At a glance: reward and benefits headlines this week 6-12 November 2020
The headlines you might have missed between 6-12 November 2020.
70% of DB schemes not on course to meet TPR's 'fast track' DB rules
Professional Pensions: Most defined benefit (DB) schemes (70%) would not meet The Pensions Regulator’s (TPR) ‘fast track’ requirements, according to analysis by Hymans Robertson. Read story
Aligning your portfolio with your goals
Professional Pensions: Marian Elliott says a strategic framework can help trustees meet their objectives, and allow schemes to cope if things go wrong. Read story
Marks and Spencer completes two pension buy-in transactions worth £750m
Employee Benefits: Marks and Spencer has completed two pensions buy-in transactions worth approximately £750 million for its defined benefit (DB) pension scheme. Read story
51% likely to review or reduce pension contributions due to Covid-19 pandemic
Employee Benefits: Approximately half (51%) of UK savers are likely to review or reduce pension contributions in favour of short-term saving or debt reduction or elimination as a result of the Covid-19 (Coronavirus) pandemic, according to research by BlackRock. Read story
Could two-hour lunch breaks help boost productivity?
HR Grapevine: Working from home has its positives; it offers employees increased flexibility to their day and has given them the option to catch up on some much-needed sleep thanks to the lack of commute. Read story
Furlough schemes are leaving isolated staff down in the dumps
Workplace Insight: Since March, Glint has been creating a dataset which now consists of 7 million survey responses from employees around the world and across a broad range of industries. Read story
Third of home workers feel disconnected, Leesman data shows
Workplace Insight: Insights from Leesman’s ongoing home working study of more than 145,000 workers has revealed that a significant number of employees feel disconnected to their colleagues and organisation, while others struggle to maintain a healthy work-life balance. Read story
How Employee Perks Can Improve Productivity
Employer News: Businesses are constantly looking for new and innovative ways to improve employee productivity and boost engagement at work. Read story
Govt plans to consult on regulations covering pension scam ‘red flags’
Pensions Age: The government intends to consult on all regulations covering pension scam ‘red flags’ after the Pension Schemes Bill receives Royal Assent, Pensions Minster Guy Opperman has said. Read story
Dominic Chappell found guilty of tax evasion
Pensions Age: Former owner of BHS, Dominic Chappell, has been sentenced to six years in jail for tax evasion at Southward Crown Court, despite claiming pension problems in the chain had left him "broke". Read story
The financial toll of Covid on employees and how employers can help
HR News: Covid-19 is affecting employees’ financial health as well as their physical health. For Talk Money Week, Towergate Health & Protection is highlighting the wider and perhaps unexpected financial impacts of the pandemic and suggesting how employers are well placed to help. Read story
Case Study: How Edenred supported families through the Covid-19 school closures
Incentive and Motivation: When schools closed due to the coronavirus pandemic in March, the government wanted to ensure the 1.3 million children who receive free school meals in England didn’t go hungry during lockdown. Read story
Over £16 billion cost to the British economy due to ill health at work
HR Review: Recent figures show that ill health and work-related injuries cost the British economy over £16 billion over 2019-2020. More than half of the working days that were lost were because of mental ill-health. Read story
Scottish Widows to divest £440m from companies failing on ESG
Professional Pensions: Scottish Widows has begun work with its fund management partners to divest at least £440m from companies which do not meet its ESG standards under a new exclusions policy. Read story
Why simpler annual statements could mark the start of better member engagement
Professional Pensions: Jonathan Stapleton says that, while the production of two-page simpler annual statements is no panacea for member engagement, it is a welcome step in the right direction. Read story
Data error leads Cornwall Council to overcharge hundreds of employees
Pensions Expert: Hundreds of workers enrolled in the Cornwall Pension Fund could be due a rebate after an administration error saw Cornwall Council overcharge them for their pension contributions. Read story
Should employers let staff work remotely from abroad during lockdown?
People Management: People Management asks the experts what the risks for businesses and employees are of weathering coronavirus in a foreign country. Read story
Real living wage rate increases to £9.50 an hour for UK staff
Employee Benefits: The real living wage rate has increased by 20p per hour, rising from £9.30 to £9.50 an hour for employees working across the UK, as announced by the Living Wage Foundation today (Monday 9 November 2020). Read story
PRS for Music reports mean gender pay gap of 13.8%
Employee Benefits: PRS for Music has reported a mean gender pay gap of 13.8% for average hourly pay as at April 2020 down from 19.1% the previous year. Read story
How THESE employers are tackling staff burnout
HR Grapevine: Ever since the coronavirus pandemic hit earlier this year, combatting employee burnout has been a top priority for HR leaders and employers alike. Read story
Staff want cash not office Christmas parties
Employer News: Appreciate, home of Love2shop, the UK’s best known staff and customer rewards business, has published research today that shows British employees don’t want a Christmas party this year – and would prefer cash instead. Read story
Govt-led working group on pension trustee voting barriers to be established
Pensions Age: Pensions Minister, Guy Opperman, has endorsed and agreed to the formation of a working group proposed by the Association of Member Nominated Trustees (AMNT) to address barriers to trustees voting. Read story
The impact of childcare issues during the pandemic
HR News: A quarter of working mums who have lost their jobs since the Covid pandemic began say it is due to childcare issues, according to a workingmums.co.uk survey. Read story
Over 5 million UK jobs are paying less than the real living wage
HR Review: Over a quarter of a million employees in the UK are set to see a boost in their pay due to the increase in the real Living Wage. Read story
PASA launches cybercrime guidance for administrators
Professional Pensions: The Pensions Administration Standards Association (PASA) has launched its cybercrime guidance for pension administrators. Read story
Reckitt Benckiser completes £415m buy-in with Scottish Widows
Professional Pensions: The Reckitt Benckiser Pension Fund has secured a £415m buy-in with Scottish Widows, insuring the benefits of around half of pensioners. Read story
TPR launches scam pledge initiative in 'major step forward' to combatting pension scams
Professional Pensions: The Pensions Regulator (TPR) has launched a pledge initiative to encourage trustees to commit to a step up in processes to protect member interests and combat pension scams. Read story
Network Rail gains living wage accreditation
Employee Benefits: Railway organisation Network Rail has officially become a real living wage employer, accredited by the Living Wage Foundation. Read story
Simmons and Simmons resumes bonus reviews
Employee Benefits: International law firm Simmons and Simmons has resumed its annual pay and bonus reviews that were initially put on hold due to the financial uncertainty resulting from the Covid-19 (Coronavirus) pandemic. Read story
Capita gives 45,000 employees early access to pay
Employee Benefits: Professional services and business process outsourcing organisation Capita has introduced a personal finance app to support the financial wellbeing of its 45,000 employees. Read story
Workers lukewarm on both permanent remote work and the 9 to 5
Workplace Insight: The vast majority of UK office workers neither want to continue working remotely after Covid-19 restrictions lift nor make a full return to the 9 to 5. Read story
The financial toll of Covid on employees and how employers can help
Employer News: Covid-19 is affecting employees’ financial health as well as their physical health. For Talk Money Week, Towergate Health & Protection is highlighting the wider and perhaps unexpected financial impacts of the pandemic and suggesting how employers are well placed to help. Read story
Rowlinson urges businesses to ‘do the right thing’ and pay the Living Wage
Pensions Age: B Corp business Rowlinson Knitwear is urging more UK businesses to step up and pay the real Living Wage. The company is highlighting the importance of employers acting now to ‘do the right thing’ during Living Wage Week (9 -15 November 2020), which is when the movement is celebrated and the new Living Wage rates are announced. Read story
Nearly a third of UK workers would return to office for cash incentives
HR Magazine: Just 7% of UK office workers have said they would be willing to return to the office full time post-coronavirus, demonstrating a shift in attitudes towards presenteeism. Read story
Working mother twice as likely to lose or quit jobs than working fathers
HR Review: New research highlights the disproportionate impact of COVID-19 on already disadvantaged groups including working mothers, those with disabilities and ethnic minority employees. Read story
Calls for Government to introduce two week statutory paid bereavement leave
HR Review: The nation bereavement charity, Sue Ryder, has called on the Government to introduce two weeks statutory paid bereavement leave in the UK for employees who have lost a close relative or partner. Read story
Gender pension gap narrows but gains may be undone by Covid
Corporate Adviser: The gender pension gap may be narrowing but the average woman would have to work beyond her 100th birthday to match the average men’s pension pot according to Scottish Widows’s latest Women and Retirement Report. Read story
Master trust default strategies may expose savers to future Covid-shocks
Corporate Adviser: Master trust default funds have recovered quickly following the stock market falls earlier this year, but could still be vulnerable to further Covid-related economic shocks, according to new research from Hymans Robertson. Read story
Pensions bill must make net zero a 'mandatory requirement' for schemes, MMMM says
Professional Pensions: Ethical pensions campaign Make My Money Matter (MMMM) has called on the government to use the Pension Schemes Bill to require all UK pension funds to commit to net-zero emission investment strategies. Read story
Prudential agrees £3.7bn longevity swap with Pacific Life
Professional Pensions: The Prudential Staff Pension Scheme has entered into a £3.7bn longevity swap with Pacific Life Re, insuring the longevity risk of over 20,000 pensioners. Read story
Key workers at risk of losing jobs because of sick pay rules, REC warns
People Management: Government faces mounting pressure to overhaul SSP, as CIPD and TUC call for it to be raised to match the living wage. Read story
Lyft and Uber win legal battle in California to classify drivers as contractors
Employee Benefits: Ridesharing organisations Uber and Lyft have won the right to classify their drivers as contractors, not employees. Read story
Tesco rewards staff with 10% bonus payment
Employee Benefits: Supermarket chain Tesco is rewarding its employees with a 10% bonus to recognise their efforts dealing with the increasing demand for supplies during the Covid-19 (Coronavirus) pandemic. Read story
Lidl increases hourly pay for 20,000 employees
Employee Benefits: Supermarket chain Lidl has announced that it will increase hourly pay for 25,000 employees to further support their financial wellbeing. Read story
Reckitt Benckiser completes £415 million pensions buy-in transaction
Employee Benefits: Consumer goods organisation Reckitt Benckiser has completed a £415 million pension buy-in transaction with Scottish Widows. Read story
Could staff be paid £200 instead of a festive party?
HR Grapevine: The annual work Christmas party is arguably an event that all employees look forward to, however, this year things will need to take place slightly differently due to social distancing rules and workplaces being closed. Read story
Burnout, stress and disconnection are now our most urgent workplace mental health issues
Workplace Insight: This has been a tough year all round, particularly with the COVID-19 pandemic continuing to cause seismic shifts in how we live and work. Surveys across various countries indicate that employees are experiencing more feelings of burnout, stress and disconnection as the pandemic is taking a toll on people’s mental health. What’s causing this and what can we do to combat it? Read story
Education And Communication Are Key To Getting People Talking About Money
Employer News: With Talk Money Week currently aiming to get the nation opening up about their finances, a Cardiff-based pension expert is highlighting the need for financial education for youngsters and better communication within the pension sector. Stuart Price, Partner and Actuary at Quantum Advisory, says: “The key to encouraging people to talk about money is ensuring they understand it, and the best way to achieve this is through education and communication. Read story
93% IT executives find workers without access to technology less productive
HR News: A recent SocialChorus/Pulse survey of 100 IT executives found that 96% agreed productivity and alignment to company business goals drops when employee engagement tools are unavailable. Read story
Businesses need to develop the EQ of their employees to move through the recession
HR News: Hindsight is a wonderful thing. Concerns about productivity levels and the implementation of business processes caused by remote working have been dismissed since the pandemic forced many of us to de-camp into kitchens and spare bedrooms. Read story
How SMEs can support the five pillars of workplace wellbeing for staff working from home
Incentive and Motivation: The sudden move to working from home has been a challenge for many SMEs. With smaller teams often benefitting from close knit relationships with their colleagues, Covid-19 is forcing many businesses to reconsider their approach to employee wellbeing. Read story
Perkbox reveals the perks employees want in 2021
Incentive and Motivation: New data has found the perks employees desire most for 2021. The survey of 1,532 employees, commissioned by Perkbox, the employee experience platform, revealed that currently, just 4% of employees believe that they have the right perks for them. Read story
EHRC states ‘no evidence’ to back up unlawful pay discrimination at BBC
HR Review: The Equality and Human Rights Commission (EHRC) has ruled that the BBC are not guilty of unlawful pay discrimination. This comes after an investigation was carried out to assess the situation following many high profile female staff at the BBC stating that male co-workers were earning significantly more for the same type of work. Read story
Be ready for sponsor distress, TPR tells trustees in fresh guidance
Professional Pensions: Trustees must know the signs of sponsor distress and be prepared to act quickly as the “first line of defence” for savers, The Pensions Regulator (TPR) has warned. Read story
McCloud final rules could be delayed; LGPS told to collect data now
Professional Pensions: The final McCloud rules for the Local Government Pension Scheme (LGPS) in England and Wales could delayed due to other regulatory priorities but funds are being urged to start collecting the necessary data. Read story
Aldi rewards front-line employees with 10% bonus payment
Employee Benefits: Supermarket chain Aldi is rewarding its 35,000 front-line employees with a 10% bonus to recognise their efforts dealing with the increasing demand for products during the Covid-19 (Coronavirus) pandemic. Read story
54% of staff believe their workplace benefits are no longer relevant
Employee Benefits: More than half (54%) of employees believe that their current workplace benefits need to be re-evaluated due to the increase to remote working, according to research by Blackhawk Network. Read story
Government publishes further guidance on Job Retention Scheme
Employee Benefits: The government has published further guidance on the Government Job Retention Scheme (GJRS), including details on flexible furlough and employees taking paid leave. Read story
Caring without sharing: unique challenges for working single parents
HR News: New research published today by Gingerbread and the Institute for Employment Studies (IES) highlights unique challenges for working single parents including for those who will lose their jobs as a result of the Covid-19 Crisis. As the country experiences a second Lockdown, and with growing unemployment and continued childcare restrictions, it is vital that the government provide better support to single parents. Read story