At a glance: reward and benefits headlines this week 24-30 January 2020
The headlines you might have missed between 24-30 January.
How should employers deal with staff requesting mental health days?
HR Review: An employment law lawyer has answered some of the most frequently asked questions relating to mental health sick days taken off by your staff. Read story
Salaries drop as job applications increase
HR Review: Despite salaries decreasing in the last few months of 2019, the number of job applications rose. Read story
Breaking: Group life exempted from HMRC TRS rules
Corporate Adviser: Group life policies and other pure protection arrangements are to be exempted from anti-money laundering obligations under proposals published by HMRC today. Read story
TPR fines FCA over non-compliant pension scheme
Professional Pensions: The Pensions Regulator (TPR) has issued a £2,000 fine to the Financial Conduct Authority’s (FCA) Pension Plan due to a non-compliant chair’s statement. Read story
Four candidates named for WPC chair
Professional Pensions: At least four Members of Parliament (MP) will battle it out to chair the Work and Pensions Committee (WPC), it has been confirmed. Read story
Stonegate Pub Company enhances parental pay and benefits
Employee Benefits: Stonegate Pub Company has enhanced its maternity, paternity and adoption package for its 14,500 employees. Read story
Harrods, Pure Planet and Adecco Group awarded for employee engagement
Employee Benefits: Harrods, renewable energy firm Pure Planet and recruitment organisation The Adecco Group are among the organisations recognised at the 2019 UK and European Employee Engagement Awards. Read story
Unum increases adoption assistance to $25,000
Employee Benefits: Employee benefits provider Unum has increased the assistance it offers to its 9,400 US employees when adopting a child. Read story
AA proposals could cut member pensions in half – GMB
Pensions Age: Proposed changes to the AA pension scheme could see staff retirement income "slashed" by 49.8 per cent, according to the GMB union. Read story
The future of employee engagement is not anonymous, say HR experts
HR Magazine: Anonymity in employee surveys can create a disconnect between people and their responses. Read story
Under half of employees fear for their job in 2020
HR Review: Just under half of UK employees fear for their job in 2020 with workers in Cardiff feeling the least secure followed by Norwich and Sheffield. Read story
FCA to investigate majority of DB advice firms for poor advice
Corporate Adviser: Three out of four firms delivering DB transfer advice are giving “potentially harmful” information to pension scheme members, according to the Financial Conduct Authority. Read story
Forget flexible working, unpaid overtime is the new normal
Workplace Insight: Standing out in a competitive job market isn’t always easy, so some employees may implement various tactics to be more noticeable, including working overtime. Working the occasional overtime shift might not seem like a big deal, but is it? Read story
Employers should provide ongoing financial wellness support throughout the year
HR News: According to The Future of Pay research by ADP, a leading global technology company, most employers (98%) admit that employee financial wellbeing impacts their business, particularly when it comes to productivity (67%) and engagement (62%). Read story
Flexible workers held back by tech trouble
HR News: Two thirds (66%) of workers* say they are more productive when they work flexibly, according to new research by productivity experts 99&One. Yet many are being held back because technology is not optimised. Read story
Nest hits £10bn and appoints new investment experts
Corporate Adviser: Nest has reached £10bn assets under management (AUM) invested on behalf of more than 8.6 million members. Read story
Greater Manchester employers to voluntarily veto zero-hours contracts
People Management: Experts welcome Good Employment Charter but question how similar initiatives in different cities will be aligned, validated and enforced. Read story
Government will continue state pension for UK nationals living in EU after Brexit
Employee Benefits: In a document published on 24 January 2020, the Department for Work and Pensions (DWP) confirmed that UK citizens working in the European Economic Area (EEA) and Switzerland will continue to have access to benefits and pensions despite the UK leaving the EU. Read story
Parts of Asda’s job descriptions ruled inaccurate for purposes of equal pay dispute
Employee Benefits: In the week commencing 13 January 2020, Manchester Employment Tribunal ruled that supermarket retailer Asda’s job descriptions for predominantly female shop floor employees ‘did not go far enough as to acquiring and using knowledge’ for the purposes of comparison in its ongoing equal pay dispute. Read story
Average pay dropped by 7.8% year-on-year in the final quarter of 2019
Employee Benefits: Average wages dropped by 7.8% year-on-year in the final few months of 2019; this is the first time average pay has dropped since quarter one of 2018, according to CV-Library. Read story
Survey shows salary advances by UK employers still common
Employers News: The often long wait between December and January paydays, the cost of the Christmas festivities and the arrival of credit-card bills make this time of year a real challenge for many employees across the UK. So how do workers cope financially? Read story
DWP publishes expat pension guidance ahead of Brexit
Pensions Age: The Department for Work and Pensions (DWP) has confirmed that the UK state pension will be protected by the Withdrawal Agreement in new guidance examining the rights for UK nationals after the UK has left the EU. Read story
UK: World leader in paid bereavement leave
HR Review: The UK is now the world leader in paid bereavement leave, as it offers double the amount of time compared to other countries, however, it has still been dubbed the “minimum” amount of time a business should offer its employees. Read story
Employers focus on loans at expense of savings options
Corporate Adviser: Six out of 10 employers are now providing salary advances or loans to workers when needed, yet only one in 10 actively encourages a savings culture according to new industry research. Read story
Savers dispute ESG as a 'tick-box' in government agenda
Professional Pensions: Over 80% of consumers want to know more about which companies their pensions are invested in and more transparent updates on their business activities, according to PensionBee. Read story
NHS: Pension tax problems will cause staff exodus
Professional Pensions: Almost half (44%) of clinical and non-clinical trust executive directors are considering or planning to leave the NHS in the next two years due to pension taxation, according to NHS Providers. Read story
Govt to consult on McCloud solution as new members could be worse off
Pensions Expert: The government has warned that changes ordered by the courts to rectify a landmark discrimination case could make some members worse off. Read story
More than half of employees do not feel recognised at work
Employee Benefits: More than half (56%) of respondents working for small and medium-sized (SME) organisations do not feel like they are being recognised in full for their merits, according to research by Capterra. Read story
McDonald’s launches app to enhance education benefits for US staff
Employee Benefits: McDonald’s has launched a career exploration app to help US employees in 36,000 restaurants maximise the learning and education benefits available to them. Read story
Workers could be owed thousands in equal pay claim
HR Grapevine: Equal pay has long been a debated issue in headlines, as businesses have faced greater scrutiny for their gender divide when it comes to wages. Read story
Failure to put employees at heart of data strategy costs UK firms £10bn in lost productivity
Workplace Insight: A new report from Qlik and Accenture, titled “The Human Impact of Data Literacy” and conducted on behalf of The Data Literacy Project, claims that while most organisations understand the incredible opportunity of data, a gap has emerged between organisations’ aspirations to be data-driven and their employees’ ability to create business value with data. Read story
Boost Your Business with Employee Loyalty
Employer News: Successful businesses don’t just treat their customers well; they treat their employees favorably too. Despite the importance of employee happiness and satisfaction, many organizations make the mistake of overlooking their staff or taking their work for granted. Read story
Three-quarters of firms potentially giving harmful DB transfer advice – FCA
Pensions Age: Over three-quarters (76 per cent) of firms with defined benefit (DB) transfer advice permission could be giving harmful advice, a Financial Conduct Authority (FCA) investigation has revealed. Read story
DB schemes use AI to predict take up of transfer offers
Corporate Adviser: Mercer has launched a new tool that uses artificial intelligence to help defined benefit pension schemes predict the outcomes of member option exercises. Read story
Ill-health early retirees fined for breaching pension tax relief limits
Professional Pensions: Savers who take an early retirement after becoming ill or sustaining severe injury are being increasingly harshly penalised for breaching pension tax relief limits, according to Royal London. Read story
Peers welcome pensions bill but question government powers
Professional Pensions: The pension schemes bill has passed its second reading in the House of Lords, despite questions over the breadth of government powers. Read story
Britvic request to switch RPI pension increases denied
Pensions Expert: Soft drinks manufacturer Britvic has had its attempt to reduce the inflation-proofing it provides for its defined benefit pension scheme rejected by the High Court. Read story
Employers welcome call to lower post-Brexit visa salary threshold
People Management: But experts warn the changes will only provide ‘mild, temporary relief’ and some sectors will fare better than others under MAC’s recommendations. Read story
Unipart delivery drivers accept new pay deal
Employee Benefits: NHS delivery drivers, employed by Unipart, have accepted a pay deal, ending a dispute between the organisation and 130 affected employees. Read story
62% believe they are fairly paid
Employee Benefits: Just under two-thirds (62%) believe they are fairly paid for the work that they do, according to research by Synergy. Read story
Jonckers introduces unlimited paid holiday globally
Employee Benefits: Global translation organisation Jonckers is implementing an unlimited paid holiday scheme for all 350 employees across the 10 countries in which it operates. Read story
Employer 'offers candidate £25k LESS due to age'
HR Grapevine: A candidate has accused a prospective employer of offering her £25,000 less than her current salary because it would be ‘better aligned to her age’. Read story
People ten times more likely to stay in their job for friendships than a pay rise
Workplace Insight: Following reports that job applications on the first working Monday of the New Year spiked by 89 percent compared to the average Monday in December, many UK businesses may be missing a trick in their efforts to retain staff, new research has suggested. Read story
Brits increasingly exposed to 'sick pay gap'
Cover: Average gap between earnings and statutory sick pay has increased by over £375 per month, survey shows. Read story
HMRC repays £32m in overpaid pension tax
Pensions Age: Savers who withdrew money from their pensions in Q4 2019 were repaid more than £32m in emergency pension tax by HMRC. Read story
Lloyds pension schemes complete £10bn longevity swap
Pensions Age: Lloyds Banking Group pension schemes have agreed a longevity swap deal which covers £10bn of pensioner liabilities. Read story
What factors are shaping pay practices in 2020?
HR News: We examine how the economy is shaping up for 2020 and the factors that are set to determine pay practices in the year ahead. Following the recent publication of the CIPD’s Reward Management Report, we outline the key priorities to consider when it comes to the pay review process. Read story
Supporting carers at work is key priority
Incentive and Motivation: The number of employees that are balancing worklife with caring responsibilities is growing, with 1 in 7 of the workforce, or 5 million of the population, identifying as carers. We can’t avoid the fact that the population is aging, and with 600 people having to give up work every day to care for a loved one it’s simply not sustainable for the future. Read story
Food most popular job perk
HR Review: It has been said “the way to a worker’s heart is through their stomach”, food related-perks seem to be the most popular incentive on offer to staff with the number of edible rewards increasing by nearly 300 per cent over the past four years. Read story
£37 per employee per year: employers’ £900m cost of health appointments
Corporate Adviser: Over 200 million working hours a year are lost to healthcare appointments, costing UK businesses an estimated £900 million in paid sick leave according to Unum. Read story
Church of England Pensions Board allocates £600m to climate transition index
Professional Pensions: The Church of England Pensions Board has selected the FTSE Transition Pathway Initiative (TPI) Climate Transition Index for a £600m mandate. Read story
Stephen Timms named as WPC chairman
Professional Pensions: Former pensions minister Stephen Timms has been elected chairman of the influential Work and Pensions Committee (WPC). Read story
Co-op scheme completes £1bn buy-in with Aviva
Professional Pensions: The Co-operative Pension Scheme, known as Pace, has completed a £1bn buy-in with Aviva in the first announced bulk annuity deal of 2020. Read story
Provision of workplace perks has increased by 160% over four years
Employee Benefits: The number of workplace perks being offered by employers has increased by more than 160% in the last four years, according to research by job listing site Indeed. Read story
NHS medical couriers’ £1 million holiday pay claim to be concluded next week
Employee Benefits: Next week, the Independent Workers’ Union of Great Britain (IWGB) is set to represent 45 medical couriers in a landmark holiday pay claim worth more than £1 million, against NHS contractor The Doctors Laboratory (TDL). Read story
Gympass signs charter to prioritise employee mental health
Employee Benefits: Corporate wellness platform Gympass has pledged a commitment to normalising conversations around mental health in the workplace among its 37 employees by signing the InsideOut Charter. Read story
This firm named UK's top LGBT+ employer
HR Grapevine: Lesbian, bisexual, gay and trans equality charity Stonewall has today published its prestigious list of the 100 top employers for the LGBT community, in which Newcastle City Council was named number one. Read story
Gig economy workers should not all have equal rights
Workplace Insight: Policy makers should beware of classifying all gig economy workers as “employees”, a new research report has claimed. Read story
Almost £33bn withdrawn through pension freedoms following record year
Pensions Age: Savers have withdrawn almost £33bn since the introduction of pension freedoms in April 2015, with £9.4bn worth of withdrawals in 2019 alone, new figures from HMRC have revealed. Read story
Women aren’t negotiating their salaries
HR Magazine: Millions of women could be missing out on higher salaries, as 82% never negotiate their pay when applying for jobs. Read story