Just 39% of Britons feel they are fairly financially compensated at work, yet almost two thirds (61%) state they will not be asking for a pay rise this year.
This is according to new research released today by 1st Formations – the UK’s leading company formation agent. Commissioned by YouGov, the research explores Britons’ attitudes towards workplace salaries, work ethic, confidence in their company’s leadership, and interest in setting up their own business in 2023.
Salaries in the workplace:
Respondents were asked whether they are fairly financially compensated at work. The research shows just 39% of respondents feel their salary is fair, and in line with their skills and abilities. Asked about competency in the workplace, 59% feel they are ‘very good’ at their job, yet within this group, only 27% feel they are fairly compensated. 16% of respondents state they are ‘moderately’ good at their job, yet only 10% of this group feel their salaries are fitting.
Disgruntlement with salaries increases with age. Of those who are ‘very good’ at their job, only 14% of 18-24 year olds feel they are under-paid. This is in contrast to 34% of 25-34 year olds feeling under-paid, rising to 37% of 35-44 year olds, and 40% of 45-54 year olds.
Although 73% of Londoners feel they work ‘extremely’ or ‘moderately’ hard at their job, 42% feel their compensation for work is below fair. Less than half of the 62% of Londoners who feel they are ‘very good’ at their job are satisfied with their compensation (29%), compared to 33% who feel their compensation is below fair.
Asking for pay increases:
Given widespread dissatisfaction with salaries, surprisingly few will be asking for a pay increase in 2023. Just 24% will be requesting a salary rise, with 7% of that group expecting to ask for an increase above the rate of UK inflation. 11% will ask for an increase in line with inflation, and 5% will request an increase below the rate of inflation.
There is a discrepancy between genders, with women less likely to ask for a salary bump than men. 68% of females say they will not be asking for a pay increase, compared to 54% of males.
Younger workers are more likely to ask for a pay rise in 2023. Almost four in ten (38%) of 18-24 year olds will request a salary bump, as will 42% of 25-34 year olds. This is in contrast to just 29% of 34-44 year olds, and 25% of 45-54 year olds.
In London, despite dissatisfaction with compensation, just 30% of Londoners will be asking for a salary increase, with 11% expected to ask for an increase above the rate of UK inflation. 10% will ask for an increase in line with inflation and 9% below the rate of inflation. Although a higher % of Londoners compared to the general public intend to ask for a salary increase, more than half (54%) do not intend to do so.
The research suggests that overall, Britons take a serious approach to their jobs. 47% of respondents feel they work ‘extremely hard’, with 95% of work hours spent ‘on-task’. A further 26% state they work ‘moderately hard’, with 75% of their work hours spent ‘on-task’. 5% admit to taking a ‘very relaxed’ approach, with less than 50% of hours ‘on-task’.
The findings show that women work harder than men, with 52% of females working ‘extremely hard’, compared to 42% of males. Work ethic appears to improve with age; only 19% of 18-24 year olds work ‘extremely hard’, compared to 38% of 25-34 year olds, 53% of 35-44 year olds, and 51% of 45-54 year olds.
London is shown to be a hardworking city, with 73% of Londoners working hard; 44% of which work extremely hard and 29% working moderately hard. 8% take a ‘relaxed’ or ‘very relaxed’ approach and only 4% spend less than 20% of work-hours on task.
Confidence in their employer’s leadership:
The findings point at a lack of whole-hearted confidence in companies’ leadership. Asked to summarise their prevailing views about their company’s leadership team, just 14% have ‘complete confidence’, and 36% have ‘moderate confidence’. 24% of respondents have ‘little confidence’, and more than one in ten (11%) have ‘no confidence’, and feel leadership ‘does more harm than good’.
Similarly, Londoners lack confidence in company leadership, with 37% who have little to no confidence in the leadership skills at their current place of work, of which 15% have no confidence at all in the leadership of their company. 34% have moderate confidence and only 11% have complete confidence in company leadership.
Increasing revenue streams by setting up own business:
Currently, the majority (68%) of respondents don’t have a side-hustle, or additional form of income. However more than one in ten respondents (14%) has a side-hustle which nets up to £2,000 a year, whilst 4% have a business which makes between £2,000 – £6,000 per year.
Appetite for setting up their own business or ‘side-hustle’ has increased in the wake of tricky economic conditions. Almost a quarter (22%) of respondents flag that financial pressures mean they’re more interested in setting up their own company in 2023, with appetite particularly high within the younger respondents. 35% of 18-24 year olds would be keen to chance their entrepreneurial arm, along with 43% of 25-34 year olds, and 35% of 34-44 year olds.
There is a clear gender split when it comes to appetite for setting up their own business. Less than a third (29%) of males state they have never wanted to start their own business, compared
to 36% of female.
More than half of Londoners (53%) have never set up a business, and despite current economic pressures, 61% feel these have made no difference to their desire to do so. However, more than a quarter (26%) expressed an increased interest in setting up a side-hustle, with 31% of this group recognizing it as an opportunity for financial gains, 19% viewing it as a chance to create a company based on their own vision, and 14% seeing the opportunity to no longer be accountable to those more senior.
Hurdles to entrepreneurism:
For those who haven’t so far started their own business but would be open to it, a number of hurdles have been identified. Almost a quarter (21%) feel that the risk of failure is too high, whilst 27% feel they don’t have enough funds. Almost a quarter of respondents (24%) lack the self-confidence they’d need to start a business, and 21% don’t feel satisfied they have enough experience or knowledge to make it a success.
Within London, a similar 21% feel the risk of failure is too high and 27% feel lack of funding obstructs the ability to set up a business. Almost a third (28%) lack the confidence needed to start a business whilst 27% feel they lack a strong idea from which to do so.
Commenting on the results, Graeme Donnelly – Founder of 1st Formations said, “We know there’s a link between feeling dissatisfied in your current place of employment, and exploring other options – including entrepreneurship. Naturally setting up your own business – however small – can feel daunting, and individuals often feel confused as to the correct processes and protocols to follow.
“1st Formations is designed to help individuals form their own limited companies in a way which takes away a lot of the administrative and procedural pressures. In doing so, we enable individuals to explore new entrepreneurial career avenues and gain expert advice on limited companies, reporting requirements and corporate governance.”