FTSE 100 lead the way on DC pensions
Four out of five FTSE 100 companies offer defined contribution (DC) pension schemes, with average employer contributions of 8.5% topped up by employee contributions to reach 13% total. Most DC schemes were established within the past five years and are now managing significant assets alongside growing membership numbers.
Car parts makers to get their pensions
T&N car parts workers will receive their pensions under a new deal accepted by unions. The agreement, backed by Federal Mogul’s largest creditor Carl Icahn, includes annual payments of nearly £14m into the pension scheme for three years following the parent company’s emergence from bankruptcy.
One-man bands win insurance battle
Sole traders have won an exemption from mandatory employers’ liability insurance following an 80% stakeholder vote. The change, effective early 2005, will exempt unincorporated businesses from the requirement, potentially saving around 300,000 small companies approximately £250 annually.
Q&A Feature: Reg Ruffle on E-learning
Reg Ruffle explains how e-learning blends professional instruction with web-based technology to deliver cost-effective training accessible 24/7. He discusses key business benefits including improved accuracy, flexible learning schedules, and reduced training costs, while cautioning against poorly designed programs lacking interaction and support.
NHS recruits to undergo criminal checks
The NHS will introduce Criminal Records Bureau checks for all new recruits with patient contact by 2005, including cleaners and maintenance workers, to enhance patient safety. The move follows cases where undisclosed criminal records posed risks to vulnerable patients.
HR Zone Briefing #212 – £57 billion a year pension gap revealed
A new Pensions Commission report reveals Britain faces a £57 billion annual pension gap, requiring difficult choices: increased savings, higher taxes, or working longer. The findings prompt debate on whether compulsory pension contributions and extended working ages are necessary solutions.
High-demand for leaders that ‘inspire’
Workers report a significant “inspiration gap” with employers, craving trust, conversation, and praise from leaders. Yet only 40% say they receive this, with less than one in four witnessing inspiring leadership behaviors in their workplace, according to research from the Chartered Management Institute.
Half of workers say ‘no’ to working into old age
A survey of 1,500 office workers reveals that 52% prefer not to work beyond State Pension age, despite policy recommendations to extend working lives. The research highlights that older workers now comprise a significant portion of office workforces, with most prioritizing work-life balance and flexible benefits.
The New HR Charter: Part 11a – Auditing HR
Auditing HR practices often relies on flawed measures that don’t reflect true effectiveness, such as counting training days delivered annually. The HR Charter addresses this by emphasizing sound investment outcomes over input metrics and promoting learning systems rather than crude performance targets.
Joblessness on the cards says Bank chief
Bank of England Governor Mervyn King has warned that Britain faces rising unemployment and higher inflation risks ahead, despite current low inflation rates of 1.1%. King outlined three explanations for subdued inflation including labour market reforms, productivity improvements, and anchored inflation expectations, but cautioned this favorable period cannot continue indefinitely.
Unemployment falls but jobs market stagnates
Unemployment fell to 1.39 million between June and August, but the Chartered Institute of Personnel and Development warns the jobs market has stalled, with negligible net job creation and record economic inactivity masking the official statistics.
CIPD say migrant labour is essential
The CIPD warns that restricting immigration could harm UK firms, as employers increasingly rely on migrant labour to fill professional and technical vacancies. Over half of surveyed employers plan to recruit overseas, with recruitment difficulties forcing nearly 28% to source workers internationally.
TUC calls for compulsory pension contributions
The TUC has called for compulsory employer and employee pension contributions to address a growing pension shortfall affecting the 2020-2030 retiree generation. The move, opposed by business groups who warn of significant costs, comes as policymakers debate whether voluntary pension systems combined with state pensions are sufficient for adequate retirement savings.
HR Tip: Frequent absence with plausible reasons
When an employee frequently calls in absent on Mondays and Fridays with self-certified reasons, address the pattern directly by discussing the business impact, encouraging medical evaluation, and warning that continued absenteeism will trigger disciplinary procedures.
£57 billion a year pension gap revealed
A major pensions report by Adair Turner reveals Britain needs to save £57 billion more annually for retirement to match European standards. The findings suggest raising taxes, increasing personal savings, or encouraging workers to extend their working lives beyond traditional retirement ages.
New NHS minimum wage tabled
Unison is putting NHS pay reform proposals to ballot among its 450,000 health members. The Agenda for Change package includes a new NHS minimum wage of £5.69 per hour, significantly higher than the government’s £4.85 minimum wage, representing the biggest shake-up of NHS pay and conditions since its creation.
Feature: Homeworking – benefit or burden?
UK employers remain skeptical about homeworking despite its potential benefits. While two-thirds of employers fear productivity losses, only 46% currently offer remote work arrangements, even though surveys show it improves work-life balance. Teleworking requires clear contractual agreements on work location, hours, equipment, and expense allowances.
HR Zone Member wire #69 – Can Royal Mail rise above the taunts?
Royal Mail’s performance has been subject to criticism, but closer examination of key statistics reveals surprising results that challenge negative perceptions. This week’s HR Zone newswire also covers the expanding HR outsourcing market and ongoing workplace challenges facing HR professionals.
Finance leader involves staff in a ‘taste-off’
The Funding Corporation is giving all 450 staff members a say in choosing their next canteen caterer through a ‘taste-off’ competition. The finance firm’s leadership believes involving employees in decisions that affect their workplace experience is key to maintaining company culture and staff satisfaction.
Office politics is not a game of chance
Office politics can deliver positive organizational benefits when used constructively, according to a new report that challenges the traditional view of workplace politics as purely damaging. The study reveals that political skills—including self-awareness, integrity, and relationship-building—can unblock barriers to change, accelerate decision-making, and foster greater organizational cohesion when deployed with the right intentions.
