Articles

Research finds UK productivity drained due to stress and presenteeism

Fri, 24 May 2013 09:41:11 +0000

Almost two in three employees have attended work while feeling ill in 2013, new research has revealed, despite the fact that presenteeism can see productivity levels plummet.

Employee benefits are often used to drive productivity, however according to research from business psychology company Robertson Cooper, productivity levels for employees who feel ill drops from 75 per cent on ‘normal days’ to 55 per cent on ‘sick days’.

A shift was also found in the ‘top sources of stress’, with these changing between 2007-2010 and 2011-2013.

In 2007-2010, the biggest factor stressing out employees was too much change in the workplace, with 38 per cent worrying about this. However, in the 2011-2013 period, people not having enough time to do their job was the main issue for workers.

Cary Cooper, professor of organisational psychology and health at Lancaster University and founder of Robertson Cooper, commented: "Our data shows people are experiencing new levels and sources of stress at work and this has lead to a culture whereby certain individuals are too afraid to be off sick.”

He described this as a “vicious circle” that is seeing presenteeism, rather than absenteeism, rise, and warned that it could see the UK’s productivity per head lag even further behind that of Europe.

Thomsons Online Benefits can help you to derive real value from your employee benefits scheme, ensuring it meets your business objectives and engages employees.

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More than half of employers expect pay budgets to increase

Fri, 24 May 2013 09:42:24 +0000

Over half of employers are expecting pay budgets to rise, it has been found, indicating that a rise in pay and reward schemes could be seen in the UK.

Fifty-three per cent of employers are anticipating a rise in the pay budget by the end of the year, according to the research, which was conducted by the Chartered Institute for Personnel and Development (CIPD).

What’s more, those surveyed also revealed they would like to see variable pay play a bigger part in total reward packages. This would mean that employee rewards such as bonuses linked to individual or company performance would rise.

It was also found that the top two reasons employers are expecting an increase in pay budget were pay rises, with 84 per cent citing this, and a rise in staff numbers, with 51 per cent indicating they would be taking more staff on board at some point in 2013.

In further good news for workers, spend on employee benefits is also expected to increase, with 34 per cent of private sector employers expecting a rise. However, just 15 per cent of those in the public sector said the same. Indeed, public sector employers are more likely to report a cut in employee benefits.

Charles Cotton, CIPD rewards adviser, commented that the issue of employee remuneration is important in the workplace, with employers increasingly noticing the “perils of short-termist approaches to reward”.

He continued: "If appropriately designed, variable pay can help align organisational reward practices with the business strategy as well as assisting to communicate what behaviours, skills, values and attitudes the organisation values and how it will reward and recognise these.”

However, employers should look beyond a “conventional carrot and stick approach” to reward, he noted, and instead look at how they can use it to improve the long-term performance of their company.

The prospect of increased pay will be welcome news, however, after recent research showed that pay growth is at its lowest in 12 years.

Figures from the Office for National Statistics (ONS) showed that average weekly earnings rose by 0.8 per cent between January and March 2013 - the lowest growth rate since records began back in 2001.

Thomsons Online Benefits can help you to derive real value from your employee rewards scheme, ensuring it meets your business objectives and engages employees.

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IT jobs on the rise

Fri, 24 May 2013 09:44:15 +0000

The number of permanent IT jobs on the market is on the rise, according to new research, indicating that pay and reward schemes in the sector will also be experiencing an increase.

An analysis from CW jobs found that permanent job vacancies have increased for the fourth year in a row, with figures down just 15 per cent on pre-recession levels.

Richard Nott, website director of CWJobs said the outlook is hopeful for the sector as it appears to be recovering well.

"As Britain's economic position stabilises, growth is being seen across most sectors of the IT industry, signalling that it is finally recovering from the recession,” he said.

"The technology industry looks to be at the forefront of Britain's growth, and if it maintains the same trajectory, could be boosting Britain's economic position even further.

This follows research from the Chartered Institute of Personnel and Development (CIPD) which revealed that employment will grow generally over the next quarter, but competition for roles will become even more intense.

Thomsons Online Benefits can show you how to derive real value from your employee reward schemes, ensuring they meet business objectives and engage employees.

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UK to oppose EU bankers bonus caps

Thu, 23 May 2013 09:48:53 +0000

The UK is likely to set up opposition to the bankers bonus caps proposed by the European Union (EU), it is thought.

The EU has set out new rules tackling the controversial employee reward that severely expand the scope of the cap, and it has been found that the measure could affect ten times as many City workers as was previously thought.

However, senior Bank of England bosses including governor Sir Mervyn King, are known to oppose the bonus cap proposals. They contend that Britain has gone a long way towards making sure that bonuses reflect performance.

In addition, Sir Mervyn has said he believes excess pay is a symptom of an uncompetitive system of banking, as lenders are guaranteed government support should they get into financial difficulty. He believes this prop should be removed, and excess pay should be tackled in this way.

Thomsons Online Benefits can show you how to derive real value from your employee rewards, ensuring they meet business objectives and engage employees.

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Study finds employee engagement and productivity are biggest UK HR challenge

Thu, 23 May 2013 09:45:28 +0000

Low levels of employee engagement and a lack of productivity are the biggest challenges that UK business are facing in 2013, according to new research.

A study from talent and career management company Right Management has found that this was a big worry for one in three UK HR professionals, compared to an average of one in five who said the same globally.

Indeed, the research, which was conducted across 14 countries, found the UK’s concerns surrounding engagement and productivity were in sharp contrast with the worries of other nations.

Mark Hodgson, talent management practice leader, Right Management, told HR Magazine: "There's a stark contrast between levels of optimism and engagement in the UK and Europe, compared to the Americas and Asia-Pacific.”

"It seems many organisations in the UK are still stuck in recession mode but the fact is, the economy is in recovery.

“Businesses need to start talking about growth and start investing in and inspiring their workforce; putting talent initiatives on hold simply isn't an option."

Thomsons Online Benefits demonstrates how an effective employee engagement programme can help you to achieve real value for every pound you spend on reward.

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NHS doctors warn more A and E staff are needed

Wed, 22 May 2013 09:42:34 +0000

Top doctors at the NHS have warned that they can no longer guarantee safe care for patients in accident and emergency departments.

Patients are being put at risk by a combination of ‘toxic overcrowding’ and ‘institutional’ exhaustion, according to 20 heads of emergency departments. This is according to a leaked letter seen by The Independent.

According to the experts, staff are being overwhelmed by “unprecedented and relentless pressures”, as the number of patients attending such departments grows.

“Nurses and doctors are forced to deliver care in corridors and inappropriate areas within the ED, routinely sacrificing patient privacy and dignity and frequently operating at the absolute margins of clinical safety,” the document stated.

The letter also raised the issue of the continuing failure to recruit new doctors to emergency medicine, with more medical professionals being needed in the area.

However, potential new recruits are being put off by the “Herculean burden of work”, according to the experts, indicating that there needs to be more incentives to attract employees.

Thomsons Online Benefits can help you to derive real value from your employee benefits scheme, ensuring it meets your business objectives and engages employees.

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Share schemes to get simplified

Wed, 22 May 2013 09:40:34 +0000

The government has released further details regarding its plans to simplify employee share schemes.

This comes after it announced that it was to implement self-certification of save as you earn schemes, share incentive plans (sip) and company share option plans (Csop), as well as online filing for all share scheme forms.

Self-certification is to apply from April 2014. In line with the scheme, employers must register all their new and existing share plans, whether these be tax-approved or unapproved.
Employers will also need to certify that Sip, sharesave and/or Csop plans meet tax approval requirements.

What’s more, if an organisation changes some features of tax-approved plans, these will not need pre-approving by HMRC. Instead of this, employers will report the changes in the relevant annual returns, confirming that certain conditions are met in relation to changes.

Annual returns will need to be submitted by July 6th, with ‘intelligent forms’ being available for download. This means that employers can complete them during the tax year as they go along.

Thomsons Online Benefits can help you to derive real value from your employee benefits scheme, ensuring it meets your business objectives and engages employees.

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Offshore workers rewards rocket

Hannah Miller — Tue, 21 May 2013 00:00:00 +0000

Employee rewards for offshore workers have rocketed in recent times, new research reveals.

The average salary is expected to rise by 15 per cent this year, going from £64,000 to £73,600, according to a survey published in March by online jobs board Oilandgaspeople.com.

What’s more, the government has promised to invest millions of pounds into the industry over the next few years.

Business secretary Vince Cable has announced plans to tackle the engineering skills gap with a national initiative, including £7 million for a new research facility at Newcastle University.

Sean Drury, international mobility partner at PricewaterhouseCoopers, spoke to Employee Benefits about the difference between expats and the average offshore worker, saying the biggest variation is their reward schemes.

“Expats usually have clearly defined benefits and a cost-of-living adjustment (COLA), while offshore workers have a per diem (daily) allowance and are often employed by managed service companies or agencies," he commented.

Thomsons Online Benefits can show you how to derive real value from your employee rewards, ensuring they meet business objectives and engage employees.

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10 times as many city bankers could be hit by EU bonus cap

Hannah Miller — Tue, 21 May 2013 00:00:00 +0000

The European Union (EU) bonus cap could impact on ten times as many bankers as was previously thought, according to new research.

Professional services firm PwC said that the European Banking Authority has approved a draft paper that will hit the reward schemes of any bank employee earning more than £500,000.

This is part of a new law published in March that would require bonuses for various bankers in the EU to be capped at 100 per cent of their salary.

The new proposals will identify who the “material risk-takers” are, with these individuals then being subjected to the bonus cap. This is in contrast with the current strategy, which allows banks to make their own judgements as to who their risk-takers are.

Jon Terry, partner at the organisation, commented: "This expansion of the definition of risk-takers will see substantially more individuals working in the banking industry being hit by tougher pay rules, including being subject to bonus caps from next year.”

Thomsons Online Benefits can show you how to derive real value from your employee reward schemes, ensuring they meet business objectives and engage employees.

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There may only be one year to save company pensions Steve Webb says

Hannah Miller — Mon, 20 May 2013 00:00:00 +0000

Pensions minister Steve Webb has warned that there may only be 12 months to save final salary pension schemes.

The expert said that there may be “no point trying to apply electrodes to the corpse”, however a version of the popular defined benefit pension scheme could be saved.

A combination of increasing life expectancy and low gilt yields over the past few years seem to have signalled the end of such schemes, with schemes finding it increasingly expensive to pay out to members.

Indeed, recent research by the Pensions Protection Fund revealed that by the end of April, 5,142 of the UK’s 6,316 private sector schemes were in deficit.

The Guardian reports Mr Webb as commenting: "We've probably got 12 months to save DB. It could be that, like on an episode of Casualty, there is no point trying to apply electrodes to the corpse, but it is possible that we can save a version of DB."

Thomsons Online Benefits can help you to offer a high quality, well managed, engaging and low risk pension to your employees.

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Expert says achieving equality is easier than businesses think

Hannah Miller — Mon, 20 May 2013 00:00:00 +0000

Employment relations minister Jo Swinson has said that promoting equality is simpler than businesses seem to think.

The expert said that SMEs in particular seem to think that equality laws are “more burdensome” than they are in reality.

Ms Swinson told the British Chambers of Commerce’s ‘Business is good for equality’ event that equality is about common sense and using the tools available.

She said: "[Equality] is about what's good for business and what's good for economy. We don't have the luxury to grow our economy based on the talents of half the population."

The expert also spoke about the upcoming changes to the employee benefit of parental leave. She said that enforcing shared parental leave would be as “straightforward as possible”.

She explained that both parents will need to fill out a simple form, with lying on this form being a matter for HMRC rather than employers.

Thomsons Online Benefits can help you to derive real value from your employee benefits scheme, ensuring it meets your business objectives and engages employees.

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Overworking is ingrained in UK culture, expert warns

Hannah Miller — Fri, 17 May 2013 00:00:00 +0000

The UK has a problem of overworking, with staff adopting an “all work and no play” attitude, one expert has warned.

Research from Medicash recently found that 83 per cent of working parents felt guilty about they time the spend at work, with 50 per cent saying it also has a negative impact on relationships with their children.

What’s more, almost half said it caused relationship problems with their other half, HR Magazine reports.

Cary Cooper, professor of organisational psychology and health at Lancaster University, said these findings underline the importance of maintaining a work-life balance.

He added that research emphasised how employee benefits like flexible working can help staff to feel “less guilty” about the time they spend working.

The expert commented: "If we are slaves to work, our family life seems to suffer by default.

"We need the joint responsibility to promote a healthier, happier lifestyle; organisations must actively promote flexible working and employees need to take advantage of that opportunity - work smarter, not longer should be our mantra."

Thomsons Online Benefits can help you to derive real value from your employee benefits scheme, ensuring it meets your business objectives and engages employees.

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Pay growth at lowest since 2001, figures show

Hannah Miller — Fri, 17 May 2013 00:00:00 +0000

Pay growth is at its lowest since 2001, new research has revealed, indicating that pay and reward schemes in the UK have taken a hit.

Average weekly earnings rose by 0.8 per cent between January and March 2013, according to figures by the Office for National Statistics (ONS). This figure does not take bonus payments into consideration.

This is the lowest growth rate since records began in 2001.

Average weekly earnings rose by 0.4 per cent - including reward schemes’ bonus payments.

It was also found that, including bonuses, average total pay for UK employees stood at £463 per week in March 2013. Excluding bonuses, this figure came down to £444 per week.

However, total pay in the private sector remained largely unchanged between January and March 2013. Regular pay, on the other hand, rose by 0.8 per cent.

Thomsons Online Benefits can help you to derive real value from your reward schemes, ensuring they meet your business objectives and engage your employees.

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Young workers want flexible, independent careers, study shows

Hannah Miller — Thu, 16 May 2013 00:00:00 +0000

Generation Y employees are turning their backs on traditional corporate careers in favour of independent jobs that will allow them a good work-life balance.

The majority of young people (84 per cent) who are in traditional corporate jobs want to quit in order to live a more flexible lifestyle, which could prove a retention nightmare for HR departments.

Businesses worried about losing their staff due to a lack of work-life balance could review their rewards package, paying particular attention to employee benefits that enable flexibility.

The research, which was conducted by oDesk and Millennial Branding, found that 61 per cent wanted to quit their job within two years.

Gary Swart, chief executive of oDesk, commented: "We believe the barriers of industrial-age work and simply do not make sense for businesses that want to get more work done or for workers who are demanding more freedom. No one today wants to be confined to a cubicle."

Thomsons Online Benefits can help you to derive real value from your employee benefits scheme, ensuring it meets your business objectives and engages employees.

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High flying professionals flocking to Britain, research suggests

Hannah Miller — Thu, 16 May 2013 00:00:00 +0000

The UK is the second most attractive country for high-flying professionals to move to, it has been found, with only the US placing higher up the list.

Research from recruitment firm Hydrogen showed that the UK is popular choice with workers coming from overseas, with the technology sector being particularly attractive.

This indicates that companies are doing all they can to attract top talent, despite the economy still proving challenging and tighter immigration controls being put in place. Attractive reward packages are no doubt playing a part in this trend.

Dan Fox, managing director of technology practice at Hydrogen, said: "A lot of Europeans view the UK as a tech hub where you can work for exciting, fast-paced companies. We're seeing a lot of Europeans coming to work in the UK. It's all about wanting to work for the up-and-coming companies."

It was also found that two-thirds of people relocating for work were men, with women likely to move earlier in their career or not at all.

Thomsons Online Benefits can show you how a total reward model can ensure you drive better value and employee engagement from your existing reward spend.

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Boris Johnson accuses Britain's workers of sloth

Hannah Miller — Wed, 15 May 2013 00:00:00 +0000

London mayor Boris Johnson has attacked British workers, accusing them of “sloth” and highlighting the difference in productivity in UK offices and German ones.

The politician questioned why “person for person” Germany is more productive than Britain and said that the country should stop blaming its problems on the European Union (EU) and be more introspective.

Writing in his Daily Telegraph column, he said that this lack of employee engagement is more likely caused by “chronic British short-termism, inadequate management, sloth, low skills, a culture of easy gratification and underinvestment in both human and physical capital and infrastructure”.

Mr Johnson added that whether Britain is in the EU or not, the country needs to have a “clear vision” of how it is going to be competitive on the world stage.

He also warned prime minister David Cameron that he needs to make it clear that Britain is “ready to walk away” unless its relationship with the EU is reformed.

Thomsons Online Benefits demonstrates how an effective employee engagement programme can help you to achieve real value for every pound you spend on reward.

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Final salary schemes could be finished in 3 years, experts warn

Hannah Miller — Wed, 15 May 2013 00:00:00 +0000

The combined deficit of UK pension funds increased by £20 billion in April to £256.6 billion, and experts have warned that final salary pension schemes could be finished within three years.

Final salary schemes are known for being incredibly expensive to run due to increased life expectancy, poor fund performance and low gilt yields.

What’s more, the single-tier pension soon to be introduced will add more to the cost of pensions for employers.

The Pensions Protection Fund (PPF) has warned that 5,142 of the 6,316 final salary pension schemes running in the UK were now in deficit, and 1,174 were in surplus. Across all schemes there were assets worth £1,130 billion compared with liabilities of £1,387 billion.

David Smith, wealth management director at BestInvest, told the Guardian that “the death knell is sounding now”.

"I don't envisage that there will be many, if any, final salary schemes open to new employees post 2016," he warned.

Thomsons Online Benefits can help you to offer high quality, well managed, engaging and low risk company pensions to your employees.

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Employees failing to take sick leave due to job insecurity, MPs warn

Hannah Miller — Tue, 14 May 2013 00:00:00 +0000

Employees are too insecure about their jobs to take sick leave when they really need it, Labour MPs have warned.

The official figures of sick leave taken have fallen every year since the recession started in 2008, and research released last week indicated that heavy workloads and an anti-absence culture could be to blame.

Reviewing employee benefits packages is one way that companies can encourage workers to take time off when they really need it.

The Guardian reports Labour MP John McDonnell as saying: "High levels of unemployment and escalating job cuts in the public sector have created a climate of stressful insecurity at work.

"The result is that people who are unwell and should be taking time off sick are anxious about taking leave for fear of being victimised by managers or losing their job.”

He described this trend as “completely counterproductive”, as productivity falls when people come in sick, and there is also the risk of infecting colleagues.

MP Michael Meacher added his voice to the debate, warning that the government is not doing enough to support employees.

"This is a government which regards sickness as a form of malingering,” he said.

Thomsons Online Benefits can help you to derive real value from your employee benefits scheme, ensuring it meets your business objectives and engages employees.

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UK firms need to focus on employee engagement

Hannah Miller — Tue, 14 May 2013 00:00:00 +0000

UK firms are failing to properly engage their workers and boost employee morale, according to a new study.

Findings from YouForce revealed that 79 per cent of organisations said they do not have an employee engagement strategy in place at all.

This is despite the fact that those who have implemented such an initiative found it to be very helpful, with 30 per cent claiming it improved productivity and 13 per cent saying it cut turnover at their firms.

Lee Grant, vice president, international at YouForce, commented: "Our research shows that employee engagement is the current big challenge for HR professionals as it is linked in to so many areas of the HR function.

“While this is seen as the responsibility of HR, it is something that should be taken on by all employees."

This follows news that employee engagement has risen in the voluntary sector, with more than half of staff saying they felt engaged in the workplace, compared to just 41 per cent last quarter.

Thomsons Online Benefits demonstrates how an effective employee engagement programme can help you to achieve real value for every pound you spend on reward.

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Expert warns boardroom gender equality is some way off

Hannah Miller — Mon, 13 May 2013 00:00:00 +0000

Gender equality in the boardroom is some way off, an expert has warned, indicating women are still struggling to smash through the glass ceiling.

Sir Rodger Carr, president of the Confederation of British Industry (CBI), said that more needs to be done to promote gender equality in the higher echelons of companies.

Many employers have instituted flexible benefits which improve employees’ work-life balance and allow women to juggle the demands of home with those of the office.

However, speaking at an Ernst & Young women’s network event, Mr Carr said that he did not want to simply wait for change to come when it came to gender equality.

“I don't want to be patient; we shouldn't be measuring progress and success in inches, but instead in miles,” he said.

This follows a recent report from Harvey Nash which showed that male corporate culture is one of the biggest barriers to women fulfilling their potential at work.

Thomsons Online Benefits' award-winning flexible benefits solutions can help you to drive employee engagement and get better value for your reward spend.

Posted by Editorial Team