At a glance: reward and benefits headlines this week 2-8 October 2020
The headlines you might have missed between 2-8 October 2020.
CIPD urge employers to develop policy supporting domestic abuse victims
HR Review: The Chartered Institute of Personnel and Development’s (CIPD) survey reveals that only under a quarter (24 per cent) of UK employees are aware of their employer having a policy on domestic abuse and the support they can access from work for this issue. Read story
Aviva announces net-zero default and urges same requirement for all AE funds
Professional Pensions: Aviva has set a 2050 net-zero target for its own auto-enrolment (AE) default pension funds, and called on the government to make all AE default funds set the same goal. Read story
Indeed introduces new flexible-working policy for 10,000 employees
Employee Benefits: Recruitment search engine Indeed is offering its 10,000 employees a new flexible working policy, following on from the change in working patterns that were put in place due to the Covid-19 (Coronavirus) pandemic. Read story
UK government changes law to ensure maritime workers receive national minimum wage
Employee Benefits: Over 10,000 maritime employees in the UK will receive pay protection and the national minimum wage, following on from a change in the law introduced on 1 October 2020. Read story
Scottish teaching staff to receive 2% pay rise
Employee Benefits: College teaching staff in Scotland will receive a 2% pay rise for the 2020-2021 year, following on from a pay agreement reached on 30 September 2020. Read story
Time for businesses to establish more meaningful wellbeing initiatives
Workplace Insight: Over the years, mental health has become a prominent feature of wellbeing initiatives in many businesses, but especially in the wake of the pandemic. However, our research has found that more than half of the UK workforce (54 percent) do not feel that mental health benefits are a priority in their organisation. This is despite half of workers believing that mental health benefits are essential post-COVID-19. Read story
The Changing Face of the Employer-Worker Social Contract
Employer News: The last few months have brought a host of challenges to employees in a variety of different industries. Those still journeying into work have to grapple with new anxieties around safety, with something as simple as the daily commute now representing a significant health risk. Read story
FTSE 350 DB scheme endgames pushed back 18 months by Covid-19 - Barnett Waddingham
Pensions Age: The average FTSE 350 defined benefit (DB) scheme had its endgame pushed back by around a year and a half in the first six months of 2020, according to Barnett Waddingham. Read story
Govt has ‘no immediate plans’ to review DB transfer advice threshold
Pensions Age: The government has “no immediate plans” to review or lower the threshold at which savers are required to take financial advice when transferring a defined benefit (DB) pension, Pensions Minister, Guy Opperman, has said. Read story
The importance of building resilience in staff to manage with unexpected challenges within the workplace
HR News: Businesses should think differently about ways to build resilience, staff togetherness and develop new ideas during the pandemic, according to leaders at a national training-and-skills company. Read story
Creating an inclusive culture at Thames Water
HR Magazine: The UK’s National Inclusion Week has seen over 3,000 participants promote inclusive practices both in and outside the workplace. Read story
Yorkshire law firm becomes employee owned
Incentive and Motivation: A Yorkshire law firm which is a former winner of a Queen’s Award for Enterprise has been sold to an employee ownership trust. Read story
Why CDC beats DC annuity income by 70pc – WTW
Corporate Adviser: Collective defined contribution (CDC) schemes will deliver retirement income on average 70 per cent higher than annuities bought through traditional DC saving, and 40 per cent higher than typical DB structures, according to a new guide from Willis Towers Watson. Read story
Schemes to transfer £50bn of risk to insurers this year
Professional Pensions: Around £50bn of risk will be transferred to the bulk annuity and longevity swap market by the end of the year despite a slow start to the market, Aon says. Read story
Small pots: Experts scorn idea of a pension for life
Pensions Expert: Experts have decried the radical solution to the small pots’ crisis, a pension for life, despite the threat that sub-scale funds could overwhelm the UK system. Read story
Three-quarters of firms plan to maintain Covid levels of home working, poll finds
People Management: Survey of directors finds many intend to take a blended approach, but experts warn managing teams remotely can prove ‘far from straightforward’. Read story
Government publishes new guidance on Job Retention Bonus
Employee Benefits: Further guidance has been published by the government on the Job Retention Bonus originally announced by the government in July 2020. Read story
Bernard Matthews offers free bus transport service to 442 employees
Employee Benefits: Food manufacturer Bernard Matthews has suspended fares on its buses that transport 442 employees to and from its sites, during the Covid-19 (Coronavirus) pandemic. Read story
Microsoft UK adapts benefits strategy during the pandemic
Employee Benefits: During the pandemic, Microsoft supported its employees by expanding and enhancing its benefits proposition. Read story
Coronavirus will lead to a permanent change in the way we work
Workplace Insight: Coronavirus will have a lasting impact on office use and levels of remote and flexible working, new figures from the Institute of Directors suggest. Read story
Mental wellbeing support top priority for SMEs
Cover: A quarter of UK SMEs are keen to introduced mental wellbeing support within the next six months, according to research from WorkLife, which showed it is the most offered benefit by smaller businesses. Read story
Opperman lauds FCA’s updating of climate risk reporting requirements
Pensions Age: Pensions Minister, Guy Opperman, has welcomed the Financial Conduct Authority’s (FCA) outlining of a timeframe to align its climate risk reporting requirements with those in the Pension Schemes Bill. Read story
Employers unsure how to provide financial education to employees
HR Magazine: Employers have a part to play in financial wellbeing and education but are generally unsure of what steps to take to deliver this. Read story
Mental health app appointments double through lockdown – Unum
Corporate Adviser: The number of mental health appointments booked each month through Unum’s digital health and wellbeing app, Help@hand, has increased by more than 100 per cent, says the provider. Read story
DC pot first-time access hit high record in March
Professional Pensions: Savers accessing defined contribution (DC) pension pots for the first time rose to an all-time high just before the coronavirus pandemic, Just Group says. Read story
Opperman: 'Productive power' of pensions key to net-zero Britain
Professional Pensions: Sustainable pension investments are vital in overarching plans to push the UK to net-zero carbon emissions, Guy Opperman says. Read story
41% of organisations have a strategy to manage sickness absence
Employee Benefits: Just under half (41%) of respondents have a strategy in place to manage sickness absence in their organisation, according to research by Employee Benefits. Read story
White and Case increases pay for newly qualified solicitors
Employee Benefits: UK law firm White and Case is to increase the salary of its newly qualified solicitors as part of its commitment to the future of its employees. Read story
Ford utilises real-time analytics to increase pensions engagement
Employee Benefits: Ford UK has been working on a data analytic project for all of its pension plans globally in order to engage and educate its employees. Read story
Barclays address diversity and inclusion through leadership and engagement
Employee Benefits: The pace of the world has created a need for employers to address diversity and inclusion amongst their workforce, with movements such as ‘Me Too’ and ‘Black Lives Matter’ being at the forefront of these inclusion movements. Read story
Furlough and layoffs 'bruising' wellbeing
HR Grapevine: Throughout the pandemic, businesses announcing layoffs and employees being placed on the UK Government’s furlough scheme has consistently filled news headlines, which has led to a rise in unhappiness, stress and anxiety among workers. Read story
South Yorkshire Pensions Authority sets sights on carbon neutrality by 2030
Pensions Age: South Yorkshire Pensions Authority (SYPA) has targeted achieving carbon neutral status for its investment portfolios by 2030. Read story
Increased job-switching highlights need for pensions dashboards
Pensions Age: Findings that almost three-quarters (73 per cent) of UK workers think changing jobs has become more common illustrates the need for pensions dashboards, according to Aegon. Read story
Coronavirus boosts engagement as employers pay more attention to people’s needs
HR Magazine: UK employees were more engaged at work in July than they were pre-coronavirus in January this year, rising by 0.5%. Read story
Employee mental health boosted by HR ‘quit smoking’ incentives: 52% see positive effects
Incentive and Motivation: New research has revealed that employees want more support from HR and leadership teams to support smoking cessation, and insights show the benefits this can have on company wellbeing and decreased sick time off work. Read story
Appreciate Group doubles B2B business as companies reward during lockdown
Incentive and Motivation: Leading gifting and engagement company, Appreciate Group reports that new B2B business has more than doubled, signalling an increased uptake in employers thanking hard-working staff for their efforts during lockdown. Read story
How can AI improve mental health in the workplace?
HR Review: A new study reveals that around three-quarters of employees state that artificial intelligence (AI) has improved their mental health and wellbeing at work. HRreview asks whether AI is the key to supporting employees. Read story
Government launches GMP indexation consultation
Professional Pensions: The government has launched a consultation seeking views on its proposals on how it will continue to provide full indexation of public service pensions, including any GMP element. Read story
Pension Schemes Bill passes latest stage without a vote
Professional Pensions: The Pension Schemes Bill has been passed in the House of Commons at the second reading, laying the groundwork for its final approval. Read story
DB funding - September 2020: Schemes urged to focus on cashflows as deficit rises by £30bn
Professional Pensions: Every month, several firms issue trackers of the aggregate defined benefit (DB) scheme funding position. Read story
Half of firms would consider hiring someone who worked fully remotely, poll finds
People Management: But only a third currently advertise roles as such, with few saying they would be comfortable continuing to recruit and onboard virtually post Covid. Read story
Global healthcare benefit costs to increase by more than 8%
Employee Benefits: Global healthcare benefit costs are set to increase by more than 8% globally, according to research by Willis Towers Watson. Read story
Kellogg Company reports 4.3% mean gender pay gap
Employee Benefits: Kellogg Company has reported a mean gender pay gap of 4.3% for average hourly pay as at April 2019. Read story
Cisco introduces regular check-ins during Covid-19 pandemic
Employee Benefits: Since the beginning of the Covid-19 pandemic, Cisco has introduced a weekly check-in meeting for all of its 70,000 global employees. Read story
Royal Mail Group enhances mental health support during Covid-19 crisis
Employee Benefits: Royal Mail Group has supported its employees through the Covid-19 pandemic with a wide-reaching mental health strategy. Read story
Fujitsu makes reducing gender pay gap a priority
Employee Benefits: Fujitsu has made closing the gender pay gap a top priority for the business. Read story
University of Lincoln reinvents its benefits strategy to meet employee
Employee Benefits: The University of Lincoln has been successfully aligning its benefits strategy to meet the expectations and demands of employees during the Covid-19 (Coronavirus) pandemic. Read story
Staff could choose to pay for own redundancy letter
HR Grapevine: Receiving the news that you are about to be made redundant is never easy for any employee to digest, similarly, having to deliver the news is no easy task for an employer either. Read story
Pandemic pinpoints financial wellbeing as employers’ key concern
Employer News: Companies have identified financial wellbeing as a critical concern for the health and effectiveness of their people. Read story
Public service pensions' GMP conversion unlikely until 2024 'at the earliest'
Pensions Age: The government has warned that it may not be feasible to implement Guaranteed Minimum Pension (GMP) conversion for public service pensions before the current interim solution period ends in April 2021, and is unlikely to be implemented until April 2024 "at the earliest". Read story
CDC pension members may have escaped Covid-19 benefit cuts
Pensions Age: A collective defined contribution (CDC) scheme would not have had to cut member benefits in response to market volatility in the Covid-19 pandemic, according to research from Aon. Read story
Govt McCloud proposals for LGPS could take over two years to implement
Pensions Age: The Pensions and Lifetime Savings Association (PLSA) has warned that proposed changes to the Local Government Pension Scheme (LGPS) following the McCloud judgment could take over two years to implement. Read story
More than a third of Brits plan to maintain new saving habits adopted since the arrival of Covid-19
HR News: More than a third (36%) of Brits plan to maintain new saving habits adopted since the arrival of Covid-19, according to the latest research by Aviva into changing attitudes and behaviours towards household finances. Read story
Sidecar savings option popular but opt-ins low, finds Nest Insight
Professional Pensions: Nest Insight has outlined a series of different options on how its planned hybrid savings tool could be implemented successfully by employers. Read story
BT Pension Scheme sets 2035 net-zero target
Professional Pensions: The BT Pension Scheme (BTPS) has become the latest pension fund to commit to a net-zero investment strategy by a fixed date in order to mitigate the financial risks from climate change. Read story
Is a new bill of rights for remote workers in the offing?
People Management: With home working becoming the norm, and several European countries bringing in new laws on this, experts advise whether these are needed – and likely – in the UK. Read story
Salesforce, Cisco and Adobe named best UK workplaces in technology
Employee Benefits: Salesforce (pictured), Cisco, and Adobe are among the technology organisations recognised in the UK’s Best Workplaces in Tech 2020 report, compiled by Great Place to Work. Read story
Boss demands worker pays back £20k after being overpaid
HR Grapevine: When an employee’s paycheque arrives at the end of the week or month, they will be able to spend this money on whatever this wish – whether this is used to cover rent, pay bills, treat pets or kids or to put towards luxury holidays. Read story
Pension Schemes Bill completes second reading; Labour to push for widening AE
Pensions Age: The second reading of the Pension Schemes Bill has been completed and it will continue its progression through the House of Commons. Read story
UK workers could gain back £4,168 a year with the switch to homeworking
HR News: Analysing average commuting time and salaries across UK regions, the comparison service found that lockdown and home working is saving workers an average of 57 minutes a day in unpaid commute time, equating to £272.95 a month in unpaid work. Read story
Mandatory gender pay gap reporting has ‘naming and shaming effect’ on driving equity
HR Magazine: Employers are taking action to reduce their gender pay gap due to concerns of the ‘naming and shaming effect’ poor pay equity can have on their ability to attract the best talent. Read story