Firms fail to measure recruiters’ skills
Businesses are failing to accurately assess the skills base of their recruiters, according to new research.
The study by Executive Online found that the skills of recruiters are vaguely and unscientifically assessed, despite the potentially significant impact upon the economy’s success.
Almost half (46%) of organisations are using “rather arbitrary methods which completely fail to address the real issues”, the survey claimed.
Almost three quarters (73%) of firms do not measure the quality of candidates hired while 81% do not assess the standard of applicants, despite escalating costs. It can cost £30,000 to hire a senior executive, for example.
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Construction talent swells
School leavers are giving the construction sector a skills boost by choosing it over other areas, according to an unpublished government report.
The study by Connexions, which is sponsored by the Department of Education and Skills, found that 13% of school leavers were choosing the construction industry.
This figure is almost 4% higher than sales, which attracted 9.3% of last year’s 79,874 school leavers.
Hairdressing and beauty scooped 8.3%, whilst 6.2% sought clerical and secretarial skills.
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Lone parent tax credits thrown into doubt
Tax credits are being paid to 200,000 more lone parents than are believed to exist, new research shows.
In an analysis of official figures, the Institute of Fiscal Studies (IFS) found 2.1 million people claimed lone parent tax credits and benefits in 2004-05.
In contrast, Office of National Statistics figures, based on the last census, show there are actually only 1.9 million lone parents living in the UK.
IFS blamed the disparity on parents who actually live with a partner fraudulently claiming to be single.
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High earners ‘taxed 57%’
The UK’s top earners are paying more than half of their earnings back in taxes, new research reveals.
A study by Patrick Minford from Cardiff University found Gordon Brown’s ‘tax-and-spend’ policies has pushed the overall marginal tax rate for those on the highest wages to 57.1%, while the average earner pays 48.5%.
The study, published by the Centre for Policy Studies (CPC), took into account income tax, national insurance, excise duties and VAT.
Putting the blame on the Labour government’s tax policies, Minford – an adviser to Kenneth Clarke when he was Chancellor – claimed a stress on special incentives and penalties has created an overly complex system of high marginal tax rates.
To combat this, Minford proposed a new ‘flat tax’ on consumption.
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Government chastised over pensions
Ministers have been urged to compensate 85,000 workers who lost money in occupational pension schemes after their companies went bust.
A report released today by Parliamentary Ombudsman Ann Abraham found the Department of Work and Pensions guilty of maladministration in the advice it gave on final salary pensions.
In particular, the 254-page document concluded that official pension’s information was “inaccurate, incomplete, unclear and inconsistent”.
Abraham concluded that government information leaflets misleadingly claimed that money placed in occupational pensions would always be safe leading thousands of workers to make mis-informed decisions about their retirement savings.
She said that all those affected should be compensated.
Although the government is not compelled to act on the Ombudsman’s decision, compensation to all those who have suffered would amount to at least £5 billion.
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Firms fear compulsory pensions fallout
Almost half of UK small firms would suffer a drop in profits if compulsory pension schemes are introduced, new research suggests.
According to the study from Bibby Financial Services, 64% of SMEs currently lack a compulsory pension schemes.
But if proposals from Lord Adair Turner to introduce a National Pension Savings Scheme (NPSS) are accepted by the government, firms would have to enrol all employees on it making a compulsory 3% contribution to each individual’s fund.
The Bibby poll found 31% of business owners would cut investment in company growth should compulsory contributions be introduced, while 32% feared the rules would hinder their expansion plans.
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Family firms ‘badly managed’
The UK’s generous inheritance tax allowance is encouraging a generation of poorly managed family firms, an academic study has concluded.
A study of firms in the UK, France, Germany and US, said family businesses which follow the traditional route of passing ownership onto the eldest son are typically poorly managed.
The problem, according to the Centre for Economic Performance (CEP) at the London School of Economics, is particularly acute in the UK where half of all family firms are managed by family members.
It said 100% inheritance tax exemption for most family firms mean owners are encouraged to simply pass their business onto their children – usually the eldest son – rather than bring in an external boss who is likely to stimulate growth and improve management practices.
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Ex-offenders are source of new labour
A government scheme plans to broaden the UK skills pool by encouraging employers to hire ex-criminals.
The project, launched by the Home Office and National Probation Service, aims to emphasise to business the economic and social benefits of hiring ex-offenders.
By employing this previously untapped skills pool, many industries can benefit from improved standards, they claim.
According to the initiative, employment can also reduce the risk of re-offending by 35%. Currently 50% of individuals serving probation are without jobs.
