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European Edition
14th June 2024
 
THE HOT STORY
How Ikea reduced employee turnover and boosted morale
In recent years, Ikea has faced a high employee turnover rate globally, costing the company $5,000 or more per departure. To address this issue, Ikea implemented strategies such as flexible schedules, increased compensation, and improved orientation for new hires. The results were significant, with voluntary turnover in the US dropping to a quarter of employees by the end of 2023. Globally, the quit rate fell to 17.5% in April 2022. Retail jobs are known for low pay and erratic schedules, leading to a higher quit rate compared to other industries, and as such Ikea's success in reducing turnover is notable. The company focused on improving pay, flexibility, and using technology to simplify work for employees. These efforts are said to have resulted in happier workers and improved customer satisfaction. While challenges remain, such as supporting employee mental health and workers with disabilities, Ikea says its strategies have made a significant impact on employee retention.
WORKPLACE
US bank fires workers for ‘simulating’ being at their keyboards
US bank Wells Fargo has sacked a number of staff following claims that some employees were faking keyboard activity to make it appear that they were working. The bank disclosed the dismissals in broker filings with the US Financial Industry Regulatory Authority, saying staff had resigned or been fired "after review of allegations involving simulation of keyboard activity creating impression of active work." Wells Fargo spokeswoman Laurie Kight said: “Wells Fargo holds employees to the highest standards and does not tolerate unethical behaviour.” The regulatory filings did not say what techniques the employees had used, or whether they involved office or home computers.
Investment banks struggle with WhatsApp compliance
Investment banks are increasingly struggling to get workers to comply with bans on using WhatsApp for business communication, according to a survey by tech firm Global Relay. The survey found that 65.2% of compliance professionals found "getting staff to comply" was their biggest challenge with communication channels. Regulators in the UK and US have been cracking down on off-channel communications, resulting in heavy regulatory penalties. Companies have responded by banning WhatsApp, but the proportion of firms doing so has decreased from 59% in 2023 to 43.5% in 2024. Instead, more firms are now using communication surveillance technology to monitor bad behaviour.
HEALTH & WELLBEING
Dutch software firm implements four-day work week for employees
Dutch software firm AFAS has announced plans to transition all of its employees to a four-day work week starting next year. The move, which makes AFAS the first large employer in the Netherlands to implement a four-day work week, aims to promote work-life balance and inspire other businesses to follow suit. The company's approximately 700 employees will continue to receive the same wages, bonuses, benefits, and vacation time, while their workday will remain at eight hours. AFAS CEO Bas van der Veldt said: "This is about a great work-life balance, about being an attractive employer and about a new vision on work." Sick leave levels at AFAS were below 2.5% last year, and the company says it is working towards achieving gender representation in its workforce.
Luxembourg workers are among most stressed and dissatisfied in Europe
Luxembourg workers are among the most stressed and dissatisfied in Europe, according to a survey by Gallup. Just 8% of workers in Luxembourg feel "engaged" in their current role, the second-lowest total of 38 European countries. Almost half of employees in Luxembourg said they had felt stress on a regular basis, and more than one in three workers said they were actively seeking to change jobs. The survey also found that 60% of workers believed now was a good time to seek another job. Despite the dissatisfaction expressed in the Gallup poll, a study by Luxembourg national statistics agency Statec indicated that 86% of workers were happy with their job and seven out of ten were content with their pay.
Employers should do more than just talk about mental health
Talking up a company commitment to addressing mental health problems and encouraging staff to speak out, then not doing anything, can make a situation worse, Bethan Staton writes.
LEGAL
Workers in England could face sack for pulling a sickie after Euros match, warns legal expert
Workers could be sacked for pulling a sickie after England's first match of the Euros, warns Jayne Harrison, head of employment law at Richard Nelson. Employment lawyers are advising football supporters to think twice before faking illness, as employers can investigate and take disciplinary action over unauthorised absence. Office worker Nina Farooqi was sacked after her bosses spotted her on TV celebrating a Harry Kane goal at Wembley during Euro 2020. Harrison advises fans to book annual leave or take advantage of flexible working arrangements. Similar warnings were given ahead of the World Cup in Qatar. 
LEADERSHIP
Ball to ‘hand on the baton’ at EY in the UK
Hywel Ball, the head of EY’s UK business, has announced that he will step down as chair, telling partners that the time has come to “hand on the baton” to someone else. Mr Ball, 61, has been with EY since 1983 and has led the Big Four firm since 2020. His exit comes months after EY extended his leadership term by an extra year to June 2025 despite the firm's policy requiring partners to step down at the age of 60. He had been a strong proponent of a now-scrapped plan by EY’s global bosses to split up its audit business and consulting arm. EY says the selection process for appointing Mr Ball’s successor will begin in the second half of the year, while Mr Ball said he would agree a transition plan with his successor but did not expect a lengthy handover period. In line with the Financial Reporting Council’s governance code, EY says Mr Ball’s role of UK chair and managing partner will be separated in the future.
INTERNATIONAL
South Korean banks to allow staff up to five years of child care with 'parental resignation'
More banks in South Korea are implementing optional so-called "parental resignation" programs in an attempt to address the country's low birth rate.  The parental resignation system can be used in addition to the existing two years of childcare leave, extending the total period of parental hiatus to a maximum of five years. Employees will be re-employed without any disadvantages as long as they express their desire to return. The optional parental resignation system aims to enable employees to dedicate a further three years to child care before their children enter elementary school.  KB Kookmin Financial Group Vice President Kim Jae-kwan explained that the parental resignations are designed to "enable employees to dedicate three years to child care before their children enter elementary school . . . By offering re-employment at the same rank as before resignation, we aim to mitigate concerns regarding career interruptions and provide employees with continuous opportunities for professional development." However, experts question the policy's effectiveness in actually ameliorating the low birth rate and emphasize the need for a supportive work environment for returning employees. South Korea has been battling the world's lowest fertility rate, and the government anticipates a further decline in the coming years.
Hollywood's first stunt group for female performers
For stunt women in Hollywood, a lack of opportunities and representation has led to the formation of the Association of Women Drivers, the first-ever stunt group for professional female performers. Olivia Summers, a veteran stuntwoman, spearheaded the organisation after experiencing disappointment and frustration with male stunt drivers being cast as doubles for female actors. Despite guild rules requiring the hiring of female stunt performers for female roles, stunt coordinators often find ways to bypass these guidelines. The group also aims to challenge the practice of so-called "paintdowns," where stunt performers are painted black or brown to double for actors of colour. The organisation has also highlighted the financial burden of training and staying fit for stunt work.
Airbus considers mandatory overtime at A220 factory
Airbus is considering imposing mandatory overtime on weekends at its A220 factory in Montreal to address delayed production of the money-losing jet. The plan is being discussed with the International Association of Machinists and Aerospace Workers union. The A220 model has been heavily affected by production delays, and the impact on Airbus' delivery target of 800 planes this year is uncertain. The company aims to increase A220 production to 14 planes a month by 2026. Airbus declined to comment on production planning but stated that deliveries will be backloaded towards the second half of the year. The Machinists' union local president emphasized the need to respect collective agreements before imposing overtime.
Japan Airlines vows to improve safety awareness
Japan Airlines has pledged to improve safety awareness among its crew and revise its safety management system following a series of aircraft mishaps. The airline submitted a report to the transport ministry, stating that crew members' inability to assess danger levels and the pressure on pilots due to time constraints were contributing factors to the incidents. Japan Airlines plans to conduct intensive safety training and reestablish employee awareness. The airline will also consider reprimanding employees for oversights resulting in mishaps. Between November and May, five major incidents involving Japan Airlines aircraft were reported, prompting a stern warning from the transport ministry. The most recent incident involved two planes colliding on the airport's parking apron. The airline has implemented a new rule banning flight crews from consuming alcohol during layovers in response to a canceled flight caused by a pilot drinking excessively.
 


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