At a glance: reward and benefits headlines this week 13 - 19 November 2020
The headlines you might have missed between 13-19 November 2020.
Auto-guidance gets cross-party support; Labour calls for net-zero pensions
Professional Pensions: A proposal to ensure savers receive a Pension Wise appointment prior to accessing their retirement pot has received cross-party support in parliament, while Labour seeks net-zero pensions by 2050. Read story
Responsible investment bill ignites shoehorning concerns
Professional Pensions: Legislation formalising trustees’ ESG duties could be overly prescriptive and lay down too much pressure on schemes, the industry has told PP. Read story
TPR issues guidance on protecting schemes from employer distress
Pensions Expert: New guidance for trustees on protecting their schemes from employer distress stresses the need for robust protections and integrated risk management. Read story
BBC pay discrimination cases dismissed by Equality and Human Rights Commission
Employee Benefits: Public television organisation British Broadcasting Corporation (BBC) has been cleared of all pay discrimination cases filed by employees, following on from an investigation by the Equality and Human Rights Commission. Read story
TSB extends mental health support to friends and families of staff
Employee Benefits: British bank TSB is enhancing its mental health support benefit for employees to allow them to include a member of their family or a friend. Read story
Channel 4 reports 21.5% mean gender and 15.3% ethnicity pay gaps
Employee Benefits: Media organisation Channel 4 has reported a mean gender pay gap of 21.5% for average hourly pay as at March 2020 down from 23.3% the previous year. It has also chosen to report its ethnicity pay gap data, finding a 15.3% mean difference. Read story
Channel 4 gifts 'care package' to remote staff
HR Grapevine: Support for employees’ wellbeing has been a hot topic for HR leaders since the pandemic hit and forced the vast majority of employees to work from home or to be placed on the Government's Coronavirus Job Retention Scheme (CJRS). Read story
People working from home should be taxed for the privilege, says Deutsche Bank
Workplace Insight: People working from home should be taxed at a higher rate to compensate for the money they aren’t spending on commuting and other expenses, according to a new report from economists at Deutsche Bank. Read story
40% of businesses offer a workplace savings scheme
Employer News: Research conducted by Cushon, the workplace savings provider, has found that 40% of businesses now offer their employees access to a workplace savings scheme. Of those employees using the scheme, 32.06% choose to use the initiative because their employer also contributes to their savings and 30.88% like having the ability to save directly from their pay. Read story
Second National Lockdown Will Require Additional Focus on Employee Wellbeing
Employer News: As England heads into a second national lockdown, employees across the nation who crave office-based working will once again face isolation, lack of face-to-face social contact and potential loneliness. Read story
Almost two-thirds of over 60s to rely on state pension - Kreston Reeves
Pensions Age: Just under two-thirds (64 per cent) of over 60s expect to rely on the state pension to fund their retirement, according to a study by Kreston Reeves. Read story
61% of employers offer no guidance to those approaching pension freedoms
Pensions Age: Six out of ten (61 per cent) employers do not offer their staff any guidance on accessing their retirement savings as they approach age 55, Punter Southall Aspire (PSA) has found. Read story
High Court rules PPF can pay compensation to scam victims
Pensions Age: The recent High Court ruling on Pensions Protection Fund (PPF) compensation could have a “huge impact on pension liberation cases”, Pension Scams Industry Group (PSIG) chair, Margaret Snowdon, has said. Read story
Female staff report lower happiness and motivation than men when remote working
HR Review: New research has shown that women in the UK are reporting lower happiness and motivation levels than their male counterparts when working from home. Read story
Two-thirds of UK workers want more help from employers during second lockdown
HR Review: Just under two-thirds of UK employees would like their employers to provide them with more support during the most recent lockdown restrictions. However, over half are skeptical that their employer will offer this help. Read story
Pension provider backs initiative to support consumers with communication problems
Corporate Adviser: Scottish Widows and other financial service companies have joined a new business initiative designed to provide better support for consumers with a range of communications difficulties. Read story
Funding of DB schemes improves, but challenges remain ahead: LGIM
Corporate Adviser: UK defined benefit schemes have recovered to pre-Covid levels but the ongoing recession could present future funding threats, according to the latest Legal & General Investment Management research. Read story
MPs jeopardising pension security without further bill amendments, Altmann says
Professional Pensions: MPs considering the Pension Schemes Bill in its final stage must push back on changes which could damage private pension viability, according to former pensions minister Ros Altmann. Read story
FCA opened 67 investigations into DB transfer advice over last three years
Professional Pensions: The Financial Conduct Authority (FCA) has opened 67 investigations into defined benefit (DB) transfer advice misconduct claims over the past three years. Read story
Pension professionals demand pause to TPR’s tough stance on funding
Pensions Expert: The UK could face a tidal wave of insolvencies and job losses in the coming winter months. With this bleak prospect looming, pension professionals are calling for a more pragmatic approach from the Pensions Regulator on scheme funding. Read story
Employers urged to focus on record keeping in wake of BBC equal pay row
People Management: As the UK equalities watchdog calls on the broadcaster to rebuild trust with female staff, experts recommend other firms ensure their processes are watertight. Read story
South East Coast Ambulance Service launches mental health app for staff
Employee Benefits: South East Coast Ambulance Service NHS Foundation Trust (SECAmb) has introduced a wellbeing app to support the mental health of its 3,500 employees and volunteers. Read story
Wickes rewards 8,000 staff with three days of additional leave
Employee Benefits: DIY retailer Wickes is rewarding its 8,000 employees with three days extra of paid holiday in December 2020. Read story
B&M repays government £3.7 million in furlough costs
Employee Benefits: Retail employer B&M has paid back in full the money it received as part of the government’s employee furlough scheme as financial support during the Covid-19 (Coronavirus) pandemic. Read story
22% of organisations align benefits with national or world events
Employee Benefits: A fifth (22%) of organisations have aligned employee benefits initiatives with national or world events. Read story
Designing your employee financial wellness program
Workplace Insight: For a lot of employers, the idea of an employee financial wellness program can be something of an afterthought. That is, beyond providing fair pay and a clear policy regarding taxation and benefits, it can seem unnecessary to take any other action regarding employee finances. Read story
IA reveals stricter executive pension guidelines
Pensions Age: The Investment Association (IA) has written to FTSE 350 companies informing them of changes to its executive pension guidelines. Read story
Calls for employers to take bullying and harassment in the workplace seriously
HR News: Almost all (91%) of employees across the UK say that knowing their employer takes bullying and harassment complaints seriously is an important factor to their overall happiness at work, while one-quarter (25%) say their employer could improve its culture and be more inclusive by providing a platform to speak out about bullying and harassment, according to a recent report from Culture Shift. Read story
Remote working could lead to an increase in prejudice between different groups
HR Review: New research shows that working from home could lead to a rise in racism and prejudice. Read story
Jobs offering flexible hours attract 20 per cent more female applicants
HR Review: A new case study finds that women are 20 per cent more likely to apply for senior roles if the job offers flexible hours, indicating a key area for employers to consider when recruiting for top talent at the highest level. Read story
MPs vote down Pension Schemes Bill automatic guidance amendment
Professional Pensions: An amendment to the Pensions Schemes Bill which would have seen people given a pre-booked Pension Wise appointment ahead of accessing their retirement savings has been defeated. Read story
Pension Schemes Bill passes final stages of the House of Commons
Professional Pensions: The Pension Schemes Bill has completed its third reading, crossing its latest hurdle in the House of Commons. Read story
Maps to create checklist to help over-50s affected by Covid-19 plan for future
Professional Pensions: The Money and Pensions Service (Maps) will develop a ‘later-life checklist’ to help over-50s who have been affected by Covid-19 and need to plan for their financial future. Read story
Volkswagen Financial Services UK reports 24.7% mean gender pay gap
Employee Benefits: Volkswagen Financial Services UK (VWFS) has reported a mean gender pay gap of 24.7% for average hourly pay as at April 2019, down from 26.8% the previous year. Read story
Fona International pays recognition bonus to 220 employees
Employee Benefits: Geneva-based food and beverage flavour organisation Fona International is to reward its 220 employees with a $2,500 (£2,073) bonus payment for every year they have worked at the organisation. Read story
Allen and Overy increases pay for newly qualified lawyers
Employee Benefits: International law firm Allen and Overy is to increase the salary of all newly qualified lawyers, after implementing pay reductions due to the Covid-19 (Coronavirus) pandemic. Read story
Top priority for HR leaders in 2021: building critical skills
Workplace Insight: Gartner, Inc.’s 2021 HR Priorities Survey of more than 750 HR leaders claims that 68 percent of respondents cited building critical skills and competencies as their number one priority in 2021. Read story
LGBT Great and Incisive Media unite to champion LGBT+ agenda in financial services
Cover: LGBT Great and Incisive Media are excited to announce they have signed a new and exclusive partnership to work together to accelerate progress of the LGBT+ agenda across the investment, pensions, wealth management and savings industry. Read story
Reduction in globally mobile workforce, and increase in recruiting local nationals means employers need to adapt how they look after employees
Employer News: With international travel restricted, many businesses are turning to recruiting local nationals to fill vacancies – where hiring a globally mobile workforce may have previously been the norm. Read story
USS Employers highlights concerns over 'unhelpful' USS consultation process
Pensions Age: Universities Superannuation Scheme (USS) Employers has raised concerns over the recent USS consultation process, highlighting it as “unhelpful” and “incredibly difficult” to understand, according to Universities UK (UUK). Read story
AE worker growth continues to be outpaced by non-AE employee increases
Pensions Age: Growth in the number of auto-enrolled (AE) employees continued to be outpaced by growth in non-enrolled workers in October, according to data from The Pensions Regulator’s (TPR's) Automatic enrolment declaration of compliance report. Read story
Job flexibility helps narrow gender pay gap as women apply for more senior roles
HR Magazine: The option to work part-time, job share or flexibly could be fundamental to helping close the gender pay gap, finds a new study by Zurich insurance and the government-backed Behavioural Insights Team. Read story
Over nine in 10 employers think remote working has not negatively affected employee productivity
HR Review: Research has shown that HR leaders generally have a positive attitude to remote working with around 96 per cent believing that remote working has not negatively impact employee productivity. Read story
One in three employers do not provide long-term sick benefits: Grid
Corporate Adviser: One third of employers don’t have financial support in place for employees on long-term sick leave. Read story
CA Master Trust and GPP Summit: Pressures build on scheme trustees
Corporate Adviser: Trustees and IGCs will have an increasingly important role to play in the DC pension sector to ensure good outcomes for members. Read story
Two-thirds of fund managers reduce investments in companies failing on diversity and inclusion
Professional Pensions: Two-thirds of UK fund managers are reducing investments in companies that fail on diversity and inclusion scores, according to a survey by Edelman. Read story
26% believe their employer is concerned about their wellbeing
Employee Benefits: Approximately one-quarter (26%) of respondents believe that their employer is genuinely concerned about their wellbeing, according to research by Aviva. Read story
West Yorkshire and Harrogate Health and Care Partnership launches wellbeing hub
Employee Benefits: West Yorkshire and Harrogate Health and Care Partnership is to launch a wellbeing hub to support the mental health of its 100,000 employees and 270,000 unpaid carers. Read story
Paypal gives US employees early access to pay
Employee Benefits: Payment organisation Paypal is giving its US employees early access to their pay to support their financial wellbeing during the Covid-19 (Coronavirus) pandemic. Read story
Most inclusive employers in Europe REVEALED
HR Grapevine: The Financial Times (FT) has published its second annual Diversity Leaders ranking which identifies Europe’s most inclusive employers – as ranked by staff members. Read story
Flexible working boosts applications for senior positions from women
Workplace Insight: A new study by Zurich UK, claims employers who embrace the flexible working revolution post Covid-19 could boost applications for senior positions from women by 20 percent. Read story
The 9 most compelling reasons why every employer must prioritise financial wellbeing for employees now
Employer News: Financial wellbeing industry data examined reveals just how much UK employees are struggling with money since the pandemic started. Read story
Pension advice regulations need 'fundamental rethink' – ABI
Pensions Age: The Association of British Insurers (ABI) has called for a “fundamental rethink” of pension advice and guidance regulations after finding that almost three quarters (72 per cent) of consumers would not pay for it. Read story
Number of savers withdrawing entire pension pot rises by 94%
Pensions Age: The number of savers withdrawing all of their pension in one lump sum increased by 94 per cent between April and September 2020, data from the Association of British Insurers (ABI) has revealed. Read story
More than half of UK employees have not considered their financial needs beyond the end of this year
HR News: Millions of UK employees are reliant upon financial plans lasting just a few months (53%) – or even weeks (23%) ahead, accordingtonew research from Fidelity International. Read story
The employee engagement lessons we must all learn from the Covid pandemic
HR News: The COVID-19 pandemic has turned the modern workplace upside down. But there are positives to come out of this turbulent period. One big surprise for organisations is that, during this time, many employees started to feel more engaged at work. Read story
How to encourage employees to take time off
Incentive and Motivation: Research by Glassdoor found that 40% of survey respondents took at most half of their annual leave for the previous year, with the average employee taking just 62% of their time-off. Read story
90 per cent of companies report challenges in executing diversity agendas
HR Review: New research has shown that nine in 10 companies globally, including the UK, have reported challenges in executing DEI (diversity, equity and inclusion) strategies. Read story
TPR posts sharp increase in use of frontline powers against schemes
Professional Pensions: The Pensions Regulator (TPR) has substantially increased the usage of its powers against trustees – posting a sharp rise in the use of formal information gathering powers and High Court production orders during the three months to the end of September. Read story
Government promises to unleash net-zero investment blitz with '10 Point Plan' for 'Green Industrial Revolution'
Professional Pensions: Carbon capture, hydrogen, nuclear, electric vehicles (EVs) and renewables all set to benefit from £12bn government stimulus plan, but critics warn funding falls well short of the level required to trigger a green recovery. Read story
DB transfer activity rises as 60% show signs of possible scams
Professional Pensions: More members transferred out of defined benefit (DB) pension schemes in October after September's record lows while values were surprisingly stable, according to XPS Pensions Group's Transfer Watch. Read story
More than half of reward strategies not fit for remote workforces, survey suggests
People Management: Experts urge HR to decide how to make the most of more agile teams, as poll finds businesses are largely unprepared for increased flexibility. Read story
One-fifth of pay awards currently frozen
Employee Benefits: More than a fifth (21%) of all pay reviews for the quarter up to the end of October 2020 led to a salary freeze, according to research by pay analysts XpertHR. Read story
NHS Greater Glasgow and Clyde becomes accredited living wage employer
Employee Benefits: NHS Greater Glasgow and Clyde (NHSGC) has become a real living wage employer, accredited by the Living Wage Foundation. Read story
Hala Group launches wellbeing platform to support 2,000 staff
Employee Benefits: Hala Group, which operates 74 Domino’s pizza stores across the UK, has launched a wellbeing platform to support its 2,000 UK employees. Read story
UK staff pulling longer hours & taking fewer sick days
HR Grapevine: New research has found that heightened anxiety has seen staff pull longer work hours and take fewer sick days over a three-month period in what could be described as a ‘wellbeing timebomb’. Read story
How to use activism to engage your workforce
HR Grapevine: Employees speaking out about their company and its decisions has started to increase more and more. Read story
GRiD: A third of employers do not offer financial support for long-term illness
Cover: Findings from Group Risk Development (GRiD) survey show how organisations are supporting staff. Read story
Capital One UK Launches Pioneering Parental Leave Benefits Scheme For Employees
Employer News: Capital One UK has illustrated their commitment to working families and inclusivity by launching a suite of new family leave benefits. Read story
Half of employees admit they only stay in their job for the health benefits
HR News: A survey conducted by a leading HR software company has revealed that half of employees admit that a primary reason they are staying in their job is for the health benefits, while almost three-quarters of American small business employees would be unlikely to accept a job that did not offer health insurance benefits. Read story
As workforce priorities change, the workplace will have to become more human-centric than ever
HR News: In a rapidly changing world of work, JLL’s global survey reveals that the workplace of the future will be versatile and hybrid, focusing on employee-centric solutions. Read story