With A level results just behind us and this week’s GCSE news a day or so away, switching is much to the fore for many students. Many will be girding their loins to enter the sixth form, whilst more than 500,000 will be checking out the unalloyed joys of university accommodation for the first time. And this year sees a fascinating shift in the balance of power between higher education institutions and students, with the new financial bargaining leverage of gaining ABB at A level. In addition to clearing, students who attained better than expected grades have the opportunity, through adjustment, to switch to what they consider to be better universities and/or courses.
If it seems on the surface a somewhat incongruous comparison, let’s analyse the situation in which Wayne Rooney is currently embroiled. Much like our students above, he is faced with the equivalent of returning to school as the Premiership began again this weekend – a whole ten minutes after the previous season concluded, or so it seems. At the same time, our Wayne has something of both a switching and an engagement dilemma. It seems brutally clear through performance, press dialogue and his body language, that Rooney has fallen out of love with his current employer, Manchester United. Cutting an increasingly peripheral figure, more often than not warming the substitutes’ bench, what is Wayne to do? Continue to accept a weekly salary some way north of £200k or fall for the easy-on-the-eye charms of one Jose Mourinho? And just how hard is his employer (and new boss) working in order to raise his level of engagement to avoid the prospect of a high profile switch?
And getting employees to switch is an increasing imperative for many UK employers. August’s CIPD/Labour Market Outlook, based on the views of 1,000 senior HR professionals hints at growing employment confidence. Overall, the net employment balance – the difference between those organisations taking people on and those reducing headcount – rose from +9 to +14. However, the picture for the commercial sector appeared even more bullish, with the balance increasing from +21 to +26. Perhaps no surprise then that the first ever Job Confidence Index Survey, product of the National Careers Service, suggests that nearly three quarters of UK employees (74%) have maintained the same level of employment confidence, or have become more so, and nearly two thirds of employed people feel they could find a new job within six months. If two years ago, Deloitte coined the term, perhaps prematurely, resume tsunami, perhaps this wave is now ready to break.
It is also perhaps worth pointing out that employment figures have rarely been so significant to the broader economy. Since the new Governor of the Bank of England, Mark Carney, suggested that interest rates are unlikely to be increased until the unemployment figure comes down from its current 7.8% to 7%, the monthly reports have taken on even greater prominence.
And there can be no more topical example of employee engagement and the exercising of choice than in next month’s bank account switching service, to be introduced by the Payments Council, whereby any or all of the UK’s 46m current account holders can switch banks within seven days, rather than the current (and generally shunned) 30 days. Much is up for grabs – both Halifax (£100) and First Direct (£125) are promoting, with some enthusiasm, a cash incentive for customers to switch in their direction. Of course, such an inducement will play its part in a consumer’s decision to switch banking provider. However, the sort of engaged, enthused and committed service provided by the employees of both a customer’s current and prospective bank will also have a huge influence on switching decisions.
So, as the economy, not without the odd sideways step, appears to be entering a period of consolidated growth – the CBI this week increased their forecast of GDP growth for 2013 from 1% to 1.2% – both consumers and employees have more and more opportunity to switch – be that from one bank account, employer, university or even football team to another.
Just as some higher education institutions will be experiencing (to their cost and potential future demise), employers who do not appreciate that their people now increasingly expect to see their careers follow a similar trajectory to the economy should not be surprised to see levels of turnover increase or levels of engagement follow a wholly different direction.
It’s their choice.
Getting to the heart of your employee mindset 