Pros and cons of universal basic income: solution to unemployment or too expensive?
What is universal basic income?Universal basic income (UBI) is a system in which every adult receives a set amount of money on a regular basis. This payment is unconditional, meaning it does not depend on the recipient's income, employment status, or any other criterion.Universal– to everyoneBasic– to cover everyday expensesIncome– regularly, for people to spend how they wish.UBI has been an interesting and controversial topic of conversation over the past few years, with various trials and studies conducted to evaluate its potential impact. While we may be a long way off from this being considered in reality, let’s look at some of the pros and cons of introducing this concept.Pros of universal basic incomeReduce povertyOne of the main arguments in favour of UBI is its potential to reduce poverty and economic inequality. A 2022 study by the University of York found that a UBI model could cut poverty by more than half. This would be achieved through tax adjustments and guaranteed weekly payments, providing a stable income for everyone. This stability could lead to a more robust economy, increased consumer spending, more job opportunities, and a healthier market overall.Increased consumer spendingWith more disposable income, people would likely spend more, stimulating demand for goods and services and benefiting businesses across various sectors. This increased spending could also lead to higher tax revenues, which could be reinvested into public services and infrastructure.Empowering workersUBI would offer a safety net, reducing the pressure on individuals to accept low-paying or precarious jobs. This could lead to higher job satisfaction and productivity, as people would be more likely to pursue jobs that align with their interests.Improve workplace conditionsIt would also encourage businesses to enhance their working conditions by shifting the power dynamic to the employees. With a guaranteed income, workers would no longer be compelled to stay in jobs solely for financial reasons, allowing them the freedom to leave roles with poor working conditions.This shift in bargaining power would encourage employers to enhance job quality, offer higher wages, and create more supportive work environments to attract and retain employees. Consequently, businesses might need to implement more employee-focused policies, such as flexible working, improved benefits, and a stronger emphasis on work-life balance, to stay competitive in the labour market.Innovation and entrepreneurshipMany people hesitate to start their own businesses due to fear of failure and financial risks. However, UBI could provide the financial stability needed to encourage entrepreneurship and innovation, potentially resulting in economic growth for the country. This could lead to the creation of new industries and job opportunities, further boosting the economy.Foster education and societal benefitsHaving a steady income would encourage more individuals to pursue further education and training, culminating in a more educated and skilled population. This increase in educational attainment can have numerous positive effects on society, including:Higher civic engagement: an educated population is more likely to participate in civic activities such as voting, volunteering, and community involvement, fostering a stronger democratic process and community cohesion.Enhanced critical thinking and creativity: education cultivates critical thinking and creativity, which are essential for technological innovation and economic growth.Reduction in poverty and inequality: education is a powerful tool for breaking the cycle of poverty. By providing individuals with the skills and knowledge needed to secure better-paying jobs, UBI can help reduce income inequality and improve overall economic stability.Improved public health: educated individuals are more likely to make informed health choices, meaning lower rates of chronic diseases and improved overall public health.Cons of universal basic incomeHigh costImplementing UBI would be extremely expensive, requiring significant tax increases and reallocation of public spending. While it's challenging to estimate the exact cost, one analysis projected a gross cost of €555 billion – which includes the UBI payments themselves as well as the cost of integrating it into the existing tax and benefits system. Therefore, many critics argue that for this reason, UBI is not sustainable or even feasible.Decreased motivation to workCritics argue that UBI could reduce people's incentives to work, prompting higher unemployment rates. They fear that with a guaranteed income, people might choose to work fewer hours or not at all. If this were the case, higher unemployment rates could negatively impact economic growth due to less taxable income.Those who do continue working while receiving UBI might be less motivated to perform at their best. With their basic financial needs met by UBI, the urgency to excel and advance in their careers could diminish and we could see reduced effort and productivity.Challenges for low-wage industriesIndustries relying on low-wage labour might face increased wage demands, as workers with a financial safety net might be less willing to accept low-paying jobs. This could cause higher operational costs and potentially drive businesses to automate more processes.InflationIncreased disposable income could generate higher spending, driving up demand and prices, resulting in inflation. This could erode the purchasing power of the UBI payments, potentially negating some of the benefits.Potential inequalityWhile UBI aims to reduce poverty and inequality, some argue that providing the same payment to everyone wouldn't solve inequality but merely shift the goalposts. Critics suggest that a more targeted approach might be necessary to address the specific needs of different groups within society.The debate around UBI is far from settled, and its implementation would require careful consideration and robust policy design. As we move forward, it's important to engage in thoughtful discussions, consider diverse perspectives, and explore pilot programmes to better understand UBI's real-world impacts.Ultimately, the question remains: can UBI be the transformative solution we need to fix the unstable labour market, or will it prove too costly and complex?If you are looking for a talented professional to join your team, or seeking a new employment opportunity yourself, get in touch with a specialist consultant today.
The evolution of the CIO: an evolving role
Technology has become ingrained in almost every part of business life – no matter the industry or sector.As employers have learned to survive in unstable market conditions, they’ve come to realise the value of having an innovative and business-focused chief information officer (CIO).With technology advancing at an unprecedented pace, the traditional responsibilities of the CIO have expanded, with their role becoming increasingly important to the success of an organisation. In today’s business world, CIOs are required to not only manage IT infrastructure and systems, but also to drive forward and align technology initiatives with overarching business goals.The changing roleHistorically, the CIO's primary focus has been on overseeing the implementation and maintenance of technology systems within an organisation. However, as businesses have become more reliant on technology for their operations and growth, the role has evolved to encompass a broader set of responsibilities.Today, CIOs are expected to be strategic business partners who are there to help enhance operational efficiency and leverage technology to create competitive advantages – maximising the return on the company’s investment in technology. In other words, it’s now essential for a CIO to focus not only on cost savings, but on using technology to add value and increase revenue for the business.CIOs are now required to collaborate closely with other c-suite executives to align technology initiatives with overall business objectives, identify opportunities for digital transformation, and mitigate potential risks associated with technology adoption. It’s an exciting era, as CIOs now have the chance to be transformational leaders who can harness technological advancements and data to consolidate their tech stacks and gain efficiency.Challenges in staying up to dateStaying current with the latest technological developments can be a considerable challenge. The rapid pace of innovation, coupled with the proliferation of widespread AI technologies, presents a daunting task for CIOs looking to stay informed and ready to address the potential impact these technologies can have on their organisation.According to digital adoption platform, Userlane, and leading consultancy, PwC, almost two thirds of CIOs surveyed were concerned that the state of the economy will affect their digital transformation plans. But at the same time, 62% plan to deepen their investment in technology, illustrating just how important technology integration now is at leadership level.One of the biggest challenges is offering digital services that are safe and secure for the consumer, which makes cybersecurity a number one priority for the majority of CIOs; their responsibility is to protect the systems and data that shareholders and stakeholders entrust them with.As cyber threats become more sophisticated, CIOs must continually evaluate and implement robust security measures to safeguard their organisations' data and infrastructure.Understanding the capabilities of AIGiven the uptake in generative AI across the workplace, it’s no surprise that AI is expected to shape the future of business. Large language models (LLMs) will continue to play a part in generating documentation on business processes, designing training programmes, and writing and rewriting code.AI has been hotly anticipated by technology departments for a while, but has only recently reached a point where its potential benefits, capabilities, and enhancements, have become clear. CIOs are being asked to learn what AI is capable of and how it can be harnessed to competitive or strategic advantage across the business – similar to the adoption of any other technology.More recently, generative AI is offering an entry point for companies looking to spearhead investment decisions. Rather than manually researching information, CIOs have the ability to use generative AI to summarise markets, telling them where to look and where to harness department energy.Managing business needsThis transformation now sees CIOs juggling evolving responsibilities, to shape their departments. This requires a thorough understanding of their organisation's strategic objectives – helped by their c-suite role – as well as the ability to identify and prioritise technology initiatives that will best support those objectives.As the role grows, it’s important for CIOs to develop and maintain strong relationships with other business leaders and departments, gaining insights into their challenges and opportunities, and leveraging technology to address them. As a company grows, so does the amount of data, which makes having an innovative leader and strong IT department even more essential.We’re seeing CIOs steering the ship, promoting continuous improvement within their teams, while further encouraging the exploration of new technologies to drive meaningful change to stay competitive, relevant, and secure.The sooner companies realise the true value of the CIO position, the better their chances of success.To find a talented tech professional for your company, or to take the next step in your career ,contact our specialist technology recruiters now.
Will AI eliminate the need for jobs?
At the recent Microsoft CEO Connections event, the CEO Satya Nadella compared the impact of new AI technology to the birth of personal computers and the internet, in terms of its potential global impact.While writers, actors, and other artists have been fighting to protect their livelihoods from AI’s threat, Elon Musk imagines what I can only describe as a nightmarish vision of the future where no one works at all (although, as a recruiter, I’m predictably biased about the 'nightmarish' part).The recent Reed/Bloomberg job market report sheds some light on this issue. While AI is a hot topic across politics and business, jobs in the sector have plummeted, suggesting that organizations have lost interest in hiring for new AI job roles.That’s not to say that companies are ignoring AI altogether. From finance to e-commerce, businesses have been integrating this technology into existing roles, allowing them to offer new and improved products and services to their customers. Here at Reed, we’re using AI to help remedy a common problem for recruiters and managers – choosing appropriate interview questions for specific roles. With our AI-powered Interview Question Generator, a task that once took hours can now be completed with the click of a button.Does this mean recruiters and their counterparts in other sectors will soon be out of a job and replaced by AI? Not necessarily. Although AI will most likely cause some jobs to disappear, it will also liberate people from bureaucracy, eliminate mundane tasks, and allow workers to focus on the parts of their jobs only humans can do well.So, while it’s almost certain that AI is transforming the way we work and recruit, I’m of the belief that, for as long as there are people to help, problems to solve and personal connections to be made, there will still be jobs.And, hopefully, there will still be recruiters.
Sabbaticals: considerations for employers and employees
The early years in a job are filled with learning: new skills, continued development and greater challenges along the way. For those lucky enough to love what they do in a workplace that meets their needs, years fly by – with some companies rewarding continuous long service or achievement with several weeks or months of paid sabbatical leave.What is sabbatical leave?Sabbatical leave used to be more commonly associated with academic professions, with educators traditionally granted a period of paid time off – usually one year – for further study or research. Similar opportunities have since filtered into other lines of work, with paid, part-paid and unpaid options, but are offered by relatively few employers across the world.Unlike career breaks, sabbaticals mean the work contract continues, giving employees freedom to explore without penalty. There’s no set format but it is recommended employers offer the leave on equal terms for everyone in the business rather than using an ad hoc system. A dedicated sabbatical policy can outline terms for both full-time and part-time employees to prevent misunderstandings and protect against discrimination and other claims – fairness and transparency are key.According to The Chartered Institute of Personnel and Development (CIPD): “Historically sabbaticals have been a benefit for employees. They are agreed for a variety of reasons including rewarding long service, travel, research or acquiring new skills, voluntary work, alleviating stress and burn out or to take care of health. In current times the motivation behind sabbaticals may be more for the employer’s benefit to provide alternatives to redundancy.”With greater focus on employee mental health and wellbeing, meaningful benefits such as sabbaticals can also encourage a member of staff to spend longer with the business.Having found their niche in a team and given the opportunity and resources to achieve and excel, many employees feel valued by the prospect of a morale-boosting sabbatical. What better than a reminder of approaching eligibility for a well-deserved break – usually starting after five years’ service.How much sabbatical leave should be offered?There is no law that says a business must offer sabbatical leave, paid or unpaid, but it is increasingly being introduced to attract jobseekers in competitive industries.Although the traditional year out enjoyed by academics is unheard of for most private companies, a more affordable period of four weeks’ paid sabbatical leave is considered fair, rising to six weeks or more after 10 years’ continuous service.Forward planning is essential to allow managers to reassign the leaver’s workload across the team or advertise for temporary help. This may require the employee to give at least six months’ notice but could well be longer depending on the seniority of the role.During the leave, the employee may receive full or partial pay, or no pay at all, depending on the company’s sabbatical policy. Some employers may formally request that no other paid work is undertaken during the absence.As an alternative or an addition to sabbatical leave, companies might choose to grant additional paid annual leave for loyal staff – perhaps five extra days after five years.What are the benefits of sabbatical leave?Time out can be an incredibly rewarding experience, and one with lasting benefits for both employer and employee. With the freedom that comes with the extra time off, sabbaticals are ideal for personal development, whether it’s a self-care plan, a period of study, travel or volunteering – the freedom from the 9-5 is ideally meant for discovery as well as relaxation.Employee benefitsBy using the time productively, employees could end up adding value to their role. Here’s a few ideas for how to spend the time:Rest and recharge: A break from the daily grind gives an opportunity to step away from your work-life responsibilities and find out what inspires you.Learning new skills: A sabbatical allows for plenty of free time that can be devoted towards learning new skills or honing existing ones. Whether it’s mastering a language or developing coding know-how, these experiences will enhance your career prospects and help you stand out from the crowd.Greater appreciation: Time out provides an opportunity to reflect on things taken for granted over time, such as our job, relationships, or health.Improved health: A sabbatical gives us the chance to focus on our physical and mental wellbeing by engaging in activities like yoga or meditation. This helps boost productivity levels upon returning to work along with improving overall quality of life.Explore new interests: During a sabbatical, you could take up a hobby you may not have had time for while working. This can be a great way to develop new skills and can even lead to a new career path.Personal development: Focusing on growth through travel, education, or other goals can bring new perspectives to your work when you return.Enhanced creativity and productivity: Stepping away from work can provide a new perspective and channel your interests into projects that could be useful back in the workplace.Eliminate burnout: Many people quit their jobs when they feel exhausted and demotivated through overwork and stress. Time away is a wellbeing solution that means you can retain your job while regaining your mojo.Employer benefitsSabbaticals can also provide significant benefits for employers in terms of employee retention and attraction:Retain top talent: Offering sabbaticals can be a powerful tool for retaining workers. Employees who feel valued and supported by their employer are more likely to stay with the company long-term.Improved productivity: Sabbaticals can lead to improved productivity in the long run, with employees returning to work with renewed energy and focus,Cost savings: If an employee takes a sabbatical instead of leaving the company altogether, it can save the employer money in the long run through recruitment and training costs.Enhanced creativity: Employees can explore new interests and ideas, introducing them in their work.Improved employer branding: Companies that prioritise work-life balance and employee wellbeing are more likely to be viewed as desirable places to work.Returning to workThe hope is that employees return to the workplace refreshed. The break may have brought clarity to their working routine, new skills that could benefit their role, and fresh ideas. The early weeks settling back in are a great time for sharing these ideas and considering how the job may be shaped by the sabbatical experience.For the employee, a little preparation before the end of their leave can ease any anxiety about the return: catch up on company and industry news, check-in with colleagues, and ask for team updates so it’s not a complete surprise on the first day back.Work may also seem a little overwhelming at first, with things unlikely to be the same as when the returner left. There might be different tech to get to grips with, new team members and schedules in place. Managers should keep checking in to ensure the returner is coping and not overloaded through this transitional period. Some workplaces provide a structured ‘return to work’ plan to help employees and managers meet their goals.To encourage and inspire new and existing staff, sabbaticals should be shouted about in job adverts, social media and company websites. The prospect of a break or memory of one may lead to workplace happiness and contentment.Looking for talented professionals to join your team or seeking a new opportunity? Contact one of our specialist recruitment consultants today.
.jpg)
The 15-minute city: the future of the workplace
What is a 15-minute city?The 15-minute city framework was masterminded by French-Colombian urban planner, Carlos Moreno, whose idea means that anything you need to live an urban life is a 15-minute walk or bike ride away, eliminating the reliance on cars or public transport.It is a revolutionary, environmentally friendly, and inclusive way to rethink the planning of a city or town, giving each neighbourhood access to work, school, healthcare, retail, hospitality and leisure facilities, green spaces, museums and more, on their doorstep.Following multiple lockdowns, there has been a growing sense of appreciation for locality in the world, with people spending more time walking around their neighbourhoods and preferring to work from home or make shorter commutes. And during the cost-of-living crisis, people have been more conscious about the ever-increasing prices of fuel and public transport.With more people working remotely, at least a few days a week, there is room for the addition of more localised, essential services and amenities, that would otherwise be concentrated in a central location. This would give those living on the outskirts access to these essentials and to a greater number of opportunities.What impact could 15-minute cities have on businesses?A recent research by the International Workplace Group (IWG) discovered that 83% of workers around the world would turn down a job that didn’t offer flexible working. This indicates people are less willing to commute and prefer shorter journeys to work. As a result, having an office space just 15 minutes’ walk or bike ride away would be much preferred by professionals.Shorter commutes often lead to improved job satisfaction, work-life balance and wellbeing, with much less time spent on stressful travel. When provided with the flexibility to work remotely or from a local office, rather than commuting to a head office in a city-centre location, workers will be more tempted to stay with the business, or actively seek work there.People are now much more aware of the social value of the companies they work for, and their own carbon footprints, and will take into account the length, expense and environmental impact of a longer commute when considering moving roles.The introduction of ‘15-minute cities’ could see the expansion of businesses into less-expensive local areas, reducing overhead costs and extending access to the national talent pool. Professionals across the country will have more opportunities closer to home, without the need to move centrally or commute. Then, the local talent pool will become richer, and businesses won’t have to cast such a wide net to search for their next employee.How close is the reality of ‘15-minute cities’ in Switzerland?Switzerland is making remarkable strides in realizing the vision of 15-minute cities. The country's urban planning and development approach aligns closely with the principles of compact and accessible neighbourhoods. Cities like Zurich and Geneva exemplify this progress, with their well-connected public transportation systems, extensive networks of pedestrian and cycling paths, and mixed-use zoning strategies. These cities have invested in creating vibrant urban centres that combine residential, commercial, and recreational spaces, fostering a sense of community and reducing the need for long commutes. Overall, the concept of a ‘15-minute city’ could revolutionise the way we live, work, and hire, by reducing commute times, making it easier to access talent and opportunities, and to work hybridly. As a result, it could also improve job satisfaction, wellbeing and the general quality of life for you and your employees.If you’re looking for your next local hire or job opportunity, contact your nearest Reed office.
How to ace your video interview
Use the following video interviewing tips to help you secure your next role.There are two types of video interviewLive interviews are what you would expect – a video call with the interviewer which is very similar to a face-to-face interview, but slightly different. Some may feel more relaxed knowing that they are speaking face-to-face with a person, even if it’s only through a screen.Pre-recorded interviews provide you with questions you must answer by recording yourself. These interviews are usually recorded with specialist software, such as Shine, and you will have a certain number of attempts to answer each question.Check your techTest your microphone, camera and internet connection before you start, and make sure your device is compatible with the software your interviewer is using. Making a test call will give you piece of mind that everything is set up correctly.In case of any unexpected audio issues, or your connection drops, ensure you have the interviewer’s contact number so that you can continue your interview over the phone. Don’t forget to fully charge your device or have it plugged in to avoid any potential disruption from a low battery.Just as you would in a face-to-face interview, you must also check that your phone is on silent and any notifications are off.FramingTo frame yourself well, position yourself in the centre of the screen, with the camera at eye-level, an arm’s length away. If you give the illusion of eye-contact by looking at the camera, you will seem more engaging to the interviewer. The interviewer will have a better impression of you, and will be more engaged in your answers.It is most important to choose a location where you won’t be disturbed and are least likely to pick up noise from your surroundings. Choose a space which is not too dark or too bright and remove anything from behind you that you wouldn’t want your employer to see, such as dirty clothes.Body language and appearanceBe as professional as possible, both in how you dress and in your body language – remember that this is your potential employer. Even if the interviewer can’t see all of you, dressing well will put you in the right mindset for a job interview and you will make a much better impression.Other than your facial expression and hand gestures, your non-verbal communication is limited, so it will be more difficult for the interviewer to pick up positive body language. Ensure you don’t fidget too much, avoid covering your mouth, and make sure to smile.Our YouTube channel has a fantastic series of interviewing advice videos detailing the dos and don’ts for candidates.If you’re looking for a new career opportunity, contact your local office via email or over the phone.