As unemployment rates hit a near five-year high, it is time that the HR function thought very creatively. Additionally, wage and salary growth is slowing. Though we do not necessarily have all the mental health signs about what is going on in response to motivation driven by remuneration, those of us in HR know very well that remuneration drives behaviour. Young people are taxed more the minute they start paying off their student loans which acts as another de-motivator for their own personal salary growth. AI is absorbing some entry-level roles, underscoring the need for more careful decision-making, while middle managers are increasingly being squeezed.

The scope that HR departments have is nonetheless high, in that there needs to be greater performance management in the sense of dealing with those who are not performing as required and therefore an ability to confront the difficult issues, as well as tending and nurturing the performers that businesses do need to keep. The very best will always be mobile, but the bulk of individuals are sound, solid employees who need to be kept motivated. The Government would do well to bear in mind that disincentivisation through tax is prevalent and employers are becoming jaded and cannot manage growth but run faster to stand still.

If you would like help with creativity and risk reduction to help your business grow rather than stagnate, please get in touch.