Research from Robert Half finds 39% of employers are planning to enforce tougher performance metrics to improve productivity as they navigate the rising cost of employment.
By Maggie Mancini
Businesses are at risk of pushing workers into a well-being crisis as they attempt to manage the extra costs of employment due to the rise in national insurance contributions (NICs) and increases in the national minimum wage, according to research from Robert Half. In its latest Salary Guide, more than a third (39%) of employers are planning to enforce tougher performance metrics to improve productivity in the workplace. With businesses now paying more for staff due to the increase in NICs and statutory pay, this renewed focus on boosting productivity is a likely result of companies looking to justify higher employment costs.
However, additional data reveals that almost two-thirds (62%) of workers are already worried about being overworked, suggesting that companies could be on the brink of a widespread workforce fatigue crisis as pressure intensifies to do more with less.
Employers are also reevaluating their approach to talent attraction and retention in light of rising employment costs. Many are becoming more selective in hiring, focussing efforts on recruiting fewer but more experienced professionals who can deliver higher output, thereby justifying a higher salary spend. Some firms are choosing instead to optimise current teams, often through technology investments and internal upskilling.
At the same time, budget constraints are leading to revised workplace perks and well-being initiatives, factors that had previously helped attract talent in a competitive market. This could present long-term risks for businesses that still need to compete for top talent, particularly as workers continue to prioritise company culture and work-life balance in their employment decisions.
