Breaking into a tough jobs market with Smart Works

It’s the summer holidays. For some mums and even grandmothers the holidays herald change; maybe the kids are about to start school, perhaps they’ve become eligible for free childcare places. It could mean that returning to work becomes an option.

But over the last few months the unemployment rate has ticked up. Vacancy numbers have fallen to a pre-Covid-19 low and employers are thinking carefully about labour costs after changes to employer National Insurance contributions which in some cases have made taking on part-time employees more expensive.

Competition for jobs can be intense, and I know from experience how disheartening it feels to be turned down before even reaching the interview stage. When this happens repeatedly, it can really challenge your confidence.

But when household finances are under strain, the urgency to find a job can feel overwhelming. In those moments, it's easy to undervalue yourself. Still, it’s important to remember your worth and stay focused on opportunities that align with your strengths and long-term goals.

When we launched the AJ Bell Money Matters campaign almost four years ago, we were hyper aware that women’s financial lives were often complex, so finding a charity partner that really understood that was paramount for us. 

Smart Works helps women gain employment by gaining confidence.

On the face of it it’s a simple premise. Women are referred to Smart Works via Job Centres, women’s refuges, mental health charities and a variety of other organisations. They spend time with a stylist who provides them with an interview-appropriate outfit and then they are expertly coached on how to succeed at an interview. 

But that’s just the outline, because the true picture can only be recognised when you watch the transformation of the women who are helped by the programme. That moment when a woman puts on the right outfit; her shoulders go back, her head lifts and you can almost see the confidence meter ticking up.

And it’s that confidence boost that means she’s open to the coaching, ready to remember all those skills that might have been buried under self-doubt especially after a series of disappointments.

Financial security, independence and being able to provide for others are reasons given over and over again by women coming through the programme, and according to Smart Works new CEO Anna Hemmings the number of women seeking help just keeps on growing.

“In the last three years I think we’ve doubled the number of women we see each year, so last year we saw around 10,600 women, which is huge for us. And that is because need is growing; unfortunately, the jobs market is quite tough. The index last time showed us that on average women were applying for 38 jobs before finding success which is a lot of nos, and those nos erode people’s confidence. Confidence erodes in a way that is very gradual, you almost don’t realise it is happening to you. So, the service that we offer to rebuild and help women express their skills clearly at interview is just critical really."

And it works! 67% of the women the charity works with secure a job within a month of their initial appointment which a statistic they are rightly proud of.

But it’s not all positive news. Smart Works puts together a report every year called “The Unemployment Index” and it found that, despite falling inflation, continued cost of living pressures were pushing many women to lowball their own talents, to apply for and accept jobs with salaries way below what their experience, skillset and education warranted.

For many mums the cost of childcare is still proving prohibitive which makes claiming universal credit a more viable option than working. And low wages or not working at all means many women are unable to save for their future which just exacerbates the gender investment and pension gaps.

Remember, if you earn over £10,000 a year from a job, are aged between 22 years and state pension age, and work in the UK under a contract of employment then your employer must automatically enrol you into a workplace pension and pay pension contributions. However, if you are aged between 16 and 21, or state pension age and 74, or earn less than £10,000 (but over £6,240) then you can ask your employer to be enrolled into a pension scheme, and again the employer has to pay contributions for you into the scheme.

And it’s worth remembering that if you ever earned more than £10,000 a year from an employer, you may have lost pension pots which are worth finding and potentially consolidating.

Starting a new job can be overwhelming, especially if you’ve been out of the workplace for a long time. It can also come with initial costs, like travel expenses so don’t get caught out and do think carefully about the free money your employer will put into your pension if you contribute. So even if you’re worried about your take-home pay, don’t just opt out without giving it careful thought.

And Smart Works know all about those expenses, which is why they also give clients starting a new job a capsule wardrobe to help see them through the first few months in style. Find out more about our brilliant charity partner.