News

With a wealth of recruiting experience, Bournemouth Employment Ladder is perfectly placed to give you expert advice when it comes to matching the right person with the right job.

Our knowledge covers many professional disciplines, across the public and private sectors including how to

• Hold effective job appraisals
• Learn the art of delegation
• Make the most of CV’s
• Get on better with your boss
• Bring together a disjointed team
• Cope with stress in the workplace
• Make flexible working pay off
• Reduce absenteeism at work
• Survive changing times at work
• Interview effectively
• Deal with a counter offer

We can also help with

• Employment advice
• Preparing job and person specifications
• Writing offer letters

Should you require any further assistance, we will always be on hand to help you.

Make the most of staff appraisals

It is important to hold regular staff appraisals even if you have just one employee.

They do not have to be intimidating or formal affairs, but they do have to be clear and well thought-out. Ideally, staff should be appraised every six months.

From your point of view, you can use appraisals to tell your staff how you think they are doing. If you are pleased with their performance you can use the opportunity to reinforce their behaviour through encouragement and reward.

If you are not satisfied with their performance you can use the opportunity to help them understand where there is room for improvement and suggest ways in which they might accomplish this improvement.

Be specific. No one likes being told, 'Well, I just think you need to get your act together generally.'

From the employee's point of view an appraisal provides an opportunity to discuss their future with your organization and to raise any issues that might concern them.

It also allows them to vent any frustrations they might be feeling.

Don't be frightened to give them the space to let off some steam. Listen sincerely and objectively to what they say and note any points you think are valid for future action.

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Dropping default age would harm business, say employers - 25 June 2010

Business organisations have reacted with disappointment to news that the government is proposing to remove the default retirement age.

Scrapping the default retirement age would make it illegal for employers to oblige employees to leave their jobs as soon as they reach 65.

John Cridland, the CBI's deputy director-general, said: "Removing the default retirement age and right to request working beyond 65 would cause significant practical problems for employers. Both companies and staff benefit from having a clear framework for the timing of retirement.

"We have always supported raising the DRA over time, to allow people to work for longer."

Dr Adam Marshall, director of policy at the British Chambers of Commerce, also advocated an increase in the default retirement age rather than its abolition.

He commented: "It is strange that the government has pledged to reduce the burden of employment law - while at the same time proposing to restrict businesses' ability to manage their workforce by abolishing the default retirement age.

"Business agrees that the DRA is currently too low - and needs to rise for both deficit reduction and fairness reasons.

"But if ministers want to make a positive change, they should either raise the DRA in line with the state pension age or offer employers a new dismissal route that helps business manage their workforce regardless of age."

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Measuring employee effectiveness

If you want to improve your profitability you need to measure employee performance regularly, using effective standards of measurement.

Some activity, such as production work, is relatively easy to measure, but other activities are not. How do you measure the effectiveness of your secretarial or accounting staff, your graphic designer, or your IT manager? One way is to agree performance standards or quality of service criteria with them and review these on a regular basis. When setting such standards, however, bear in mind that inefficiencies in these areas often arise from not working smartly rather than not working hard.

Quality
Whoever you are measuring, it is important to consider quality as well as quantity. A production line worker might be achieving high output figures but skimping on quality, a secretary might spend hours filing but have an inefficient system, and a firm partner might be clocking up chargeable hours but producing little in the way of client satisfaction. Performance statistics are not much use if they conceal inefficiencies that will reflect badly on the bottom line in the future.

Profitability
Always keep an eye on profitability. Again, a production line worker's high output figures do not mean much if the goods he or she is producing are stacking up in the warehouse, a salesperson's figures are worth little if he or she is selling at narrow margins, and a partner's workload is not so impressive if he or she is concentrating on low value clients. You need to be smart to be profitable.

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Government confirms minimum wage increase - 21 June 2010

The Government has confirmed that the recommended rises in the national minimum wage made by the Low Pay Commission will come into effect in October.

The new rates are: £5.93 per hour for low paid workers aged 21 and over, up from  £5.80; £4.92 per hour for 18-20 year olds, up from £4.83; and £3.64 per hour for 16-17 year olds, up from £3.57.

For the first time there will also be an apprentice minimum wage of £2.50 per hour. The new rate will apply to those apprentices who are under 19 or those that are aged 19 and over but in the first year of their apprenticeship.

The accommodation offset will rise from £4.51 per day to £4.61.

Edward Davey, the employment relations minister, said: "The increases to the national minimum wage this year are appropriate for the economic climate. They will strike a balance between helping the lowest paid whilst at the same time not jeopardising their employment.

"The Low Pay Commission estimates that around 970,000 people stand to benefit from these increases.

"Workers on the national minimum wage are disproportionately likely to be employed by small firms and so it is right the Low Pay Commission considers their competitiveness when they make their recommendations for next year. SMEs will be vital to our economic recovery."

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Queen’s Speech promises employment changes - 26 May 2010

An extension of the right of employees to request flexible working and a faster than planned raising of the state retirement age both formed part of the new coalition government's first Queen's Speech.

Plans unveiled by the government could eventually see the right to ask for flexible working patterns broadened to include all workers.

The Speech noted the government's wish to "remove barriers" and "extend" flexible working rights.

At the moment, parents with children up to the age of 16 and parents with disabled children up to the age of 18 are entitled to ask their employers if they can work in more flexible ways, provided they already have 26 weeks of employment.

Under the law, employers are obliged to give serious consideration to such requests, which may involve shifts, working from home, rearranging start and finishing hours and part-time employment. But they can refuse requests if there are good business reasons for doing so.

It is thought unlikely, however, that any changes will be introduced during the present Parliamentary session.

The government is to put the proposal out to consultation to determine how best any extension could be implemented.

On equal pay, the government has said that it will work to reduce the gap between men's and women's earnings, and to "take a range of measures to end discrimination in the workplace".

The Pensions and Savings Bill may include recommendations made by a review of the state pension that is now being conducted.

This could see an acceleration of plans to push the retirement age up to 66 by 2024, and then to increase it, at 10-year stages, to 68 by 2046.

The review is to study whether that planned schedule has been rendered outmoded by increases in the length of working lives.

The Bill will introduce the review's findings if those conclude that the original timetable is no longer appropriate. But the government has already promised not to make the move to a state retirement age of 66 "sooner than 2016 for men and 2020 for women".

The default retirement looks likely to be phased out.

The Bill will also restore the link between the basic state pension and the rise in average earnings as from 2011.

As a proportion of earnings, the state pension has dropped in value from 26 per cent to 16 per cent after the previous link was abolished in 1980 and replaced with a link to inflation as measured by the Retail Prices Index.

Additionally, pensions will increase by the "higher of earnings, prices or 2.5 per cent".

The Welfare Reform Bill will also have implications for employers and employees.

It will create a single welfare-to-work programme, improve incentives to work among the jobless, and make the benefits system simpler to manage. One effect of this may be to place increased onus on employers when it comes to assessing the level of incapacity among employees who take long-term sick leave and to conducting a return-to-work programme.

There is also to be a cap on the numbers of migrants arriving from non-EU countries

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Employers ‘unconvinced’ on value of new regulations - 24 May 2010

Firms have offered a mixed picture on the value to their businesses of a range of employment regulations.

A survey carried out by the Chartered Institute of Personnel and Development (CIPD) revealed that many employers are supportive of the national minimum wage and various equality rules, but have doubts about the value of other employment regulations.

The CIPD's Labour Market Outlook 'Employer Focus', which polled 800 employers, found that the minimum wage still had continued backing and that there is enthusiasm for other pieces of employee legislation introduced since 1997.

More than four in ten employers (45 per cent) believed that the Disability Discrimination Act (DDA), the Age Discrimination Regulations (42 per cent) and the Data Protection Act (42 per cent) have been helpful.

However, other legislation is regarded in a less positive light.

Around a quarter of UK organisations offer no paid paternity leave above the statutory minimum, and there are concerns about the effects of the EU Working Time Directive and the Agency Workers Regulations.

Just 40 per cent of organisations offer working fathers two weeks' pay at or near the full rate of pay, while around a quarter (24 per cent) offer no paid paternity leave beyond the 2-week statutory level.

Of the recent innovations in employment regulation, the survey showed that employers view the Working Time Regulations (28 per cent) and the Agency Worker Regulations (32 per cent), which is due to come into effect in October 2011, as representing the greatest hindrance to business.

Only 28 per cent and 13 per cent respectively saw the rules as helpful.

Mike Emmott, the CIPD's employee relations adviser, said: "While employers are supportive of the national minimum wage and a plethora of equality rights, they are yet to be convinced about the merits of the Agency Workers Directive and the Working Time Directive.

"The CIPD believes that the Working Time Regulations in particular have negligible value in limiting unhealthy workplace behaviour. We are, therefore, calling for its repeal in the context of the review currently being undertaken by the European Commission."

Mr Emmott went on to say that the more intractable challenge to both the government and employers lies in encouraging more working fathers to take up their entitlements to paid paternity leave.

He continued: "If flexible parental leave is going to become a reality, we need a step-change in the reward policies of UK organisations that encourages more fathers to take their statutory rights. This is something that will only be achieved through cultural change - and legislation is emphatically not the answer. The new government will have to think imaginatively if it is to nudge and lead this change." 

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Measuring employee effectiveness

If you want to improve your profitability you need to measure employee performance regularly, using effective standards of measurement.

Some activity, such as production work, is relatively easy to measure, but other activities are not. How do you measure the effectiveness of your secretarial or accounting staff, your graphic designer, or your IT manager? One way is to agree performance standards or quality of service criteria with them and review these on a regular basis. When setting such standards, however, bear in mind that inefficiencies in these areas often arise from not working smartly rather than not working hard.

Quality
Whoever you are measuring, it is important to consider quality as well as quantity. A production line worker might be achieving high output figures but skimping on quality, a secretary might spend hours filing but have an inefficient system, and a firm partner might be clocking up chargeable hours but producing little in the way of client satisfaction. Performance statistics are not much use if they conceal inefficiencies that will reflect badly on the bottom line in the future.

Profitability
Always keep an eye on profitability. Again, a production line worker's high output figures do not mean much if the goods he or she is producing are stacking up in the warehouse, a salesperson's figures are worth little if he or she is selling at narrow margins, and a partner's workload is not so impressive if he or she is concentrating on low value clients. You need to be smart to be profitable.

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Recruitment remains strong - 6 May 2010

Both permanent and temporary staff appointments rose during April, a new report has revealed.

The study, produced by the Recruitment and Employment Confederation (REC), found that permanent staff placements continued to improve last month in April, though not at quite the rate registered in March.

As well as more appointments, demand for staff also expanded in April. The number of permanent vacancies was only slightly lower than February's†31-month high. Temporary staff vacancies increased at the sharpest rate since January 2008.

The boost to the jobs market was reflected in earnings levels. Salaries for permanent staff rose again in April at a rate not seen since March 2008.

Temporary staff hourly rates of pay increased too, at the fastest pace for just over two years.†

Kevin Green, the REC's chief executive, said: "This report highlights continued growth in both temporary and permanent employment, although the rate of growth has slowed slightly compared to previous months.

"The incoming government must address two immediate priorities - stimulating jobs growth and reducing expenditure without creating a public sector recession through shedding thousands of posts. Private sector employers have used short-time work, sabbaticals and pay freezes as a means of reducing costs whilst retaining high-performing staff. Innovative resourcing strategies will be equally crucial within the public sector."

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

National Minimum Wage to increase from 1 October 2010

With effect from 1 October 2010, the National Minimum Wage is due to increase as follows

• For workers aged 21 and over: the rate will increase to £5.93 from £5.80
• For workers aged 18-20: the rate will increase to £4.92 from £4.83
• For workers aged 16 and 17: the rate will increase to £3.64 from £3.57.

There will also be the introduction of a National Minimum Wage for apprentices of £2.50. This will be applicable to apprentices under the age of 19, or apprentices aged 19 and over who are in the first year of their apprenticeship.

Long-term sick leave rules could hamper recruitment - 13 April 2010

Rulings handed down by the European Court of Justice on long-term sick leave are making it more difficult for smaller employers to take on staff.

The claim came in a poll conducted by the Federation of Small Businesses (FSB).

The ECJ has passed judgments in two sick leave cases under the Working Time Directive.

In one, the ECJ decided that an employee's statutory entitlement to paid annual leave continues to accrue during long-term sick leave.

The FSB said that workers can take their statutory annual leave at the same time as sick leave and receive their normal rate of pay. Payments in lieu of leave upon termination of employment must include any untaken statutory annual leave even if the employee has been on sick leave for the whole of the leave year.

In the second case, the ECJ ruled that where a worker fell sick shortly before pre-arranged annual leave, they can request to take the period of annual leave which overlapped with sickness as annual leave at a later date. A worker who has been on sick leave for the whole or part of the leave year, and has not had the opportunity to take the leave, must be allowed to carry-over that leave into the next leave year.

In its survey assessing the effects of the rulings, the FSB found that, of 1,400 respondents, some 71 per cent believed that the regulation allowing workers to accumulate paid annual leave while on long-term sick leave would have a detrimental impact on the way firms employ people.

Of those, 38 per cent said they will be more cautious about taking on new staff with health problems, while 21 per cent will be less likely to take on new staff.

As far as the ruling that lets workers convert annual leave into sick leave is concerned, over half (54 per cent) thought it would have an adverse impact on businesses.

The FSB wants the European Commission to review the rulings and to reverse the court's decisions.

John Walker, the FSB's national chairman, said: "It is well known that small firms are the country's key employers and have done all they can to retain their employees and take on new staff throughout the recession. However, measures put in place by the European Court of Justice on sick leave are hampering small businesses' ability to do the job at hand and help tackle unemployment.

"Small businesses understand the need for good health in the workplace and are like a family, knowing and understanding the needs of their staff. But these figures show that the changes in the law on sick leave are hampering employment opportunities to get long-term unemployed back into work. The European Commission must look at the measures on sick leave while reviewing the Working Time Directive and ensure these are rewritten so that sick leave is actually classed as sick leave so that small firms have the best conditions to take on more staff and help pull the economy back onto the road to recovery.

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Sharp increase in number of jobs - 8 April 2010

The labour market is enjoying a rapid rate of expansion, a new survey has revealed.

According to the latest Report on Jobs published by the Recruitment and Employment Confederation (REC), the number of permanent staff appointments made by recruiting agencies rose again in March.

The rate of growth was its strongest since 1997.

There was an improvement in short-term appointments, too, which accelerated at their fastest in 34 months.

The recuperation of the labour market was reflected in the salaries being offered. March saw another average increase, although the rise was not as sharp as that registered in February's 20-month high.

The figures suggest that the pay freezes and low settlements of the recession may be over.

Kevin Green, the REC's chief executive, said: "Permanent appointments increasing at the fastest pace for over 12 years is the clearest sign yet of a revival in the UK jobs market. A rise in both temporary and contract work at the sharpest rate for nearly three years shows how they continue to provide vital flexibility for UK businesses as well as a valuable route back into work for job-seekers.

"However, the overall outlook is tempered by public expenditure cuts which are already impacting on recruitment in this sector. Deep-rooted reforms and innovative approaches to public sector resourcing will be needed in order to maintain frontline services. While high-end sectors such as IT and engineering continue to show strong growth, demand is also increasing for secretarial and back-office support roles."

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Employees get right to ask for training -6 April 2010

As from 6 April, many employees have the right to ask their employers for time to train.

The new regulation covers businesses that employ more than 250 people, although the right will be extended to include all employees from April 2011.

Under the change, employees can request time to pursue relevant study or training, and employers are obliged to take any request seriously.

The training needs to improve the employee's effectiveness in their job or contribute to the performance and productivity of the business.

Employers don't have to approve every request and can refuse them if there is a good business reason to do so.

Kevin Brennan, the Skills Minister, said: "We need to empower people to speak about training opportunities and the benefits they can bring to a business' success.

"Many companies and organisations are very good at training their staff, but we need to make sure that all businesses are advising employees on what is on offer.

"This is where a regulation like Time to Train will be able to help people. It will give them the confidence to ask about training and skills, allowing them to take control of their own careers."

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Fit notes in major overhaul of sick leave system
6 April 2010

Employees who are off work sick for more than seven days, as from 6 April, are to be issued with 'fit notes' rather than sick notes by their GPs.

Under the new fit note system, GPs will be able to say whether someone is not fit or may be fit for work. If they may be fit for work, the doctor can suggest what aspects of their job they can still carry out.

Then it will be up to the employer to help the employee to return to work in some capacity.

At the launch of the scheme, Health minister, Ben Bradshaw said: "We know that sickness absence is economically and socially damaging and makes people more likely to drift into social exclusion and poverty.

"Getting people back into work quicker is good for their health as well as the country's finances."

The fit notes replace the traditional sick notes which simply stated whether someone was fit for work. Now GPs will be required to declare someone "not fit for work" or "fit for work taking into account the following advice".

If an employee is deemed fit for some work, their GP will detail whether a phased return to work is required, whether the employee's duties and hours need to be altered and whether any workplace adaptations should be introduced.

Employers aren't obliged to act on the advice that is set out in a "may be fit for work" note - it isn't binding - but it may be worth making simple and practical adjustments to help employees return to work and cut down on sickness absence.

The arrangements for Statutory Sick Pay and any occupational sick pay schemes stay the same.

Unlike the Disability Discrimination Act, which covers illnesses that persist for more than 12 months, most fit notes apply to temporary and short-term problems.

Dr Laurence Buckman, chair of the British Medical Association's GPs committee, said: "The responsibility will be on employers to act. If a GP decides their patient is capable of some form of work, for example if they've got back pain and they should temporarily avoid elements of their normal job, then it will be down to the employer to be flexible enough to accommodate them."

Dr Buckman added: "Employers have a responsibility to provide adequate occupational health services and the government must encourage them to provide that if the overall plan to help more people back to work is to be truly effective."

Katja Hall, director of employment policy at the CBI, said: "This is a change that employers will welcome. All too often a person is signed off sick when they are able to manage some forms of their work."

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Minimum wage to rise by 2.2 per cent

The government has announced that the national minimum wage is to rise by 2.2 per cent.

As from 1 October 2010, the hourly adult rate will increase from £5.80 to £5.93.

The news was revealed in documents published following the Budget.

John Cridland, the deputy director general of the CBI, said: "This moderate increase recognises that many businesses are struggling, and helps protect jobs at a time of rising unemployment. The inflation-busting rise some unions had called for would have hit firms hard and put many lower paid workers on the dole."

Other business groups, however, were not as welcoming.

Adam Marshall, director of policy and external affairs at the British Chambers of Commerce (BCC), said: "The national minimum wage increase took some of the shine off a Budget that had small and medium-sized businesses at its heart.

"It is astounding that the government would increase the minimum wage by 2.2 per cent at a time when private sector wages are virtually flat, and companies across the country are still making tough choices to keep as many people in employment as possible."

The British Retail Consortium (BRC) described the increase as "irresponsible".

Stephen Robertson, the BRC's director general, said: "A measure of this magnitude should have been in the Budget speech. It's at odds with government promises of prudence and public sector freezes and will damage retailers' ability to maintain and create jobs. How can an increase virtually double last year's be justified? Economic conditions were far weaker in the run up to this year's decision than twelve months earlier."

Once the economy returns to stability, the BRC wants the Low Pay Commission (LPC), which recommends the minimum wage rate to the government, to establish a more predictable relationship between the rate and average earnings movements.

This would mean that the LPC would provide a longer-term outlook for the minimum wage, offering businesses greater certainty about the direction of future costs, the BRC said.

The new rates, which will come into force on 1 October 2010 will be: £5.93 per hour for workers aged 21 and over (a 2.2 per cent increase on the current £5.80 rate); £4.92 per hour for 18-20 year olds (a 1.9 per cent increase on the current £4.83 rate); and £3.64 per hour for 16-17 year olds (a 2 per cent increase on the current £3.57 rate).

The accommodation offset will rise from £4.51 per day to £4.61.

The government also announced that it had accepted the LPC’s recommendation to introduce an apprentice minimum wage of £2.50 per hour. 

The new rate will apply to those apprentices who are under 19 or those that are aged 19 and over but in the first year of their apprenticeship.

Business Minister, Pat McFadden said: “The Low Pay Commission, which includes employers and trade union representatives, carefully considered the latest economic data and evidence before making its recommendations, balancing the needs of businesses and workers.

“The recommendations provide a welcome increase for workers, but the economy is still fragile and government must continue to support the recovery in the months ahead.

“I’m also glad to see the LPC recognising the significant contribution that apprentices make to the economy. I hope this will encourage more people to take advantage of this opportunity and invest in their skills by taking up an apprenticeship."

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Employers look to start recruiting again

The vast majority of employers are no longer considering redundancies and many are planning to take staff on, a new survey has revealed.

The latest JobsOutlook survey from the Recruitment and Employment Confederation (REC) found that 94 per cent of respondents are not preparing for any further job losses.

But one in five predicted that they would be increasing the number of permanent staff they employ over the next year.

Roger Tweedy, the REC's director of research, said: "This is positive news for job-seekers and confirms the stabilisation of the labour market and which overtime will result in better jobs figures.

"The road to full employment will be slow but the trend of increasing employer confidence and a return to hiring is now established. We need to avoid any kind of employment legislation that will add to employers costs and so hinder job opportunities."

Meanwhile, the Office for National Statistics reported a surprise drop in the number of people unemployed.

For the three months to November, the total out of work stood at 2.46 million, a fall of 7,000 on the figure for the previous three-month period.

The drop was largely accounted for by a rise in those taking part-time jobs, up by 99,000.

Commenting on the figures, Katja Hall, director for employment policy at the CBI, urged the government not to risk the flexibility of the UK's labour market with unnecessary employment legislation.

Ms Hall said: "The unemployment figures are better than expected. One major factor behind this is the flexibility of the UK labour market, which allows companies and their staff to take action quickly to protect jobs and create new ones to meet upturns in demand."

"That is why we are urging ministers to think very carefully about regulations to come into effect next year which will add to the cost of using temporary agency workers. Employment agencies help over a million job-seekers find work and allow companies to create jobs quickly and efficiently. Ministers must not undermine this important means of job creation."  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Measuring employee effectiveness - If you want to improve your profitability you need to measure employee performance regularly, using effective standards of measurement.

Some activity, such as production work, is relatively easy to measure, but other activities are not. How do you measure the effectiveness of your secretarial or accounting staff, your graphic designer, or your IT manager? One way is to agree performance standards or quality of service criteria with them and review these on a regular basis. When setting such standards, however, bear in mind that inefficiencies in these areas often arise from not working smartly rather than not working hard.

Quality
Whoever you are measuring, it is important to consider quality as well as quantity. A production line worker might be achieving high output figures but skimping on quality, a secretary might spend hours filing but have an inefficient system, and a firm partner might be clocking up chargeable hours but producing little in the way of client satisfaction. Performance statistics are not much use if they conceal inefficiencies that will reflect badly on the bottom line in the future.

Profitability
Always keep an eye on profitability. Again, a production line worker's high output figures do not mean much if the goods he or she is producing are stacking up in the warehouse, a salesperson's figures are worth little if he or she is selling at narrow margins, and a partner's workload is not so impressive if he or she is concentrating on low value clients. You need to be smart to be profitable.  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Policy shift could signal end of compulsory retirement age

Employees could be granted the right to continue working past the age of 65.

Harriet Harman, the Equality Minister, has described the compulsory retirement age as “arbitrary” and said that a massive public policy change is required to allow employees to work on past 65.

In a press interview, Ms Harman also said that she wanted to extend flexible working so that people could remain in employment.

The Minister commented: “We do want people, if they want to, to be able to stay working for longer, and flexible working is a way that enables them to do that. They could say they have decided they want to work three days a week and it would then be down to the employer to demonstrate why the business couldn’t cope with that.”

Ms Harman went on to use the occasion of a speech to an Age UK conference to announce that the government is to bring forward a planned review of the default retirement age to 2010.

The default limit of 65 was established four years ago and prevented employers from forcing workers to retire at an earlier age except where it could be justified. Under the rules, employees who reach 65 can ask to stay on in their jobs, but employers have the right to refuse the request.

Were the default age to go, Ms Harman said that employers could still retire employees who were no longer physically up to their jobs.

Ms Harman argued that workplace ageist attitudes are costing the economy billions a year.

She said: “We still have more to do to tackle the attitude that once you reach 60 you are just treading water until you become frail and dependent. This is important not just for those individuals concerned but for the economy as a whole. We have to banish the ageism in the workplace that costs an estimated up to £31 billion per year due to lost GDP.”

Any plans to scrap the default retirement age may have the backing of smaller employers.

The Federation of Small Businesses (FSB) said it supported the government’s decision to bring forward the review.

Research from the FSB has revealed that 60 per cent of small businesses do not think the government should set a default retirement age.

But the FSB called for a regulation that would protect those employers that need to retire staff because of ill health.

John Wright, the FSB’s national chairman, said: “Many small business owners have no intention of putting in place a blanket policy to retire their staff at 65 – they understand the valuable contribution and skills that older workers bring to the business.

“In a recent survey by the FSB, 60 per cent of respondents employ staff over 50 years old and a quarter employ staff who are over 65, showing that small firms are flexible employers.”

According to the FSB, almost eight out of ten firms reported that they do not use the default retirement age for their staff, while 76 per cent believe that retirement should be based on a mutual decision between the employee and employer.

Some 90 per cent of small businesses would consider an employee going into part time or flexible working rather than retiring.

Mr Wright added: “However, businesses need to be able to make decisions about their workforce without the threat of expensive tribunals from employees who are unable to work because of age-related issues. The ability to let someone go because of ill-health should be made sacrosanct for those employers.”  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Demand for employees at its highest for over two years

The jobs market could be returning to its pre-credit crunch levels.

According to the latest Report on Jobs survey from the Recruitment and Employment Confederation (REC), the growth in permanent positions last month was at its fastest since July 2007.

The survey, which covered 14,000 recruitment agencies and consultants, also found that temporary staff placements in December were rising at their fastest pace for 30 months.

Average earnings for permanent employees were on the up too, the second consecutive month in which they have climbed.

Kevin Green, the REC’s chief executive, said: “As we head into 2010, the recovery of the UK jobs market is accelerating. Employer confidence is increasing and vacancies are on the up – with the fastest growth in permanent jobs since July 2007.Temporary and contract placements also rose at the sharpest pace for thirty months which underlines the crucial role that flexible working models will play in helping job-seekers back into work.”

However, Mr Green went on to point out that, despite the increase in demand for both temporary and permanent staff, the jobs market looks as if it will stay very competitive, particularly for younger people.

He added that it was essential that the government’s pledge to invest over £1 billion in creating 400,000 new youth job and training opportunities is met, and that the government ensures that new EU regulations on agency work do not curb the ability of employers to create jobs.  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

A 'difficult' year ahead for employment

Employment conditions are expected to remain difficult throughout 2010 as businesses continue to struggle with weak demand.

According to the British Chambers of Commerce’s latest Monthly Business Survey, almost two thirds of employers (63 per cent) intend to introduce wage freezes or pay cuts next year.

Nearly one in five (18 per cent) are looking at dropping employee benefits such as bonuses and gym membership.

The squeeze on pay packets, the BCC said, is a sign that firms do not envisage that the economy is likely to pick up dramatically in 2010, this despite forecasts that the recession may be over by the last quarter of 2009.

Two thirds of those firms polled reported that they would be operating at the same or reduced capacity levels in the first quarter of 2010, a strong indicator that businesses believe demand and the trading environment will remain uncertain.

David Frost, the BCC’s director general, commented: “It’s clear that another tough year is in store for the private sector. Thanks to businesses and their employees, who have made huge efforts to avoid extra redundancies during this downturn, unemployment is lower than most expected.”

Mr Frost went on to say that he believed that 2010 will be a crucial year for the UK’s economy.

The BCC argued that the private sector should be helped to generate investment, growth and jobs through a reduction in taxes and red tape.

Mr Frost concluded: “Support and incentives must be provided where needed, and the economy must be rebalanced away from debt and the public sector.

“From what businesses tell me, they will get on with the job of creating wealth and employment, but they simply need government to get off their backs and let them do it.”  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

LATEST JOBLESS FIGURES

The latest unemployment figures released today (16 Dec) show the smallest rise in the jobless total since mid 2008 and a decrease in the number of benefit claimants.

Commenting on the latest ONS data, REC Chief Executive, Kevin Green says:  "The latest figures confirm that life is returning to the UK jobs market and is consistent with our own Report on Jobs which shows demand for staff at its highest level for two years.  Despite this more positive picture, the reality is that unemployment will continue to edge upwards well into next year which is why we need a real focus on helping those out of work - in particular, the million-plus young jobseekers.  The recently published White Paper must deliver tangible help on the ground and must lead to increasing cooperation between public employment services and private sector recruitment professionals.

“Looking ahead, we call on the Government to ensure that forthcoming employment regulation, increased National Insurance contributions for employers and public expenditure cuts do not hinder the fragile recovery of the UK labour market."

Kevin Green was interviewed live on the BBC News Channel this morning to give the industry’s initial reaction as the latest figures were published.

The latest REC/KPMG Report on Jobs showed that the demand for permanent staff had risen to its highest level for 28 months.  The REC Jobs Outlook - which looks ahead at hiring intentions confirmed that employer confidence is rising and that an increasing number of businesses expect to increase their recruitment activity over the coming year.

The REC recently launched its Youth Employment Taskforce which is a coalition of employers, professional recruiters and welfare providers and is chaired by Baroness Prosser, Deputy Chair of the Equality and Human Rights Commission (EHRC). The Taskforce will make practical recommendations based on the feedback of recruiters and employers who are in the front line of the UK jobs market.

Measuring employee effectiveness

If you want to improve your profitability you need to measure employee performance regularly, using effective standards of measurement.

Some activity, such as production work, is relatively easy to measure, but other activities are not. How do you measure the effectiveness of your secretarial or accounting staff, your graphic designer, or your IT manager? One way is to agree performance standards or quality of service criteria with them and review these on a regular basis. When setting such standards, however, bear in mind that inefficiencies in these areas often arise from not working smartly rather than not working hard.

Quality
Whoever you are measuring, it is important to consider quality as well as quantity. A production line worker might be achieving high output figures but skimping on quality, a secretary might spend hours filing but have an inefficient system, and a firm partner might be clocking up chargeable hours but producing little in the way of client satisfaction. Performance statistics are not much use if they conceal inefficiencies that will reflect badly on the bottom line in the future.

Profitability
Always keep an eye on profitability. Again, a production line worker's high output figures do not mean much if the goods he or she is producing are stacking up in the warehouse, a salesperson's figures are worth little if he or she is selling at narrow margins, and a partner's workload is not so impressive if he or she is concentrating on low value clients. You need to be smart to be profitable.  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Get your best staff involved in training

In today's flexible job market, workers move between jobs with increasing regularity, changing roles and even vocations in the pursuit of new challenges and fresh opportunities.  This can pose a problem for small businesses that can ill afford to lose key members of staff.  Involving key staff in training can boost their sense of worth within the organisation, and may increase their commitment to the company.  It can also serve to inspire others, as they see positive contributions being acknowledged and rewarded.  At the same time, involving your best staff in training also ensures that they impart their skills and knowledge to others.  As the trainees start to acquire some of the knowledge and skills of the star employee, you gradually lessen your dependence on a few key staff members and as a result boost your overall, long-term productivity.  So if your star employee does decide to move on to pastures new, other staff will be able to step into their shoes.  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Job losses predicted to continue into the recovery

Employers look set to shed more jobs in the final quarter of the year, suggesting that the UK labour market will remain under pressure even as the economy emerges from the downturn.  According to the latest monthly Labour Market Outlook report from the Chartered Institute of Personnel and Development (CIPD), job losses in the last three months of the year will rise, although at their slowest rate since the middle of 2008.  The survey of more 700 employers revealed that there is a balance of minus 3 per cent between those firms planning to take on staff and those intending to reduce their workforces.  The figures are a significant improvement on the minus 19 per cent and the minus 10 per cent recorded in the second and third quarters of the year respectively, but they also indicate that the labour market is still in decline.  One in six employers have cut the working hours of some of their staff over the last year, while a similar number reported plans to reduce working time over the next 12 months.  Wage increases are set to remain weak too. The survey found that the next average wage rise predicted by employers is 1.5 per cent, down from the 1.7 per cent of three months ago.  Gerwyn Davies, the CIPD’s public policy adviser, said: “The UK jobs market remains flat on its back. Things aren’t anywhere near as bad as they were earlier in the year when redundancies spread through the economy like a virus. And with things looking up in one or two sectors there is mounting hope that the ongoing gradual decline in job prospects might run its course next year before unemployment reaches 3 million."  However, Mr Davies added that the economy remains “seriously weak and won’t recover for several years – even if a return to robust economic growth provides the necessary tonic – and could easily relapse if the recovery is as fragile and anaemic as many economists fear”.  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Apprentices ‘deserve’ minimum wage

All apprentices should be paid an hourly national minimum wage, the TUC has said.  At the moment, young apprentices under the age of 19 and older apprentices in the first year of their course are not entitled to the national minimum wage.  The TUC wants apprentices to be given three new age-based hourly rates based on a discount of 10 to 15 per cent of the existing minimum wage rates.  These would be: £3-£3.18 for 16-17 year olds; £4.05-£4.29 for 18-20 year olds (19 and 20 in the first year of an apprenticeship only); and £4.87-£5.15 for those aged 21 and above (in the first year of an apprenticeship only).  The TUC said that the minimum wage for apprentices should be set at an hourly, as opposed to a weekly, rate in order to protect against excessive working times.  Brendan Barber, the TUC’s general secretary, commented: "When the government introduced a minimum weekly pay rate for apprentices in 2005, employer groups warned it would scare businesses away from offering training places.  “In fact the reverse happened - apprenticeship starts went up and so did the proportion of apprentices completing their courses.  “By making sure that all apprentices are entitled to an hourly minimum wage, the Low Pay Commission can improve the quality of apprenticeships and help to ensure that more people complete their course.”  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Job vacancies on the increase

Both permanent and temporary job vacancies showed a rise last month.  According to the latest Report on Jobs from the Recruitment and Employment Confederation (REC), the demand for permanent staff rose in October for the first in 17 months.  Opportunities for temporary workers also increased, building on the slight rise registered in September.  Appointments, too, climbed last month, the REC report said.  The growth in both permanent and temporary appointments during October were the fastest for two years and 16 months respectively.  Kevin Green, the REC’s chief executive, said: “These figures show that the UK jobs market is on the road to recovery, with signs of improvement for the third month in a row. The demand for permanent recruitment is returning as employers start to hire people at an accelerating rate.’  Mr Green forecasted that the labour market may not suffer quite the drastic consequences of the downturn as had been previously feared.  He added: “Based on the latest findings, we anticipate that unemployment will not reach three million in 2010 as some predicted. This again highlights the benefits of the UK’s flexible labour market and a balanced attitude towards employment legislation in terms of keeping people in work.”  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

More part-time jobs needed

Employers that advertise full-time vacancies in job centres may be encouraged to allow part-time workers and job sharers to apply for them.  Yvette Cooper, the Work and Pensions Secretary, said that there is a need for more good quality part-time jobs, both for single parents and working parents.  Arguing that many employers were already advertising vacancies as either full or part-time, the Minister said that more firms should look at different, flexible ways of filling full-time vacancies.  Ms Cooper added: “The next stage of this, for those employers still not thinking about part-time work or work that fits round school hours, is actually showing people that it’s much easier than you think. We have already got good examples at local level of where this is being done.”  There are reports that plans are being made for a new national database of part-time jobs, aimed at working mothers and women who are returning to work after a break from their careers.  A new taskforce, chaired by Emma Stewart of Women Like Us, is to examine how best to improve the number and quality of part-time jobs.  It is also believed that the government is intending to publish a white paper at the same time as the pre-Budget Report on managing the changes that the recession has made already to traditional working patterns.  Many firms have introduced reduced working weeks and part-time working as a way of avoiding redundancies.  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Put retirement age up to 70, argue employers

A leading employers’ group, the Institute of Directors (IoD), has called for a radical overhaul and simplification of the pensions system.  Launching a major new report, the IoD argued for a new “direction of travel” for both private and state pensions.  Under the IoD plans, the state retirement age would go up to 70, while means-tested retirement benefits would simply go.  Specifically, the report recommends that, with longevity on the increase, the state pension age should rise to 70 as soon as reasonably practical.  The state second pension should be abolished, along with most means-tested state retirement benefits. The savings made as a result should be used to provide a universal basic state pension at about its current level but topped up by pension credits.  The IoD also claimed that the present private pension saving regime does not meet the needs of the 21st century and should be replaced.  Graeme Leach, the IoD’s chief economist, said that radical simplification is required.  Mr Leach argued: “Startling increases in longevity in recent decades mean that it is unrealistic to expect to be able to fund a potential 25 to 30 year retirement from an effective 30 to 35 year working life.”  What is needed is a holistic review of the whole area of retirement, he continued, including how the care needs which will come with increasing longevity are funded.  Malcolm Small, the senior adviser on pensions policy at the IoD and author of the report, warned that the complexities of retirement saving are now such that they may actually deter people from pensions saving.  Mr Small said: “Both state and private pension systems have become so complex that people are becoming disengaged from pension saving and are looking for alternatives.  “If people don’t like the structure, they are less likely to stay in it, even if they are auto-enrolled into saving, as they will be from 2012.”   Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Wednesday 21 October - Improving productivity

Improving productivity is an objective for many businesses. We thought that we might offer an accountant's view of how to address enhancing company output.

Human resources
In any business, the employees are the greatest asset, but few business leaders know how to get the best from them.

One of the most important factors affecting the performance of employees is morale. Research shows there is a clear link between employee satisfaction and company performance and profitability. A happy workforce is a productive workforce.

Effective leadership, comprehensive training, good communication, sharing key information and objectives company-wide, and a strong team spirit all help to boost employee morale, but nothing works better than encouraging a 'sense of belonging'.

Again and again in our work with businesses, we are reminded of what a rich resource employees can be when it comes to improving efficiency and profitability. The shop floor worker, the secretary, the bookkeeper, and the sales assistant are often much more aware of where the inefficiencies lie, how to avoid bottlenecks, or what the customer is really thinking than are the senior management. Consulting them on a regular basis and making them feel involved in the decision making process not only improves their morale and makes them feel part of the business, it also boosts your profits!

Incentives
It is important to reward good ideas and other productive contributions from employees. Although this is often best achieved through the wage packet, it is also important to find ways to reward them publicly so as to motivate others to become involved in improving productivity.

Employers need to move away from 'attendeeism' - remunerating employees simply for being present in the work place - and lock remuneration into output. Do away with permanent overtime and automatic annual bonuses such as the Christmas bonus. These come to be expected and do nothing to encourage improved performance. Instead, make exceptional payments for exceptional contributions. With your sales staff, for example, reward increased profits, not increased sales.

One of the most effective ways to make employees feel involved is through share ownership.

Review
There are many other ways to improve productivity, such as introducing flexible work patterns, outsourcing non-core activities, streamlining product and service lines, and leasing underused plant and equipment. We can advise on all these matters. Why not call us and arrange a productivity review?

Did you know?
Research for Business, Enterprise Regulatory Reform shows that between 2003 and 2007 more men were keen to work flexibly making up 43% of employees requesting a change to their working patterns.

Changes uncovered included:

• Increases in company's offering part time work (92%)
• Company's offering reduced hours (74%)
• Employer's offering compressed hours (41%)
• Availability of job sharing 59%) and flexi hours (74%)

While 92% of employers said they would consider a request to change working patterns from any employee.

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Tuesday 13 October 2009 - Retirement Rights

Until 2006, it was normal for employees to retire at the age set by their employer as the ‘normal retirement age’.  Provided that it was the same for men and women, the normal retirement age could be any age and the law did not class retirement as a dismissal.  With the advent of the Age Discrimination Regulations in 2006 it became unlawful to insist that employees retire at a retirement age below the age of 65.  Retirement is now classed as a dismissal and is one of the potentially fair reasons for dismissal.   Forcing someone to retire is fair provided:

• It is no earlier than age 65 – even if a person is able to take their pension earlier
• At least 6 months and no more than 12 months’ notice is given – even if the retirement age is set down in the employee’s contract
• The employee can request to carry on working and permitted to meet with the employer to discuss that request. However the employer is not obliged to agree to such a request or even give reasons for refusing although it might be considered good practice to give reasons.

The Government set the so-called default retirement age of 65 somewhat reluctantly and it set 2011 as the year for reviewing it.  It recently announced that this review will be brought forward to 2010 and there will be renewed consultation as to whether to keep the age at 65, raise it, or outlaw compulsory retirement ages altogether. The latter position is perhaps the most logical in relation to Age Discrimination. Of course, any change of Government in 2010 may change the thinking.

Employers should:

• Check their contracts of employment to ensure that they do not have a retirement age lower than 65 and/or one that is different for men and women
• Put in place a retirement policy and procedure to cater for the notice & ‘request-to-stay’ provisions
• Expect a change to the rules in 2010 or 2011

Article courtesy of D3 Employee Solutions www.d3employeesolutions.co.uk 07834 895125

Tuesday 13 October 2009 - An employee’s right not to be unfairly dismissed 

Contracts of employment usually have termination clauses in them specifying the notice that an employer must give to bring a person’s employment to an end.  Even where they don’t, the law sets down the minimum notice required.  Failure to give adequate notice is a breach of contract entitling the employee to sue for ‘wrongful dismissal’ i.e. compensation for the period of notice not given.  Employers will sometimes give pay in lieu of notice – in effect they are paying the breach-of-contract damages up front.   It is only lawful to dismiss without notice in response to a fundamental breach of contract by the employee, often called gross misconduct.  Despite the employer’s contractual right to terminate employment, employment protection law dictates that any dismissal must be ‘fair’ and gives employees the right to complain to an Employment Tribunal if they believe their dismissal to be unfair.  If the Tribunal finds in their favour they are entitled to ask to be re-employed or for compensation.  There are some dismissals which are ‘automatically unfair’ and all employees, irrespective of their length of service, have the right to complain if their dismissal is for one of the protected reasons.  There are over 20 automatically unfair reasons, an example being a dismissal relating to pregnancy. In addition, if a dismissal is an act of discrimination or victimisation, then an employee can submit a discrimination claim, irrespective of their length of service.  Other than for the protected reasons, only employees with at least 52 week’s continuous service can complain of unfair dismissal. For it not to be declared unfair by an Employment Tribunal, an employer must be able to show three things:

Firstly, that the reason for dismissal was one of six potentially fair reasons. The 4 principal potentially fair reasons are: misconduct; incapability (either due to competence or ill-health), redundancy; and retirement

Secondly that the dismissal was procedurally fair and, for misconduct and poor performance, met the standards in the ACAS Code of Practice

Finally that dismissal was a reasonable and proportionate response in the circumstances

So if you ever contemplate dismissing someone:

• Make sure that it is NOT for one of the automatically unfair reasons
• Make sure that the dismissal cannot be construed as  an act of discrimination or victimisation
• Make sure that you follow a fair procedure

Ask yourself: would a reasonable employer dismiss in these circumstances?

Article courtesy of D3 Employee Solutions www.d3employeesolutions.co.uk 07834 895125 

Friday 9 October 2009 Managing your most valuable assets - your employees

No matter how much cash you have in the bank or how large your stock is, your company's most valuable assets will always be your employees.  The investment spent on staff and their training makes the difference between a mediocre business and a truly successful one. You can boost customer satisfaction simply by taking a few steps to improve employee satisfaction. Here are some suggestions.

Match job skills with personnel
When it comes to recruiting, some businesses think it sufficient to fill positions with adequate individuals and then train them to the level they require. But this method is neither efficient nor effective. It is important to match job skills with personnel, and to do so with the aim of accomplishing future goals, not just fulfilling present needs.

This is a two-step process:

1.Develop job criteria - Decide exactly what skills or training you want for each position. For example, a warehouse worker does not need the mathematical skills of someone in the accounts department, but he or she does need training to use a forklift. Match departmental goals to individual jobs.
2.Create a rating scale - Set the desired level of achievement for each criterion. Establish minimum levels of performance and a desired level that is high enough to achieve your company's goals. You can define levels using numeric ratings (eg 1-10) or alphabetical grading (A,B,C etc).

After you have defined each position and set the skills and performance that you require, you can evaluate your current staff accordingly - but be careful not to give the impression you are watching over them 'Big Brother' style.

Reward your employees
Added incentives and bonus structures can improve employee satisfaction, establish goals for each individual, and motivate them to work together to achieve those goals.

You do not need to give substantial bonuses to reward individual achievement. Generally, employees will find value in other, less costly rewards, such as more paid holiday, or recognition of achievement in front of the other staff.

Monitor progress
If you take time to invest in your company's intangible assets - your employees - you will increase the value of your tangible assets.

Commit to your plans by tracking your ratings on a yearly or twice-yearly basis. This will enable you to evaluate the company's progress and help you determine appropriate promotions, raises or even terminations.

Remember, your staff are your most valuable resource. Treat them as such, and your business will prosper. 

Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Monday 5 October 2009 - Freeze business regulation to create jobs

Putting a stop to new business regulation and simplifying existing rules would help boost job creation, the Federation of Small Businesses (FSB) has claimed.  A moratorium on new rules that govern businesses could help to save and to generate more than 300,000 jobs, the FSB said.  According to a survey of FSB members, almost a third of businesses (27 per cent) that wanted to expand were too worried about complicated regulations to do so.  Of businesses planning to down-size or close, 50 per cent said their decision was strongly influenced by the regulatory burdens they faced.  Based on these statistics, the FSB predicted that removing regulatory obstacles could create more than 258,000 new jobs and save more than 55,500 from being lost.  As a result, the FSB has called for a stop to all new business regulation for the first 18 months after economic recovery and a simplification of the current laws, particularly those that relate to maternity and paternity law, discrimination law, and health and safety legislation.  John Wright, the FSB’s national chairman, said: “We cannot and must not underestimate the burden that unnecessary regulation puts on small businesses. Around half of all firms planning to close or down-size were influenced in that decision by the heavy impact of regulation.”  But Mr Wright added: “However, we know that small firms want to employ more staff, and the government should be making it easier for them to do so, especially as we pull ourselves out of recession and into recovery.  “The FSB is urging the government to give the UK’s regulatory environment a strategic overhaul, to provide it with what will amount to a second economic stimulus, to boost growth and employment.”  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

5 October 2009 - A third of firms keep wages on hold

One out of three firms have imposed wage freezes on their employees this year, a new study has found.  The research, carried out by pay analysts Income Data Services (IDS), revealed that many employers chose to cap wage rises at zero in order to protect jobs.  Where pay rises have been awarded, the average this year has been 2.9 per cent.  “In many cases pay freezes have been justified through commitments to safeguard jobs,” said the IDS report. “Firms are conscious of the need to retain a skilled workforce for when the market picks up.”  However, the report warned that, should inflation begin to rise as predicted, there will be increasing pressure on wage demands. It also said that, come the economic recovery, the perennial problem of skills shortages will re-emerge.  Ken Mulkearn of IDS commented: “Most firms with zero awards in 2009 may return to increasing pay again next year. So while prospects for the economy remain uncertain, many firms will be planning ahead for a possible recovery in 2010.”  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Tuesday 29 September - Help small firms recruit younger workers, government told

Smaller businesses can play a vital role in reducing unemployment amongst young people, provided they are given support by the government.  The message has come from the Federation of Small Businesses (FSB).  The organisation said it believes that the government must ensure small businesses have the necessary backup to take on more graduate interns and apprentices, and to help bring the economy out of recession.  Specifically, the FSB wants to see £3 million, of an existing £32 million pot of money, earmarked for promoting graduate internships and creating an extra 5,000 placements.  Apprentices should be paid a national minimum wage of £123 per week.  The 1990s Enterprise Allowance Scheme should be re-introduced to give those with entrepreneurial skills who have been made unemployed the chance to become self-employed.  And, finally, in order to avoid further job losses and to allow employers to hold on to valuable staff, there should be a wage-subsidy for workers who have had their hours cut.  John Wright, the FSB’s national chairman, said: “Seven in ten of all apprenticeships already happen in small businesses, and around 20 per cent would take on a graduate intern. Investing money in these areas will not only help small firms grow at a difficult time, but will ensure that the future workers and entrepreneurs are equipped with the skills they need."  Mr Wright added: “Self-employment must also be a real option for those that have lost their jobs. Re-introducing the Enterprise Allowance Scheme could create an extra 36,000 jobs over the next year. Research shows that small firms grow faster than larger businesses, creating more employment opportunities for the future.  “Small firms truly are the backbone of our economy and are ready to do their bit to help stimulate the economy, get people back into work and get the country back into recovery.”  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Friday 25 September - Ruling goes against retirement age legal challenge

Employers will still have the right – for now – to ask employees to retire at the age of 65 following a judgement in the High Court.  The challenge to the legislation, which was introduced in October 2006 and which allows employers to end the employment of anyone aged 65 or over without compensation or the risk of a claim for unfair treatment provided the correct procedures are observed, was brought by charities Age Concern and Help the Aged.  An attempt to overturn the legislation, which the charities argued is in breach of the EU’s Equal Treatment at Work Directive, had already been rejected by the European Court of Justice which ruled that the default retirement age (DRA) was acceptable provided that there was a “legitimate aim” to the law linking it to social or employment policy.  As a result the case returned to the UK’s High Court.  The charities maintained that enabling employers to set a mandatory retirement age – 65 – at which employees can be forced to leave work, even if they are willing and able to carry on working, gave firms and organisations too much leeway in justifying direct discrimination on the grounds of age.  Under current regulations, employees who reach their 65th birthdays are entitled to request to continue working, but employers are not required to accept the request or to offer reasons for not doing so.  Ruling on the case, Mr Justice Blake decided that the default retirement age does comply with the Directive and that it was “legitimate and proportionate” for the government to introduce it.  However, the judge also went on to say that he did not believe that 65 would have been chosen as the default age had it been set today.  Mr Justice Blake added that his ruling may have been different had the government not announced plans to bring forward a review into the default retirement age to next year.  He described the arguments for increasing the age as “compelling” and said that he could not see how 65 could remain as a DRA after the review.  In response, the charities urged the government to use the Equalities Bill, which is going through Parliament, to drop the law.  Andrew Harrop, head of public policy at Age Concern and Help the Aged, said: “The ruling does not spell the end of our campaign to win justice for older workers – in fact, we will be stepping up our fight to get this outdated legislation off the statute book.  “Despite the judgement, ministers still have the opportunity this side of a crucial general election to give real help to people in their 60s by outlawing forced retirement. They should amend the equality bill which is currently making its way through parliament.”  Andrew Lockley, of the law firm representing the charities, commented: “The judge has effectively given the government breathing space to go away and change the rules. But his comments that he cannot see how the DRA can stay at 65 will give renewed hope to thousands of workers approaching that age.”  Employers, though, welcomed the ruling.  Adam Marshall, director of policy at the British Chambers of Commerce (BCC), said: “This was the right decision. The vast majority of businesses value their older employees and the considerable experience that they can bring to a firm. We do not believe there is evidence of widespread use or abuse of the system; only 1 in 4 businesses we surveyed use the default retirement age.  “Employees already have the right to request to postpone their retirement, and we believe the existing rules allow for the fairest outcome on both sides. Businesses need a period of stability to allow all the recent changes to employment legislation to bed down. They don’t want more tinkering with employment rules.”  John Cridland, the CBI's deputy director-general, said: “This judgment is a vital victory for common sense, and it supports the approach that employers already take to retirement. Businesses don’t want to lose good people, whatever their age.  “Eight out of 10 people who ask to work beyond 65 see that request accepted. Defeat for the government today would have created an unworkable situation that would have fuelled litigation and resentment.  “A default retirement age helps staff think about when it is right to retire, and also enables employers to plan more confidently for the future. In certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone. Next year’s review will have to address these good reasons why we have the existing law.”  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Friday 18 September - Imminent rise in the minimum wage

Employers are being reminded that 1 October sees increases in the hourly rates for the national minimum wage.  The rate for workers aged 22 or over rises to £5.80 an hour; for workers aged 18 to 21 it rises to £4.83 an hour; and for workers aged below 18 who are no longer of compulsory school age it rises to £3.57 an hour.  The daily accommodation offset, which is the amount per day that an employer may offset from the minimum wage when providing a worker with living accommodation, is to be £4.51.  There are changes, too, to the way that the minimum wage and tips and service charges are managed.  From 1 October, employers are not allowed to count service charges, cover charges, tips and gratuities paid to workers through the payroll as part of the minimum wage. Tips given directly to a worker by a customer and tronc payments paid directly to a worker from the tronc master will continue not to be included as part of the minimum wage.  Also from 1 October, the redundancy payment rules are amended.  The limit on a week’s pay for the purposes of working out statutory redundancy payments increases from £350 to £380. The rise also affects employment tribunal awards calculated on the basis of a week’s pay.  The limit usually changes on 1 February in line with the retail price rate of inflation. Given that the change takes place in October, there will be no change on 1 February 2010.  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Wednesday 16 September 2009 - Government proposes extension to paternity leave

Fathers are to be given the right to take up to six months of paternity leave in order to look after their children, the government has announced.  At the moment, fathers are entitled to two weeks paid paternity leave and mothers to 52 weeks maternity leave, of which up to 39 weeks are paid.  Employed parents can also claim a total of 13 weeks unpaid parental leave until the child’s fifth birthday.  Under the proposed changes, families will be given the right, if they choose, to transfer the last six months of maternity leave to the father, which can be taken by the father once the mother has returned to work.  Of that six months, three months will be paid leave at the normal maternity rate of £123.06 per week.  There is to be a consultation on the measure, but the government’s timetable is to have the changes in place by April 2010 and to apply them to working parents whose children are due on or after 3 April 2011.  The government has argued that the new rules have been put together in such a way as to minimise the administrative burden on employers.  It is estimated that the take-up of the additional paternity leave will be less than 6 per cent and that it will affect 0.7 per cent, or 1 in every 137, of all small businesses.  Setting out details of the regulations, Pat McFadden, the Business Minister, said that they will give families extra choice and flexibility.  Mr McFadden continued: “The number of businesses affected is expected to be small – less than 1 per cent of small businesses – and we will work with business to make sure any changes are introduced in a way that minimises burdens and gives them predictability in the provision of leave. As family friendly policies have been introduced we have seen more retention of mothers in their current jobs when they go back to work.”  Harriet Harman, Minister for Women and Equality, added: “Mothers will be able to choose to transfer the last six months of their maternity leave to the father, with three months paid. This gives families radically more choice and flexibility in how they balance work and care of children, and enables fathers to play a bigger part in bringing up their children.”  However, David Frost, the director general of the British Chambers of Commerce, questioned the timing of the extension.  Mr Frost commented: “There is absolutely no guarantee that businesses are going to be back to full health by 2011. This is going to be an administrative nightmare for business.”  The Chartered Institute of Personnel and Development (CIPD) agreed.  Mike Emmott, the CIPD’s employee relations adviser, said: “We share the widely expressed concerns about the principle of allowing parents to convert maternity leave unused by mothers into paternity leave for fathers – we have always maintained the administrative burdens involved could cause a real headache for employers.”  Mr Emmott also suggested that take-up of the scheme would be low because paternity leave paid at the statutory level is not appealing to fathers for financial reasons.  He added: “Our research shows that paid paternity leave, restricted as it is to a statutory £123.06 per week, is not attractive to the vast majority of fathers. We found that less than half of fathers would take even the existing two weeks paternity leave at statutory pay levels, many preferring to take paid leave instead. So the proposed increase in ‘paid’ paternity leave is unlikely to lead to any dramatic increase in take-up.”  But the CIPD did say that it was pleased the government is moving towards a more equitable sharing of the burden of child support between mothers and fathers in the early months after a baby is born.  Addressing the problem of the gender pay gap, Mr Emmott concluded: “Any realistic plan to achieve this is bound to be expensive and could only be implemented over many years."  "However, without some further steps in this direction, the stated aim of all the main parties to close the gender pay gap will be hobbled in one important regard. This is a cultural issue that government cannot tackle alone. But there is a role for government, working closely with employers, to nudge cultural norms in the right direction.”   Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Thursday 17 September - Dealing with employee absence

Over two million people are reported to suffer from an illness which they believe was caused by or made worse by their current or past work. 35 million working days are lost every year (1.5 days per worker), 28 million due to work-related ill health and seven million due to workplace injury.  Employee absences are both costly and disruptive. In any year, workplace absence typically averages 8.1 days per employee at a cost of £850 to the employer. Multiply this figure by the number of staff in your company, and take into account the disruption and lost work caused by other employees having to cover for absent colleagues, and you can see that absenteeism is a significant factor in damaging your profits.  Here are some practical steps to take.

Track the problem
Can you identify any particular problem areas? Are there patterns of absence? Does a particular department or employee have a below average record? A

Focus on morale
Unhappy staff are more likely to take time off. A financial incentive for low absence is one solution but creating a friendly environment, where staff feel valued as part of a team and where flexible, family friendly policies are in place is likely to prove more effective at keeping absenteeism to a minimum.

Support sick employees
Long-term sickness must be handled sensitively. An employee's permission must be sought and given before applying for a medical report. Establish whether you should keep in touch so that the employee doesn't feel isolated. Consider referring them to an occupational health specialist. This can identify ways of helping them return to work and give you an indication of how long the absence is likely to last.

Have a clear policy - and enforce it
Make sure staff are well informed regarding sickness policy and procedures and that these are seen to be followed, and keep accurate records.

It is sensible to ensure that employers are aware of the right to request an independent medical assessment in the event of an employee taking substantial numbers of days off work. When recruiting you could check a potential employee's attendance record with their previous employer, and you may consider requiring all prospective staff to undergo a medical examination.  Make it company policy always to carry out a return to work interview. This may just let the employee know that their contribution was missed, or it could help identify underlying problems that will affect your management strategy. It may also deter staff from feigning illness.  Remember that disciplinary action for unacceptable absence must be distinguished from capability procedures related to illness. Employers need to be aware of the full range of conditions which come under the Disability Discrimination Act 1995. In this case, reasonable adjustments must be made to help the employee return to work.  Employee absence is a serious issue for most small businesses, but there are steps you can take to minimise its impact. However, we recommend that you take professional advice before altering contracts or terms and conditions of employment.  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH

Tuesday 15 September 2009 - Holiday sick leave ruling could be open to 'abuse'

A ruling by the European Court of Justice (ECJ) has given employees the right to ask to claim back leave if it has been affected by illness.  The case centred on a Madrid council worker who suffered an injury just before he was due to go on holiday. His employers refused his request to move his leave period because of the injury. The worker, Francesco Pereda, then initiated a legal action.  Hearing the case, the ECJ ruled that employees have the right to ask for leave to be reallocated if it has been affected by sickness or injury, and that the employee should have been permitted to take his leave at a different time and that, if necessary, it should be carried forward into the next holiday year.  The judgement is a reinterpretation of the Working Time Directive which covers all UK workers too.  Katja Hall, director of HR policy at the CBI, expressed possible employer concerns at the decision.  Ms Hall said: “Many firms already take a common sense and sympathetic approach. But allowing employees to re-classify their holiday as sick leave opens the door to abuse.”  The ruling echoes a judgment handed down by the House of Lords in the case of a group of Customs workers, which stipulated that employees can accumulate holiday entitlements while on long-term sick leave.  Making its judgment, the ECJ said that if a “worker does not wish to take annual leave during a period of sick leave, annual leave must be granted to him for a different period”.  The wording of the ruling does not define the time at which an illness can affect the taking of a holiday, or when employees must report the illness to their employers to qualify for a rearrangement of their leave, or what proof would be required.  In the instance of Mr Pereda, the injury occurred after he had booked his holiday but before he had started his leave period.  Some lawyers believe that the ruling does not necessarily prevent workers who have already begun their holidays from asking to reallocate leave in the event of illness or injury.  Under the current rules on sick leave, employees can self-certify sickness for up to seven days. After that, they must have a doctor’s note in order to continue on sick leave.  Owen Warnock, a partner at law firm Eversheds, said: “Many employers take the view that if an employee is sick while on holiday, that is just bad luck for them. The European court has now said that this is not allowed by the Working Time Directive.  “The danger of abuse is clear: an employee could increase his or her holiday entitlement by ensuring that in most years they alleged they were sick while on holiday. It may only be the occasional ‘bad penny’ who does this, but the resentment that it would create with colleagues should not be underestimated.”  However, Mr Warnock added that until “the European or UK courts say otherwise, our view is that employers are entitled to require workers to produce convincing evidence of their illness while on holiday and that it would have rendered them unfit for work before allowing workers to ‘reallocate’ holidays”.  Sophie Kummer, of the Federation of Small Businesses, said: "This is something that could be highly detrimental to small businesses, especially with the extra administration costs and so on. We'll see how it plays out in the UK, but it could be a serious business for our members."  Ben Wilmott, senior public policy adviser at the Chartered Institute of Personnel and Development (CIPD), described the ruling as "completely divorced from the real world".  Mr Wilmott argued that it is well-established that employers should take on some of the risk of employees being sick on work time, but that it is basic common sense that employees should in turn be willing to accept the risk that they may be sick on their holidays.  He continued: "The sad fact is that nonsensical rulings like this could force good employers to review their relatively generous occupational sick pay schemes, and consider opting for Statutory Sick Pay schemes instead."  The CIPD said that, in practical terms, employers should at the very least clarify their absence management policies so that employees understand they will need to phone their line manager daily if they are sick while on holiday to confirm that they are still sick and not fit for work.  Article courtesy of England & Company, 7 & 8 Church Street, Wimborne, Dorset BH21 1JH