At a glance: reward and benefits headlines this week 30 October – 5 November 2020
The headlines you might have missed between 30 October – 5 November 2020.
Dr Subashini M: Health insurers pull together
Corporate Adviser: Dr Subashini M, Associate Medical Director, Aviva UK Health & Protection, explores the impact of Covid-19 on private healthcare accessibility. Read story
Flexible pension withdrawals slide 2% in 12 months
Professional Pensions: The £2.3bn withdrawn flexibly from pensions in Q3 represents a 2% year-on-year decrease from monies withdrawn during the same months in 2019, HM Revenue and Customs (HMRC) figures show. Read story
Industry supportive of DWP's DC proposals but warns of unintended consequences
Professional Pensions: The Department for Work and Pensions’ (DWP) consultation on improving defined contribution (DC) outcomes has garnered support from the industry, but many have warned of potential unintended consequences. Read story
The Office for Standards in Education gives 85% of staff performance-related pay
Employee Benefits: More than four-fifths (85%) of employees working for The Office for Standards in Education (Ofsted) departments have received non-consolidated performance-related payments (NCPRP). Read story
Lloyds Banking Group cancels bonus payments for senior staff
Employee Benefits: Financial services organisation Lloyds Banking Group has cancelled its bonus payments for 2020 to deal with the financial constraints of the Covid-19 (Coronavirus) pandemic. Read story
Trust from the boss outweighs all other factors for employee happiness
Workplace Insight: While some organisations have welcomed remote working with open arms, other employers have struggled to trust their employees to work autonomously with some even ramping up on surveillance to track exactly what their workforce is doing. Read story
Job support scheme replaces furlough: How income will be impacted
Cover: As the government's furlough scheme draws to a close, November will see businesses supported by the newly revised job support scheme (JSS). Read story
SNP proposes amendments to criminal offences outlined in Pension Schemes Bill
Pensions Age: Scottish National Party (SNP) MPs have proposed amendments to the Pension Schemes Bill to try and avoid the risk of criminal offences included in the bill punishing routine behaviour. Read story
Smaller pension schemes could be 'forced' to consolidate by increasing compliance costs
Pensions Age: Smaller pension schemes could be “forced into consolidation” by rising compliance costs and new proposals from the Department for Work and Pensions (DWP), Buck has said. Read story
What does the extension of the furlough scheme mean for companies?
HR Review: Over the weekend (31st October 2020), Prime Minister Boris Johnson announced the Government’s intention to continue the furlough scheme for one extra month. Read story
Positive outcomes from Covid pandemic for adviser industry
Corporate Adviser: The Covid-19 pandemic has had a largely positive impact on adviser businesses according to new research. Read story
Covid causes drop in numbers planning to work beyond retirement
Corporate Adviser: For the first time in recent years, the number of people planning to work beyond retirement has declined, with experts suggesting this could be one of the consequences of the ongoing coronavirus pandemic. Read story
WPC submits Pension Schemes Bill amendment
Professional Pensions: Work and Pensions Committee chairman Stephen Timms has submitted an amendment to the Pension Schemes Bill aiming to increase the use of pension guidance. Read story
Engage now on investment pathways to avoid February stand-off, IGCs warned
Professional Pensions: Providers are failing to engage early with their independent governance committees (IGCs) over the rollout of investment pathways despite the looming 1 February deadline, they have been warned. Read story
DB funding - October 2020: Small deficit increase amid slow economic growth
Professional Pensions: Every month, several firms issue trackers of the aggregate defined benefit (DB) scheme funding position. Read story
Disability pay gap in the UK stands at 20% for 2020
Employee Benefits: The current disability pay gap for employees in the UK stands at 20%, according to research by the Trades Union Congress (TUC). Read story
Welsh social care staff to receive full sick pay
Employee Benefits: Social care staff working in Wales will receive enhanced sick pay entitlements to support them financially during the Covid-19 (Coronavirus) pandemic, effective 1 November. Read story
60% of workers dreading winter COVID-19 restrictions
HR Grapevine: This weekend UK Prime Minister Boris Johnson announced plans for England to head into lockdown once again, as coronavirus cases continue to rise. With many experts warning that further restrictions like this could impact mental health, new data has shared that Brits are now more concerned than ever. Read story
Workers give over one thousand unpaid hours overtime a year to their employers
Workplace Insight: Millions of Brits give up more than a month of time each year by working additional unpaid hours, totalling five years overtime in their working life, according to new research by Hitachi Personal Finance. Read story
Third of fathers unaware of their flexible working rights
Workplace Insight: A new study in the British Sociological Association’s journal Work, Employment and Society has found that 10 percent of mothers and 30 percent of fathers do not know that they have the right to ask their employer to consider changes to how they work as part of flexible working regulations introduced as much as 17 years ago. Read story
Employees twice as motivated and productive if they’re resilient, according to new Aon research
Employer News: Aon plc, a leading global professional services firm providing a broad range of risk, retirement and health solutions, has released new research that shows the impact on employee motivation and productivity if they are resilient. Read story
DWP could face £100m bill for underpaid state pensions – Webb
Pensions Age: The Department for Work and Pensions (DWP) could face a bill of more than £100m for underpaid state pensions, according to analysis from LCP, which follows new evidence from DWP Permanent Secretary, Peter Schofield. Read story
Financial stability must be 'central priority' for DC master trusts - Aegon
Pensions Age: Financial stability should be the key priority as defined contribution (DC) master trusts move to the next stage as the Pensions Regulator’s (TPR) supervision cycle begins, according to Aegon. Read story
How to create the ultimate ‘WFH’ set up
HR News: Brits are being encouraged to think about their work from home (WFH) set-up and optimise their workspace. According to new research commissioned by High Speed Training, more than half (53%) of workers have not been provided with the office equipment needed to enable them to work from home safely and effectively. Read story
Why managing stress must be a priority for employers during COVID-19
HR News: In International Stress Awareness Week (2nd – 6th Nov 2020) Adrian Lewis from Activ Absence is urging employers to ensure they have effective systems in place to spot and manage stress in their workforce, especially as many are working remotely because of the COVID-19 pandemic. Read story
In depth: Financial wellbeing in a time of economic crisis
Corporate Adviser: Supporting workers’ financial wellbeing is more important now than ever. But financial pressures on employers mean creative solutions are required. Sam Barrett investigates. Read story
In depth: Where next for cost transparency?
Corporate Adviser: Defined contribution pension funds are getting to grips with cost transparency, but several challenges remain, finds Stephanie Baxter. Read story
Quarter of workers say mental health has deteriorated
Corporate Adviser: Almost two thirds of workers across the UK and Europe feel their work-related stress levels have increased compared with pre-pandemic levels, with 81 per cent of this group describing themselves as having a poor or low state of mind at the time of being surveyed. Read story
Worse off savers refrain from changing pensions
Professional Pensions: Pension savers have held off from making changes to their pensions despite nearly half having been impacted by the pandemic, research finds. Read story
Pension funds should focus on members' broader wellbeing
Professional Pensions: There is more to being a pension fund trustee than providing members with a pension, says Rory Murphy. Read story
Aegon signs Race at Work charter to address racial inequality
Employee Benefits: Financial services organisation Aegon has signed the Race at Work charter, committing to address the issues that employees from ethnic minority groups face in the workplace. Read story
Hogan Lovells returns newly qualified lawyers to full pay
Employee Benefits: International law firm Hogan Lovells will return its newly qualified associates to full pay following the cuts that were put in place due to the Covid-19 (Coronavirus) pandemic. Read story
WPP defers bonus payments
Employee Benefits: Communications organisation WPP has postponed its bonus payments for 2020 due to the financial ramifications of the Covid-19 (Coronavirus) pandemic. Read story
Experts reveal HR's role for 'Lockdown 2.0'
HR Grapevine: HR practitioners will be quickly forced into managing ‘mood, morale and motivation’ after Prime Minister Boris Johnson’s announcement of a ‘lockdown 2.0’ in England over the weekend, experts are saying. Read story
3% of savers halt pension contributions amid pandemic
Pensions Age: Three per cent of UK savers halted their pension contributions during the Covid-19 pandemic, research commissioned by The People's Pension (TPP) has revealed. Read story
Stormont agrees to extend Pension Schemes Bill to Northern Ireland
Pensions Age: Stormont has agreed to extend the provisions of Westminster’s Pension Schemes Bill to Northern Ireland following a second legislative consent motion. Read story
Tackling presenteeism during a pandemic
HR News: Today’s workplace culture has many employees feeling the pressure to turn up to the office at all costs, even when ill; however, the global pandemic COVID-19 has shown it is more critical than ever for businesses to tackle the widespread challenge of “presenteeism” especially when majority are working from home. Read story
Over two million employees were paid under national minimum wage during covid-19
HR Review: ONS statistics show that, due to the furlough scheme, over two million employees were paid below the National Minimum Wage and National Living Wage in April 2020. Read story
One-third of HR teams do not measure staff appreciation of employee benefits
HR Review: Research reveals that one-third of large organisations (with over 250 employees) do not measure any staff appreciation of employee benefits. Read story
Pension saving resilient despite Covid money worries
Corporate Adviser: Eight out of 10 savers have not made any changes to their pension, despite the financial problems caused by the coronavirus pandemic, according to recent research. Read story
One in two failing to save enough for comfortable retirement
Corporate Adviser: More than half of UK savers think they are unable to save enough for a comfortable retirement, according to BlackRock’s latest DC Pulse Survey. Read story
M&S completes £750m buy-ins with Aviva and Phoenix
Professional Pensions: The Marks and Spencer (M&S) Pension Scheme has completed two buy-ins with Aviva and Phoenix, insuring a total of £750m of benefits. Read story
BHS Senior Management Scheme completes PPF+ buy-in with L&G
Professional Pensions: The BHS Senior Management Scheme has agreed a £2.5m buy-in with Legal & General (L&G) Assurance Society, securing benefits outside of the Pension Protection Fund (PPF). Read story
Ikea introduces pay freeze for UK employees
Employee Benefits: Swedish retailer Ikea has introduced a pay freeze for its UK employees to deal with the ramifications of the Covid-19 (Coronavirus) pandemic. Read story
Siemens rewards employees with €1,000 bonus
Employee Benefits: Global technology organisation Siemens is rewarding its employees with a special one-time bonus to recognise them for their hard work during the Covid-19 (Coronavirus) pandemic. Read story
Median weekly earnings decrease by 18.1% for staff in accommodation and food service roles
Employee Benefits: The median weekly earnings for full-time employees working in accommodation and food service roles have seen a 18.1% decline since 2019, according to research by the Office for National Statistics (ONS). Read story
The global cities with the BEST work-life balance
HR Grapevine: New research from the health and wellbeing chain Holland & Barrett has looked into the best cities for a better work-life balance. Read story
Presenteeism pressure endures, despite rise in flexible working
Workplace Insight: Workers are feeling compelled to demonstrate presenteeism and availability to employers in the wake of the COVID-19 outbreak, claims a new global study from the ADP Research Institute. Read story
LGPS market value falls by £14.8bn amid Covid-19 uncertainty
Pensions Age: The market value of Local Government Pension Scheme (LGPS) funds in England and Wales decreased by £14.8bn over the last financial year, falling 5.1 per cent to £272.4bn. Read story
Over half of savers likely to review or cut pension contributions in favour of 'rainy day' savings
Pensions Age: Over half (51 per cent) of savers are likely to review or reduce pension contributions in a bid to prioritise ‘rainy day’ savings amid the pandemic, according to the latest BlackRock DC Pulse Survey. Read story
40% of businesses offer a workplace savings scheme
HR 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
Call for further education for furloughed workers
HR Magazine: Furloughed workers who lose their jobs are less likely to have higher-level qualifications than the general population, impacting their search for new job opportunities. Read story
Could businesses face a mental health storm?
Incentive and Motivation: As lockdown 2.0 has been announced by the UK Government, businesses are urged to continue their focus on keeping teams motivated in the face of uncertainty. According to recent data by the ONS, 69% of adults in the UK say that coronavirus is having a negative effect on their life. 63% are worrying about the future, 56% are feeling stressed or anxious and 49% simply felt bored. Read story
One-third of employees say they have no time to take annual leave
HR Review: New research shows an increase in the number of workers that are failing to take time off. Around a third of employees have responded that they are too busy at work to take a holiday. Read story
Three-quarters of working parents need more childcare support from employers
HR Review: Almost three-quarters of working parents have stated that they require more childcare support from employers or that they need their existing childcare to be more flexible. Read story
Covid to drive up cost of employer-sponsored health benefits
Corporate Adviser: The coronavirus pandemic will have a lasting impact on the cost and design of employer-provided health benefits for years to come, according to new research. Read story
Proposed RI bill would force trustees to consider members’ ‘best interests’
Pensions Expert: The leader of the Liberal Democrats supports a proposed responsible investment bill broadening the concept of fiduciary duty to encompass sustainability concerns and aim for a ‘world worth retiring into’. Read story
Survey reveals impact of Covid-19 on contingent workforce management
Employer News: The Coronavirus pandemic has led to a complete overhaul of contingent workforce management solutions as HR and procurement teams begin to better collaborate to support the ‘better normal’ workplace. That’s according to global leader in talent acquisition and managed workforce solutions, Guidant Global. Read story
What will the 2020 Growth Plan valuation mean for employers?
Professional Pensions: Chris Hawley, Jonathan Hazlett and Joe Webster look at what the potential outcome of TPT’s Growth Plan’s 2020 valuation could mean for participating employers. Read story
Majority of savers 'far from confident' about financial future
Professional Pensions: More than half of UK savers agree they are unable to save sufficiently to achieve the retirement they want, according to research by BlackRock. Read story
Gender pay gap falls to record low, ONS figures show
People Management: But campaigners warn Covid-19 and a second national lockdown in England could seriously derail progress. Read story
Furlough scheme extended until March, chancellor announces
People Management: Government will pay 80 per cent of staff’s wages for hours not worked, with this reviewed in January to see if firms should be asked to start contributing. Read story
Lego Group enhances parental leave for 18,000 employees globally
Employee Benefits: Toy manufacturer Lego Group is to enhance its global paid parental leave policy for primary caregivers, offering over 18,000 employees 26 weeks of parental leave. Read story
Sainsbury’s rewards employees with 10% bonus payment
Employee Benefits: Supermarket chain Sainsbury’s is rewarding 116,400 employees with a 10% bonus, to recognise their efforts dealing with the increasing demand for supplies during the Covid-19 (Coronavirus) pandemic. Read story
Bloomsbury reimburses employees for Covid-19 pay cuts
Employee Benefits: Publishing house Bloomsbury will reimburse employees who were affected by pay cuts during the Covid-19 (Coronavirus) pandemic. Read story
70% of DB schemes would fail TPR fast track requirements - Hymans Robertson
Pensions Age: Nearly three quarters (70 per cent) of defined benefit (DB) pension schemes would fail to meet The Pension Regulator’s (TPR's) fast track requirements, according to analysis from Hymans Robertson. Read story
Sainsbury's DB pension surplus falls by £107m to £1bn
Pensions Age: The Sainsbury's defined benefit (DB) pension scheme surplus has fallen to £1,012m, as at 19 September 2020, according to its latest financial accounts. Read story
30% of UK office workers will not have a Christmas party this year
Incentive and Motivation: A new survey of 1,000 office workers reveals how their companies will be celebrating Christmas this year. With the government urging the country to work from home wherever possible, uncertainty looms, and the upcoming party season hangs in the balance. Read story