In order to future-proof startups, entrepreneurs must ensure the happiness of their employees. Yet, a new joint study from the CIPD and Halogen Software has revealed that job satisfaction in the UK has fallen to its lowest level in two years, encouraging almost a quarter of workers to start looking for a new employer.
The product of a survey of 2,000 UK workers, the research revealed that overall job satisfaction in all sectors had plummeted from a net score of +48 in the autumn of 2015 to +40 in the first quarter of 2016, leaving only 41% satisfied with their jobs and 24% entertaining the notion of changing employer. While staff at microbusinesses were seemingly the happiest, job satisfaction in companies of this scale still fell from a net score of +76 down to +49 during the same period.
A lack of clear career progression was revealed to be the number one reason for employees’ dissatisfaction, with 36% feeling unable to fulfil career aspirations with current employers. Perhaps a contributing factor to this is the fact that 27% of staff said they are unhappy with skill-development opportunities. Another reason for workers’ dissatisfaction was performance management, with 23% considering their company’s employee evaluation process unfair.
“Despite global economic uncertainty, employers need to think of new ways to keep their employees engaged and committed,” said Claire McCartney, research adviser for resourcing and talent planning at the CIPD. “They need to think about career growth in a more holistic way, rather than traditional hierarchal progression and instead give employees [..] opportunities that maximise their skills and their employability moving forward.”
Dominique Jones, chief people officer at Halogen Software, added: “These figures demonstrate a clear need for employers to shift their approach to performance management – to make it an on-going part of the rhythm of work – not a separate, once-a-year burden.”
Ultimately, entrepreneurs would be well advised to help employees fulfil their ambitions, otherwise they risk losing talent.