New data from HR, payroll and finance expert MHR reveals eight in ten (78%) employees believe the UK is heading for a recession, with nearly a quarter (23%) of poll respondents fearing their employer would not make it through one.
Organisations across the UK and Ireland are tackling record inflation levels, up 7.9% in the 12 months to May 2022. Increasing costs and wage rises, paired with supply chain and labour market challenges – including a skills shortage reported by 90% of large organisations – continue to tighten the grip on employers.
The cost-of-living crisis has not only been felt financially by businesses, but two-thirds of staff (68%) say it has had a knock-on effect on their mental health and wellbeing – in fact, Wagestream’s State of Financial Wellbeing 2022 report revealed seven in 10 (68%) UK employees are hiding financially driven mental health concerns from their employers, either due to embarrassment and/or fear of being reprimanded.
Meanwhile, for others, it has made them reconsider their career options as more than eight in ten (83%) employees say they would swap jobs if their new employer offered more financial support – for example, contributing towards energy bills.
Mark Jenkins, CFO at MHR said: “Many businesses scraped through the pandemic by the skin of their teeth, and now they have another economic event to contend with. Given the market’s current volatility, and with a recession potentially on the horizon, the need for robust financial planning and analysis (FP&A) has never been more important. For some, it will be the difference between making it through this challenging period, or not.
“As with the pandemic, a recession will have huge ramifications on staff and it is up to businesses to provide support where needed. From mental wellbeing to financial security, employers must do everything in their power to meet employee demand, otherwise they run the risk of talent leaving to go elsewhere.”