The plans and priorities of UK workers for 2023

As the new year begins, workers across the UK are considering how the current and future economic climate could affect their career decisions.

This article looks at insights provided by 4,364 UK workers around what they’re planning for the year ahead and the support they expect to see from their employers.

Key findings

• 74% of UK workers are worried about their financial situation as the cost of living rises
• 57% of UK workers that are actively looking for a role are seeking a higher salary
• 52% of UK workers are not planning to find a new job in 2023
• 32% of UK workers are concerned about their job security
• 31% of jobseekers looked for a new role at the end of the year, or are planning to in 2023.

The impact of cost of living on career aspirations

The rise in the cost of living weighs heavily on the minds of UK workers and jobseekers in 2023.

Almost 3 in 4 (74%) UK workers are worried about their financial situation due to rising prices, with 38% of those saying they’re very worried. Interestingly, this varies when it comes to gender, with women more concerned than men (80% vs 68%, respectively).

To combat this worry, UK workers expressed that they’d like a pay rise. 55% say they’d like to see, or have already seen, their employers specifically address the rise in the cost of living for employees.

More than half (54%) of UK workers who are looking for a new role in 2023, say their employer could encourage them to stay in their current role by offering them a pay rise in line with, or higher than, inflation.

Beyond a higher salary, over a quarter (26%) of workers reported that a better work-life balance would encourage them to stay in their role, 21% said a career development path, and 20% said flexible working hours. These priorities differ when acknowledging gender though, with flexible working more of a priority for women compared to men (32% vs 17%, respectively).

Interestingly, only a small percentage of people said that recruitment advice (5%) or childcare support (6%) would encourage them to stay with their current employer. This signals that people may be putting off key life milestones like retirement or starting a family, due to the squeeze on finances.

The growing importance of salary

The cost of living increase, caused by inflation, has positioned salary to be a crucial area of discussion for UK workers this year. Financial independence is their main concern, with pay increases top of the priority list.

In fact, the desire for a higher salary is driving some workers to consider moving jobs within the next 12 months. Of those considering moving roles in 2023, 57% say they’re seeking a higher salary. This suggests the importance of pay and salary benchmarking in the year to come. With this in mind, over half (54%) of those looking to leave their current job say that a pay rise inline with inflation would encourage them to stay.

For those that do end up looking for new roles though, under half of jobseekers say they are confident in finding a new role in their preferred time (48%) and a similar percentage say they’re not confident (47%). We also saw similar results when it comes to confidence in negotiating for pay and benefits, however there is a clear disparity between men (56%) and women (41%).

When it comes to job security, interestingly, more than half (52%) of workers feel no differently about this compared to how they felt during the first Covid-19 lockdown, although 32% said they feel more worried. This shows that although job security is a growing concern for some workers, however most employees feel secure in their role.

Providing stability: retaining staff

Compared to previous years, the number of jobseekers this January is low, however a third of people (31%) started looking for a new job at the end of 2022 or are planning to in 2023.

We see that the main driver pulling workers away from their current role is pay, however this doesn’t always mean staff will leave without a pay rise. Retention can be maximised if employer needs are fulfilled, and employers can use other methods to encourage, support and motivate the team they already have.

Salary alternatives: benefits and perks 

Salary is at the top of the priority list for UK workers this year, however if you’re a business struggling financially, there are other avenues you can take to support your staff. Here are some of the monetary and non-monetary benefits that UK workers are looking for this year:

• 60% a pay rise (other than a lump sum payment)
• 39% a one-off payment (e.g. a bonus)
• 25% hybrid working arrangements to reduce travel costs
• 25% free meals and snacks during working hours
• 22% selling back unused holiday entitlement
• 14% “Salary sacrifice” options (e.g. payments for a bike, car or other expenses are taken off their gross income)
• 13% financial well-being schemes
• 10% introducing financial education programs to teach staff about budgeting, saving, debt management and retirement planning

Employer branding: hiring staff

Despite economic uncertainty, employers are still actively seeking and employing new staff, albeit at a slowing rate compared to the start of 2022. and on the other side, UK workers are open to looking for new roles that can support their lifestyle, with the majority of those seeking a higher salary, but a quarter (24%) say they would prefer to work in a fully remote location.

These findings highlight the importance of ensuring employers being transparent about salaries, throughout the recruitment process. In fact, 62% of people say they are more likely to ignore a job posting if it does not disclose a salary.

Although crucial, salary isn’t the only element that jobseekers are paying attention to. 68% say they are looking closer at the benefits listed on job ads due to the cost of living, and 52% are more likely to read extensively about the company’s performance and reviews before applying.

Ensuring you are aligning to the needs and wants of candidates when advertising a role, will continue to become even more important throughout 2023 and beyond. Jobseekers are becoming choosier with their job applications, with their confidence only expected to increase. By 2030, it’s forecast that employees will have more bargaining power than employers, meaning employers will have to work harder to attract candidates.

Fair recruitment is also an important factor when it comes to hiring, we see this in the form of gender disparities. Using the Totaljobs Gender Bias Decoder, can support recruitment, and ensure jobseekers aren’t dismissing roles due to bias.

Meeting employee priorities

Although people are increasingly worried about their financial situation and the uncertainty of the future, most UK workers are searching for financial stability and employer support. Positively, hiring continues and workers are still open to potential roles and a change in career to suit their lifestyle. This allows options for both employers who see recruitment as a priority as well as those who have a focus on retention.