Catch up on the week in HR including factory workers dominate shift working culture, NHS job cuts anger Unions and staff, one in seven may skip work to watch World Cup, BBC joins list of employers slashing final salary pensions, Nelson firm sunk by pensions crisis and much more.
W/C 17/4/06
Mid-market firms push people issues aside
CEOs and FDs of middle market firms are failing to invest focus, time and energy in people issues despite their claims that investing in people is one of the top two areas of investment that would improve their competitiveness.
This is according to the latest Business Insights survey from PricewaterhouseCoopers LLP which quizzed over 500 CEOs, FDs and HRDs.
Key findings including:
- Over half (58%) of the companies identified learning and development as the key to improving people performance. However, almost half the business leaders (49%) believe their line managers do not spend enough time helping to train their people, while only 5% of CEOs and FDs see training as the primary role for their HR function.
- Almost two-thirds of companies have no succession plans for senior positions in place.
- Despite the fact that 88% claim effective communication has a direct impact on the bottom line, 92% use the ‘grapevine’ as a means of communicating, believing it more successful than a formal system of e-mails and memos, while use of staff surveys is low.
- Many business leaders appear to place limited importance on the role of HR, with 52% of CEOs spending less than 10% of their time with the most senior person responsible for people related issues. While 51% of companies describe the primary role of their HR function as that of ‘an administration centre’, yet 73% of HR directors see their role as strategic.
*****
NHS job cuts anger Unions and staff
Unison has pledged its support for NHS staff that opt to take industrial action over NHS job cuts.
Reported by the BBC, predictions of thousands of job cuts are unsettling workers.
Health Secretary, Patricia Hewitt says the NHS is facing a ‘pivotal year’ of great challenge, but will insist the number of redundancies will be small and only in the areas with the worst financial problems.
But Mr Prentis told her his union was not prepared to stand by and watch staff suffer "in a climate of fear", but stopped short of threatening union-wide industrial action.
For more on this story see: BBC
*****
Factory workers dominate shift working culture
The typical shift worker is more likely to be a factory operative than a call centre worker.
This is according to latest research by IRS Employment Review who say that while more people than ever now work non-standard hours, shift workers still account for 14% of the workforce just as they did 20 years ago.
Gender segregation is rife with the shift workforce comprising either predominantly males or females depending on the nature of the job.
IRS Employment Review managing editor Mark Crail said:
“People now take for granted their ability to access services at all hours of the day and night – but without shift workers this would not be possible. And it isn’t just the public who benefit. By operating round the clock, employers get better value from buildings and machinery.
“But employers need to make sure they value shift workers. Managers need to make the effort to communicate with employees who do not keep office hours, and they need to get equal access to training, development opportunities and all the benefits enjoyed by the rest of the workforce.”
*****
One in seven may skip work to watch World Cup
One in seven men may pull a sickie in order to catch a World Cup football match, due to kick off in June.
This is according to a poll for Croner by YouGov who report that 13% of men, compared to just 4% of women have pulled a sickie in order to watch a match, or to recover from a hangover.
The younger generation are the worst offenders with a staggering 16% of men and women aged between 18 and 29 admitting to taking unauthorised absence for a major sporting event.
Richard Smith, employment services director at Croner advises: “Rather than worry about employees being struck down with ‘World Cup-itis’ on match days, they [employers] should be thinking of how temporarily relaxing the rules can have positive returns for their business.
“We’re strongly advising employers to provide on-site TV access to important games and to encourage employees who wish to enjoy alcohol during games to request annual leave around match days. Annual leave policies should be updated with clear guidelines issued to all employees, emphasising that unauthorised absence could lead to disciplinary action.”
*****
BBC joins list of employers slashing final salary pensions
The BBC is the latest employer to join a long-list axing final salary pension schemes.
The news has angered the National Union of Journalists (NUJ) who say that the changes will result in thousands of staff working longer, paying more and receiving reduced benefits.
According to the NUJ, the BBC's planned changes will mean:
- The closure of the final salary pension scheme to new starters and its replacement with a career average scheme which will leave new starters an average of 30% worse off than their colleagues.
- An increase in the normal retirement age to 65 in 2016.
- An increase in contributions for existing staff from 5.5% to 7.5% by 1 April 2007 with a likely further increase to 9% from 1 April 2008.
NUJ General Secretary Jeremy Dear said: "For both existing and new staff this will come as a bitter blow. The BBC will create a two-tier workforce, force some staff to work longer and expect all staff to pay more for the privelege of doing so. All those under 50 face paying more and working five years longer simply to get the same pension.
The BBC's promises have been shown to be worthless and it is hardly surprising staff are reacting with anger.
"The pension scheme is cash-rich, in surplus and the BBC admit there is no crisis – so why are they seeking to penalise staff in this way. It is all the more galling that staff are being asked to pay up to £20m a year more when the BBC themselves have saved more than £1bn by paying reduced contributions since 1992.”
The NUJ is consulting with its members.
*****
NHS turns its back on overseas training investment
Sudden changes to immigration rules mean NHS training is being closed to non-EU doctors without work permits, the BBC reports.
The government directive, introduced this month, will prevent doctors and dentists from outside the EU from automatically seeking training placements in the UK.
Campaigners say they have been “betrayed” by the changes that could leave thousands unemployed.
The government says it is protecting positions for UK graduates as there are not enough jobs for every doctor.
For more on this story see: TrainingZONE
*****
Nelson firm sunk by pensions crisis
The UK's growing pensions crisis has claimed an historic victim – the 329-year-old business which made the buttons on Lord Nelson's uniform. Founded in 1677, military badges and buttons manufacturer, Firmin & Sons had seen sales rise by 16% in 2005 and gained a large share of a five-year contract with the Ministry of Defence but delays in finalising the deal had adversely affected the company's cashflow and profitability.
Administrators were called in last week and yesterday it was reported that the company's pensions deficit has put off potential buyers. Its pension scheme closed to new members in 2000 and a move to raise the company’s retirement age for male workers from 65 to 60 pushed the deficit to as high as £2 million.
Confederation of British Industry director general Digby Jones blamed the Firmin’s collapse on the UK's pensions regime. He said pressure from the Pension Regulator on the buyer or seller of a firm to plug pensions deficits before sales can go ahead means the acquisition of firms such as Firmin are being thwarted.
*****
Twenty-somethings urged to save
People who have not started saving, paying into a pension and bought a house by the age of 26 face a lifetime of struggling to catch up financially, new research reveals.
According to financial advisers Prudential, the 'three pillars' of personal financial planning should begin before people turn 30.
Opening a pension should kick off at age 22, getting on the housing ladder should happen at 25 and starting to save again should happen when someone is 26 years old. In reality however, the average age for a first time buyer is currently 34 while the average age to marry – a traditional time to sort out finances – is 29 for women and 31 for men.
The report said the findings will act as a wake-up call to people who put off addressing their financial futures until the grey hairs start appearing. Prudential UK executive director Roger Ramsden, said: "Planning early is key to a secure financial future, but it is never too late to start. For those of us who do seem past-it, we can still do an awful lot to improve our financial position; whether that is pay more into our pension, save more, or reduce our debts."
