At a glance: reward and benefits headlines this week 9 -16 April 2020
The headlines you might have missed between 9-16 April 2020.
Senior leaders not pulling weight when it comes to payroll inaccuracies
HR Review: Over a third of HR directors (HRD) believe their companies’ senior leaders team is not doing enough to solve the impact of their businesses’ inaccurate, late and non-compliant payroll practices. Read story
Remote working improves workers’ mental health
HR Review: As remote working has been mass adopted due to COVID-19, employees are saying working from home and having time away from the office is having a positive effect on their mental wellbeing. Read story
Employers using salary sacrifice lose out under Covid rescue plan – CA pensions roundtable
Corporate Adviser: Pension providers and advisers have reported widespread confusion as to how the Job Retention Scheme will impact firms who use salary sacrifice schemes for pension payments – saying more clarification from the government is needed. Read story
Hundreds of employers stopping AE contributions – CA pensions Covid roundtable
Corporate Adviser: Many hundreds of employers have stopped making pension contributions after furloughing staff according to trustees. Read story
TPR publishes Covid-19 pension guidance for employers
Professional Pensions: The Pensions Regulator (TPR) has published guidance setting out how employers can meet their automatic enrolment (AE) duties as they navigate the effects of the coronavirus pandemic. Read story
DB schemes to face major data exercise for dashboards
Pensions Expert: New requirements to translate defined benefit pensions into an annual income in today’s terms could mean trustees and administrators face a major data exercise to comply with the pensions dashboards, according to experts. Read story
Furloughing staff should be a last resort, employers warned
People Management: Latest job retention scheme figures show this is a vital lifeline for many sectors, but some may be laying off workers too readily, say experts. Read story
27,000 Porsche employees receive profit-sharing bonus
Employee Benefits: Car manufacturer Porsche is giving its 27,000 German employees a bonus, to reward their efforts for 2019. Read story
Kuehne and Nagel to furlough 13,000 employees on a minimum of 90% pay
Employee Benefits: Transport organisation Kuehne and Nagel will ensure that 13,000 employees receive in a minimum of 90% of their pay during the Covid-19 (Coronavirus) pandemic. Read story
Daily Mail and General Trust offers 2,400 employees shares to avoid pay cuts
Employee Benefits: Daily Mail and General Trust (DMGT,) parent organisation to DMG Media, has offered 2,400 employees shares within the business. Read story
Zurich reduces mean gender pay gap from 22.8% to 20.7%
Employee Benefits: Insurance organisation Zurich has reduced its mean pay gap from 22.8% to 20.7% in 2018, and has seen its median gap also reduce from 22.6% to 20.2% in 2019. Read story
Employers urged to explain contribution changes to furloughed workers
Pensions Age: Employers must explain any defined contribution scheme contribution changes to furloughed workers, according to recommendations from Arc Pensions Law partner, Vikki Massarano. Read story
Five companies going the extra mile for employees during Coronavirus
HR Magazine: We live in unprecedented times and the news can become overwhelming at times. That’s why HR magazine has curated a roundup of just a few of the many companies doing great work to help their employees at this difficult time. Read story
Three-quarters have furloughed staff, despite warning it should be used as last option
HR Review: Despite one HR Director’s (HRD) warning that employers should refrain from the furlough of staff and only use it once all other options have failed, three-quarters of employers have already done so or plan to do in the future. Read story
Employment law FAQs and Coronavirus (COVID-19)
Incentive and Motivation: To say that the COVID-19 pandemic with current restrictions has had a significant impact on businesses would be nothing less than an understatement. We have spent the last couple of weeks responding while familiarising ourselves with legislation that would, in ordinary times, take months to pass through Parliament. Read story
Scottish social care employees to receive 3.3% pay increase
Employee Benefits: Social care employees in Scotland will receive a pay rise of 3.3%, backdated to 1 April 2020. Read story
TPR publishes pension guidance for employers during Covid-19
Employee Benefits: The Pensions Regulator (TPR) has updated its automatic enrolment guidelines to assist employees during the Covid-19 (Coronavirus) pandemic. Read story
Think-tank urges scrapping of triple lock to spread Covid-19 cost burden
Pensions Age: The Social Market Foundation (SMF) has urged the government to scrap the state pension triple lock to help spread the cost of Covid-19 between generations. Read story
Conquer your technofear and embrace AI to build a vibrant learning culture
HR News: Though the people function might have some qualms about using AI for learning and development, deploying it responsibly is essential if we are to build a culture of self-directed learning in organisations. Read story
Older savers anxious about financial impact of Covid crisis
Corporate Adviser: People approaching retirement have far higher levels of anxiety about the financial consequences of the Covid-19 pandemic than younger investors, according to new research. Read story
DB transfer requests plummet in wake of Covid crisis
Corporate Adviser: DB pension transfers are declining rapidly, in the wake of the Covid-19 pandemic. Read story
Schemes could see 12% funding drop from RPI move
Professional Pensions: Potential changes to the Retail Prices Index (RPI) could land some schemes with a fall in their funding level as high as 12% according to Barnett Waddingham. Read story
Baroness Drake and Mark Condron join The People's Pension trustees
Professional Pensions: The People’s Pension (TPP) has appointed Baroness Jeannie Drake and Mark Condron to its board of trustees. Read story
News UK partners with Scottish Widows on pension app testing
Pensions Expert: Newspaper publisher News UK is collaborating with Scottish Widows on the testing of a new member app, as the pensions industry counts the cost of its failed attempts to boost engagement. Read story
One in four top bosses have taken a pay cut in wake of Covid-19, research reveals
People Management: High Pay Centre report finds many FTSE 100 chief execs have agreed to salary and bonus reductions, but a small number have yet to act. Read story
Staff eligible for job retention scheme if organisation faces liquidation
Employee Benefits: Employees whose organisation faces administration during the Covid-19 (Coronavirus) pandemic could still be eligible for the government’s job retention scheme. Read story
Devon County Council social care workers to receive 12.8% pay rise
Employee Benefits: Devon County Council has announced it will be rewarding social care employees working under its jurisdiction, a 12.8% pay rise due to the increasing demands of the Covid-19 (Coronavirus) pandemic. Read story
Day-one company sick pay for 20,000 Transport for London bus drivers
Employee Benefits: 20,000 Transport for London (TFL) bus drivers will receive company sick pay from day one, if they either ill or have to self-isolate. Read story
Vermont front-line employees to receive $1.50 hourly pay rise
Employee Benefits: Front-line employees under the state of Vermont in the United States will receive a pay rise of $1.50 (£1.20) to reward them for their efforts during the Covid-19 (Coronavirus) pandemic. Read story
Government furlough puts halt to pay freeze plans
Cover: Study also finds employer spend on employee wellbeing on the rise since Job Retention Scheme. Read story
TPR urges industry to protect member benefits as Covid-19 concerns persist
Pensions Age: The Pensions Regulator (TPR) has urged the pensions industry to make use of recently introduced easements and guidance to better protect member benefits. Read story
Employees believe adoption of remote working will come to an end following COVID-19
HR Review: Despite remote working becoming the new norm due to COVID-19, almost half of workers believe their employer will revert back to previous policies once the pandemic has passed. Read story
Government job retention scheme date extended to support new staff
Employee Benefits: Newly hired employees may now be eligible to receive support through the government’s Covid-19 (Coronavirus) job retention scheme. Read story
Over a quarter of pensioners working to supplement income
Pensions Age: Over a quarter (28 per cent) of pensioners generate at least some of their income through working, new analysis from IRN Research has shown. Read story
Furlough scheme entitlement date extended to March
HR Review: The Government has extended the furlough scheme to the 19 March from the 28 February, so now more employees can be placed on the Coronavirus Job Retention Scheme. Read story
Aviva freezes exec pay and bonuses
Corporate Adviser: Aviva is freezing senior executive pay increases and bonuses as it prioritises dividends to ordinary shareholders. Read story
Paul Hastings offers 1,600 employees access to Covid-19 hardship fund
Employee Benefits: Global law firm Paul Hastings has launched a special fund to financially support any of its 1,600 employees needing assistance during the Covid-19 (Coronavirus) pandemic. Read story
The Financial Times decreases pension contribution payments by 50%
Employee Benefits: British daily newspaper The Financial Times is to halve its customary pension contributions, due to the financial strain of the Covid-19 (Coronavirus) pandemic. Read story
UCU remains ‘some distance’ away from USS contribution agreement with universities
Pensions Age: The University and College Union (UCU) has said that remains “some distance” away from employers on what it believes would constitute an acceptable response to the Universities Superannuation Scheme (USS) dispute. Read story
The Good Work Plan – Employer ‘Need-to-Knows’
HR News: Businesses and organisations are facing new challenges posed by the coronavirus outbreak; however, employers must still be aware of the new workplace reforms that came into force on 6 April 2020. Read story
People nearing retirement most concerned about Covid-19 impact
Pensions Age: People approaching retirement age are more worried about how the coronavirus crisis will affect their finances than younger savers, according to data from Aegon. Read story
5 benefits that delight your employees…and your Finance Manager!
HR News: No matter the size of your organisation, the products or services you offer or the sector in which you operate, us arduous HR and Reward folk share one ultimate aim: ensuring that we have the right people in the right place with the right skills at the right time. Read story