Opportunity and security at work: CIPD 2025 insights for Scottish employers

A third of employees report that their job offers good prospects for career advancement, and half say that their job offers good opportunities to develop their skills. The survey results also show that there is a strong link between higher incomes and reported opportunities for skills development and career advancement, with perceived opportunity being much lower for those in lower paid occupations.

Some practical steps to support career development include:

• Regularly assess employees’ training needs and provide access to relevant development opportunities that align with business objectives. Employers are generally expected to cover the costs of training, including materials and time spent attending external sessions. While it is possible to recover training costs (for example, if an employee leaves shortly after completing a course) this should be clearly outlined and agreed in writing in advance. Any cost recovery arrangements should be proportionate and must not amount to a penalty clause or an unlawful restraint of trade. Employees may also be offered the opportunity to take study leave to support participation in courses or examinations that enhance their current role or contribute to future career development.
• Clearly defined career pathways can motivate employees by showing how they can progress within the business. Frameworks can be integrated into performance reviews to help identify strengths, areas for improvement, and opportunities for growth. Regular development conversations are essential, and managers should be equipped to lead meaningful one-on-one discussions focused on career aspirations and individual development needs. Where upward progression is limited, employers can consider whether it would be appropriate to encourage internal mobility through secondments and lateral moves, enabling employees to broaden their experience, acquire new skills, and explore alternative career opportunities.
• Participation in training and development programmes should be monitored to ensure fair access across all roles and pay levels. Under the Equality Act 2010, employers must not discriminate when offering opportunities for training, promotion, or internal transfer. Employers should engage with disabled employees to determine whether reasonable adjustments are needed to support full participation in training or to meet the requirements of a role they are being considered for. It may also be appropriate to consider positive action measures to support underrepresented groups. The Equality and Human Rights Commission provides detailed employer guidance on these responsibilities.

The advantages of flexible working are clear, with 76% of workers reporting that flexible working has improved their life. Nearly half of Scottish employees work from home part of the week. However, one-third say their roles don’t allow for remote work, and 12% choose not to work from home. This means that for around half of Scotland’s workforce, flexibility can’t be delivered through hybrid working alone.

To offer flexibility and support work-life balance, employers should look to implement policies that offer flexibility and reflect the demands of modern working life:

• To promote inclusivity for those who cannot work remotely, employers should consider approaches to flexibility that go beyond hybrid working. For example: compressed working weeks (e.g. four extended days instead of five standard ones, with no reduction in pay), flexible break times, split shifts, flexi-time arrangements to accommodate personal responsibilities, and job-share options.
• Meaningful engagement with staff is essential to understand individual needs, communicate available options, and ensure that flexible working is accessible, equitable, and inclusive, regardless of role or location. To support retention, employers should regularly review and adapt their flexible working policies to reflect the evolving needs and expectations of their workforce and best practice within their industry.
• With the Employment Rights Bill (ERB) strengthening flexible working rights (see our ERB handbook for detail on this), some employers are already seeing an increase in requests for different working arrangements. Arrangements that do not affect salary, such as hybrid working or compressed weeks, are particularly attractive to employees. Employers should proactively review their policies to ensure alignment with ERB proposals and prepare for future reforms.
• Hybrid working is now firmly embedded in many organisations. While some employers are encouraging a return to the office, any shift in approach should be clearly formalised through policies and communications that outline expectations around office attendance and working hours. Clear communication and consistency are key to maintaining trust and supporting retention.
• Informal flexibility, and trusting employees to manage their time, can be valuable. Allowing staff to take time out during the day for personal matters and make up hours later encourages autonomy. Employers might consider setting core hours, ensuring expectations are transparent while preserving flexibility around this. Agreeing specific days for office attendance across the team can also maximise the value of in-person attendance, for training and collaboration, and encourage team-wide engagement.
• Review family-friendly policies. These policies tend to be updated infrequently, so may not reflect modern working practices and evolving employee needs or expectations. Employers may want to consider building in extra flexibility in the initial return to work period after parental leave. Under the ERB, paternity leave and unpaid parental leave will become a day one right, and a full government review of the wider parental leave system is underway. Paid carer’s leave is also under consideration. Staying informed and adapting policies accordingly will help employers remain competitive and supportive.
• The concept of a ‘right to switch off’, limiting employer contact outside working hours, is gaining traction. The UK government plans to introduce a code of practice, similar to frameworks in Belgium and Ireland. Employers would be able to devise a policy with their workers, to fit with their own working practices, so may want to begin considering what this would look like.
• The combination of high workloads, constant digital connectivity and the ability to ‘work from anywhere’ has contributed to a growing trend of employees either avoiding holidays or working while on leave (which we reported on earlier this year). Employers should actively encourage staff to take their full leave entitlement and properly disconnect during time off. Fostering a culture that values rest is vital for long-term wellbeing, engagement, and productivity.

Encouragingly, most Scottish employees feel secure in their roles, with 61% stating they are unlikely to lose their job within the next year. However, nearly one in five report that they were likely to quit. Unsurprisingly this is closely linked to job satisfaction. The report offers valuable insights into the motivations behind job moves, which can inform recruitment and retention strategies. Key reasons include better pay and benefits, improved work-life balance, better job satisfaction, and being unhappy with leadership or senior management.

These findings highlight some actions that employers can take to retain and engage the workforce:

• Review and enhance benefit packages to ensure they remain competitive and aligned with employee expectations.
• Engage proactively with employees on career development, drawing on the recommendations outlined in the career development section above.
• Implement a structured exit process, including exit interviews, to identify trends and pre-empt legal risks associated with high turnover, such as claims of constructive dismissal or discrimination.
• Conduct regular employee engagement surveys to identify early warning signs of disengagement and take corrective action before issues escalate.
• Invest in management training. Dissatisfaction often stems from poor communication, lack of empathy, inconsistent decision-making, or inadequate support for career progression. Targeted training can help managers develop emotional intelligence, inclusive leadership practices, conflict resolution skills, and the ability to give constructive feedback.
• Monitor and address workplace culture issues arising from exit interviews or engagement surveys, especially where dissatisfaction with leadership is cited. Invest in promoting positive workplace relationships, by considering some of the strategies for employers set out in our first article in this series.

Interestingly, 72% report that artificial intelligence has improved their performance at work, although only 12% have had tasks automated, mostly repetitive ones. This is a hopeful suggestion that AI is currently enhancing, rather than replacing, human roles. Notably, 30% of Scottish employees believe there is significant potential for AI to automate aspects of their work, indicating a shift that will be important to monitor in the coming years.

As AI becomes increasingly embedded in workplace operations and decision-making, employers must stay informed and proactive in managing the legal and ethical implications. In particular, employment law considerations should be front and centre when implementing AI tools and adapting working practices.

• Review contracts of employment and job descriptions to ensure they accurately reflect evolving responsibilities, especially where AI is used to support or replace certain tasks. This helps maintain role clarity and avoid disputes over duties or expectations.
• Communicate transparently with employees about how AI is being used in the workplace, particularly where it influences decision-making processes such as performance management, recruitment, or disciplinary action. Employers should be alert to the risks of bias in automated systems, which could give rise to claims of discrimination under the Equality Act 2010.
• Audit data processing practices where AI systems collect or process any employee data. Employers must ensure compliance with data protection legislation, including updating privacy notices and internal policies to reflect AI-related data use
• Implement safeguards around automated decision-making, especially where decisions have legal or significant effects on employees.
• Assess the impact of AI on working conditions and employee wellbeing, particularly where automation may lead to role changes, redundancies, or increased surveillance. Employers should consider their obligations under unfair dismissal and redundancy laws, and consult appropriately where changes are proposed.
• Engage with employee representatives or trade unions where appropriate, particularly if AI adoption affects terms and conditions, job security, or collective agreements. Early consultation can help manage risk and build trust.

Financial stress is widespread, with only half of employees reporting that they can cover their bills without any difficulties. This strain has tangible effects on both personal wellbeing and workplace performance: 16% of employees report that financial worries disrupt their sleep, and 11% struggle to concentrate at work. In response to the ongoing cost-of-living crisis, many employers have taken steps to support their workforce through pay increases, bonuses, and other practical interventions:

• When considering how to financially support employees, start with compensation benchmarking if pay and benefits frameworks have not been reviewed recently. Employers should consider benchmarking against competitors to ensure they remain fair, competitive, and aligned with market expectations.
• Employers can explore low or no-cost measures. Salary increases and one-off bonuses are not the only tools available. Flexible working arrangements, for instance, can help employees to reduce costs (related to childcare or commuting) without adding financial strain to the business.
• Consider relaxing any contractual restrictions on employees taking on a second job. While this can offer financial relief, there are practical and legal implications including conflicts of interest and compliance with the working time regulations. We consider this in more detail in this post.
• At the height of the cost of living pandemic we prepared a comprehensive guide for employers on how to support employees. These suggestions may still be helpful to consider.