The latest business Intelligence for HR professionals and people managers everywhere
Sign UpOnline Version
UK Edition
15th July 2024
 
THE HOT STORY
Labour to hold bad employers accountable, says TUC chief
Labour will hold bad employers accountable for their actions, according to Paul Nowak, head of the Trades Union Congress (TUC). Nowak argues that despite intense lobbying from UK corporations, he expects the King's Speech this week to demonstrate to bosses that Labour's fundamental transformation of workers' rights is proceeding as scheduled. Businesses should be afraid of the changes, according to Nowak, but only if they are among the bad actors. "To good employers, there's nothing to worry about, to bad employers, then I'm sorry," the union leader said. The Labour Party's New Deal for Working People is a set of policies aimed at improving workers' rights. These include raising the minimum wage, prohibiting "fire and rehire" tactics, terminating zero-hour contracts, and providing protection against wrongful termination from day one. While employers and unions have expressed reservations about the proposals, Labour plans to introduce an employment rights bill within its first 100 days in office.
HEALTH & WELLBEING
Companies boost mental health provision amid wellness concerns
The Times' Naomi Ackerman looks at the mental health crisis among workers and the impact on UK businesses. She cites analysis from Axa which shows that poor mental health is the leading cause of workplace absence. The insurer calculates that mental health-related productivity losses cost organisations about £57bn last year. Meanwhile, an annual survey by HR and employment law consultancy Peninsula found a 140% year-on-year increase in SMEs reporting a detrimental impact of mental ill-health on their businesses. Ackerman notes that experts have put the recent decline in employee wellbeing down to factors including the long-term impact of the pandemic, as well as an inability to gain access to NHS psychological support, with waiting lists growing longer. A number of firms are investing in mental health provision, driven by employee demands but also by data on the success on intervention. Research from Deloitte suggests that businesses see an increased productivity return of £4.70 for every £1 spent on supporting the mental health and wellbeing of their workforce.
Campaigners push for four-day working week in UK
A campaign has been launched in the hope that the new Labour government will be receptive to the idea of a four-day working week. The 4 Day Week Campaign and Timewise have partnered to launch a second four-day week pilot in the UK, with research support from the University of Cambridge, Boston College, and the Autonomy Institute. The pilot project aims to persuade the government to consider changes in how people work. The campaign for a four-day working week, with no loss of pay, has gained momentum in recent years. The latest trial will also explore other flexible working policies. Advocates argue that the five-day nine-to-five is outdated and no longer fit for purpose. The campaign is pushing for a four-day, 32-hour working week with no loss of pay. Studies suggest that a shorter work week can lead to increased productivity and better work-life balance.
REMOTE WORKING
Just 7% of bosses go into the office full-time
Despite many firms pushing staff to return to their desks, a poll of CEOs shows that just 7% of corporate leaders go into the office full time. A survey of over 500 UK chief executives by workspace provider IWG revealed that a quarter of them believe a full-time return to the office is a priority but two-thirds said they would lose talented people if they insisted on their employees being present in a central office every day, as nine in 10 work flexibly themselves. Three-quarters of the business leaders quizzed in the survey noted improvements in employee engagement and collaboration between teams as a result of flexible working.
Employees push back against returning to the office
The Guardian's Jedidajah Otte looks at how some workers are resisting their employers' efforts to have them return to the office, citing the benefits or remote and hybrid working. The backlash against office returns has led to an increase in legal action as employees seek to protect their rights. The issue of remote working has been debated in high-profile cases, with some bosses arguing that in-person interaction is beneficial. However, many workers argue that blanket return-to-office directives are arbitrary and fail to consider the limitations of office attendance. The cost of living is another major concern, as remote working has allowed employees to save on commuting and childcare expenses.
TRAINING & DEVELOPMENT
Firms look to enhance etiquette
The demand for etiquette coaching has grown significantly in the UK, with experts increasingly helping people improve their posture, greetings, and introductions. Amid this increase in etiquette coaching, companies have started to offer soft skills, networking and manners coaching. These companies include KPMG, which last year introduced extra training for its Generation Z staff as managers felt this band of workers had lost out on vital social experience during the pandemic. The firm has offered classes on presentation and working in teams, alongside other key elements of office life.
REMUNERATION
Lack of degree not a barrier to £40k wages
Analysis from jobs website Adzuna reveals that a number of roles which do not require a degree or specialised training offer more than £25 per hour, which works out as an annual salary of almost £43,000 per year. Some of the best-paid jobs where workers do not have to pay for university courses or training include an agile coach, a court reporter, and a childminder. Other high-paying jobs without a degree include UI designer, creative copywriter, and home health aide. Adzuna co-founder Andrew Hunter said: "Numerous hourly paid roles now offer over £20 per hour and don't require a degree. For jobseekers looking to strike a balance between earnings and lifestyle, these roles are a golden opportunity."
WORKFORCE
England sees manufacturing jobs decline
The devolved nations of Wales, Scotland, and Northern Ireland have experienced significant growth in manufacturing jobs over the past year, in contrast to the decline seen in English regions. According to research by industry group Make UK and BDO, manufacturing jobs increased by 13,000 in Wales, 10,000 in Scotland, and 2,000 in Northern Ireland. However, England saw a decrease of 34,000 manufacturing jobs - with all regions bar the East of England posting a decline. The report highlights the ongoing challenge of finding skilled workers and calculates that there are 64,000 vacancies in the sector. Richard Austin, head of manufacturing at BDO, said:“There is now an exciting opportunity for the sector to work with the new Government on the development of a new long-term industrial strategy." This, he said, "could help address longstanding skills shortages, boost infrastructure, improve productivity and unlock vital investment."
Cleaners at prestigious girls' school vote for strike action
Cleaners at James Allen's Girls' School (Jags) in Dulwich in south London have voted for strike action after being told they will have five weeks of work docked per year. The dispute is between about 20 members of United Voices of the World (UVW), a grassroots trade union for low-paid migrant workers, and the contractor they work for. The cleaners argue that the changes to their contracts, reducing their annual working weeks from 43 to 38, were made without consultation and are "deeply unfair." UVW estimates that the savings from the proposed cleaning cuts would amount to about £20,000, less than the annual fees for a single student at the school.
HEALTH & SAFETY
New law to tackle assaults on shop workers
The government is expected to change the law to make assaulting retail workers a crime. Assaulting, threatening or abusing a retail worker is set to be made a standalone statutory offence as part of Labour’s Crime and Policing Bill. Retailers have been calling for more action to protect their staff amid a rise in crime. British Retail Consortium analysis shows that violence and abuse against shop workers rose to 1,300 incidents a day last year, with incidents against staff up by 50% in the year to September 2023, from 870 incidents a day the year before. Writing in the Times, Ken Murphy, chief executive of Tesco, urges the government to introduce the new law as attacks on store workers mount. Murphy says Tesco has spent tens of millions of pounds on "necessary" preventive measures such as security officers, body-worn cameras, protective screens and door entry systems. He adds: "Sadly they are still not enough. That’s why I am calling on the new Labour Government to introduce a standalone offence for assaulting a retail worker in this week’s King’s Speech." Other major retailers, including John Lewis and the Co-op, have also called for more action to protect their staff amid a rise in crime.
STRATEGY
Unilever to cut European workforce by a third
Consumer goods business Unilever plans to cut a third of its office-based roles in Europe by the end of 2025, accounting for around 3,200 jobs. The firm, which is set to begin a consultation process with those affected by the cuts, said: "We are committed to supporting everyone through these changes." Earlier this year, Unilever announced cost-cutting plans that would affect 7,500 roles globally.
HIRING
Schools face challenge hiring language teachers
The British Council's annual Language Trends report says addressing the shortage of foreign language teachers is crucial for equipping pupils with the skills they need to thrive. The report suggests that the recruitment of modern foreign language (MFL) teachers is a major issue for state secondary schools in England. The survey of teachers at 1,324 state and independent schools in England suggests that hiring qualified language teachers has been difficult for 60% of all responding schools, with the figure higher in state secondary schools (63%) than in private schools (46%). The report also found that a quarter of schools said allocated language lessons have been affected by pupils spending extra time on literacy and numeracy. Vicky Gough, schools adviser at the British Council, said: “It's concerning that despite concerted efforts to recruit language teachers, schools are still struggling to find qualified staff."
TAX
Half a million caught in 60% tax bracket
More than half a million people in the UK are paying income tax rates of up to 60% on the top slice of their earnings. This tax trap affects individuals earning between £100,000 and £125,000 per year, and the number of people caught in it is higher than ever. The official top rate of income tax is 45%, but due to a quirk in the system, individuals in this income bracket can end up paying a marginal tax rate of 60%. This is because for every £2 earned above £100,000, £1 of the personal allowance is lost. The number of higher earners affected by this 60% marginal rate has increased by 23% in the past year.
OTHER
The UK is home to millions of millionaires
The latest Global Wealth Report from UBS shows that there are more than three million dollar millionaires in the UK, with only the US and China home to more. However, UBS also predicts that the UK’s total number will fall by 500,000 over the next five years, with the decline coming as wealthy people leave the country or lose their wealth. The threshold to become a dollar millionaire in the UK is to have assets of £770,000. It is noted that those in this category face steep tax bills. The top 1% of earners pay around 30% of the income tax bill. This is the highest proportion of revenue in at least 30 years.
 


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 XFollow us on Linkedin

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

Click here to unsubscribe