'Cautious approach' | Firms prioritising cost management over growth as employer confidence remains subdued

UK employers are prioritising cost management over growth as rising business costs and global uncertainty continue to weigh on confidence. This is according to the latest Labour Market Outlook from the CIPD, the professional body for HR and people development.

The survey of more than 2,000 UK employers found that cost management is the top priority for UK employers, regardless of sector and size, ahead of improving productivity and growing market share.

Larger employers are significantly more likely than SMEs to prioritise regulatory compliance as the first Employment Rights Act reforms come into effect, the CIPD found, and anticipated pay awards are gathering around the 3% mark.

Against a backdrop of continued economic and geopolitical uncertainty, the CIPD is urging employers to focus on factors within their control, such as workforce management, skills development, and effective use of AI to boost productivity.