employment accounted for almost a third of total employment growth.

The significance of the contribution of self-employment is highlighted in a recent article published in Regional Studies, which notes that of the 920,000 net new jobs created between quarter 1 of 2008 and quarter 2 of 2014, 693,000 were in self-employment.

There has also been a rise in the share of female self-employed and those that work part-time, in addition to growth in a broader range of industries and occupations among the self-employed.

Recent ONS figures also show that the growth in self-employment between 2001 and 2016 has been driven mainly by those who have a degree (or equivalent), leading to the share of the self-employed with a degree or equivalent increasing from 19.3% in 2001 to 32.6% in 2016 as a share of total self-employed. As a share of total employment (self-employed and employed), the figures show that relatively highly-qualified individuals are becoming more concentrated in the self-employed.

Earnings growth?

The reasons for this growth has been the subject of much debate, particularly as research suggests “many fail to earn a decent living”. This recent analysis by the New Economics Foundation found that 54% of all self-employed people are not earning a decent living. It also found that the percentage of the labour force in ‘good jobs’ had decreased from 63% in 2011 to 61% in 2016, suggesting that the quality of jobs is perhaps declining.

Similarly, the ONS figures suggest that the self-employment labour market remains financially insecure for its workers. They show that the distribution of self-employed income appears centred around £240 a week, much lower than that for employees, which is centred around £400 a week.

And, according to a recent report from CIPD, their real incomes have fallen more since 2008 than those of employees.

Perhaps, then, the self-employment growth has been driven by necessity rather than choice due to a lack of opportunity in the full-time labour market.

However, the evidence suggests it is not this simple.

Despite the widening gap in earnings between the self-employed and employed, the self-employed continue to have higher levels of job satisfaction than employees. The ONS figures also indicate that self-employed workers were more likely to supplement their income from elsewhere.

This would suggest that choice probably plays a large part in self-employment.

‘Push’ or ‘pull’ effect

There has been much discussion over whether the growth in self-employment is predominantly a result of choice or necessity.

It is often seen as a sign of labour market weakness, with self-employment perceived as a ‘last resort’ where a regular job can’t be found. The evidence suggests that this motivation accounts for just a small proportion of the change, however, with most of the rise in self-employment appearing to be out of choice rather than necessity.

Indeed, the recent analysis in the Regional Studies article, which examined the extent to which self-employment was associated with local ‘push’ or ‘pull’ effects, found little or no suggestion of any net ‘recession-push’ effect on self-employment. It suggests that:

  • ‘pull’ factors are more significant in driving transitions into self-employment;
  • self-employed business ownership appears not to function as a significant alternative to unemployment where paid employment demand is weak; and
  • entrepreneurial activity prospers where local wages are higher and unemployment lower.

The uncertainty surrounding Brexit could also be having an effect as declining employer confidence has contributed to a growing number of short-term contracts – potentially making self-employment appear the better choice.

Final thoughts

As the CIPD report highlights, there are probably more opportunities for self-employment now than there were a decade ago. And the self-employed are more likely to value highly aspects of the work, such as its variety, and choice over their working hours and pay.

Across the range of job-related characteristics, it is shown that the self-employed are as satisfied or more satisfied with their working life than employees, resulting in higher levels of overall job satisfaction – a finding that is consistent both over time and from different data sources.

In a time where work-life balance is of increasing importance, it is perhaps no surprise that self-employment is the path of choice.

If you enjoyed reading this, you may also be interested in our previous blogs on the gig economy, ‘the self-employment boom’ and ‘olderpreneurs‘.

Follow us on Twitter to see what developments in public and social policy are interesting our research team.

Working longer – the reality ‘behind the headlines’

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Senior businessman in office working on laptop

By Heather Cameron

With no shortage of headlines highlighting the record employment rate in the UK, and the increasing number of older workers widely reported, it may seem that the outlook for the ageing workforce is a rosy one. But do these headlines hide the reality?

Recent analysis from Age UK argues that the headline employment rate doesn’t tell the whole story about working longer, “making it an insufficient – and even misleading – tool for public policy decision-making”.

The statistics

The most recent official figures show that the employment rate (the proportion of people aged from 16 to 64 who are in work) is the joint highest since comparable records began in 1971, at 74.8%, while the unemployment rate is the joint lowest since 1975.

Data also shows that the employment rate for people aged 65 and over has indeed increased since the 2008 recession. It is currently at 10.4%, up from 7.3% in 2008.

Age UK has also recognised the increase in employment rates for older people, noting that, in fact, the older the age group, the greater the increase in employment. However, the average number of hours worked has declined since the recession, indicating a more complex and perhaps less reassuring situation than the one portrayed in the media.

The biggest drop was for 50-54 year old men, whose average hours declined by 29%. For men aged 60-64, the average number of hours declined by 8 hours (over 22%), while women aged 50-54 experienced a fall of 18%.

The only age group not to see a decline was women aged 60-64, which is likely to be as a result of the raising of the State Pension age.

Choice or necessity?

The change in the State Pension age was justified on the grounds that it gave people more choice and more scope to continue working if they wished to.

A recent CIPD survey found that the most common reason for wanting to work past 65 is that employees believe it will help keep them mentally fit, followed by wanting to be able to earn a sufficient income to continue to do the things they enjoy.

As Age UK suggests, it may be that the reduction in working hours is a good sign if it is due to older workers choosing to wind down their hours, maybe to enable them to juggle other responsibilities such as caring for their grandchildren, while still earning a wage.

However, the research suggests it may be less through choice and more as a result of the changing labour market such as increasing underemployment (working less hours than they would choose to) or increasing insecure working practices driven by the rise in self-employment and the ‘gig economy’.

As it is likely working fewer hours will mean less income, this could be a cause for concern since it will be more difficult for older workers to maintain their standard of living until they meet the State Pension age and for them to save enough for retirement.

Another issue highlighted by the CIPD, is that most employees don’t believe their organisations are prepared to meet the needs of the over 65s, suggesting that there is a need for employers to also review their practices in terms of managing older workers.

Final thoughts

It is clear that while, for some, choosing to work beyond the traditional retirement age will be a lifestyle choice, for many it will be a necessity. Any substantial reduction in working hours for these older workers could consequently pose a real issue.

It would therefore make sense for policy makers to heed the warning from Age UK not to rely on the headline rate of employment for older workers, and rather look beyond it to the reality of many struggling to get and keep the secure, well paid jobs they want and need.

If you enjoyed reading this, you may be interested in reading our previous post on the pros and cons of the gig economy.

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How to tackle unconscious bias: Step 1 – read this!

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What is unconscious bias?

Although levels of explicit prejudice are falling, discrimination continues to be a problem for many sections of society.  One reason for this may be ‘unconscious bias’.

Unconscious bias is “a bias that we are unaware of, and which happens outside of our control. It is a bias that happens automatically and is triggered by our brain making quick judgments and assessments of people and situations, influenced by our background, cultural environment and personal experiences.”

Everyone has some degree of unconscious bias.  Unconscious thoughts are often based on stereotypes and prejudices that we do not realise that we have.

From a survival point of view, these brain ‘shortcuts’ are a positive and necessary function – they help us to make snap decisions in dangerous situations, for example.  However, in everyday life, they can negatively effect rational decision-making.

Types of unconscious bias

Unconscious bias has different forms.  One common form is Affinity bias – the subconscious preference for people with similar characteristics to ourselves (sex, age, ethnicity, socioeconomic class, educational background etc.).  In 2015, the CIPD reported that recruiters were often affected by affinity bias, resulting in the tendency to hire ‘mini-mes’.

The Halo effect involves the tendency for an impression created in one area to influence opinion in another area.  For example, a disproportionate number of corporate CEOs are over six foot tall, suggesting that there is a perception that taller people make better leaders, or are more successful. Similar patterns have been observed in the military and even for Presidents of the United States.

The Horns effect is the opposite of the ‘Halo effect’ – where one characteristic clouds our opinions of other attributes.  For example, the perception that women are ‘less capable’ in certain occupations.  A review found that female psychologists and women in STEMM (science, technology, engineering, mathematics and medicine) departments were just as likely to discriminate against female candidates as their male counterparts.

The same qualities can also be perceived very differently in different people – for example, assertiveness in a man may be perceived more positively (‘strong leader’) than in a woman (‘bossy’).

Impact of unconscious bias

Unconscious bias not only influences our body language and the way we interact with people, it can also negatively influence a number of important decisions in the workplace, including:

  • Recruitment
  • Promotion
  • Staff appraisals
  • Workload allocations

As well as being unfair, decisions based on unconscious biases are unlikely to be optimal and can result in missed opportunities.  Where unconscious bias also effects a protected characteristic, it can also be discriminatory.

How to mitigate unconscious bias

So, now you know what unconscious bias is, what can you do about it?

The good news is that it is possible to mitigate the effects of unconscious bias. The first step is to become more aware of the potential of unconscious bias to influence your own decision-making. Large organisations such as Google and the NHS are already providing unconscious bias training to their staff.

You can take this awareness further by taking an Implicit Association Test, such as that provided by Harvard University.  This will help to identify and understand your own personal biases.

Other ways to help reduce the influence of unconscious bias include:

  • Taking time to make decisions
  • Ensuring decisions are justified by evidence and the reasons for decisions are recorded
  • Working with a wider range of people and get to know them as individuals, such as different teams or colleagues based in a different location
  • Focusing on positive behaviours and not negative stereotypes

At the corporate level, ways that organisations can help to tackle unconscious bias include:

  • Implement policies and procedures which limit the influence of individual characteristics and preferences, including objective indicators, assessment and evaluation criteria and the use of structured interviews
  • Ensure that selection panels are diverse, containing both male and female selectors and a range other characteristics where possible (ethnicity, age, background etc.)
  • Promote counter-stereotypical images of underrepresented groups
  • Provide unconscious bias training workshops

Tackling unconscious bias is not just a moral obligation; it is essential if organisations are to be truly inclusive.  By making best use of the available talent, it can also help to make organisations be more efficient and competitive.

If you enjoyed this blog, you may also be interested in our other articles on management and organisational development.

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Performance appraisals – does the public sector need to be more innovative?

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Innovation Road Sign with dramatic clouds and sky.By Heather Cameron

In a time of austerity, there is increasing pressure to get the best out of staff in order to improve organisational performance, particularly in the public sector.

Staff performance appraisals are a well-established practice in most organisations but there has been much debate over their effectiveness. Many say they are time-consuming and involve too much paperwork. Others say they are a key part of an organisation’s human resources strategy and align the strategy and objectives of an organisation with those of individuals, which is necessary for effective service delivery.

Why performance management?

A number of reasons have been highlighted for implementing performance management in any organisation, including:

  • to provide information on organisational and/or employee effectiveness and efficiency
  • to improve organisational and/or employee effectiveness and efficiency
  • to improve employees’ levels of motivation
  • to link employees’ pay with perceptions of their performance
  • to raise levels of employee accountability
  • to align employees’ objectives with those of the organisation

In the public sector, the aim of performance management is to motivate staff and managers to improve organisational performance and therefore effectively deliver services.

But while this may seem simple enough, is this what is happening in practice? Some would argue that performance appraisals have the opposite effect of motivating staff and lead to increased pressure and stress, resulting in poorer performance.

Concerns

A recent survey of over 25,000 civil servants highlighted widespread concern over how performance management is working in practice.  A huge majority (94%) said it was unfair that 10% of staff should be ranked as ‘must improve’, a recommendation that has been suggested to lead to discrimination against black and minority ethnic (BAME) staff, those who are disabled and part-time workers.

Performance appraisals have also been described as a “waste of time” or “tick-box exercise”.

Abhacken

The CIPD Employee outlook surveys have consistently revealed a general dissatisfaction with performance management practices among employees, with the most concern shown in the public sector. The most recent survey highlights a slump in job satisfaction and a lack of motivation among employees, and an increase in the number believing their performance management processes are unfair.

And this is not new. There have been concerns over the effectiveness of such systems in the public sector for some time. Research by the World Bank in 2003, which considered factors influencing better performance in public administration, concluded that performance management systems demonstrated remarkably little influence on anything and in some cases produced negative effects.

Lack of understanding

The literature suggests that the reasons for such criticism of performance appraisals more recently include: people generally don’t like to evaluate or be evaluated; the nature of public affairs being hard to quantify makes it difficult to develop performance objectives and measureable performance indicators; these systems tend to create more paperwork and increase both performance pressure and stress; and a lack of understanding of such systems among managers.

As a former chief executive of the Institute for Leadership and Management (ILM) emphasised:

“One of the skills that is often not developed is understanding what an appraisal is and why it is relevant to the whole organisation’s success… Being able to appraise is a fundamental management skill.”

So rather than scrapping them all together, perhaps a culture change within organisations is what is needed.

Good practice

Indeed, there have been signs of innovation within the public sector when it comes to performance appraisals.

An innovative approach to the employee appraisal form was taken by South Lakeland district council which has shown promising results. A personal qualities framework was created which was used to redesign the appraisal form. It was tested, staff were informed about it and line managers received training in how to use it.

After two years of the framework being introduced, peer reviews were good, their Investors in People award was the best yet, the staff survey highlighted many positive messages, and customer and member satisfaction had improved significantly.

Similarly, Wiltshire Council developed a successful transformation and ongoing culture change programme which resulted in significant efficiencies being delivered.

The council’s behaviours framework was developed to clarify social expectations of staff by defining ‘how’ staff are expected to approach work alongside ‘what’ they deliver. The behaviours have since been embedded into: a new on-line appraisals solution, job description templates, recruitment procedures, human resource policies and employee well-being initiatives, and corporate awards categories and selection criteria.

A training programme for all people managers also inspired new thinking and provided approaches and skills for performance managing for the behaviours, skills and objective setting.

Research by Nesta suggests that performance appraisal can also help to harness motivation to innovate in the public sector by valuing appropriate behaviours.

So perhaps staff appraisals have a future after all.

Read our previous blog post on performance-related pay in the public sector.

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