At a glance: reward and benefits headlines this week 26 June – 2 July 2020
The headlines you might have missed between 26 June – 2 July 2020.
Kay Ingram: What salary sacrifice means for furloughed workers’ pensions
Corporate Adviser: Employers running salary sacrifice schemes who furlough their workers must ensure they stay the right side of the rules says LEBC Group director of policy Kay Ingram. Read story
Schemes on the hunt to maximise GMP conversion benefits
Professional Pensions: Red tape preventing pension schemes from managing the barriers around GMP equalisation is leading to many combining conversion with pension increase exercises (PIE), Aon says. Read story
WPC chairman to seek transfer pause where scams suspected
Professional Pensions: Work and Pensions Committee (WPC) chairman Stephen Timms will table an amendment to the Pension Schemes Bill to allow schemes to pause transfers when a scam is suspected. Read story
Transport for London delays bonus payments for senior managers
Employee Benefits: Transport for London (TfL) has delayed bonus payments for senior managers until 2021 to deal with the financial ramifications of Covid-19 (Coronavirus). Read story
Lloyd’s reports mean gender pay gap of 23.6%
Employee Benefits: Insurance organisation Lloyd’s has reported a mean gender pay gap of 23.6% for hourly pay as at April 2019. Read story
Walmart rewards front-line employees with $300 bonus
Employee Benefits: US supermarket chain Walmart will reward its hourly paid employees with an additional bonus to recognise them for their efforts during the Covid-19 (Coronavirus) pandemic. Read story
25% of employers offer share schemes to employees
Employee Benefits: A quarter (25%) of respondents offer shares or share schemes to staff, while 14% do so purely for executive or senior employees. Read story
Huge number of furloughed staff fear job loss timebomb
HR Grapevine: Britain could be facing up to a wellbeing, anxiety and job loss timebomb with the latest YouGov survey finding that furloughed workers are anxious about finances and job security. Read story
State pension could climb 5 times faster than earnings
Pensions Age: The state pension could rise by five times as much as average weekly earnings over the next two years, according to the Resolution Foundation. Read story
Home workers should expect a pay cut
HR News: Employees “Working from Home” in areas commanding a lower wage than their work location should expect a pay cut if they want to continue past the Covid crisis, bosses warn. Read story
More than 80% of Businesses Now Considering Remote Global Workforce Model
HR News: New research released by Globalization Partners and CFO Research, indicates that most businesses are undeterred by the impact of COVID-19 and are still moving forward with plans for new or expanded international operations. Read story
Vast majority of contractors to fall outside of IR35
HR Review: Nearly nine-tenths of contractors fall outside of IR35 which is the exact opposite of what a partner at Baker Mckenzie a multinational law firm said at the end of 2019. Read story
The Stavros Niarchos Foundation rewards 4,600 hospital workers with Covid-19 bonus
Employee Benefits: The Stavros Niarchos Foundation (SNF) will reward all nurses, doctors and members of cleaning staff with a special payment for working on the front-line in Covid-19 (Coronavirus) wards. Read story
How workplaces of the future will have responsibility for health and wellbeing
Employer News: Johnathan Ransom, Co-founder of Square Mile Farms, considers the new responsibilities employers are likely to adopt as the world readjusts to ecological, pandemic and mental health stresses. Read story
Blackhawk Network research reveals that HR reward systems should have more financial incentives after COVID-19
Employer News: A recent survey of just over 2000 respondents from Blackhawk Network looked at employee attitudes towards reward. Read story
2 in 5 UK employees still not offered flexible working
HR News: 40 per cent of UK employees are still not offered flexible working as part of their company’s policies, according to research by conference call and video call provider PowWowNow carried out with Censuswide. Read story
Millions of British SME workers offered free financial advice during pandemic
HR News: With over nine million1 people currently furloughed, the evidence for this mounting problem is growing: already 1.9 million2 mortgage borrowers have taken payment holidays, while a further 1.5 million3 people have been given payment holidays on their loans and credit cards. Read story
TPR set to tighten regulatory grip as it unveils its latest corporate plan
Professional Pensions: The Pensions Regulator (TPR) has said it will continue with its “clear, quick and tough” approach to driving up standards across the pensions industry following the coronavirus pandemic. Read story
Pension savings have increased by 35% since 2017
Employee Benefits: The average pension pot in the UK for employees in large firms is now £120,000, a 35% increase from 2017, according to research by Close Brothers. Read story
Bank of England reports mean gender pay gap of 19.5%
Employee Benefits: Bank of England has reported a mean gender pay gap of 19.5% for hourly pay as at April 2019. Read story
‘Large’ firm workplace pension pots increase but gender savings gap widens
Pensions Age: The average pension pot of UK workers at ‘large’ companies has increased over the last three years, from £89,000 in 2017 to £120,000 in 2020, data from Close Brothers has revealed. Read story
Transfer figures soar as £10bn leaves DB schemes in three months
Professional Pensions: Close to £10bn was transferred out of defined benefit (DB) pension schemes in the last quarter of 2019, according to figures from the Office for National Statistics (ONS). Read story
The Pension Superfund completes HMRC registration in step towards first deal
Professional Pensions: The Pension Superfund (PSF) has moved a step closer to completing its first deal with the official registration of thesSuperfund as an occupational pension scheme by HM Revenue & Customs (HMRC). Read story
Covid-19 likely to push DC schemes into master trusts
Professional Pensions: The economic uncertainty generated by Covid-19 is likely to cause a large number of defined contribution (DC) schemes to move into master trusts, according to PP readers. Read story
Just one in 10 parents want to return to the office full time, survey finds
People Management: Experts highlight ‘significant staff engagement and performance benefits’ brought by continued flexibility after lockdown. Read story
Think tank calls for continued wage subsidies in hospitality and retail
People Management: The need to maintain social distancing measures means employers are a ‘long way off returning to business as usual’, warns Resolution Foundation. Read story
64% of organisations offer on-site benefits to employees
Employee Benefits: Two-thirds (64%) of employers offer on-site benefits to its employees, with more than a third (39%) providing on-site showers or laundry services. Read story
Jersey increases parental leave to 52 weeks
Employee Benefits: Jersey has enhanced its parental leave legislation, ensuring that all working parents are entitled to 52 weeks of parental leave, with six weeks to be paid by the employer. Read story
Amazon rewards front-line employees with appreciation bonus
Employee Benefits: Amazon is to pay an appreciation bonus to its employees worldwide to reward them for their efforts during the Covid-19 (Coronavirus) pandemic. Read story
70% of working parents require more long-term childcare benefits
Employee Benefits: Seven in ten (70%) working parents feel they would benefit from more employer-led support with long-term childcare, according to research by Bright Horizons. Read story
Research claims two in five workers not offered flexible working
Workplace Insight: According to research conducted by conference call provider PowWowNow and Censuswide, 40 per cent of UK employees are still not offered flexible working as part of their company’s policies. Read story
Half of UK employers plan to 'stagger' return to work
Cover: Half (49%) of employers are planning to stagger their return to work based on employees' own health risks related to Covid-19, while 46% said they will stagger employees back into the office depending on how critical their role is to the business. Read story
Divorced women retire with savings 75% smaller than male counterparts
Pensions Age: Divorced women’s median pension wealth at retirement adds up to just a quarter (25 per cent) of that of their male counterparts, according to research commissioned by Now Pensions. Read story
How will COVID-19 transform the role of HR
HR News: With Human Resources spearheading the response to the COVID-19 pandemic in companies, the role of a HR team changed dramatically to ensure each business adapted and improved their processes to make the transition to remote working possible and efficient. Read story
BAME workers feel they have to mask identity at work
HR Magazine: Nearly half of BAME (49%) workers in the UK said they have to mask part of their identity to fit in at the office. Read story
Companies increasing wellbeing spending due to COVID-19
HR Review: Over nine-tenths of companies that have increased their corporate wellbeing spending have done so due to the spread of COVID-19. Read story
Government suffers defeats in House of Lords over Pension Schemes Bill
Professional Pensions: Amendments to the Pension Schemes Bill passed by peers in the House of Lords last night will see a wide-ranging suite of reforms for the pensions industry draw another step closer. Read story
Comic relief founder launches campaign to shift £3trn of pension assets into sustainable investments
Professional Pensions: Film producer Richard Curtis - also co-founder of Comic Relief - has launched a campaign to help make the UK’s £3trn of pension assets more sustainable and ensure it is invested in building a better world after the coronavirus pandemic. Read story
Seven million people take pension action during lockdown
Professional Pensions: More than a third of savers have taken some form of action relating to their pension during the national lockdown, according to research by Aviva. Read story
How to address racism with positive leadership
People Management: During the CIPD's most recent webinar on race, a leading D&I expert said the pandemic and Black Lives Matter protests have given employers a ‘once in a lifetime opportunity’. Read story
HM Treasury publishes updated version of job retention scheme
Employee Benefits: HM Treasury has published a revised direction on the Government Job Retention Scheme (GJRS), making this the third version of the GJRS since it launched on 15 April 2020. Read story
New Zealand increases paid parental leave to 26 weeks
Employee Benefits: The New Zealand government has increased paid parental leave entitlement to 26 weeks, from 1 July. Read story
Financial Times reports mean gender pay gap of 16%
Employee Benefits: The Financial Times has reported a mean gender pay gap of 16% for hourly pay as at April 2020. Read story
Salesforce, Hilton and Gap named UK Best Workplaces for Women 2020
Employee Benefits: Salesforce, Hilton and Gap are among the 68 organisations that have been named the Best UK Workplaces for women in 2020 by Great Place to Work UK. Read story
15% of SMEs plan to introduce pay cuts
Employee Benefits: One in six (15%) small and medium-sized enterprises (SMEs) are planning to make pay cuts according to research by Vestd. Read story
What does HR need to know when bringing staff back?
HR Grapevine: From today (July 1, 2020) ‘flexible furlough’ will come into play, allowing employers to bring staff members back to work part-time if they want to. Read story
The loneliness of the long term flexible worker
Workplace Insight: Flexible working arrangements are those which ‘allow employees to vary the amount, timing or location of their work’ and may include part-time working, mobile/home working, compressed hours or job-sharing – among others. Read story
The Importance of the Reward System in the Workplace
Employer News: When it comes to dealing with work-related responsibilities people benefit from having the right mindset, the right environment, and the right motivation for them to feel like they are doing their job in an efficient way – and for them to feel appreciated. Read story
COVID19 lessons for employers: Key person protection and key worker benefits
Employer News: Steve Herbert, Head of Benefits Strategy at Howden Employee Benefits & Wellbeing, considers what lessons employers have learned about employee protection. Read story
Staff experiencing mental health issues and not speaking to anyone doubles
HR Review: The number of UK workers who are experiencing mental health issues and have not discussed it with anyone else has doubled since last year. Read story
Employees willing to quit their job if offices not made COVID-19 ‘safe’
HR Review: Just under a third of employees are willing to quit their jobs if their workplaces are not made COVID-19 ‘safe’ for when they return. Read story
Adrian Matthews: Seeking security – the value of employee benefits in times of crisis
Corporate Adviser: Organisations’ values are currently being put to the test: employees are finding out whether their company truly has their needs at the heart of their strategy says Adrian Matthews, head of employee benefits at MetLife. Read story
DB schemes losing up to £250m a year due to tax-inefficient funds
Professional Pensions: UK defined benefit (DB) schemes lose up to £250m a year due to less tax-efficient funds, according to research by the Asset Management Exchange (AMX) and Northern Trust. Read story
Revealed: The top third-party administrators and software providers
Professional Pensions: The Professional Pensions Administration Survey 2020 reveals the rankings of the best third-party administrators and software providers for pension schemes. Read story
Lords commit TPR to preserving open DB schemes
Pensions Expert: The House of Lords has amended the pension schemes bill to ensure that open defined benefit schemes are not forced to derisk their investments in the same way as closed plans, in one of four defeats suffered by the government. Read story
Zurich UK reports mean ethnicity pay gap of 9.8%
Employee Benefits: Insurance organisation Zurich UK has reported a mean ethnicity pay gap of 9.8% for average hourly pay as at July 2020. Read story
Brandsby Agricultural Trading Association completes £13 million bulk annuity transaction
Employee Benefits: Brandsby Agricultural Trading pension scheme has completed a £13 million bulk annuity buy-out transaction with Legal and General. Read story
22% of businesses offer voluntary unpaid leave to employees
Employee Benefits: Just under a quarter (22%) of organisations are currently offering voluntary unpaid leave, with 26% considering introducing this, according to research by Korn Ferry. Read story
Wellbeing of overwhelming majority affected by events of 2020
Workplace Insight: A new study commissioned by Perkbox of 13,271 employees claims that 93 percent of employees have faced new wellbeing challenges in 2020. Read story
Flexible furlough scheme begins a month earlier than expected
Cover: From 1 July, Businesses are allowed to being furloughed employees back to work on a part-time basis and firms will be given flexibility to decide the hours and shift patterns of employees. The government will continue to pay 80% of salaries for the hours they do not work. Read story
Ex-Chancellor Sajid Javid calls on govt to axe marginal rate pension tax system
Pensions Age: The Centre for Policy Studies (CPS) and ex-Chancellor, Sajid Javid, have urged the government to axe the current marginal rate pension tax system in favour of a flat rate bonus, paid regardless of tax code. Read story
Pension pots are on the rise, but the gender savings gap widens
HR News: The average pension pot of UK employees in large firms is now £120k, a 35% increase on three years ago, according to the new ‘Changing Trends of Financial Wellbeing’ report from Close Brothers. However, outside of pensions, average savings and investments have fallen 3%, and delving into the detail reveals a widening gender savings gap. Read story