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With the phenomenon of ‘quiet quitting’ on the rise and the ability to attract and retain talent being key challenges for employers, it has never been more important for organisations to stand out in how they attract and motivate their staff to be loyal and enthusiastic.
The COVID-19 pandemic has had a significant effect on the corporate workplace with one long-lasting effect being a seismic change in the expectations of individuals in respect of both flexible and remote working.
Alan Delaney, Legal Director and Accredited specialist in Employment Law at Morton Fraser explains that businesses should also be aware of how these developments are being further encouraged by changes to the legal landscape. The Employment Relations (Flexible Working) Bill is presently going through Parliament which if passed will further establish working flexibly (both in terms of hours and location) as the ‘new normal.’
This Bill is a significant step towards making flexible working the so-called “default position”, and seeks to provide employees with further rights to make requests about where and when they wish to work. Importantly, the Bill is set to be supported by secondary legislation which would make the right to request flexible working  a ‘day one’ right, rather than such a right only being available after a 26-week qualifying period. It will also allow employees the right to make two flexible working requests within a 12-month period, rather than the current position of being able to make one such request within that timescale. Employers will also have to consult with individuals if they are considering rejecting a flexible working request.
Sensibly, the Bill does not seek to impose flexible working, it provides only a more extensive right to request such an arrangement. Employers will still be able to reject a request if one of the eight current statutory business grounds apply (for example, an inability to organise work amongst other employees, or a negative impact on performance). It will also remain the case that the greater risks (so far as legal action is concerned) will arise from indirect discrimination claims, where, for example, the request is made for childcare reasons, or perhaps caring responsibilities.
However, the Bill also underscores an opportunity for employers to stand out in a crowded market, when it comes to attracting and retaining the best talent. Those organisations who are able to creatively embrace and foster a diversity of working arrangements, might well secure a competitive advantage in doing so as well as contributing significantly to overall staff happiness and motivation.
Of course, flexible working can only do so much by itself. Listening to staff and implementing measures designed to make staff happy and encourage loyalty will be key as part of any holistic approach. Some organisations may well be able to take advantage of share option or long-term incentive schemes, which have as their specific purpose attracting and retaining talent.
However, small yet meaningful perks, can often catch the eye too (from fresh fruit for staff to a day’s holiday on your birthday or time off for volunteering) and alongside a supportive, collaborative environment that recognises hard work and celebrates success, are likely to help create a positive and dynamic culture individuals will wish to be part of.
It will also be important for employers to have developed clear and well-supported career paths and initiatives for career progression. By investing in programmes (e.g. mentoring) or training that assists personal development, and ensuring employees feel able to discuss their career ambitions (and are encouraged to progress), employees will be more likely to feel motivated.
So, when it comes to the battle to attract and retain talent, while legislation will provide no more than a basic minimum, as with flexible working, it can be a useful springboard to implement attractive policies that stand out from the crowd. When implemented as part of an overall strategy (including but not limited to benefits, incentives and career progression) designed to reward contribution and loyalty, it may just make all the difference when it comes to recruitment and retention.
 
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Motivation, Maintenance & Management: Retaining talent throughout 2023

Almost 60% of people would like to see the UK government regulate the use of generative AI technologies such as ChatGPT in the workplace to help safeguard jobs, according to a survey.
As leading figures in the tech industry call for restrictions on the rapid development of AI, research by the Prospect trade union suggests strong public support for regulation.
In a survey of more than 1,000 people last month, 58% agreed that “the government should set rules around the use of generative AI to protect workers’ jobs”. Just 12% said the government should not interfere because “the benefits are likely to outweigh any costs”.
Employers have used various forms of AI for some time – including in target-setting, and hiring and firing decisions – but the salience of the technologies has increased dramatically since the release of ChatGPT, which hit 100 million users within two months of launch.
Analysts at Goldman Sachs recently suggested AI could ultimately replace 300m jobs – up to a quarter of the global workforce – though many of these would be replaced by new jobs needed to work alongside the technology.
They identified administrative jobs as those most at risk, followed by those in law, architecture and engineering.
Prospect represents skilled workers such as scientists and engineers. Andrew Pakes, the deputy general secretary of the union, said many employees are already experiencing some form of AI through automated decision-making, often in conjunction with workplace surveillance.
“It’s the hidden decision-making behind surveillance software and many of the AI tools that leaves workers feeling uneasy about how decisions are being made,” he said.
“Rather than waiting until more problems occur before taking action, government must engage now with both employees and employers to draw up fair new rules for using this tech.”
The survey also showed that 71% of workers would be uncomfortable with having their movements tracked at work, and 59% with having their keyboard use monitored while they are working from home.
In a recent white paper, the government appeared to suggest it would take a laissez-faire approach to the development of AI, with a foreword by the science, innovation and technology secretary suggesting it had delivered “fantastic social and economic benefits for real people”.
But government sources have suggested that the prime minister has some concerns about the technology.
Pakes said it was important for regulation to tackle what he called the “here and now” of AI, as well as the potential for apocalyptic risks in the future. “The government can act today,” he said.
The TUC has called for limits on the way employers gather and use data about their staff, which can then be fed into automated decisions.
Mary Towers, who leads the TUC’s work on AI in the workplace, told a recent House of Lords select committee hearing: “Data is about control, data is about influence, data is the route that workers have to establish fair conditions at work.”
She warned that AI could be “used to intensify work to a level where it becomes unsustainable”. The TUC is calling for workers to be told what data is being gathered about them and how it is being used.
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Almost 60% of people want regulation of AI in UK workplaces, survey finds

There are signs of confidence returning to the UK’s 5.5m small and medium-sized businesses and the lending market they rely on according to iwoca.
The new research, carried out with over one hundred SME finance brokers who collectively submitted over 2,500 SME finance applications in March, reveals that worries about a recession are at their lowest level in a year. While three in five brokers reported concerns from SMEs about a future recession, this is down from a high point of nearly four in five in Q2 2022.
Worries about recession have also dropped from being SMEs’ second biggest overall concern, to their fourth, since Q4 2022, with half the amount of brokers selecting it as the top concern compared to last quarter (6% down from 12%). Mirroring this cautious optimism, the data finds that the most common reason for SME loan applications according to over half (52%) of brokers was growth.
This comes as the data shows that nearly half (45%) of brokers have seen increases in the number of loans they are applying for on behalf of SME clients. By contrast, just over one in ten (14%) brokers reported a reduction in loan applications.
Significant headwinds remain for UK SMEs
While the first dataset from brokers in 2023 shows signs of confidence, challenges remain for small and medium-sized businesses operating across the UK.
Three quarters (75%) of brokers said that the SMEs they work with are concerned about their business surviving the increasing costs of energy prices.
More than half (52%) of the brokers iwoca surveyed reported either increased business running costs or inflation as the top current concern for SMEs, up significantly from just a third (34%) reporting the same in Q4 22. By comparison, inflation did not feature in the top five concerns in Q4 22, with only 2% of brokers citing it.
Increasing costs were the most selected concerns by a long way, with far fewer brokers selecting other options such as access to finance (9%), higher interest rates (9%), recession (6%), ability to hire or retain staff (6%) or something else.
These fears coincide with the latest inflation figures from the Bank of England – the UK is experiencing a 10.1% inflation rate, five times the official 2% target.
Small businesses are also worried about the support available to them. Just two in ten (22%) brokers think the fiscal measures announced by the Chancellor in the Spring Budget will have a positive impact on SMEs.
Tough lending environment set to continue
Despite more SMEs applying for loans to grow their businesses, and concerns about a recession receding, data from brokers shows a tough lending environment remains.
More than three in four (77%) report that high street banks are reducing their appetite to fund SMEs. Similarly, four in ten (39%) brokers have seen an increase in rejections of their clients’ applications for finance over the last quarter.
Willem van Lynden, Managing Director of broker Rise Funding said: “We’ve noticed an increase in demand for finance from our small business clients, as well as an increased take up of the offers we’re presenting them with.
“Whilst the fear of recession does seem to be slightly receding, there are also signs that business owners are looking to improve their cash flow and reduce monthly outgoings; they’re asking for longer term loans and even considering secured loans, when previously this was not an option for them.
“I think business owners can no longer afford to hold off on making finance decisions, which they may have been doing during recent uncertain times.”
Colin Goldstein, Commercial Growth Director of iwoca, said: “The lending market for the UK’s 5.5 million small and medium-sized businesses is gradually gaining momentum. With more applications for loans, more businesses requesting finance to grow their business, and recession fears continuing to recede, there are positive signs that the market and health of our economy will improve.
“But while I’m cautiously optimistic, I know the very real challenges SMEs face. I speak to brokers day in, day out; they’re seeing high street banks retrenching, huge pressures coming from the energy market, and concerns about the lack of support from central government.”
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Signs of confidence returning to UK’s 5.5m SME’s

House prices are continuing to fall, according to a closely watched index, but transactions are ahead of the long-term average due to landlords selling up.
According to estate agent Zoopla, landlord properties accounted for 11 per cent of sales in the last month, as high mortgage rates and energy bills forced many property owners to place their homes on the market as they struggled to make a profit.
While a boost in supply may be welcomed by some, a decision by lenders such as NatWest to raise interest rates on fixed rates mortgages by up to 0.45 percentage points, will make it increasingly difficult for first time buyers to get on the ladder and also limit the number of rental properties available for tenants.
“Sellers shouldn’t get carried away by more positive data on the housing market and need to price their homes realistically if they are serious about moving home in 2023,” Richard Donnell, executive director at Zoopla said.
“Home buyers remain price sensitive with one eye firmly on the outlook for the economy, the cost of living and the trajectory of mortgage rates which appear likely to edge higher in the coming weeks,” Donnell added.
It comes as the average price of a home in the UK has grown by 1.9 per cent year on year, now costing £260k. However, that masks a 1.3 per cent fall over the past six months.
However in London house prices contracted by 0.2 per cent on a year to year basis, with the average price of a home in the capital now costing £523k.
“This demand for London property is caused by the backlog of needs-based buyers who were looking to move following Covid-19, which was so great it has yet to be satisfied, despite the increased cost to buy,” Guy Gittins, chief executive of Foxtons Estate Agents said.
“As well, given the extreme supply and demand imbalance in the lettings market, more renters who are in a position to buy have accelerated their search,” he added.
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House prices continue to fall as buy-to-let landlords sell up

Food inflation cooled slightly in May as lower energy and commodity costs finally showed signs of filtering down to consumers.
According to data by the British Retail Consortium, grocery inflation fell to 15.4 per cent in during the month, down from 15.7 per cent in April – but remained the second highest inflation rate in the food category on record.
As supply issues eased and weather improved fresh food inflation also dropped to 17.2 per cent, down from 17.8 per cent in April. This is below the three-month average rate of 17.3 per cent.
“Fierce competition between supermarkets has helped keep British food among the cheapest of the large European economies,” Helen Dickinson, chief executive of the British Retail Consortium, said.
While the cost of some goods eased, shoppers still saw the cost of ambient food such as tinned goods rise during the month, rising to its 13.1 per cent up from 12.9 per cent.
While reports suggest that food inflation may have peaked households across the UK are still struggling with an increased cost of living, with rumours suggesting that Downing Street could introduce a cap on food staples to help families with price hikes.
The scheme, which is understood to be at drawing board stage in Number 10, would ask retailers to charge to lowest possible price for household basics such as bread and milk.
“Food inflation is much more resilient and difficult to get rid of than we anticipated,” a treasury source told the Sunday Telegraph, who first reported the news.
Its understood that supermarkets would be allowed to choose which items they cap and would only take part in the scheme on a voluntary basis.
However, Andrew Opie, director of food and sustainability at the BRC, said he was sceptical about the plans working.
“This will not make a jot of difference to prices. High food prices are a direct result of the soaring cost of energy, transport, and labour, as well as higher prices paid to food manufacturers and farmers,” he said.
“As commodity prices drop, many of the costs keeping inflation high are now arising from the muddle of new regulation coming from government. Rather than recreating 1970s-style price controls, the government should focus on cutting red tape so that resources can be directed to keeping prices as low as possible,” he added.
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Food inflation cooled in May as lower energy costs filter down to consumers

Retail sales volumes have fallen this month compared with the same period last year, while staffing levels have dropped sharply, a survey has found.
Volumes fell to a balance of -10 per cent in the sentiment survey published by the CBI, which had recorded 5 per cent growth the month before.
Retailers also said their staff headcounts had fallen at the fastest pace since February 2009 and the aftermath of the financial crisis. The survey by the employers’ group is the latest to show that weak sales and more than a year of soaring costs have led to caution among retailers about hiring new staff.
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The survey of 123 respondents, 46 of which were retailers, asked business leaders whether their company’s performance on a given metric had increased or decreased and weighted responses based on the size of the company to give a balance between -100 per cent and 100 per cent, where a positive figure indicates growth.
Businesses’ intentions to invest also have fallen at the quickest pace since May 2020, during the first pandemic lockdown.
Separate research by the Recruitment and Employment Confederation found that the number of people hired for full-time jobs contracted at the fastest rate in more than two years in April, while temporary recruits continued to rise.
Martin Sartorius, principal economist at the CBI, said: “Retailers continue to face a challenging trading environment, with firms reporting disappointing sales and formidable inflationary pressures. As a result, they are having to cut back on the size of their workforce and investment plans.”
However, there were reasons for retailers to be more optimistic, he said: “Consumer sentiment has been improving and households’ energy bills are set to decline from July. The resulting boost to incomes should help to support retail sales going into the second half of this year.”
Samuel Tombs, chief UK economist at the Pantheon Macroeconomics consultancy, said household incomes would benefit from the fall in the energy price cap announced yesterday and the expected slowdown in the pace of price rises in the coming months, but rising mortgage costs and cautious hiring by employers would offset some of the benefits.
Read more:
Retail sales fall as costs bite

The number of small businesses planning to increase prices to their customers is set to rise dramatically this quarter, further fuelling inflationary pressures.
A new quarterly analysis of small business confidence conducted by small business support platform Enterprise Nation has found the number of small firms that say “they must put up prices” has gone up by 11 per cent since the last survey in 2022.
The findings clearly demonstrate the increasing cost pressures businesses are feeling, in contrast to previous Small Business Barometer reports which showed businesses were expecting to swallow the extra costs such as energy.
Overall, 52 per cent of businesses said they planned to put up prices, but firms in the North East are most at risk of price inflation, with 65 per cent saying they planned to raise prices in the second quarter of the year.
Across sectors, general retail, fashion and food and drink are the most likely to say they will increase prices.
More than half of those are raising costs at an average of 10 per cent while a third are set to raise them by up to 20 per cent.
Emma Jones, CBE, founder and CEO of small business support platform and business support provider Enterprise Nation, said: “Small businesses have been holding back since energy costs started to bite last year. Now the competing pressures of inflation, energy and staff costs have proved too much, and they have had to make the difficult decision to increase prices.
“Many small businesses told us they felt costs would have stopped rising by now and had hung on as long as they could.
“Despite all of that, businesses are still supporting their communities. Today more entrepreneurs are being driven by purpose and are giving back through profit share or social enterprises, which is so brilliant to see, especially in these straightened times.”
The Small Business Barometer found more than a third of businesses said sales had fallen due to the cost-of-living crisis. Again, businesses in the North East were hardest hit, according to the analysis with 56 per cent saying sales had dipped, the highest in the UK.
That had a knock-on effect on growth plans for this year, which were downgraded by nine percentage point to 30 per cent over the last quarter together with an increase in the number of businesses expecting to stay the same, which increased by 11 per cent to 44 per cent.
Small firms in the Yorkshire and Humber and North East were most likely to say they would were shelving growth plans this year.
The Small Business Barometer found that the cost-of-living crisis is now considered the biggest challenge small business owners have ever faced, even when compared to Brexit and the Pandemic, rising by eight percentage points to 41 per cent.
Giving back
According to the Barometer, more than a third (36%) of businesses are started by people because they want to ‘give back’ to their community. That figure was highest in London, where 44 per cent were purpose-driven entrepreneurs. In the North West, 39 per cent and in the South West 37 per cent said they started up to help the community.
Side hustle
A third of small business owners are also holding down another job. The Barometer found 45 per cent of businesses were started as a side hustle, with that rising to 70 per cent in the South East, the highest in the UK. A third of business owners currently (32%) have a full or part time job. Businesses in the education sector (37%) beauty industry (36%) were most likely to say they had a job as well as running their company.
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Price rises inevitable if UK small businesses to survive, new analysis finds

Retail sales volumes recovered slightly by 0.5 per cent in April as the sector was lifted by the Easter holidays, however high inflation and strains on household finances continue to hinder spending.
Non-food stores sales volumes rose by 1.0 per cent during the month, data from the ONS shows, following a fall of 1.8 per cent in March, when a particularly rainy start to spring deterred shoppers.
As grocery inflation remains at record highs of circa 17.1 per cent, food stores sales volumes rose by 0.7 per cent in April 2023, following a fall of 0.8 per cent in March 2023.
However volumes were 2.7 per cent below their pre-coronavirus February 2020 levels, as households continue to spend cautiously when doing their weekly shop.
Moreover, online shopping rose 0.2 per cent during the month, following a 1.4 per cent fall in March.
The figures show the impact of inflation, which is currently sat at 8.7 per cent, on Brits spending habits. When compared with their pre-coronavirus level in February 2020, total retail sales were 16.5 per cent higher in value terms, but volumes were 0.8 per cent lower – as the nation gets less for what they pay for.
Dee Corsi, chief executive at New West End Company, said: “After a challenging few months, it is positive to see that retail sales are up 0.5 per cent from last month.
“April spend was undoubtedly boosted by the Coronation weekend, seeing the arrival of thousands of international tourists. With inflation hitting domestic spending power, the importance of international visitors has never been greater.”
She added: “However, as we look towards the traditionally busy Summer trading period, we are concerned that the UK is on course to miss out on critical economic growth being seen in other European countries which aren’t hamstrung by the tourist tax. Figures today also mask the likelihood of losing out on future Chinese spenders, who are yet to return in numbers.”
Analysis by PwC suggested that the “positive momentum” was welcome but could be thrown off by rising interest rates.
“Overall, the trajectory remains positive, with the best quarterly improvement in retail sales volumes since August 2021. This echoes the latest measures of consumer sentiment, which has been improving continuously since last Autumn,” a note circulated this morning said.
“With this month’s sales likely to be helped by the Coronation and additional bank holidays, we expect the positive momentum to continue in the short term. However retailers will be hoping that the current green shoots are not dampened by higher interest rates or other macroeconomic challenges over the summer.”
Read more:
Retail sales up in April but analysts warn on implications of further rate hikes

Drivers in Britain have seen their choice of battery electric car models quadruple in the past five years as manufacturers commit to delivering the UK’s ambition of being the first major car market to go zero emission.
There are now around 80 ‘electric picks’ available across every vehicle segment – compared with just 21 in 2018 – ranging from super-small urban commuter vehicles to multipurpose people carriers, and everything in between. As result, almost one in four car models is available as a battery electric vehicle (BEV).
The vast variety of options has inspired more than three quarters of a million drivers to make the switch, with new BEV registrations up by more than a quarter (25.6%) from this time last year.2 Manufacturers continue to invest billions in both bringing new EVs to market and building them in Britain, with the choice available in showrooms today the outcome of long-term commitments, and delivered despite the dramatic global economic challenges of the past three years.
On top of the huge number of available BEV models, drivers looking to cut their carbon while on the move can also choose from 94 plug-in hybrid (PHEV) and 42 hybrid (HEV) models – meaning electrified vehicles comprise almost two-thirds of all models available.
Those going fully electric can also do so with ever greater confidence. As the technology continues to develop, battery range has expanded. The average distance an electric car can travel on a single charge is now 236 miles, while for new models coming to the market for the first time in 2023, it is almost 300 miles – around three times the average distance driven per week.3 Models are also available with ranges in excess of 450 miles.
Other vehicles are making the switch too, and helping Britain to decarbonise its transport. There are now 23 models of electric van, 14 models of zero emission buses powered by electric or hydrogen, and even 20 models of electric truck now available in the UK as the nation heads towards 2035, which will see the end of sale of all non-zero emission vehicles weighing less than 26 tonnes.
To ensure all drivers can benefit from the electric switch, no matter where they live, the huge choice of vehicles needs to be matched with a choice of affordable, reliable charging options, particularly for those unable to access home charging. The UK government has already committed more than £2 billion towards increasing public chargepoint provision. However, binding targets on chargepoint rollout, in line with targets on vehicle sales due to be set by the Zero Emission Vehicle Mandate, would accelerate infrastructure growth and inspire more to move to electric.
Equally as important will be to make going electric more equitable. This can be supported by the implementation of a fair and forward-thinking Vehicle Excise Duty regime, a fiscal framework that supports company drivers and other incentives for private purchasers and, not least, by making it fair for all – reducing the VAT at public chargepoints so that it is the same as charging at home.
Mike Hawes, SMMT Chief Executive, said: “Britain’s drivers are benefitting from the massive investment made by manufacturers over many years to deliver an electric car choice for every need. We now require a framework that ensures everyone can benefit from zero emission mobility. These vehicles already offer an outstanding driving experience but motorists should have lower total running costs, no matter where they live or work, with fair taxation that inspires instead of impedes. With infrastructure provision accelerated ahead of need, the UK can have a healthy, vibrant market, with ever more model choice to keep the UK as a world leader in net zero transport.”
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Britain’s new car market boosted by battery electric vehicle choice