UK firms back employee rights agenda despite cost concerns
UK firms broadly support the Government’s employee rights agenda but accept that it will lead to increased people management cost and complexity.
This is according to new research gathered from over 1,000 UK business decision-makers which found that almost two thirds (62%) of those questioned either definitely or partially support the Government’s employee rights bill, twice the percentage (31%) of those against.
When asked if the bill’s provisions will interfere with running their business, almost three quarters (73%) of interviewees agreed and only 23% said no.
The research – commissioned by employee experience platform Culture Amp and carried out by market research company Censuswide, between October 24 and 28th 2024 – also found majority backing for the employment rights bill across all ethnic groups spoken to. People with mixed heritage were the most supportive (72%) followed by 70% and 63% from Black and Asian respondents respectively, and 61% from White interviewees. In addition, all age groups polled favour greater employee protection with support highest among younger cohorts.
While the great majority – 73% – of the survey believe the proposed employee rights bill will complicate running a business, opinions are sharply divided on how it will impact UK organisations.
More than one third (34%) of respondents said the proposed bill will add more red tape while 28% said it would make hiring and management processes more complex and costly. Almost as many (24%) feel the proposed legislation is tilting the balance of power in workplaces too much towards employees and 14% said beefed up employee rights would make it harder to manage and motivate their workforces.
Jess Brannigan, Head of Enterprise People Science, EMEA, at Culture Amp, said: “Our data suggest that after years of workplace change and disruption, businesses are committed to extending employee protections as part of establishing clearer rules for working environments and a better overall Employee Value Proposition for their people.
“As UK firms decide to take a more strategic and dynamic approach to their workforce planning, they seem willing to accept increased running and compliance costs as part of the bargain, although the increase in Employers’ National Insurance Contributions in the Budget has already given employers less room for manoeuvre here.”