The latest business Intelligence for HR professionals and people managers everywhere
Sign UpOnline Version
UK Edition
1st December 2023
 
THE HOT STORY
Health insurance rates in UK expected to soar by 20% next year
Health insurance rates in the UK are expected to increase by at least 20% next year due to the surging number and cost of claims, according to industry advisers. The use of company health schemes has expanded as the National Health Service struggles to meet patient demand after the COVID-19 pandemic. A record 4.4 million people are now covered by employer health insurance, as waiting lists for hospital treatment hit record highs. Insurers are experiencing higher inflation than the medical trend rate, leading to rising premiums. Some workplace health insurance schemes are seeing rate rises of over 40%. Employers are starting to question how to tackle the rising costs, with potential solutions including employees paying a flat fee for initial consultations with online doctors or offering health screening. "The market is nervous, we are in a very unknown phase and insurers don't like unknowns," said one health insurance industry consultant.
WORKFORCE
Union says foreign care workers in UK face exploitation and low pay
A union has detailed how foreign care workers invited to the UK to address worker shortages are being exploited, with some being paid as little as £5 an hour and charged unexpected fees. Unison highlighted cases of exploitation, including workers being paid less than the legal minimum and facing deportation after losing their jobs. Immigration minister Robert Jenrick has reportedly drawn up options to curb immigration, including banning workers from bringing dependants, or restricting them to one relative. The Home Office extended skilled-worker visas to foreign care workers to fill social care vacancies, but Unison is urging the government to provide more time for workers to find new employment. Unison general secretary Christina McAnea said: "Overseas care workers have been encouraged to come here to support those most in need, only for some employers to treat them as expendable. Ministers must stop being complicit in allowing this abuse to happen."
LEGAL
Black employees in UK see little change in earnings gap with white employees
Black employees in Britain have seen little change in the earnings gap compared to white employees, according to the Office for National Statistics. In 2022, Black employees were paid 5.6% less than white employees, a figure that has remained consistent over the past decade. However, the gap for Asian employees was 1.9%, roughly half of its 10-year average. The statistics take into account factors such as occupation, geography, and qualifications. The findings highlight the ongoing disparity in earnings between different ethnic groups in the UK.
HEALTH & WELLBEING
Indeed cancels monthly mental health days for employees
Job site Indeed is cancelling the monthly mental health days it introduced during the pandemic. The company initiated "YOU Days" in June 2020, giving all employees the same day off each month. However, employees are now booking time off at a similar rate to before the pandemic, so the need for these days has passed, the company says. Bloomberg notes that many companies are reevaluating their benefits offerings and making difficult decisions about which to keep. Indeed's move follows a decision earlier this year to cut 2,200 jobs. Indeed says it will continue to provide unlimited paid time off and the option to work fully remote.
TECHNOLOGY
PwC launches AI chatbot
PwC has launched an AI chatbot to aid deal-making. The new technology will analyse client documents and provide guidance to deal-makers. PwC's chatbot, developed in collaboration with AI start-up Harvey, aims to reduce deal failure and provide a competitive advantage. The company plans to license the platform to clients, including private equity firms and banks, and has already implemented Harvey's AI tools in other departments. Lucy Stapleton, UK deals leader at PwC, said its new AI chatbot will help staff develop new skills and boost productivity by allowing more time for analysis. The Telegraph notes that the launch of the chatbot comes just weeks after PwC announced up to 600 job cuts across its advisory team in a voluntary redundancy scheme, with weaker demand for advisory services leaving the Big Four firm overstaffed.
STRATEGY
Metro Bank could cut 850 jobs
About 850 jobs are expected to be lost amid a cost-saving drive at Metro Bank. The lender recently said it is seeking savings of as much as £50m a year, having been forced into a £925m emergency refinancing that rescued it from possible collapse. Chief executive Daniel Frumkin said Metro Bank is “committed to stores and the high street but will transition to a more cost-efficient business model while remaining focused on customer service.” It has been suggested that this will see Metro shedding a fifth of its 4,266 employee workforce, meaning 850 job losses. Metro, which has added branches and extended hours as other lenders have closed thousands of sites, is now in talks with the Financial Conduct Authority over making cuts to its service and plans to review its seven-day-a-week opening hours. 
HIRING
Sustainability is vital for applicants
Analysis by Hays shows that three-quarters of professionals believe an organisation’s commitment to sustainability is vital when considering a new role. It also found that 72% of companies use eco credentials to attract new staff. Hays’ Paul Gosling says: “Not only is it the right thing to do, but it can offer significant commercial and talent attraction advantages.”
CORPORATE
Corporate confidence climbs
Research by Lloyds Bank shows that business confidence has climbed back to levels not seen since before Russia’s invasion of Ukraine and the subsequent energy crisis. An index tracking optimism among British companies has climbed by three points to a net balance of 42%, marking the highest level since February 2022. Firms polled are more confident in their trading prospects, up four points month-on-month to a net balance of 48%, while a measure of economic optimism was up by three points to a net 37%. Hann-Ju Ho, senior economist at Lloyds commercial banking business, said there are signs that wage expectations may be stabilising, even against the backdrop of hiring intentions increasing to an 18-month high. “Price indicators in the survey are similarly up, with our data continuing to show that firms are still safeguarding their profit margins in response to past rises in interest rates, wage increase pressures, and the prospect of higher energy prices,” he added.
ECONOMY
Majority of Britons support rejoining EU single market, poll shows
A majority of Britons support rejoining the European Union's single market even though that would mean the restoration of the free movement of workers from the bloc, according to a poll. Curbing immigration was a key reason Britons voted to leave the European Union in 2016. The YouGov polling showed that 57% of Britons would now support joining the single market even if that meant the resumption of the free movement of people, a policy which led to millions of families and workers moving to Britain during the country's membership. One in five people opposed it. Support for joining the single market, which also guarantees the free movement of goods and services, was divided along political lines. For those respondents who voted to leave the EU and who would back the opposition Labour Party in an election tomorrow, 53% support single market membership, with 31% opposed. For those who voted for Brexit and intend to vote for the governing Conservatives, only 29% would support a return to the single market, with 54% opposed. In general, the poll shows that 72% of Britons want the country to have closer ties with the European Union, including a majority of both Remain and Leave voters.
INTERNATIONAL
US watchdog fines PwC $7m over exam cheating
PwC affiliates in Hong Kong and China have been fined $7m by the Public Company Accounting Oversight Board (PCAOB). The US accounting watchdog found that more than 1,000 audit staff cheated on internal training exams between 2018 and 2020. Without admitting the allegations, PwC’s Hong Kong firm has agreed to pay a $4m settlement, while PwC China is to pay $3m. PwC said it was “highly regrettable” that staff had shared test answers. The PCAOB has ordered the firm to strengthen its policies to ensure staff act with integrity in internal training.
Portugal extends tax breaks for foreign residents
Portugal's parliament has extended tax breaks for foreign residents until the end of next year, despite criticism that the scheme has led to unaffordable housing prices. The extension requires applicants to show proof of their move to Portugal in 2023, either through employment or a housing contract. The scheme, known as Non-Habitual Resident, was introduced in 2009 to attract investors and professionals during the financial crisis. It offers a special 20% tax rate on Portuguese-sourced income derived from high value-added activities, as well as tax exemptions on foreign income and a 10% flat tax rate on pensions from a foreign source. Prime Minister Antonio Costa initially planned to close the scheme by the end of this year but his ruling Socialist Party backtracked, and the decision to extend was approved in the final vote on the budget bill. Over 74,000 people have benefited from the scheme, costing the state budget over €1.5bn annually.
Coal mining accidents in China's top producing region claim 100 lives
The death toll from coal mining accidents in China's top coal producing region, Shanxi province, has risen to 100 people this year, marking a 53% increase compared to last year. The accidents have exposed issues of inadequate coordination, failure of safety responsibilities, and weak mine safety foundations. To address the problems, a team from the State Council's Security Committee will be stationed in the province until May 2024. The announcement of intensified safety checks caused a more than 5% jump in China's coking coal futures contract prices. Despite efforts to enforce safety standards, China's coal mining sector has experienced several accidents this year. Miners aim to increase production to ensure sufficient coal supply for domestic energy security. Shanxi province, which accounts for 23% of China's coal reserves, plans to raise coal output by 4.6% this year. Nationwide coal production reached 3.83 billion tons in the first 10 months of 2023, a 3.1% increase from the previous year. "Safety checks have been quite stringent following a few mining accidents since November, and this has tightened domestic supply of the steelmaking raw material," said analyst Pei Hao.
New Russian law restricts foreigners' freedom of speech
The Russian government is proposing a new law that would require foreigners entering the country to sign a loyalty agreement, restricting their freedom of speech regarding government policy, social values, and Soviet military history. The draft legislation, set out by the Interior Ministry, also states that foreigners must not discredit Russian authorities or officials, contradict Soviet military history, or disrespect the country's "spiritual and moral values." If the law is enacted, foreigners would need to sign a consent form to enter the country. The proposed measures signal a further tightening of free speech in Russia since President Vladimir Putin's invasion of Ukraine. Several independent Russian news outlets have closed, and many journalists have fled the country. Civil rights activists and legal experts argue that the law would essentially muzzle the foreign press, making it difficult for them to work in Russia unless they adhere to Moscow's narrative. The Kremlin has sought to blame the West for trying to destroy "traditional values" and has accused the West of downplaying the Soviet Union's role in defeating fascism. Russia's Supreme Court is considering a lawsuit to have the international LGBT movement recognized as extremist and banned in the country.
OTHER
Judges urged to think twice about jailing menopausal women
Judges and magistrates are advised to consider rehabilitative community sentences instead of short jail terms for menopausal female offenders, according to new guidelines from the Sentencing Council. The council suggests that judges should take into account the impact of menopause on the behaviour of women aged 45 to 55. The guidelines also emphasise the importance of rehabilitation in reducing reoffending and urge judges to assess the lives of offenders from specific backgrounds. Additionally, the council highlights the potential harm to unborn children when jailing pregnant women. The proposed guidelines aim to reduce the number of offenders serving short sentences and promote alternatives to custody.
 


The Human Times is designed to help you stay ahead, spark ideas and support innovation, learning and development in your organisation.

The links under articles indicate original news sources. Some links lead directly to the source material. Others lead to paywalls where you may need a subscription. A third category are restricted by copyright rules.

For reaction and insights on any stories covered in the Human Times, join the discussion by becoming a member of our LinkedIn Group or Business Page, or follow us on Twitter.
Follow us on FacebookFollow us on TwitterFollow us on Linkedin

This e-mail has been sent to [[EMAIL_TO]]

Click here to unsubscribe