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UK Edition
3rd February 2023
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THE HOT STORY
Young people seek to make friends as firms shift to remote-working
The workplace has traditionally been an environment to make friendships and connections, but many young people are lacking such opportunities as employers shift to hybrid-, distributed- or remote-working models. Experts say that, overall, social circles have shrunk in the wake of the pandemic – and in some cases, were never established at all. “Many people, Gen Z specifically, who are entering the workforce, haven’t necessarily had the experience of being able to make friends in the typical way, and are starting a new job for the first time where they don’t know anyone,” explains Miriam Kirmayer, a clinical psychologist and friendship expert practicing in Montréal, Canada. Because Gen Z has not had the “experience of making new friends at work that they really can draw on and leverage to keep them feeling socially connected,” young people are fundamentally changing their approaches to how they connect, and what those connections look like, Kirmayer says.  These shifts also have changed the entire traditional idea that work functions as a “hub of friendship and social connection,” she adds.
TALENT TRENDS 2023
Five Game Changers to Drive Business Impact in 2023

The need for organisations to invest in future-ready talent has never been clearer. To remain competitive, they must closely align their business and talent strategies, developing new talent approaches, models and mindsets to drive continued organisational performance.

Kincentric held a series of conversations with CHROs and senior heads of Talent in leading organisations globally to gain deeper insights around the critical importance of people and talent in driving business outcomes. This new 2023 Talent Insights report sheds light on top talent management priorities that will deliver the greatest ROI in 2023, providing actionable advice for leaders to overcome existing barriers to drive success.

Download the report here

 
LEGAL
Trade unions challenge changes to public sector pensions
Two British trade unions challenging changes to public sector pensions have told London’s High Court that the UK government is unlawfully passing on the £19bn cost of fixing discriminatory pension rules to public sector workers. The Fire Brigades Union and the British Medical Association (BMA) say Britain’s finance ministry is effectively making members of newer pension schemes foot the bill for its own mistake. The government says it was faced with a “basic choice” between asking public sector employees or pension scheme members to bear the cost. The case centres on the fallout from reforms to the public service pensions system in 2015, parts of which were found to be unlawful by the Court of Appeal in 2018, which ruled that the exclusion of younger staff from more beneficial “legacy” pension schemes, as part of wider government reforms, amounted to age discrimination. Fenella Morris, representing the BMA, said the government “could and should” have met the cost differently. The government’s lawyer Nigel Giffin said in court documents: “The basic choice was whether that cost should fall on public sector employers . . . or whether it should be met by withholding from scheme members the improvements to benefits or reductions in employee contributions which they might otherwise have enjoyed.”
Royal Mail accused of using a 'dystopian' tracking system
The Communication Workers Union (CWU) claims Royal Mail has been using a “dystopian” tracking system that alerts managers when postmen stand still. Alerts are being sent by digital devices that postal workers are required to carry with them on their daily rounds, the CWU says, with those deemed to have stopped for too long summoned to their manager’s office to “explain any periods of inactivity.” Simon Thompson, Royal Mail’s chief executive, will be questioned on the subject for a second time in Parliament later this month after MPs accused him of giving “inaccurate testimony” during a precious appearance.
WORKFORCE
Few incentives for early retirees to return to work
The Bank of England has warned that Britain’s workforce will be permanently smaller after the pandemic, putting the economy's long-term performance at risk. The Bank on Thursday cast doubt on the government’s prospects of luring early retirees back to work, highlighting evidence of "increasing detachment" among people who had left their jobs or given up looking for work since 2020. More than half a million people have left the workforce since the start of the pandemic. The Bank also pointed to ill-health and treatment delays associated with the pandemic as reasons why people weren’t returning to work. Separately, Pete Glancy, head of policy at Scottish Widows, says retired workers, including professionals critical to UK public services such as doctors, lawyers and judges, are increasingly disincentivised from returning to work in later life due to outdated policies such as the pension lifetime allowance. “If we want to encourage much-needed professionals back to the workplace, the government must take decisive action now, such as raising the LTA threshold in line with rising wages caused by inflation,” says Glancy.
HEALTH & WELLBEING
Break-ups can be hard, but does HR need to manage them?
The Times' Harry Wallop questions an initiative from the Positive Parenting Alliance which is persuading companies to provide workers with time off and support if they break up with their partner. Although the chief aim - to make sure that children do not become unduly damaged when their parents split up – may be a laudable one, Wallop wonders if corporate HR departments need to be involved. Unilever, Vodafone, Asda, PwC and Tesco are among those to have signed up to the initiative.
WORKPLACE
HSBC staff go casual
HSBC has announced a shift to more casual uniforms for 4,000 branch staff, including jumpsuits and "menopause-friendly" garments for women, ethnic-wear, including tunics and hijabs, and chinos and jeans. The bank said the uniform redesign mirrored the "more casual new look of the banks' branches." The BBC notes that HSBC is to close 114 more UK branches from April, with about 100 jobs disappearing. HSBC UK's director of distribution, Jackie Uhi, said: "Our branch colleagues are the public face of the bank, so what they wear does not only need to reflect the brand, it needs to look good, be practical, comfortable and hard-wearing, while taking into account specific human needs like those who are pregnant or going through the menopause." The bank said the fit, style and material of the new outfits had been designed to provide "maximum comfort" when people were experiencing menopause symptoms.
CYBERSECURITY
US plays down ION cyberattack
A senior official in the US Treasury Department has said a cyberattack on UK-based software firm ION that hit processing of trades in derivatives markets doesn't pose a “systemic risk to the financial sector.” The incident affected 42 of the firm’s clients and forced several European and US banks and brokers to process trades manually.  A Russian ransomware gang known as LockBit was behind the attack, according to correspondence from ION obtained by Bloomberg. Todd Conklin, deputy assistant secretary of the Treasury's Office of Cybersecurity and Critical Infrastructure Protection, said the issue is “currently isolated to a small number of smaller and mid-size firms and does not pose a systemic risk to the financial sector,” adding “We remain connected with key financial sector partners, and will advise of any changes to this assessment.”
MANAGEMENT
NatWest boss U-turns on refusal to attend parliamentary hearing
Dame Alison Rose, the CEO of NatWest, has bent to pressure to answer MPs' questions next week after previously claiming she was too busy preparing for the bank’s annual results. MPs will question Rose and the bosses of Lloyds Banking Group, HSBC and Barclays on why they have failed to pass on benefits from rising interest rates to ordinary savers, while increasing borrowing costs on mortgages and personal and corporate loans. Chair of the Commons Treasury select committee Harriett Baldwin said: "We look forward to questioning the leaders of the UK's biggest banks on issues of fundamental importance to our constituents. Public scrutiny of our largest financial institutions is vital."
Heathrow boss to step down
John Holland-Kaye will quit as Heathrow’s chief executive later this year after nine years at the helm. His departure follows the airport racking up £4bn of losses during the pandemic and ongoing clashes with airlines over restricting flights during last summer’s travel chaos.
INTERNATIONAL
Italian government pushes short-term job market
Italy's right-wing government wants to facilitate temporary and informal work arrangements that trade unions say will exacerbate in-work poverty and stagnant productivity. New prime minister Giorgia Meloni argues that more employment market flexibility will mean more jobs, and encourage bosses to legalise workers who were previously not declared. Italy’s promotion of a short-term job market shuns the example of euro zone countries that have sought to rein in temporary contracts to promote stable employment. Michele Tiraboschi, a labour law professor at Modena University, observes: "Short-term contracts offer firms temporary relief by cutting their costs, but the last 25 years have shown us we should be focusing on the quality of work, on training, on raising productivity to enable higher salaries." Paola Mancini, a senator with Meloni's Brothers of Italy party, said: "Flexibility should be seen as an asset and an opportunity, not as a problem . . . Restrictions for businesses have to be cut."
Employers and employees are at odds over email layoffs
Many companies are now using email to conduct layoffs, reports the Wall Street Journal. Human resources managers value the speed at which email layoffs can deliver difficult news to many workers at once and limit confusion, although many employees say cuts via the inbox feel cold and unkind.  Some workers, though, say being able to absorb the decision in written form, privately, can help soften the blow. Phyllis Hartman, president of Pittsburgh-based HR consulting firm PGHR Consulting, cautions that any insensitivity amid a layoff increases the likelihood that disaffected staff will legally challenge their terminations. “You’re setting yourself up for trouble,” she says. “If they’re angry, they’re going to look for a reason to get back at you.”
Israeli bill to restrict strike rights of labour unions
A coalition of Israeli lawmakers has submitted legislation which aims to restrict the right of union members to strike. The bill, which was submitted by Simcha Rothman of the far-right Religious Zionism party, who serves as chair of the Knesset’s Constitution Law and Justice Committee, specifically targets the right of essential workers to take strike action in the national electricity, water, ports, public transportation and health fields, and also the Israeli Stock Exchange and the Bank of Israel. The proposed legislation would also strip protections from workers who walk out in solidarity with other unions. This would prevent the national Histadrut labour federation from joining the nationwide protests against the government’s planned judicial overhaul. Histadrut chairman Arnon Bar-David said the bill would not succeed. “Exercising the right to strike is one of the main tools to protect economically vulnerable populations, and I will not allow any party to harm union workers. I knew how to stand up to this threat in the past, and I don’t propose that anyone try us again,” he said.
OTHER
Christian claims son, 4, was forced to go to LGBT pride parade
A devout Christian who claims her four-year-old son was compelled to take part in a LGBT pride parade considered the event to be the “most serious of the deadly sins,” a court has heard. Izzy Montague is taking Heavers Farm Primary School to court after claiming she was told by the school's headteacher that her son could not opt out of the event. At the time, the school, in south Norwood, south-east London, sent a letter to parents saying that it would be "celebrating the differences that make you and your child's family special." However, Mrs Montague's request for her son to be excused was denied by the school's headteacher, Susan Papas. She then took legal action against the school in what is believed to be the first time that a UK court will assess the legality of LGBT+ teachings and compulsory activities in primary schools.
 


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