No employee benefits in place for nine million UK workers

Posted on by
Reply

Almost one-third of workers in the UK do not receive any employee benefits at their organisation, with women the least likely to be rewarded.

This is according to new research conducted by Canada Life Group Insurance, which found nine million individuals – 30 per cent of the nation’s workforce – are in this position, despite the fact 31 per cent would like more recognition. In addition, 20 per cent of respondents stated they believe changes like auto-enrolment could increase the importance of any benefits offered by an employer.

Paul Avis, sales and marketing director of Canada Life, said he is disappointed to find that such a high percentage of staff in Britain do not receive workplace benefits.

He remarked: “They may well feel that they are lacking in the support or recognition that they deserve and with upcoming changes such as auto-enrolment putting workplace benefits firmly in the spotlight, they are even more likely to notice the lack [of benefits].”

The report revealed that among the participants who are rewarded at their company, a pension with employer contributions was the most commonly received, as it was found to be in place for 47 per cent of people.

Meanwhile, 39 per cent of workers had been granted more than 28 days holiday and 36 per cent were provided with a life insurance or death-in-service policy. Just five per cent claimed their employer had given them free gym membership and four per cent stated they can receive a lump sum of cash towards critical illness cover.

Mr Avis said now is an ideal time for managers to decide – with the help of an advisor – what benefits and savings plans they could offer their staff and how to make existing schemes stretch further.

He was quoted by HR Magazine as saying: “It won’t just benefit employees, but businesses too, as happy, healthy and secure workers are far more likely to be productive.”

This comes after a recent study published by insurance firm Aviva announced 90 per cent of companies that introduce health benefits experience greater productivity and motivation.

What the Autumn Statement means for employee benefits

Posted on by
Reply

Yesterday (December 5th) saw the announcement of the government’s Autumn Statement by chancellor George Osborne.

Among the politician’s proposals included a number of issues relating to the world of employee benefits and discussed the ways in which the everyday lives of British workers might be affected by the legislation.

Whether it is through company car incentives, a worker shareholder scheme or tax support for employee owners, it is likely all individuals will face changes of some kind within their organisation.

According to Mr Osborne, the government is going to consider the matter of offering incentives through vehicle tax initiatives to encourage people to buy ultra-low emission vehicles.

After listening to the views of car manufacturers and motoring groups, MPs will assess the validity of offering benefits packages promoting the adoption of the automobiles, which could offer managers tax and national insurance breaks.

One business development director, Alison Argall of fleet car leasing firm Tusker, told Employee Benefits her business is delighted to see Parliament is supporting the campaign for low-carbon vehicles.

“We have seen significant increased take up of ‘green’ cars over the past couple of years, which additionally provide further fuel efficiencies to our company car drivers, as well as reducing our customers’ carbon footprint,” she added.

Pensions is another area Mr Osborne covered in the statement and he confirmed the launch of the Pension Infrastructure Platform (PIP) for the first half of 2013.

This initiative – which was signed by the National Association of Pension Fund (NAPF) and the Pension Protection Fund (PPF) in 2011 – is seeking to boost investment made by British pension schemes in UK infrastructure.

In October 2012, it was announced by the NAPF and the PPF that seven major UK pension funds have signed up to the cause as founding investors, including BAE Systems Pension Funds, BT Pension Scheme and West Midlands Pension Fund.

Although the government has worked closely alongside the PIP, upon its official introduction it will be completely free from parliamentary influence.

In addition, any individuals who are currently looking to save towards their retirement are likely to be affected by the increase in personal allowances, which could mean less workers on low-incomes are automatically enrolled into workplace funds.

This is due to the fact that the qualifying earnings thresholds for auto-enrolment are linked to pay-as-you-earn (PAYE) thresholds.

Zoe Lynch from pensions law firm Sackers, who also spoke to Employee Benefits, said the announcement is good news for anyone who falls within the personal allowance.

Where they do not earn enough to pay tax they will reap some benefits, but “it’s a bit of a double-edged sword in that increasing the personal allowance could take people out of pensions savings,” the professional added.

According to the partner, this could have the biggest impact upon female employees, as they are the most likely to be in part-time or lower-paid positions.

Upon introducing the Autumn Statement to the House of Commons, Mr Osborne claimed that although the UK economy is beginning to heal, there are no quick fixes and there is a £33 billion extra saving on debt interest than was predicted two years ago.

Employee retention ‘biggest worry’ with Generation Y workers

Posted on by
Reply

The biggest concern about workers aged 30 and below is employee retention, according to a new report.

A study conducted by Ashridge Business School, entitled Culture Shock: Generation Y And Their Managers Around The World, found the majority of managers worldwide think regular job changes and a lack of critical life skills mean younger people are less able to make effective decisions and judge risks in an organisation.

It also revealed that Generation Y employees have grown up in a different environment to older generations and as a result, they entered the workplace with other skills and motivations and they regard learning and development differently.

Ashridge Business School researcher Sue Honore stated these young professionals are associated with The X Factor, Facebook and mobile phones and consequently, their priorities are different to individuals from previous time periods.

“Gen Y is already radically altering the employment landscape globally and a new, growing workforce will soon be stepping up and challenging traditional models within companies,” she added.

The business school discovered that most Generation Y graduates are looking for a varied career and are likely to leave a job quickly if it does not bring enough employee benefits or correspond with their personal ambitions.

In addition, these professionals tend to stay in the same job for less than two years and in Britain, only 57 per cent are planning to remain with their existing employer for 24 months.

Overseas, 62 per cent of young workers in India and 75 per cent of people in the Middle East were found to be more committed to their companies, while 87 per cent of Malaysian graduate employees are the most loyal and hope to stay in the same position for the next two years.

Ms Honore continued: “All generations need to review their differences and find new ways of working for the future – both managers and Gen Y need to adapt to the changing world of work.”

This comes after a new survey from electronic signature specialist DocuSign announced Generation Y workers are the most likely to work in the run up to Christmas, with 36 per cent of this employee groups planning to work on days previously booked off.

Richard Review looking to transform the face of apprenticeships

Posted on by
Reply

Apprenticeships in the UK should last at least 12 months and must properly equip someone with the skills they need for a new role.

At least, this is the view of Dragon’s Den star and renowned entrepreneur Doug Richard, who put forward his recommendations in his new report the Richard Review, published earlier this week (November 27th).

The document states that the traditional relationship between the employer and their worker has been lost and it expresses concern about the quality of apprenticeships.

Some work placements only last three months, while other organisations are using them to train existing members of staff over new employees who need a new skillset.

Mr Richard said it is a widespread view – and one he agrees with – that apprenticeships are beneficial to young people, but only when they are delivered to a high standard.

“We risk losing sight of the core features of what makes apprenticeships work, so my conclusion is that we need to look again at what it means to be an apprentice and what it means to offer an apprenticeship as an employer,” he added.

Some of the businessman’s recommendations include protecting the reputation of apprenticeships by keeping the training of young people and accreditation for members of existing workforces separate.

He also felt that the creation of a new work-based programme to support entry into employment would offer apprentices the chance they deserve and these would replace the level two apprenticeships – GCSE-equivalent qualifications – that are already in place across the UK.

Furthermore, it is likely that firms who take on workers are apprehensive about the quality of the individuals they are hiring and they may be concerned the new recruit will bring limited company benefits.

To ease the pressure upon these companies, Mr Richard proposed that candidates are educated to GCSE-level English and Maths before they are considered for a position, while all funding for the programme should be discussed with employers for extra clarity and to give the industry more power.

Representatives from various bodies have welcomed the guidance with open arms, with the Chartered Institute of Personnel and Development’s skills adviser Katerina Rudiger asserting that Mr Richard’s advice clearly emphasises that employers should own the process of defining what a good apprenticeship looks like.

She remarked: “Together, these recommendations will deliver far greater employer collaboration and ownership of the apprenticeships system.”

Although the government – who asked Mr Richard to conduct the review last year – has welcomed the report, it has yet to give an indication of how or when the recommendations will be acted upon.

Nevertheless, business secretary Vince Cable expressed enthusiasm over the proposals and claimed the advice “will help us to tailor a programme which is sustainable, high-quality and meets the changing needs of our economy in the decades to come”.

The Richard Review follows a number of other reforms made by parliament in the field of apprenticeships, after Labour leader Ed Miliband announced last month he will be looking to target the “forgotten 50 per cent” of young Brits who are not in full-time education.

The politician pledged to invest £1 million in the development of apprenticeships and ensure that larger UK firms have the ability to increase their younger workforce, while individuals looking to enter the civil service would be able to do so through a Fast Track scheme.

Network Rail workers ‘embrace cycle to work scheme’

Posted on by
Reply

More than 1,500 rail workers have signed up to Network Rail’s cycle to work scheme since it launched in August.

As a result of the scheme, more than £1 million worth of bicycles and accessories have been purchased tax-free by employees, Workplace Savings and Benefits reports. Ian Turner, rewards and benefits manager at the group, is delighted with the take-up so far.

“We have received positive feedback not only about the speed they receive the cycle from point of order, but the overall professional and personalised service provided by the local participating stores. We look forward to running future successful schemes in 2013,” he added.

Mr Turner is pleased with the overall enthusiasm levels that workers have shown in the past three months. Indeed, it comes after the success of the UK’s cycling team at the Olympics and Bradley Wiggins winning the Tour de France, which is believed to have inspired more people to take up the pastime.

Figures provided by Cyclescheme found that post-Olympics sales were 15 per cent ahead of previous peak summer months.

Forming part of the government’s Green Transport Plan, it offers employers the opportunity to provide cycles and safety equipment to employees as a tax-free benefit. It means people can save on average 32 per cent on the cost of a bike.

The success of the Network Rail cycle to work programme comes after research by Nesta discovered 33 per cent of employees would be happy to use a bike to commute if offered the right incentives.

It pointed out how pharmaceutical company GlaxoSmithKline has introduced a comprehensive strategy over the past five years in an effort to encourage more people to jump on a  two-wheeler.

As a result of the initiative, which saw the creation of secure cycle parking and fully equipped shower, changing and drying facilities, single car occupancy has been reduced from 81 per cent  to 56 per cent in this time period.

UK employees ‘anxious about saving for retirement’

Posted on by
Reply

British employees are concerned about their financial future and many plan to retire later than anticipated, according to new research.

The Global Workforce Study (GWS) conducted by professional services firm Towers Watson found that 60 per cent of workers in the UK have been prioritising saving for their retirement in the past three years and for employees aged 40 and above, this figure rose to more than 75 per cent.

It was also revealed that 47 per cent of UK participants expect to retire later than they originally planned to, while only nine per cent will stop working earlier than they intended.

Tess Wishart, pensions and retirement communications lead at Towers Watson, said the company has never seen such high levels of awareness of retirement provisions.

She added: “Employees are becoming increasingly concerned about their future financial security, so effective communication with them is vital if they are to feel confident that they are doing the right things to achieve a good outcome in retirement.”

According to Ms Wishart, it is crucial for employers that their workers recognise the importance of reward packages and auto-enrolment, the latter of which encourages organisations to invest in the retirement provisions offered within their own business.

Recent findings from the Chartered Institute of Personnel and Development reported the biggest worry of managers – for the second year in a row – is that members of staff do not value the employee benefits offered by the company.

The GWS indicated 38 per cent of UK respondents are confident that they will have enough money to live comfortably for 15 years upon retirement, while only 25 per cent felt the same for 25 years.

A further 26 per cent of employees stated the pension packages offered by their managers do not meet their personal needs and 20 per cent agreed directors fail to explain the benefits programmes adequately.

Ms Wishart observed many firms are exceeding government requirements with regards to retirement provisions, “but if they are not communicating this properly then employees are unlikely to be aware of, or understand, the extra value they are receiving and why they are contributing from their own salaries”.

Government to cut employee benefits in the public sector

Posted on by
Reply

Government plans to cut holidays, extend working weeks and reduce flexible working for up to 450,000 public employees have been leaked.

In a letter to every human resources director across the civil service, coalition reforms and how they may impact workers were described in detail.

Signed by William Hague, HR director of the civil service, the note said “one feature [of the review] should be to promote greater mobility of staff” and that the public sector should offer “terms and conditions comparable with, but not beyond, what a good, modern employer would provide”.

The document stated upcoming changes would be made to numerous aspects of working life, which include sick pay, annual leave, probation periods and the ability of an employee to switch jobs.

Mark Serwotka, general secretary of the Public and Commercial Services (PCS) union, called the move a “sickening blow” for public sector workers.

He said: “Amid an imposed pay freeze and cuts to pensions and redundancy terms, the Cabinet Office now wants to undermine some very basic working conditions that any decent employer should offer.”

By the end of 2012, directors in every Whitehall department are expected to read through the terms and conditions of their respective workforce and form plans to make their organisations more like those in the private sector.

Many public service workers will also lose thousands of pounds under a two-year pay freeze and a one per cent pay cap.

Now, the PCS – who wrote to the Cabinet Office complaining of the reforms – have been cut off from the details of the proposals, along with all other trade unions.

The organisation argued that the reforms to part-time working patterns and laws on flexitime are likely to hit women and those with caring responsibilities the most, as they already bear the worst of the cuts.

It has called for all those affected by the changes to unite at a rally at the end of the month and challenge the Cabinet Office and government ministers through its own parliamentary group and civil service department.

In an official letter to parliament – dated September 28th 2012 – the PCS laid out a comprehensive set of terms and conditions which include the introduction of performance management, changes to grievance procedures and allowances for a range of employee benefits such as eye tests and commuting costs.

The letter asked that the alterations are implemented across all departments in stages, beginning in April 2013 and affecting all new employees from the August 1st 2015 at the latest.

In the past 12 months, the government has cut more than 35,000 civil service jobs and those who remained in employment have paid more for a pension that will ultimately be worth less and which they will not get for up to eight more years.

Union activists within the public sector claim they are being attacked by an increase in disciplinary action against elected representatives in recent months, especially if they are found to publicly denounce government policies.

Mr Serwotka stated: “It is impossible to separate this from the Tory-led government’s wider political project to unpick the welfare state and drive down pay, conditions and employment rights across the economy and we are determined to oppose it at every step.”