Catch up on the week in HR including migrant workers ‘keep interest rates down’, profits squeeze forces factory job cuts, bosses ignore perils of the office romance and employees go ‘green’.
W/C 24/4/06
Sack underperformers, says Microsoft CEO
British bosses should aim to sack as many underperforming employees as possible, the Microsoft chief executive has urged.
Steve Ballmer said all companies should follow his company's example and get rid of staff not showing their full potential.
The Microsoft executive has been previously quoted as saying his firm aims to sack 6.5% of underperforming staff each year.
Speaking at the Institute of Directors annual conference, Ballmer said: "Whatever you think you can do better with, you should double that. All companies of all sizes should be asking themselves that question. The real question is never: 'Are people not good enough?' The real question is: 'Can you do better?'".
Peter Skyte, national officer of trade union Amicus, criticised Ballmer's comments saying the policies "create a culture of fear" and demoralise employees.
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Migrant workers 'keep interest rates down'
Immigrant workers from eastern Europe are boosting UK economic growth by helping to keep interest rates down, closely watched research shows.
Ernst & Young's Item Club, which monitors the economy based on the Treasury's own model, said without the arrival in the UK of 300,000 migrants over the last three years willing to work in low-paid positions the cost of borrowing would have hit 5% rather than the current 4.5%.
Skills gaps in several industries have been plugged as a result particularly agriculture, hospitality and catering.
E&Y said the fact that the UK was one of only three EU countries to immediately sign up to freedom of movement of labour in 2004 is helping to drive economic growth.
For more on this story see: AccountingWEB
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Profits squeeze forces factory job cuts
The UK's long-suffering manufacturers slashed 34,000 jobs during the last three months in an attempt to relieve the squeeze on profits.
Data for 2006's first quarter from the Confederation of British Industry found the number of workers shed was up 9,000 on the previous quarter bringing the total lost over the past 12 months to 122,000.
On the positive side, the report revealed factory demand and future orders expectations edged up after several months of decline but confirmed the spiralling rate of cost rises has continued.
Some 19% more firms said costs went up between January and March this year, only marginally lower than the 23% peak recorded three months ago.
For more on this story see: AccountingWEB
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Eligibility rules 'restrict staff share schemes'
Restricted eligibility criteria are preventing nearly two-thirds of employers from setting up employee share schemes, according to research by CCH.
To launch a new book, Employee Share Schemes by Chantrey Vellacott DFK remuneration partner Philip Fisher, CCH asked accountants in both practice and business about their experiences with such schemes.
As well as finding eligibility criteria to be a problem, 63% of respondents wanted to see the Enterprise Management Incentives (EMI) scheme extended to allow all companies to take part.
Under the current regulations, tax advantaged options over shares with a market value of up to £100,000 may be granted to each employee, subject to a maximum company limit of £3 million. The shares must be in a qualifying independent trading company that has gross assets of less than £30 million.
Yet 95% of respondents in industry said that their company had no plans to introduce an employee share scheme, and 63% felt the £100,000 individual limit for EMI, which has not changed since the scheme was introduced in 2000, should be increased, at least to keep up with wage inflation.
For more on this story see: AccountingWEB
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Bosses ignore perils of the office romance
Just 6% of UK employers ban romantic liaisons between staff.
The findings come on the back of the news that John Prescott, Deputy Prime Minister had an affair with his secretary.
Peter Jones, employment partner at Browne Jacobson, authors of the survey warn that office romances can lead to problems for employers:
“Companies should take the issue of office romance seriously as it can leave them open to accusations such as favouritism, harassment or discrimination. Problems can arise both during the relationship and after it has ended.
“Companies should at the very least have clear procedures to ensure fairness of pay, opportunity, promotion and dismissal to reduce the chances of them having to deal with disgruntled employees, grievances and even tribunal claims.”
Browne Jacobson surveyed company directors in more than 200 companies across the UK on their views of employees’ “out-of-office” activities.
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Employees go ‘green’
Over half of employees believe that their businesses should donate a higher proportion of their profits to the protection of the environment.
But while the sentiment is there 77% say that they’re not prepared to sacrifice their own benefits to help the environment.
The research published by Portman Travel shows that more than a third (36%) of employees believe that their employers show no or little commitment towards the environment, and 59% think that businesses should donate a higher proportion of their profits to the protection of the environment. Only 2% think businesses should contribute less to environmental causes.
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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.
“It is difficult to see how this can be maintained under the proposed arrangements,” it added.
For more on this story see: TrainingZONE
More news including pedophile fears hitting teaching skills pool.
