Key findings revealed that 18% of UK businesses are not discussing economic challenges and their potential impact on jobs with employees. Of the 82% who are engaging in these discussions, 41% use team meetings, 33% rely on email updates and company-wide meetings, and 30% prefer one-to-one discussions. Younger leaders are more open to these conversations, with only 9% and 10% of leaders aged 25-34 and 35-44, respectively, avoiding the topic, compared to higher percentages in older age brackets.

In response to economic pressures, 25% of businesses have made redundancies, while 19% have paused hiring. Notably, 56% have maintained their staffing levels. Redundancies were more common among London-based businesses (45%) and younger leaders, with 30% of those aged 25-34 and 41% of those aged 35-44 implementing staff cuts. In contrast, only 4% of leaders aged 55-64 and 2% of those over 65 took similar actions.

Alternative staffing solutions, such as agencies, freelancers, and contractors, were used by 35% of leaders, with 85% finding them effective. These solutions were more popular among London-based leaders and those under 45, with 45% of leaders aged 25-34 and 47% of those aged 35-44 opting for these flexible staffing models.

When making hiring decisions, 33% of business leaders prioritised employee performance and productivity. Future growth projections were important for 25%, cost-saving measures for 22%, and industry trends for 15%. London-based leaders were more likely to consider industry trends, with 23% selecting this factor.

Regarding economic instability, 33% of respondents valued both cost-cutting and workforce development equally. However, 30% prioritised cost-saving, while 14% focused on workforce development. This indicates that while cost reduction remains a priority, employee performance is a critical factor in hiring decisions.

Rufus Hood, Country Manager UK at Coople, comments: “These are definitely difficult times for UK businesses, with a full quarter of those we surveyed implementing redundancies, and nearly as many at 19% stopping hiring. It’s highly likely that these decisions were influenced by the strain of the current economic environment, with rising costs from suppliers and inflation affecting many businesses.

“A higher percentage of these companies were in London or were led by younger business leaders – these are more likely to be startups or other businesses operating in competitive, and sometimes, volatile spaces.

“Over a third of the business leaders we surveyed had tried alternative staffing solutions, like working with agencies, freelancers and contractors. We were pleased to see that so many of these companies found it effective, with 85% saying that these tactics helped. At Coople, we believe that flexible working is the best way to stay adaptable and agile, taking on additional support from trusted temporary staff when you need it.”