At a glance: reward and benefits headlines this week 5 – 11 June 2020
The headlines you might have missed between 5 – 11 June 2020.
Hechizoo allows employees to live in its factory after reopening
Employee Benefits: olombian factory Hechizoo has invited its employees to live on the premises once it reopens its doors following the country-wide lockdown. Read story
House of Lords says group risk sector key to help UK back to work
Corporate Adviser: The House of Lords has recognised the role that the group risk sector will play in helping employers adapt to a post-Covid environment. Read story
'Provisional' trustee accreditation has no validity and creates confusion, warns PMI
Professional Pensions: Professional trustees claiming to have “provisional” trustee accreditation are creating confusion in the market and are undermining the whole process, the Pensions Management Institute (PMI) has warned. Read story
FCA bans contingent charging on DB transfers
Professional Pensions: The Financial Conduct Authority (FCA) has banned the use of contingent charging in defined benefit (DB) transfer advice. Read story
Job retention scheme set to cost a third less than predicted, says watchdog
People Management: Economists say smaller than expected furlough bill highlights disproportionate impact on lower-paid workers. Read story
Reed Smith introduces mandatory four-day working week
Employee Benefits: Law firm Reed Smith has introduced an involuntary four-day working week for the majority of its professional assistants and other professional employees. Read story
European Commission launches consultation over fair minimum wage
Employee Benefits: The European Commission has launched the second-stage consultation with European trade unions and employers, ensuring that employees within the European Union receive a fair minimum wage. Read story
35% of employees continue to work while sick
Employee Benefits: Just over a third (35%) of employees have continued to work from home while being unwell, according to research by Canada Life. Read story
Vast majority neglecting breaks when working from home
Workplace Insight: A new study claims that “microbreaks” have decreased for 95 percent of employees during home working, as lockdown sees people glued to our desks more ever before. Read story
Life In Lockdown: Biometric Sleep Data Shows 'Emotional Rollercoaster'
Cover: According to the mood and sleep tracking app, which had 50,000 users from 8 March to 25 April, the sleep patterns tracked during the crisis place the highs and lows of the pandemic into five phases, as well as laying bare our nation's increasing reliance on alcohol as an emotional crutch. Read story
Almost half of British Steel pension transfer advice deemed unsuitable
Pensions Age: Almost half (47 per cent) of the advice given to former British Steel Pension Scheme (BSPS) members was found to be unsuitable, new analysis by the Financial Conduct Authority (FCA) has shown. Read story
Annual leave bottleneck could cost UK SMEs £1,022 per employee
HR Magazine: SMEs could be looking at a bill of up to £255,500 if employees don’t take their annual leave allowance this year, research by coworking company Instant Offices has revealed. Read story
Is the nation ready to return to work?
Incentive and Motivation: A 2000-person survey conducted by Cartridge Save, set out to understand how people felt about returning to work when the risk to health is still high. Ian Cowley, Managing Director of Cartridge Save said “The government may be easing lockdown rules, but we’re still fully committed to protecting the health and wellbeing of our team. And for us, this means continuing to work from home.” Read story
Government extends NHS scheme pays deadline
Professional Pensions: NHS Pension Scheme members will be given an extra three months to make use of the voluntary scheme pays facility due to the increased pressures arising from the Covid-19 pandemic. Read story
Is the pensions industry doing enough on ethnic diversity?
Professional Pensions: The death of George Floyd in Minneapolis at the end of last month has prompted a huge wave of protest and soul-searching across the world. Read story
Three in five working carers use annual leave to juggle jobs with care, poll finds
People Management: Government urged to accelerate consultation on extra unpaid leave as pandemic ‘shines a light’ on the pressures of looking after a family member or friend. Read story
Etihad Airways extends pay reductions until September 2020 for 20,000 employees
Employee Benefits: International airline Etihad Airways has extended its pay reductions to deal with the financial constraints of the Covid-19 (Coronavirus) pandemic. Read story
Welsh agency social care and ancillary staff to receive £500 reward bonus
Employee Benefits: Ancillary staff working in care homes in Wales, as well as agency nursing staff, will receive a £500 bonus payment to reward them for their hard work during the Covid-19 (Coronavirus) pandemic. Read story
Stepnell lifts 20% Covid-19 pay cuts two weeks earlier than planned
Employee Benefits: Construction organisation Stepnell has stopped its pay cuts two weeks earlier than planned due to a positive growth period. Read story
33% of employers offer season travel loans to employees
Employee Benefits: One third (33%) of employers offer season ticket travel loans to support the financial wellbeing of its employees. Read story
Staff share concerns over Amazon's automated HR system
HR Grapevine: Numerous outlets have reported that ecommerce giant Amazon has faced an influx of technical issues after its automated HR systems have been found struggling, due to the high increase of sick leave and backpay requests as a result of the coronavirus pandemic. Read story
Record number of people set to reach pension freedoms age in 2020
Pensions Age: Defined contribution (DC) pension savers have been urged to take advantage of financial advice as a record number of people are set to hit pension freedoms age in 2020, according to Aegon. Read story
Savers urged to nominate pension beneficiaries amid Covid-19
Pensions Age: LV= has urged savers to nominate pension beneficiaries as Covid-19 sees increasing pressures on pension schemes and an increasing number of member deaths. Read story
Strengthen employee wellbeing with emotional resiliency
HR News: When it comes to mental wellbeing there’s a lot of great advice out there, from how to be more mindful to boosting employee happiness. Read story
Struggling charities facing extra financial strain from pension deficits
Professional Pensions: Increased pension deficits are putting additional strain on many charities already financially struggling in the midst of Covid-19, latest research by Hymans Robertson finds. Read story
Savings habit evident as Nest records few opt outs from AE rate hike
Professional Pensions: Just a minority of Nest members opted out of their pensions in the immediate aftermath of the second phased auto-enrolment (AE) contribution increase, the master trust reveals. Read story
Occupational pensions now make up 30% of retirement income
Professional Pensions: Workplace pension schemes are now providing 30 pence in every pound of retirement income, up from 24 pence in 2008/09, according to Equiniti. Read story
Sponsors facing perfect storm as furlough nears its end
Pensions Expert: Pension schemes and their sponsors face a potential perfect storm of costs as the furlough scheme reaches its endgame, with sponsors in some sectors of the economy facing acute pressure as government support dries up. Read story
Half of working mums say childcare during Covid-19 has damaged their career, poll finds
People Management: As government announces it has dropped plans to reopen all primary schools in England by the end of term, experts urge employers to offer greater flexibility. Read story
Two-thirds of working households suffer coronavirus pay cuts, survey reveals
People Management: Firms urged not to treat mental and financial health separately, as four-fifths of staff affected by wage reductions say it’s impacted their psychological wellbeing. Read story
TSB introduces 70 hours paid carer leave for 7,000 employees
Employee Benefits: Banking organisation TSB is introducing a new carer policy, giving its 7,000 employees up to 70 hours paid leave a year. Read story
Thompsons Solicitors reduces pay and hours for staff by 20%
Employee Benefits: Law firm Thompsons Solicitors is reducing pay and hours for its employees to deal with the financial ramifications of the Covid-19 (Coronavirus) pandemic. Read story
Emirates extends pay cuts until September 2020
Employee Benefits: International airline Emirates has extended its pay cuts, while more employees will receive an increased reduction in salary as a result of the financial impact of the Covid-19 (Coronavirus) pandemic. Read story
How to manage staff absence post-Covid
Cover: Adrian Lewis explores flexible working, HR considerations and absence management software. Read story
Breaking DB consolidator stalemate could lead to ‘explosion' of scheme strategy diversity
Pensions Age: If the coronavirus triggers an end to the regulatory stalemate surrounding defined benefit (DB) pension consolidators, it could lead to an “explosion of diversity” for workplace pension schemes, according to former Pensions Minister, Steve Webb. Read story
Employees on parental leave can still be placed on furlough after deadline
HR Review: Employees on parental leave who are set to return to work in the next few months will still be able to be placed on furlough despite the scheme closing from today (10/06/20) for new applicants. Read story
Conservative peer pushes to make dashboard mandatory
Corporate Adviser: A senior Conservative peer has tabled an amendment to the Pensions Bill that would make the establishment of a pensions dashboard mandatory. Read story
FCA called to do more to protect DB and DC members from scams
Professional Pensions: The Pension Scams Industry Group (PSIG) has today (10 June) called on the Financial Conduct Authority (FCA) to consider further interventions to protect pension scheme members from scams. Read story
Regulator to issue rules for consolidators ‘in the coming weeks’
Pensions Expert: The Pensions Regulator is shortly to issue interim regulation covering commercial consolidators, Pensions Expert can reveal. Read story
How should HR support managers on staff wellbeing as the Covid crisis continues?
People Management: Line managers will need new skills as well as extra guidance on looking after themselves as some employees return to work while others continue to do their jobs from home. Read story
Working hard not the same as increasing productivity, top economist warns
People Management: Professor Andrew Scott opens this year's virtual CIPD Festival of Work by telling organisations the coronavirus crisis is an opportunity to make structural changes. Read story
87% of businesses offer benefits to support health and wellbeing
Employee Benefits: The majority (87%) of employers offer benefits to support the health and wellbeing of employees, according to research by Employee Benefits. Read story
79% of employees say household pay cuts have affected their mental health
Employee Benefits: Of the 61% of employees that have seen a member from their household take a salary reduction, 79% say it has affected their mental wellbeing, according to research by Barnett Waddingham. Read story
Why trust is the biggest barrier to remote working
HR News: Coronavirus has catalysed discussion around several workplace issues, but few are being as hotly debated as remote working. Covid-19 has created large numbers of remote working converts. But it has also exposed some concerning trends, which beg the question: Are we ready for a rise in home working? Read story
London SMEs could save £75,000 in rent by embracing more remote working after Coronavirus
HR News: Small and medium-sized enterprises renting from serviced office providers in London could save a staggering £6,276 per month in rent if half of their staff worked from home – or £75,312 annually. Read story
Pension schemes warned not to “over-react” on latest mortality data
Corporate Adviser: Aon has warned pension schemes against over-reacting to short-term mortality data, in light of the Covid-19 pandemic. Read story
LGPS pooling: Building on commonalities to maximise outcomes
Professional Pensions: Two years on from the launch of the LGPS pools, seven senior figures tell James Phillips all about the process and their plans. Read story
Everton FC first team players and manager take voluntary 50% pay deferrals
Employee Benefits: First team players and the manager at Everton Football Club have agreed to take voluntary pay deferrals of up to 50% for the next three months, to deal with the financial ramifications of the Covid-19 (Coronavirus) pandemic. Read story
University of Reading celebrates employees’ sustainable actions
Employee Benefits: The University of Reading has held a virtual celebration for employees to recognise the sustainable actions resulting from participation in its interactive sustainability and wellbeing engagement programme. Read story
Wincanton introduces mental health programme for 17,600 employees
Employee Benefits: Logistics organisation Wincanton has partnered with Mates in Mind to provide its 17,600 employees with support and guidance on mental health. Read story
TPR 'alive' to risks identified in JFAR actuarial risk report
Pensions Age: The Pensions Regulator (TPR) has stated that it is "alive" and responding to the eight risk 'hotspots' identified in the Joint Forum on Actuarial Regulation’s (JFAR) updated Risk Perspective report. Read story
What leave and flexible working are parents entitled to during the pandemic?
HR News: With many children set to remain out of school for some time, employers who are trying to return to normal may see an increase in parents struggling with childcare. Read story
Three in five say working from home has improved their lives
HR News: As the nation continues to work from home for the most part, more than half of those currently working from home (59%) say being without the office has changed their lives for the better, new data reveals. Read story
School delays will impact economic revival and employee mental health
HR News: Keeping schools closed will result in a continuing need for parents to look after and educate their children at home, which in turn will have a massive impact on parents’ ability to work and ultimately, the speed of economic revival. Read story