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27th November 2023
 
THE HOT STORY
FTSE 350 firms urged to accelerate gender parity efforts
Analysis by gender consultancy The Pipeline suggests that while big businesses are hiring women in executive leadership roles at the fastest pace in five years, they remain less likely to land influential roles overseeing the commercial side of the business. The research shows that female executives are often in “functional roles” in areas such as HR and marketing, rather than roles with profit and loss responsibilities that are more likely to lead to becoming CEO. Across the FTSE 100, only 13% of firms have a female CEO, while in the FTSE 350, 91% of CEOs are male. The Pipeline report found that almost half of women feel that workplace environment and culture are the most difficult obstacles to overcome when it comes to progressing into leadership roles. Sue O’Brien, chair of The Pipeline, said: “Leaders need to examine their workplace culture and ensure that their promotion procedures are truly equitable as well as being merit-based.” She also warned that the “glacial rate of progress towards gender parity . . . is a serious cause for concern.”
REMOTE WORKING
Council employees investigated for 'moonlighting' during remote work
Council employees with second jobs are being investigated by a government fraud squad after staff were caught "moonlighting" while working from home. The National Fraud Initiative (NFI) is assessing the scale of the problem after several local authorities warned that hybrid working has exacerbated the practice of "multiple contract working." At least three councils - Wakefield, Enfield, and Kensington and Chelsea - claim to have caught staff members in the deception. This year, the NFI, in collaboration with the London Borough Fraud Investigators Group, launched a pilot scheme to establish the extent of the issue at London councils, having identified cases at local authorities in the past. Separately, the FT’s Pilita Clark reports on growing concern that remote workers are offering their services elsewhere: half of HR bosses polled say their business had punitive policies for workers who flouted hybrid rules.
STRATEGY
Finance Secretary warns financial pressure means public sector workforce cuts
Finance Secretary Shona Robison has said that Scotland's public sector workforce will need to shrink due to funding pressures. The job cuts were signalled following a “worst-case” autumn statement by the UK Chancellor. While Robison said that areas like health would be protected and ministers aimed to avoid compulsory redundancies, she highlighted the need for new ways of working and suggested that the use of digital technology could reduce the reliance on public sector buildings.
Barclays set to cut 2,000 jobs
Barclays plans to cut as many as 2,000 jobs as part of a £1bn cost-cutting drive. The redundancies at the bank are set to focus on back-office roles in its compliance, human resources and legal departments. Chief executive CS Venkatakrishnan recently said the bank is looking for “efficiencies” as it seeks to reduce “structural costs.” When asked about potential job losses, he said: “We always modulate the size of our workforce everywhere in the world in which we are and that's what we will continue to do.”
Lloyds jobs at risk
More than 2,500 jobs are at risk at Lloyds Banking Group. Britain’s largest high street lender is reportedly considering cutting a series of middle-management roles, including analyst and product management posts. Sources says that while 2,500 roles are being reviewed, the bank’s management hope the number of total job losses will end up being lower. A source familiar with the consultation said the bank expected to create a net 120 UK jobs at the end of the process and is changing the focus of certain roles.
HIRING
Rising number of law firms use recruiters to get rid of employees
A rising number of law firms are using recruiters to get rid of employees by the backdoor after over-hiring during the pandemic. This practice, known as reverse hiring, involves external recruiters "headhunting" employees out of the business and placing them elsewhere. Evan Jowers, city recruiter and partner at Lateral Link, said a slowdown in business since the start of last year and over-hiring has led some corporate firms to increase the pace at which they get rid of staff. "There has been a rise in reverse hiring in major law firms because of layoffs in the industry since the third quarter of 2022 up until now," he said. However, Jeremy Coy, employment senior associate at firm Russell-Cooke, said a significant legal risk for employers is being found to be in breach of the employee's "trust and confidence."
Creative sectors call for AI era tax overhaul
The creative industries have called for an overhaul of the tax regime to address the increasing prevalence of artificial intelligence (AI) amid concerns it will be cheaper to buy machines than hire humans. Senior figures from the film, publishing, and music industries have urged the government to rethink taxes to ensure companies are not incentivised to automate their systems at the expense of jobs. Nicola Solomon, chief executive of the Society of Authors, said: “If you buy in large amounts of machinery or software you will get capital allowances for that. If you take on real people, you have to pay their tax, their National Insurance and so on. So it actually becomes cheaper to buy and use machinery than to buy and use people, even if the base costs were the same.”
Advertised salaries fall but job ads increase
Advertised salaries in Britain hit their lowest level in six months in October, according to jobs website Adzuna. Annual advertised salaries averaged £36,946 last month, down 0.4% compared to September. The dip means advertised wages are down 1.9% since April. Andrew Hunter, co-founder of Adzuna, said: “Falling advertised salaries may not appear to be good news for jobseekers but it does signal that the menace of inflation is finally in retreat.” The report also shows that vacancies increased for the first time since June, suggesting a recovery in the labour market. Online job ads were up 0.35% to 1.03m, with pre-Christmas hiring driving the biggest month-on-month increase since June.
Labour proposes salary increase for foreign workers
Shadow Home Secretary Yvette Cooper says Labour would increase the salary requirements for foreign workers seeking to come to Britain. Although the annual salary threshold for a skilled worker visa is set at £26,200, roles on the shortage occupation list can be offered at £20,960 or at a 20% discount, whichever is higher. Cooper said that under Labour, the salary threshold would be hiked based on recommendations from the migration advisory committee, the watchdog that advises the government on immigration, while the 20% discount would be abolished. She added that Labour would also limit the ability of companies that do not pay "fair" wages to recruit from abroad.
Migration crackdown would be 'very dangerous' for care sector
Professor Ian Bell, the chair of the Migration Advisory Committee, has warned that any Ggvernment moves to block overseas care workers from bringing their family to the UK, or to cap numbers of overseas care workers, would be "very dangerous" for the social care sector - with the end result potentially being that "lots of people won't get care." He said: "You can't encourage enough British people to do the work in social care because it's so badly paid . . . If you make it harder for migrants to come in - that will reduce net migration, and so the government might be happy with that. But I think you have to ask the question, if you achieve that policy objective, aren't you massively harming the social care sector?"
WORKFORCE
Insolvency service pays £42m to former Wilko staff
The Government's Insolvency Service has paid over £42m to nearly 10,000 former staff of retailer Wilko. The payments cover redundancy pay and statutory notice pay owed to employees affected by the collapse of the chain. Handled by its Redundancy Payments Service, the Insolvency Service said it began preparing for the influx of claims when Wilko went into administration.
LEGAL
Recharge staff look to recover missing pensions payments
Disgruntled employees of Recharge UK, the buyer of the Britishvolt gigafactory battery project, are planning a petition to the Pensions Ombudsman in a bid to recoup missing pensions payments. Staff are awaiting the outcome of a statutory demand for unpaid wages, which must be met this month. If it is not, it will trigger a winding-up petition and a likely appeal to the ombudsman for redress. Recharge acquired Britishvolt in February but failed to pay administrators at EY the full £8.6m it had agreed.
Carnival withdraws 'fire and rehire' threat
Cruise operator Carnival UK, which operates P&O Cruises and Cunard, is withdrawing a threat to use a 'fire and rehire' strategy in negotiations over pay and conditions for 919 crew members. In a joint statement, Carnival and trade union Nautilus said they would instead work "co-operatively towards a negotiated settlement." While welcoming the move, Nautilus executive officer Martyn Gray said “fire and rehire, or dismissal and re-engagement, should never be an option for any employer to force changes to terms and conditions and the UK government should commit to outlawing this.”
REMUNERATION
Bosses: Minimum wage hike will reignite inflation
Business leaders warn that that the 10% increase in the minimum wage announced in the Autumn Statement will drive up costs and undermine efforts to reduce inflation. Steve Morgan, founder of housebuilder Redrow, says ministers "don’t realise the knock-on effect of wage rises on those higher up the pay scale.” Neil Carberry, chief executive of the Recruitment and Employment Confederation, said of the increase: “If you put that in the context of a hospitality firm or childcare provider, that’s a 20% rise in wages at a time when the top line isn’t growing magnificently and other costs are rising.” While Carberry expects businesses to try to manage the increased costs by reducing opening hours and raising prices, some analysts expect businesses to cut jobs.
KPMG to freeze pay for 12,000 staff
KPMG has announced it will freeze the pay of 12,000 staff. Employees will only get a pay boost if they get a formal promotion. KPMG said: “In light of softened market demand this year, any pay increases have prioritised those who have been promoted.” The spokesperson also noted that while eligible staff will be rewarded with bonuses this year, “reflecting the challenging economic and market environment, this will be lower than in previous years.”
DIVERSITY, EQUITY & INCLUSION
AI warning over lack of female execs
Experts warn that sexism risks being embedded into computer systems because there are so few female executives working in AI. World Economic Forum analysis shows that fewer than a quarter of those employed in the field of AI are female, with the rate falling to about one in five in the UK. The Alan Turing Institute says female-founded AI start-ups secure just 2% of funding deals. Melinda Gates, the former wife of Microsoft co-founder Bill Gates, says she is “very nervous” as there are not enough women with expertise in AI, warning that more are needed or “we will bake bias into the system.” Romi Savova, CEO of online pensions app PensionBee, says the representation of women in senior positions “remains frustratingly sparse.”
Asos removes diversity targets for executive bonuses
Online retailer Asos has changed the criteria for its annual executive bonus scheme, removing the requirement to hit diversity targets. The new criteria will primarily depend on profits, as well as progress in improving Asos' share price and profit margins. The company aims to have 50% female and 15% ethnic minority representation at every leadership level by 2030. Asos has also included a diversity measure in its longer-term incentive scheme, potentially reducing shares for executives if progress is not made.
Tudor Trust dismissing board in diversity drive
One of Britain's biggest charitable trusts, the Tudor Trust, is dismissing its entire board as part of a diversity drive. The trust, which has an endowment of £288m and received £2.35m of government funding in 2018, wants a more diverse group and to put social justice and anti-racism at the heart of its work. The group plans a wholesale change of the family-led board and aims to appoint new trustees and a permanent chair more representative of the communities they serve.
 


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