LSBF Careers Report. Are UK professionals looking to change careers?
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1 LSBF Careers Report Are UK professionals looking to change careers?
2 Foreword by Dr. Steve Priddy What we wanted to find out from this survey was how satisfied British professionals are with their current careers. In recent years, we have seen profound changes in the UK job market. Alongside a steady recovery of employment figures, different parts of the country have seen a growth in the number of start-ups, more jobs in manufacturing and small and medium businesses, as well as new roles in the alternative energy sector and the rise of new industries such as the FinTech sector. This is good news as well as creating new opportunities, this diversification certainly puts the UK one step ahead in the race for securing investment and building a strong forward-looking economy. In such a scenario, with a changing economy and new sectors creating jobs and business models that would not have even existed a decade ago, many professionals may have considered the option of jumping ship and facing the challenges of a new career path. However, how do people feel about making a career change? Are they professionally prepared? Do they know how to go about it? What are people s main fears about a major career move? Money, uncertainty, lack of support, lack of training? These are some of the questions that this report tries to answer. I m particularly delighted to see that our younger workforce is bold enough to dare trying to enter a new professional field. As an academic, it is one of my greatest pleasures to see young people interested in breaking barriers and trying and achieving more for themselves. From my perspective, what is important before any major career move is to ensure you are appropriately qualified to take on the new role and to understand the sector well enough in order to make the most of potential opportunities and to navigate the system as if an insider. We hope this report provides readers with useful insights and sheds some light on the current appetite for career change across the UK workforce. Best wishes, Dr. Steve Priddy Director of Research and Academic Dean London School of Business and Finance (LSBF)
3 3 Executive Summary The survey results suggest that nearly half of all workers in the UK (47%) would like to change career. The research shows that more than one in five workers (21%) are looking to career hop in the next twelve months, with increased salary prospects, better work-life balance and improved job satisfaction cited as the main reasons for wanting to make a switch. 47% of the UK work force would like to make a career change 55% of workers in London want to change careers, 45% within next two years Around a quarter (23%) of British workers in employment revealed they actually go as far to say they regret their current choice of career this figure rose for younger workers, with 30% of yearolds regretting their current career choice. Regionally, professionals in London and Scotland are the most likely to regret choosing their current careers and the main reason for them to do so is work/life balance. 66% of Millennials (people aged 18-34) want to change careers 23% of all UK workers, and 30% of people aged 25-34, regret current careers Despite such disillusionment, many people are still unwilling to change careers owing to a number of factors they feel hold them back. Almost a third (29%) said the lack of financial security around changing careers was a major barrier, while uncertainty about what to switch to (20%) and a fear of failure (15%) were also identified as obstacles to changing career. Further analysis reveals that more than half Millennials (people aged 18-34) want to change their career a trend that is particularly clear in London and Scotland. 29% cite financial insecurity as main reason for not changing careers; figure goes up to 41% for Millennials The results also seem to suggest that better salary prospects is the main reason driving Millennials to make career changes, while workers aged 35 to 44 would be more interested in a career move that improved their work/life balance. The statistics also showed differences in attitudes among age groups with almost two thirds (65%) of workers aged between 25 and 34 wanting to change career, compared with just 19% of over 55s. 68% of Cardiff workers are satisfied with their careers, the highest proportion in the survey Only 19% of London workers say they will never want to change careers The next chapters will delve into the questionnaire and further analyse responses beyond the overall results. Would you like to change careers? 47% Base results 53% 56% % 66% % Figure 1 - Base results Figure 2 - People aged Figure 3 - Millenials (18-34) Yes No
4 4 Demographics In June 2015, London School of Business and Finance (LSBF) carried out a survey to find out how happy professionals in the UK are with their careers, what percentage of them are looking to change careers and why they want to do so. Working alongside survey company Censuswide, LSBF interviewed 1,000 male and female professionals of different age groups from across the UK. The findings provide a clear insight into how satisfied Britons are with their career choices. The survey also revealed which age groups are more inclined to want to change career and where in the country people are more likely to change careers in the short and long terms. With steady economic recovery over the past few years, the UK has seen job creation and a significant expansion of the number of industries. According to experts, this candidate-driven market gives many jobseekers the upper hand when it comes to changing jobs and making significant career moves. Despite that, a growing population and a large cohort of highly-educated young professionals leaving the education system are enough to ensure that the job market remains considerably competitive at all levels. In order to find out how confident and satisfied people are with their careers and what their plans in the short and long term were, respondents had to answer five questions: 1. Would you like to change career? 2. Do you regret choosing your current career? 3. Do you think you will make a career change in the next: (3 months, 12 months, 2 years, 5 years, more than 5 years)? 4. What is stopping you from making a career change now? 5. What would be the main reason for you to want to change career? Figure 4 - Respondents - Gender Figure 5 - Age Groups 44% 56% % 21% % % %
5 5 Demographics The survey was carried out between 10 and 12 June 2015 in several regions across the UK. The 1,000 participants were chosen based on two simple criteria: respondents had to be 18 years of age or older and not be unemployed. As shown in Figure 4, 56% of respondents were female, against 44% males. The study also covered a broad range of working age groups, interviewing workers ranging from 18-24, 25-34, 35-44, and 55+. The sample size for each age group shown in Figure 5 aimed to reflect the general demographics of the UK population. Similarly, the proportion of regions and cities from which survey participants come was developed as a reflection of how the UK population is spread across the country, with larger areas having more respondents than smaller areas, as shown in Images 3 and 4. Accordingly, the regions with the largest representation in this survey are London and the South East, the Midlands and the North West regions. K L M J A N O P Q Figure 6: Cities I H B C D E F G A 2% BELFAST D 5% BRISTOL G 4% GLASGOW J 27% LONDON B 12% BIRMINGHAM E 3% CARDIFF H 6.5% LEEDS K 10% MANCHESTER C 3% BRIGHTON F 4% EDINBURGH I 3% LIVERPOOL L 4% NEWCASTLE M 3% NORWICH N 4% NOTTINGHAM O 3% PLYMOUTH P 2.5% SHEFFIELD Q 4% SOUTHAMPTON
6 6 The Survey Results 1. Would you like to change career? The first question put to participants was whether they would like to change career. The concept of career change can be interpreted in different ways, but most people understand it as a bolder move than simply changing jobs in most people s minds, a career change might imply working in a new area or industry where they have little or no previous experience. In most people s minds, a career change might imply working in a new area or industry where they have little or no previous experience. The base results of the survey are very straightforward, as shown on Figure 1: while 47% of participants stated they want a career change, 53% said they would not like one. However, looking beyond the surface, the numbers show an interesting fact. If the 55+ age group is taken out of the equation, it becomes clear that most workers (56%) aged 18 to 54 are willing to consider a major career move as shown in Figure 2. The difference is even more significant when you only consider workers aged (also known as Generation Y or Millennials): over 66% of them said they would like to change career (see Figure 3). This might reflect a major generational trend as it was during the decades in which Millennials were growing up that the concepts of job satisfaction, do what you love, and the idea of work-life balance really took off as leading approaches to work. This result suggests that the older you are, the less likely you are to want a major career change (see Figure 7). The reasons for this trend will be further explored later in this report, but job stability is likely to play a significant role. Across the UK, the regions where people seem most inclined to want a career change are London and Scotland, where 55% of workers answered positively to the first question, as shown in Figure 8. A further look shows that the cities of Brighton and Glasgow had the highest percentage of people stating they would like to change careers: 54% and 58% respectively (see Figure 9). Figure 7 - Would you like a career change? - by age group 19% 32% 35% 48% 57% 68% % % % % Yes No
7 7 The Survey Results Figure 8 - Regions - Would you like to change career? Scotland 55% 45% Northern Ireland 33% 67% North West 46% 54% Wales 43% 57% North East 50% 50% Yorkshire 36% 64% Midlands 46% 54% East 49% 51% London 55% 45% South West 47% 53% South East 44% 56% Figure 9 - Cities - Would you like to change career? Yes No Glasgow London Brighton Norwich Edinburgh Newcastle 58 % 42 % 55 % 45 % 54 % 46 % 52 % 48 % 51 % 49 % 51 % 49 % Birmingham Manchester Southampton Bristol Belfast Liverpool 50 % 50 % 47 % 53 % 47 % 53 % 47 % 53 % 45 % 55 % 41 % 59 % Nottingham Sheffield Plymouth Leeds Cardiff Yes 41 % 59 % 38 % 62 % 36 % 64 % 33 % 67 % 32 % 68 % No
8 8 The Survey Results 2. Do you regret choosing your current career? The second question in the survey asked participants whether they regretted choosing their current career. The results here were predominantly reassuring: 77% of participants said they do not regret their career choice, while 23% said they do. The trend follows a similar pattern across all age groups, reinforcing the idea that most British workers are satisfied with their career choice. Nevertheless, the same figures show that one in four men (25%) regret their current career choice: an interesting fact, especially considering that a further look shows that nearly one third (30%) of year olds stated they have regrets about their present careers. Figure 10, 11 and 12 provide useful insights into the results. Figure 10 - Base Results: Do you regret choosing your current career? 23% Yes 77% Figure 11 - Gender: Do you regret choosing your current career? No One in four men (25%) regret their current career choice and nearly one third (30%) of year olds surveyed stated that they have regrets about their present careers. 25 % Male 75 % Yes Female 22 % 78 % No Figure 12: Age Groups: Do you regret choosing your current career? % 30% 72% 70% % 22% 14% 74% 78% 86% Yes No
9 9 The Survey Results 3. When do you think you ll make a career change? The results show an interesting trend: 54% of Millennials would like to make a career move within the next two years or earlier, with a large proportion of them (26%) interested in making the move within the next 12 months (Figure 13). 54% of Millennials would like to make a career move within the next two years or earlier The wider results, which include all the age groups, show something different. Figure 14 shows that 31% of all participants are unsure about when they will make a career change, while 28% said they are likely to never make the move. Six percent of all respondents said they are likely to make a major change in their career within the next three months, while 15% were planning a move in 12 months. In total, 32 percent of all workers are considering a career move in two years from now or earlier. The analysis of the data by age group shows that the older participants were, the more likely they were to answer never (Figure 15). This may be for a number of possible reasons, but particularly financial security and job stability or satisfaction, as will be shown later in this report. Geographically, Northern Ireland, Yorkshire and Wales are the regions where most workers said they were likely to never make a career change, with 44%, 40% and 39% of participants stating they intended to do so (as shown in Figure 16). In contrast, professionals living in London and in the South West seem to be the most inclined to make a career move soon, with 45% and 39% of interviewees saying they planned to change careers within the next two years or earlier (Figure 17). When do you think you will make a career change? Figure 13 Millennials 9% 26% 19% 13% 6% 25% 2 % _< 3 months _< 12 months _< 2 years _< 5 years 5 years Never Not sure < Figure 14 Base Results 6% 15% 11% 8% 1 % 28% 31%
10 10 The Survey Results Figure 15: Age Groups: When do you think you will make a career change? 70% 60% 50% 40% 30% 20% 10% 0% months 12 months 2 years 5 years 5 years+ Never Not sure Regions: When do you think you will make a career change? Figure 16 Never 40% 39% 26% 29% 20% 44% 33% 33% 30% 19% 21% Figure 17 In 2 years 26% 27% 39% 25% 31% 22% 29% 25% 35% 45% 32% Yorkshire South West Scotland North West Midlands East Wales South East Northern Ireland North East London
11 11 The Survey Results 4. What is stopping you from making a career change now? The results show that satisfaction with their current job is the main reason that 38% of workers in Britain don t want to make a major career change now. Lack of financial security ranked second, with 29% of respondents citing it as the main reason for them remaining in their careers. Twenty percent of survey participants stated they did not know what they wanted to change their career to. Fear of failure was mentioned by 15% of workers, followed by time investment required, with 14% of the total responses. Twelve percent of all participants mentioned a potential disruption to family or social life as the main reason stopping them from making a career change (Figure 18). 41% of all Millennials stated that the main factor stopping them from making a career change was lack of financial security. Liking their current job was the second most chosen answer by Millennials, with a total of 22%. A further 22% of Millennials stated that the fear of failure is the main factor steering them away from a major career move. An almost equal number of respondents (20%) said the biggest issues for them are the time investment required and not knowing what they want to change their career to. Disruption to family and/or social life was a reason mentioned by 16% of Millennials, while another 19% said they don t know how they would go about changing careers, as shown on Figure 19. When looking at the reasons given by workers aged 35 to 54 years for not making a career change, 38% said they simply liked their current job and 28% mentioned lack of financial security as their main reason for sticking to their current career. 23% of the age group said they don t know what they want to change their career to, while 15% said they didn t make the move for fear of failure (Figure 20). Nine percent said they can t change careers now because of the time investment required. Disruption to family and social life was cited by 11% of respondents in this age group, as was the I don t know how I would go about changing career option. Job satisfaction and stability seem to play an even more important role for older workers, as 57% of the 55+ age group said they simply liked their current job. What is stopping you from making a career change now? 38% Figure 18 Figure 19 Figure 20 Base results (Millennials) 41% % 8% 12% 20% 15% 14% 11% 29% 22% 6% 22% 19% 20% 16% 16% 4% 28% 24% 16% 11% 13% 11% I simply like my current job Disruption to family and/or social life Time investment required Fear of failure Other I don t know what I want to change my career to I don t know how I would go about changing career Lack of financial security
12 12 The Survey Results Geographically, workers in the North East and in London (40% and 35%, respectively) seem to be the most worried about financial security, while a majority of workers in Northern Ireland (61%) and Yorkshire (49%) are happy with their current job. 5. What would be the main reason for you to want to change career? The last question of the survey was about the reasons driving people to make a career change. In this multiple-answer question, 39% percent of all workers taking part in the survey mentioned increased salary prospects as one of the main drivers for them to make a career change, while 35% said that work-life balance was one of the main reasons (Figure 21). Improved job satisfaction was the third most mentioned reason with 34%, followed by the perceived status linked to the new career at 14%. However, 28% of all participants said they do not want to change career when asked this question. As in previous questions, results vary considerably when different age groups are separated. 54% of Millennials, for instance, said that salary prospects were a key driver for them, while 46% mentioned improved job satisfaction as one of their reasons. Work-life balance ranked third, with 43% of participants citing it as a key reason. Perceived status also seems to be an important driving factor for Millennials, as more than one in four (26%) mentioned it as a factor. Only 9% of Millennials said they did not want to change careers (Figure 22). The feedback from participants aged is also interesting. Although a greater proportion of them (28%) said they did not want to change career, the majority (37%) said they would do so for a better work-life balance. A very small proportion (8%) said they would make major career changes for ambition or for the perceived status of the new career (Figure 23). Interestingly, status and ambition scored even lower with older workers aged 55+, as only 5% of them would be likely to make a career move based on these criteria. In fact, the majority of participants aged 55+ stated they don t want to change careers. Increased salary prospects is important for 24% of them, while 21% mentioned work-life balance as a key driver of their career-related decisions. Reasons for changing careers Figure 21 Base results Figure (Millennials) Figure % 35% 34% 28% 54% 43% 46% 34% 37% 35% 28% 14% 26% 4% 9% 1% 8% 3% Increased salary prospects Work - life balance Status / ambition Improved prospects of job satisfaction I do not want to change career Other
13 13 Conclusion The last few years have seen solid growth in the job market, which means professionals feel more confident about making major career moves. As we have seen, nearly 50% of the people surveyed want to change careers, and this desire is particularly prevalent among younger people. From the results of the survey, we can conclude that Millennials tend to be the age group most open to a career change. In general, the prospect of an increased salary and better work-life balance seem to be the main drivers for people looking for a career change. This is particularly clear when the data related to workers aged is compared to older age groups. Millennials are also most interested in making a major career move in the short term; the trend shows that the older you are, the more likely you are not to want to make a career change. Most of the people surveyed are unsure of when they will make a career change. Of those who know, most are looking to change in the next one to two years. In general, the prospect of an increased salary and better work-life balance seem to be the main drivers for people looking for a career change. Liking their present job isn t the only reason people give for not changing their career. Lack of financial stability, fear of failure, not knowing how, time required and disruption to life are all mentioned as reasons that prevent people from making a major career move.
14 14 What the experts say Julie Cannon Employment and Learning Adviser at Future Advice Mature people consider a career change as they often have less financial commitments and have more freedom to choose a job for enjoyment. Margaret Davies Occupational Psycologist & Director at The Glass Lift Salary can be what s called a hygiene factor, i.e. if people are dissatisfied with their prospects at work, then it becomes a reason to move. James Eder Youth Expert and Entrepreneur at The Beans Group People don t have time or need for regrets. There are many jobs today that have transferable skills that can be applied in different sectors so you can understand whilst not regretting their current choice they would still like to explore something else. Depending on the industry, it has become acceptable to stay in a role for two years. That is considered to be good. It depends on how flexible a company can be in terms of catering for someone s needs as their career progresses. It is more the risk and fear of the unknown. The comfort of knowing how it is, as opposed to the unknown. Whilst it could be better, it could also be worse, so people don t want to take that risk. J.T O Donnell Career Expert at CareerHMO and Careerealism The high rate of desire to change careers in younger people comes from them arriving to the workforce eager to succeed but professionally immature. The result? They get into a new career and employer and the first impression is that this is not what they wanted. Thus, they make a generalisation that s the wrong career and they want to change. Lucy Standing Occupational Psychologist at Association of Business Psychology People can t change the past so we normalise it and make sense of it because we acted in a certain way, we are more likely to justify it and seek confirmation. We can t conceive of much beyond that. It is always easy to say we ll do something tomorrow less easy to plan for what we ll do in 67 weeks time! Too far in advance is simply too difficult to assess. The greatest factor predicting if people will move jobs or not is the relationship they have with their line manager. If this is poor, this is more likely to make people leave an organisation over and above anything else (dissatisfactions with salary for example). Peter Fennah Career Coach at Career Synergy Older people have a more developed sense of self and have often found roles that allow a stronger balance between who they are and the strength of familiar relationships whilst at work. This balance and the relationships at work may be valued more than the nature of work itself.
15 15 About LSBF London School of Business & Finance (LSBF) offers industry-focused programmes designed to reflect global market trends. LSBF attracts the most talented and ambitious candidates from more than 150 countries worldwide, and works together with its corporate partners to develop programmes structured with an up-to-date and international perspective in mind. With a powerful e-learning platform and programmes covering industries from fashion to finance, LSBF has seen exponential growth over the last 10 years, establishing campuses in the UK, Singapore and Canada, and regional offices in over 12 cities around the world. Alongside a wide range of undergraduate and postgraduate degree programmes, LSBF also offers intensive programmes leading to professional qualifications in accountancy, finance, marketing and tourism: ACCA, CFA, CIMA, CIM, OTHM. The school s innovative programmes are designed to help students distinguish themselves from other accounting, finance and marketing professionals by providing not only a professional qualification, but also the practical skills that employers search for. At LSBF, students are also able to take advantage of a wide range of high quality study support and resources, all geared to rapidly accelerate their professional career. LSBF is a Queen s Awards for Enterprise winner and an ACCA Approved Learning Provider Gold, in the London, Birmingham and Manchester campuses.
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