6. Post-Redundancy Outcomes and The Influence of Pace – Longitudinal Study
The findings in this chapter are based on clients who accessed PACE services in the period of April 2016 to January 2018 and who took part in the 2018 Client Experience Survey. This chapter explores the longer-term outcomes of this cohort. The key findings from this chapter are reported below:
- Compared to the 2018 longitudinal survey, significantly more PACE clients had secured post-redundancy work (an increase from 88% in 2018 to 93% in 2020). Younger clients were more likely than older clients to have secured full-time, permanent work.
- There continued to be a trend of clients finding work in a different industry from that which they were made redundant – half (51%) had done so - though fewer clients are moving industry in 2020 compared to 2018: this year, 48% had found work in the same or in a broadly similar industry, a 12 %age point increase from 2018.
- One-third of clients (32%) were still working for the same employer in the initial job secured post-redundancy, eight % had changed roles within the same organisation and five % had continued their self-employment.
- For clients who had moved position or role post-redundancy this had led to a better position in terms of skills required, responsibility and pay.
- Half of clients (48%) who secured work post-redundancy reported that PACE had helped them move back into employment. This is a small increase from 2018 (41%) but in line with results from the 2016 longitudinal study.
6.1 This chapter presents findings from the longitudinal survey of clients previously interviewed for the 2018 New Clients study. The 2020 longitudinal survey followed up on 300 clients who had accessed PACE services in the period from April 2016 to January 2018. This chapter examines the longer-term labour market outcomes of recipients of PACE services and the influence of PACE on individuals’ careers and engagement with education, as well as on their confidence and motivation more broadly.
Moving back into work post-redundancy
6.2 The longitudinal survey asked individuals about whether they had secured any new work either before or after being made redundant. Around nine in ten (93%) respondents had secured any post-redundancy work, representing a small but significant increase from 88% in 2018.
6.3 In terms of the type of work secured, Figure 6.1 shows that around six in ten (63%) of clients had managed to secure paid work with an employer, while around one in ten (14%) had secured work through a temping agency, 13% pursued self-employment and six % took on voluntary work, in line with the 2018 figures.
6.4 There were key differences in the type of work secured depending on age. As shown in Figure 6.1, clients under 40 were more likely to have secured some form of work following their redundancy compared with those aged 50+. Only one % of clients aged under 40 had not secured any work, compared to 13% of clients aged over 50.
Length of time spent out of work post-redundancy
6.5 The longitudinal strand of the research allows for an assessment of how long people were unemployed post-redundancy.
6.6 The time between leaving employment and securing work is displayed in Figure 6.2. The top set of horizontal bars visualises the time elapsed between clients leaving their role and entering any type of work (i.e. including self-employment, temping or voluntary work). The bottom set of horizontal bars shows the same analysis but this time filtered on those clients who managed to secure paid work with an employer.
6.7 Similarly to 2018, half of clients (49%) secured work through an employer within the first three months of being made redundant, 15% secured work between three and six months, ten % between six and nine months, eight % between nine months to one year. For just over one in ten cases (13%), it took over one year to secure work.
6.8 Turning to consider the time elapsed before moving into paid work with an employer, the picture is broadly similar. Around half (54%) had secured paid work through an employer in the first three months, it took 15% of clients between three and six months, eight % between six to nine months, eight % between nine months to one year and 11% of clients over a year.
6.9 Time elapsed between finding any work and paid employment remained consistent with results from the 2018 Longitudinal study (the small decrease seen is not statistically significant).
6.10 Younger clients were more likely to find paid employment within the first three months after being made redundant (70% had done so within this timescale, compared to only 47% of those aged 50+) reflecting their greater job prospects in the labour market.
Details of the first work role secured post-redundancy
6.11 Consistent with previous iterations of the PACE survey, the majority (82%) of clients had gained full-time employment in their first role post-redundancy (consistent with 82% in 2018 and 79% in 2016). As seen in previous years, females were again more likely to have taken paid employment on a part-time basis compared to their male counterparts (42% compared to nine %).
6.12 Compared to 2018, a greater proportion – almost half – had found work in the same industry (22%) or a broadly similar industry (26%): this is a 12-%age point increase from 2018, though is in line with the findings from 2016. Nevertheless, this year’s findings confirm that a significant proportion of clients (51%) continue to find post-redundancy work (or self-employment) in a different industry to the role from which they were made redundant.
6.13 In terms of the characteristics of the employment first secured following redundancy, Figure 6.3 details clients’ assessments on the level of skills required by the first role secured following redundancy (relative to the job they were made redundant from), the level of responsibility and the level of pay. Around two-thirds of clients had found an initial job post-redundancy that required a higher or similar level of skills and responsibility (64% for both), while 43% found an initial position paying higher or the same salary.
6.14 Clients aged over 50 were less likely than their younger counterparts to report that their new role was better in terms of skills, responsibility or pay compared to the one they were made redundant from: 12% of those aged 50+ had secured a job requiring a higher level of skills compared to 30% of those aged under 40; 27% of 50+ year olds had found a job with higher levels of responsibility compared to 45% of those aged under 40; and only 20% of 50+ year olds had found a higher paid job compared to 48% of those aged under 40.
6.15 As Figure 6.3 shows, the proportion of clients who, post-redundancy, had secured a role with the same or higher level of skills, responsibility or pay was higher in 2020 than for the 2018 longitudinal cohort.
The influence of PACE services on the move back into work
6.16 Half of clients (48%) who secured work post-redundancy reported that PACE had helped them move back into employment. This is a small increase from 2018 (41%) but in line with results from the 2016 longitudinal study.
6.17 Clients who felt that PACE had helped at least a little in returning to employment were asked to report which aspect of the service they believed had helped them the most. As shown in Figure 6.5, clients most commonly said that the assistance they had received with writing CVs and/or job applications had been most beneficial (33% said this), followed by information about funding and training sources (20%) and help with interview and job search strategies (13%). These rankings are consistent with the findings from previous longitudinal surveys.
Current employment status
6.18 This section of the report explores what clients were doing at the time of the longitudinal interview, a minimum of two years on from accessing PACE services.
6.19 At the time of the survey, 59% reported that they were working full-time for an employer, while 12% were working part-time ; consistent with 2018. A more detailed breakdown of these figures is provided in Appendix B.
6.20 Figure 6.6 combines work outcomes into more general categories. This shows that 71% of clients interviewed were working in a paid job for an employer, 11% were self-employed or temping, five % were actively seeking work and 10% were ‘economically inactive’ (i.e. retired or not working due to a long-term health condition or disability). These proportions are consistent with previous years.
The incidence of sustained employment
6.21 The longitudinal survey allows for analysis of the extent to which clients secured sustained employment over the period since they were made redundant (or had maintained self-employment).
6.22 One-third of clients (32%) were still working in the same organisation and role that they had secured initially post-redundancy, while eight % had changed roles but were still working for the same employer. Of the 19 clients interviewed who were solely in self-employment following redundancy, most (16) were still working for themselves at the time of the longitudinal survey.
6.23 Turning to consider the type of employment that clients had secured at the time of the longitudinal survey, Figure 6.7 shows the characteristics of the job roles of clients interviewed for the 2020 longitudinal survey. It shows the difference in the level of skills, level of responsibility and pay between:
- The first paid job role that clients secured following redundancy with the role they were made redundant from; and
- Their current role at the time of the longitudinal survey and the role they were made redundant from, among those who had moved to a different role.
6.24 As seen in previous years, this shows that whilst the first job secured following redundancy may be associated with a lower level of skills and/or responsibility, these aspects tend to improve in the longer term, after moving to another employer.
6.25 However, unlike in 2018, this improvement is also seen in relation to pay: 42% saw an increase in pay in their current position relative to the job they were made redundant from. This may be in part have been driven by the presence of clients who had been made redundant from the oil and gas sector in the 2018 survey, 12 of 19 of whom were in jobs with a lower level of pay at the time of taking the 2018 longitudinal survey.
Engagement with learning, training and development post-redundancy
6.26 Only two clients interviewed for the 2020 longitudinal survey were in full-time or part-time education at the time of the survey. However, over a third of clients (39%) had undertaken some form of education or training since being made redundant. This is a slight (but not significant) increase on the 2018 longitudinal study where one in three (33%) had completed training at some point since being made redundant.
6.27 Clients who took greater than six months to secure employment were also more likely to undertake study (49%, compared to 37% for under six months), either reflecting a need to reskill or that they were training instead of searching for work in the initial period post redundancy.
6.28 Of those who had undertaken education or training at any point since redundancy, the majority (67%) had taken part-time training. Over half (57%) had taken a longer course lasting for a week or more.
6.29 In terms of the influence of PACE services, the proportion reporting that PACE helped them move into this education/training was consistent with 2018: three in ten clients (30% in 2020, compared to 31% in 2018) of those who had undertaken some form of education, training or development since their redundancy credited PACE with helping them to do so.
The influence of PACE on client motivation and confidence
6.30 All clients taking part in the longitudinal survey were asked to consider the extent PACE had helped them in their life and career post redundancy. As Figure 6.8 shows, over six in ten clients (62%) reported that PACE assisted them in both life and career, significantly increasing from 2018 (50%) but consistent with results from 2016 (57%).
6.31 When asked which aspects of PACE have been most helpful in their life and career post-redundancy, clients most commonly cited the help they had received towards writing CVs and job applications (23%), followed by information about training and funding sources (17%), the PACE presentation and information pack (14%) and help with interviews/job search strategies (13%).These are consistent with 2018’s findings.
6.32 To further explore how PACE services have helped clients in their post-redundancy life, clients were asked to rate the extent to which PACE had helped them in aspects of their post-redundancy life. As shown in Figure 6.9, two-thirds (67%) felt that PACE had increased their receptiveness to seeking alternative employment opportunities in their local area, followed by their ability to write a CV or job application (62%), and their motivation to apply for different types of jobs (59%). This is consistent with 2018.
6.33 Encouragingly, the trend noted in 2018 around perceptions of PACE becoming less helpful over time has been reversed to an extent in 2020: as Figure 6.9 shows, there were no significant reductions in the score clients gave between 2018 and 2020.
Satisfaction with PACE services
6.34 As a way of gauging client satisfaction two years on from the previous survey, clients were asked whether they would recommend PACE services to others going through redundancy and the extent to which PACE met their expectations.
6.35 Encouragingly, eight in ten (81%) would recommend PACE to people going through redundancy (53% would be ‘very likely’ to recommend PACE to others and 28% ‘quite likely’). A fifth (19%) would be unlikely to recommend PACE to others. These proportions are broadly in line with the 75% of clients who completed a follow up interview in 2018 and would recommend PACE to others – however, the proportion who would be ‘very likely’ to recommend PACE has significantly increased over time.
6.36 Overall, one-third (36%) of clients felt that PACE had exceeded their expectations of a redundancy service, while a further one in two (50%) reported that it had matched their expectations.