Will the recession end the WFH revolution?10/25/2022
The Bank of England is predicting that a recession for the UK economy will begin later in 2022, stating a recession is pretty much inevitable- it is more a case of ‘when’ rather than ‘if’ at this stage. The likelihood of this happening also correlates with inflation and interest rates continuing to rise.
The economic struggles caused by a recession will directly impact the recruitment process, the workforce and employee behaviour. Some of these changes will include a rise in unemployment levels, a decrease in pay and benefits and fewer sales/business. This power shift from a candidate-driven market to client-driven, places superiority on employers; this will result in employees becoming worried about job security and therefore, they’ll make changes to their working lifestyle.
Since the pandemic, many have embraced WFH benefits - with a study revealing that 82% of staff prefer working from home than being in the office – but will a recession change that?
Arguably, the majority of businesses implemented WFH and flexible working benefits to retain staff and attract new talent. However, the ‘power’ now circling back to clients and bosses may result in employers working in the office full time, as half of hiring managers believe this is where workers are more productive. Furthermore, if employees know this is their company’s preference, they will voluntarily go back to prevent risk of being laid off in an unpredictable environment.
Furthermore, the rising living cost may also contribute to the end of WFH, as a recent survey states that London workers could save £50 a week on heating and power if they returned to the office. On the other hand, many employees will need to weigh up whether this cost of energy overrides commuting expenses, with many workers spending hundreds a week on petrol and train fares etc.
Will you tone down your career requests (wfh, benefits, etc) due to the uncertainty in the current economic climate?