British employees are working an average of 215 hours of overtime each year, according to new figures, with many receiving no compensation for the extra hours. More than two in five (42%) do not get paid for their overtime, effectively working £4,022 for free annually.
Despite putting in additional hours, many employees find that promotions and pay raises are not guaranteed, research from HR platform HiBob shows. Half expect a pay rise in their next performance review, while nearly a third (31%) hope for a promotion. But past trends suggest these expectations may not be met —only 40% received a raise in their last review, and just 25% secured a promotion, the data reveal.
The Hidden Cost of Career Progression
The findings, for a Does Hard Work Pay? report by HiBob due to be released in February, indicate a culture where workers believe sacrificing personal time is necessary to get ahead. Over half (55%) of employees think promotions should come with some level of personal sacrifice, and nearly six in ten (58%) are willing to do so, the research shows.
Many workers feel they have little choice but to push for progression in their current jobs. With 42% staying put due to economic uncertainty, employees are relying on their existing employers for career advancement rather than moving elsewhere.
Despite the pressure to work beyond contracted hours, there is strong backing for new protections. Seven in ten (72%) workers support the Labour government’s proposed Right to Disconnect law, which would give employees the legal right to switch off from work communications outside working hours.
‘Wake-Up’ Call for Employers
HiBob CEO Ronni Zehavi warned that over-reliance on unpaid overtime was unsustainable. “Today’s research reveals a dangerous work culture exposing how employees think they can progress in the workplace,” he said.
“The overwhelming support for the proposed Right to Disconnect clearly indicates a nation that wants to put a stop to working hundreds of unpaid overtime hours each year but can’t see a non-legislated way out of overtime in the hope of progression.”
Zehavi said it was ironic that people were working more to earn more money but that they often ended up with the same amount. Company bosses, he said, “need to wake up and show a duty of care to their people” or risk losing talented staff to rivals who will pay them for extra hours worked — “assuming they don’t burn out before then.”
Workers ‘Ready to Quit’ When the Economy Improves
Companies that fail to address employee wellbeing could see a mass exodus of talent once the economy stabilises. Over a third (38%) of workers say they will look for a new job when conditions improve, raising concerns about retention.
A key issue is the lack of training and development opportunities. One in five workers (20%) say their company does not offer any career development support, and an equal proportion report no clear path for progression.
Employers looking to retain staff must invest in their development and wellbeing, said Zehavi. He suggested that embracing the Right to Disconnect and prioritising a sustainable work culture will be crucial in keeping top talent.
“The current economic climate has seen many employees stay where they are. However, the battle for talent is very much still on,” he said. “Companies that do not prioritise employee wellbeing and development can expect to say goodbye to their most talented staff when the economy picks up.”
Zehavi added that “[p]romoting the right to disconnect is a powerful tool for improving employee engagement and retention. It sends a strong message that the company values its people’s wellbeing and is committed to creating a sustainable work environment.”
A Broken Model? The Long-Term Impact of Excessive Overtime
The wider effects of an overworked workforce are becoming evident. Research from the Health and Safety Executive shows that stress, depression, and anxiety account for over half of all work-related illnesses in the UK. A study by the Institute for Employment Studies also found that long working hours are linked to higher burnout rates and reduced productivity.
While some employees feel obligated to learn new skills (67%), take on more responsibilities (65%) or even supervise more people (45%) to progress, others are going to extreme lengths, the HiBob research reveals. One in ten (13%) would cancel or change planned holidays, and a quarter (26%) would alter their remote/hybrid working setup to improve their career prospects.
As discussions around the Right to Disconnect law gain traction, companies face growing pressure to create fairer working conditions. If they fail to act, they risk burnout, dissatisfaction and an inevitable wave of resignations once the job market stabilises, say industry observers.
