At a glance: reward and benefits headlines this week 4 - 10 December 2020
The headlines you might have missed between 4 – 10 December 2020.
Uk salaries set to rise in 2021 for private sector workers
HR Review: New research finds that “cautious optimism” may be creeping in over the next year as salaries for private sector workers are expected to rise. Read story
Majority of companies have “essentially no incentive” to account for HR issues, say CIPD
HR Review: A new report by the CIPD shows that most chief executives’ pay packets are largely not based around the investments and improvements made to employee-related issues. The report states that this offers “essentially no incentive” for companies to focus on HR-related issues. Read story
Soaring PI costs restricting access to transfer advice – PFS
Corporate Adviser: The soaring cost of professional indemnity insurance is impacting consumers ability to access pension freedoms, with a third seeing an increase of more than 50 per cent since last year. Read story
Pension engagement still an uphill battle, FCA finds
Professional Pensions: The number of savers using information or guidance services such as Pension Wise is barely higher than three years ago despite efforts to promote the benefits, the Financial Conduct Authority (FCA) says. Read story
Private sector will see ‘cautiously optimistic’ pay rises in 2021, report predicts
People Management: But forecasts vary significantly across sectors, with industries hit hardest by the Covid pandemic expected to see the smallest increases. Read story
6% of employees reduced pension contribution levels due to Covid-19
Employee Benefits: One-sixth (16%) of employees reduced their pension contribution levels, while 7% stopped their contributions altogether as a result of the Covid-19 (Coronavirus) pandemic, according to research by Employee Benefits. Read story
Claremont launches employee ownership trust
Employee Benefits: Interior design organisation Claremont has given its employees part-ownership of the business through an employee ownership trust (EOT). Read story
Mitie, Bupa and E.On recognised among UK’s most inclusive employers
Employee Benefits: Mitie (pictured), Bupa and E.On are among the organisations that have been recognised in The Inclusive Top 50 UK Employers 2020/21 list, compiled by Inclusive Companies. Read story
Nationwide Building Society reports 28.3% mean gender and 16.2% ethnicity pay gaps
Employee Benefits: Nationwide Building Society has reported a 28.3% mean gender pay gap among over 17,000 employees, as at April 2020. It has also voluntarily chosen to report its ethnicity pay gap data, finding a 16.2% mean difference. Read story
CEOs that 'sacrificed' during the coronavirus pandemic
HR Grapevine: Since the coronavirus crisis hit earlier this year, businesses, the jobs market and the economy have all been severely impacted in one way or another. Read story
Employee happiness and loyalty tested by furlough schemes
Workplace Insight: A newly commissioned survey of 1,000 people conducted by Censuswide on behalf of KnowBe4, claims that almost a third of respondents (28 percent) feel less loyal to their employer post-furlough. Read story
UK DB pension deficit could be eliminated via funding and investment changes
Pensions Age: A shift in pension funding and investment strategies could eliminate the UK’s current £190bn defined benefit (DB) pension deficit, analysis from PwC has found. Read story
Nearly two-fifths of savers admit to having a missing pension pot
Pensions Age: Savers could be missing out on more than £23,000 at retirement, as almost two-fifths (37 per cent) of people think they have a missing pension pot, increasing to 64 per cent for 18-34 year olds, according to research from PensionBee. Read story
RMSPS pension liabilities rise by £5bn in 2019/20
Pensions Age: The value of the Royal Mail Statutory Pension Scheme’s (RMSPS’s) liabilities rose by just over £5bn year-on-year, as of March 2020, the government’s annual report and account for the scheme has revealed. Read story
One in four companies see workers quit pension due to Covid
Corporate Adviser: More than one in four employers say employees have left their workplace pension scheme as a result of the Covid pandemic. Read story
Neil Hugh: How big data is transforming workplace pensions
Corporate Adviser: Improved technology and better use of Big Data is helping drive engagement with pensions and workplace savings, as both providers and members look to adapt to the challenges brought by the coronavirus pandemic say Standard Life's head of UK propositions Neil Hugh. Read story
Exclusive: Calls for vital AE reforms after Covid-19 pension saving exodus
Professional Pensions: The government must publish a timetable for its next automatic enrolment (AE) review as employees quit pension saving in the wake of the coronavirus pandemic, the Association of Consulting Actuaries (ACA) says. Read story
2021 is our chance to get the ball rolling on AE reform
Professional Pensions: After a tumultuous year for every industry, James Phillips says 2021 can give the pensions industry and government a chance to tackle the long-term needs in retirement savings. Read story
Walmart to reward 1.5 million employees with recognition bonus
Employee Benefits: US supermarket chain Walmart is to reward its 1.5 million hourly-paid employees with a special bonus to recognise them for their efforts during the Covid-19 (Coronavirus) pandemic. Read story
EXCLUSIVE: 57% of organisations concerned about staff not having enough pension savings
Employee Benefits: More than half (57%) of respondents are concerned that the majority of employees do not have enough savings for a comfortable retirement, according to research by Employee Benefits. Read story
B&M to close stores on 1 January to give staff a day of rest
Employee Benefits: Retail employer B&M has announced that it will close on 1 January to support over 28,000 of its employees by giving them more time to spend with their loved ones. Read story
How HR can support menopause
HR Grapevine: Lockdown has sparked many issues for workers. From financial anxiety over job security, to an increase in burnout as employees struggle to separate personal and professional life, there are many challenges that workers have had to face when it comes to health and wellbeing. Read story
Mental health: UK businesses could face 'staff retention crisis'
Cover: Research reveals almost half have lost employees because mental wellbeing wasn’t cared for. Read story
Married women up to £186,120 worse off than men in retirement
Pensions Age: The basic gender pension gap could be as much as £108,130 for single women when considering life expectancy, increasing to £186,120 for women who are married or in a relationship, analysis from More2Life has found. Read story
Managing the challenges of ‘hybrid-working’ post pandemic
HR News: COVID-19 has accelerated workplace trends of working from home as well as a ‘hybrid-working’ – a combination of home and office working, which is set to continue in 2021. However Adrian Lewis from Activ Absence warns employers need robust policies and tools in place to ensure this is managed successfully. Read story
Almost half of sick leave during lockdown linked to mental health related illnesses
HR Review: New research uncovers the impact of COVID-19 on work-related sickness, including mental health issues which appear to be on the rise during the pandemic. Read story
Govt plans reform of Statutory Sick Pay
Corporate Adviser: The Government’s response to the ‘Health is everyone’s business’ consultation paper is expected shortly, and should contain proposals to reform statutory sick pay according the Jennifer Heigham, head of delivery of the work and health unit at the Department of Work and Pensions. Read story
Positive outlook for employee benefits sector
Corporate Adviser: The outlook for the group risk and healthcare industries is buoyant for 2021, despite the ongoing challenges presented by the Covid pandemic. Read story
Pension scam 'red flags' reach all-time high
Professional Pensions: Pension scam red flags have reached the highest level recorded, according to research by XPS Pensions. Read story
Three-quarters of job descriptions still failing to offer flexible working
People Management: Ads mentioning flexibility increased just 5 percentage points after lockdown, as experts warn new ways of working are not being reflected in the recruitment process. Read story
Safer Sphere introduces employee benefit trust
Employee Benefits: National construction organisation and safety specialist Safer Sphere has given its employees part-ownership of the business through an employee benefit trust (EBT). Read story
Toyota Motor Manufacturing UK reports -7.4% mean gender pay gap
Employee Benefits: Automobile organisation Toyota Motor Manufacturing UK has reported a mean gender pay gap of -7.4% for average hourly pay as at April 2019, unchanged from the previous year. Read story
AT&T agrees to pay $173,000 in back wages after equal pay disparity
Employee Benefits: Telecommunications organisation AT&T has agreed to pay $173,000 (£129,000) and provide other non-cash relief to address pay disparities between male and female employees in California and Nevada with the US Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP). Read story
Openwork awarded coveted 2 Star accreditation from Best Companies for commitment to employees
Employer News: Openwork, one of the UK’s largest financial advice businesses, has been recognised for its commitment to employees and retained its 2 star accreditation from Best Companies. Read story
Govt urged to act on AE reforms as research highlights under-pensioned groups
Pensions Age: The most under-pensioned groups have a private pension wealth equal to around 15 per cent of the UK average, research from Now Pensions and the Pensions Policy Institute (PPI) has revealed. Read story
Companies handed accounting 'headache' by High Court pension ruling
Pensions Age: Companies could be met with an “unwelcome end-year headache” by having to adjust their 2020 accounts following a High Court judgment regarding defined benefit (DB) pensions, according to LCP. Read story
Companies should heed the wellbeing lessons of lockdown
HR News: Helping teams maintain the healthy habits formed while working from home during the pandemic should be part of HR leaders’ wellbeing strategies in 2021, according to workplace wellbeing experts, Westfield Health. Read story
Workers delaying retirement plans
HR Magazine: One in eight UK adults over the age of 55 who expected to retire in the near future now plan to delay their retirement due to the coronavirus pandemic. Read story
Calls for furlough scheme to be used to encourage workers to self-isolate
HR Review: The research identifies significant problems with the current sick pay regime in relation to preventing the spread of COVID-19. The report urges that the Coronavirus Job Retention Scheme (also known as furlough) should be used instead. Read story
National Grid completes £800m buy-in with Rothesay; Homestyle and Aviva agree £103m buyout
Professional Pensions: The National Grid UK Pension Scheme has completed an £800m buy-in with Rothesay, its second bulk annuity transaction with the insurer. Read story
42% of employees desire less work-related stress in 2021
Employee Benefits: Just under half (42%) of employees wish to experience less stress at work during 2021, according to research by PayFit. Read story
39% of organisations offer a group personal pension plan
Employee Benefits: The most common primary pension scheme offered by employers is a group personal pension (GPP), as offered by more than a third (39%) of respondents, according to research by Employee Benefits. Read story
Why HR must promote 'inclusion without exception'
HR Grapevine: Due to the coronavirus crisis, in March this year the UK Government suspended the requirement for companies to report their 2019-2020 gender pay gap. Read story
Majority of employees struggling with ‘always on’ work culture
Workplace Insight: Heightened anxiety during the Covid-19 pandemic has led to employees working longer hours and taking fewer sick days, all the while becoming less fulfilled by work and life, according to the latest analysis from Aviva. Read story
TPR urges industry to not make ‘rash predictions’ on DB funding code
Pensions Age: The Pensions Regulator (TPR) executive director of regulatory policy, analysis and advice, David Fairs, has urged the industry not to make “rash predictions” about the impact of the regulator’s upcoming defined benefit (DB) funding code. Read story
Pensioners owed up to £32,000 in GMP back payments
Pensions Age: Pensioners could be owed as much as £32,000 in guaranteed minimum pension (GMP) back payments, with over half of affected schemes owing individual pensioners £10,000, according to analysis by XPS Pensions Group. Read story
22% of FTSE 350 DB schemes face 50% chance of sponsor insolvency before buyout
Pensions Age: Almost a quarter (22 per cent) of FTSE 350 defined benefit (DB) schemes with rated sponsors face a 50 per cent chance of corporate insolvency before they reach buyout, according to analysis from Hymans Robertson. Read story
Employers support sidecar savings concept but inertia concerns remain
Professional Pensions: Nest Insight has outlined a series of opinions from employers trialling its hybrid sidecar savings tool, with most agreeing they “like the concept” but still raising concerns over inertia. Read story
Northern Gas Networks agrees £385m buy-in with L&G; Risk transfer market busy despite Covid and set to top £60bn in 2021
Professional Pensions: The Northern Gas Networks Pension Scheme has agreed a £385m pensioner buy-in with Legal & General (L&G). Read story
Back to the future: How pensions can revolutionise the next 10 years
Pensions Expert: Whether for winding forward to a post-vaccine economy or back to reverse deletion of guaranteed minimum pension transfers, time-travelling machines are in high demand in pensions and the wider society. The truth is that no one can guess what the future looks like, but several pensions experts were brave enough to risk predicting what the next decade holds for the pensions industry. Read story
Employee happiness dropped dramatically during lockdown, report finds
People Management: Survey also reveals sharp rise in e-presenteeism, with experts urging managers to limit workloads and regularly check in with staff. Read story
Homestyle Pension Company completes £103m bulk annuity buy-in transaction
Employee Benefits: Homestyle Pension Company has completed a £103 million bulk purchase annuity transaction with Aviva. Read story
78% of employers will change ESG use in executive pay strategies
Employee Benefits: Nearly four-fifths (78%) of employer plan to change the way they use environmental, social and governance (ESG) measures in their executive incentive strategies, according to research by Willis Towers Watson. Read story
Just Eat to offer couriers hourly pay and benefits
Employee Benefits: Food delivery company Just Eat is to offer couriers pay by the hour rather than per job in a boost to gig economy workers. Read story
Pension risk transfer market to hit up to £60bn in 2021
Pensions Age: The UK pension risk transfer market could reach up to £60bn in 2021 through bulk annuities, longevity swaps and new risk transfer solutions, according to forecasts from Mercer. Read story
2021 could bring DB transfer 'gold rush' despite dip in interest amid 2nd lockdown
Pensions Age: Interest in transfers out of defined benefit (DB) pension schemes has once again dipped during the latest lockdown, although a flood of insolvencies in 2021 could see a “gold rush” for DB transfers in the new year, analysis by LCP has found. Read story
Essential Accessories for Work-at-Home Employees with Young Children
HR News: The issue of coping with children while working from home is one that’s generated a great deal of conversation throughout the year. Read story