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At a glance: reward and benefits headlines this week 9-15 October 2020

Your quick-read round up of the reward and benefits stories appearing in the press in the past seven days.

The headlines you might have missed between 9-15 October 2020. 38B0-1602500755_headlinesMAIN.jpg

Over half of UK would support a ‘maximum wage’ due to Covid-19
HR Review: Statistics show that a maximum wage of £100,000 could increase the annual average median wage by £3,535. Read story

Ending of furlough scheme worries almost half of British employees
HR Review: As the imminent deadline approaches for the end of the furlough scheme, new research finds that UK employees’ mental health is being most impacted by financial troubles. Read story

CDC pension cuts only in ‘1930s-style’ recession: Aon
Corporate Adviser: Only a 1930s-style depression would have caused pension income to be cut under new collective defined contribution (CDC) schemes, according to new research from Aon. Read story

Appoint a minister for scam prevention, government urged
Professional Pensions: The government should consider handing to a minister the specific responsibility for tackling the growing number of scams across the finance sector, AJ Bell says. Read story

One in five teachers may have incorrect pension entitlements
Pensions Expert: One in five teachers may be at risk of receiving incorrect information about their pension entitlements, with discrepancies also likely to be found in other decentralised public sector pension schemes with multiple employers. Read story

54% of employers offer funded access to wellbeing apps
Employee Benefits: More than half (54%) of respondents offer funded access to wellbeing apps, a 17 percentage point increase from the 37% of businesses that offered this benefit in 2019, according to research by Employee Benefits. Read story

Baxter’s uses a hybrid of cash and non-cash rewards to motivate staff
Employee Benefits: Baxter’s motivates its employees with a benefits strategy that combines cash and non-cash rewards. Read story

Thames Water switches to master trust scheme for 5,000 pension members
Employee Benefits: Water services organisation Thames Water has switched from a stakeholder pension scheme to a master trust arrangement for 5,000 members. Read story

What will another six months of lockdown do to wellbeing?
HR Grapevine: News that a second lockdown could be on the cards has been widely discussed over the past few weeks, with parts of the north already being placed under restrictive measures. Read story

Govt share of Mineworkers' Pension Scheme surplus reaches more than £3bn
Pensions Age: The government has confirmed that it has received £3.41bn as its share of the surplus from the Mineworkers' Pension Scheme (MPS) since the surplus-sharing arrangement was agreed in 1994. Read story

Government to partially cover wages at business forced to shut due to Covid
HR Review: The Chancellor has announced a new scheme that will operate as an expansion of the Job Support Scheme (JSS). This will partially fund the wages of staff that work at businesses which have been asked to close by the Government. Read story

How can employers protect their mental health?
HR Review: With Saturday 10th October 2020 being World Mental Health Day, HRreview asked the experts about how to ensure that employees and their mental health are supported during these unprecedented times. Read story

Covid causing huge uptick in employee benefit reviews
Corporate Adviser: Three out of four employers will review their employee benefits offering in direct response to the Covid-19 pandemic, according to new research. Read story

HLM Architects embraces technology to connect with employees
Employee Benefits: HLM Architects has embraced the changes brought on by the Covid-19 (Coronavirus) pandemic by embracing a digital world. Read story

Virgin Unite meets new employee expectations during the pandemic
Employee Benefits: The impact of the Covid-19 (Coronavirus) pandemic has caused a number of changes in the workplace and inevitably, employee expectations have changed. Read story

Flexible working is here to stay as organisations recognise effect on productivity
Workplace Insight: To mark the start of National Work Life Week, work-life balance charity Working Families has launched the results of a survey of employers who have invested in creating family-friendly workplaces with flexible working. Read story

3 in 4 employers to review Employee Benefits offerings as a direct result of the COVID19 pandemic
Employer News: A survey undertaken in September by Howden Employee Benefits & Wellbeing (Howden) highlights a significant shift in attitudes from employers towards their employee benefits & wellbeing provision in light of the coronavirus crisis. Read story

Impact of Covid-driven mortality on DB liabilities expected to be ‘very limited’
Pensions Age: The impact on defined benefit (DB) pension scheme liabilities from Covid-19 mortality is likely to be “very limited”, Pensions Insurance Corporation (PIC) longevity actuary, Jamie Funnell has said. Read story

Not working 9-5! Nine in ten millennials now expect a flexible working week
HR News: Those aged 25-34-years-old are most likely to expect more flexibility in their typical working week in a post COVID-19 world, according to research from flexible office specialistsWorkthere.  Read story

Pay gap between white and ethnic minority employees drastically narrows
HR Review: The pay gap between white and ethnic minority employees has narrowed to its lowest level since 2012 in England and Wales. Read story

Larger SMEs failing to promote wellbeing services
Corporate Adviser: More employees working for smaller companies trust their employer to look after them, when compared to those working for larger SMEs, despite the fact these larger organisations are more likely to have a health and wellbeing strategy. Read story

Covid increases DB deficits by £50bn
Corporate Adviser: The Bank of England’s decision to cut interest rates in response to the coronavirus crisis have driven defined benefit deficits higher, with UK pension schemes facing a funding hole of £166.1bn by the end of September. Read story

MPs call for input on Pension Schemes Bill
Professional Pensions: The pensions industry is being given a fresh chance to feed into the Pension Schemes Bill as the Public Bill Committee launches a call for written evidence. Read story

Consolidation leads five-year expected industry trends, PLSA finds
Professional Pensions: Consolidation across defined benefit (DB) and defined contribution (DC) schemes is the most-anticipated trend for the UK pensions industry over the next five years, the Pensions and Lifetime Savings Association (PLSA) has found. Read story

DC contributions too small to allow for sustainable retirements
Pensions Expert: Stagnant incomes, rising wealth inherited later in life, and the relative poverty of defined contribution schemes compared with older defined benefit schemes are all factors that threaten the sustainability of retirement income, according to speakers at the Pensions and Lifetime Savings Association’s annual conference. Read story

Many firms will ‘fall between the gaps’ of furlough extension, say experts
People Management: As the government prepares to outline new local lockdown rules, the CIPD warns employers may miss out on both the new job retention scheme and job support programme. Read story

Special Olympics’ leadership approach creates strong sense of belonging
Employee Benefits: In the opening keynote on day six of the Reset online conference series, Olga Yakimakho, director of leadership and organisational development at Special Olympics International (pictured), discussed the importance of creating a sense of employee belonging through strong leadership, and how this can impact both job and business performance. Read story

Natwest Group offers wellbeing initiatives to support 64,000 employees
Employee Benefits: In her session on day six of the Reset online series, Fiona McAslan, wellbeing lead, HR chief operating officer at Natwest Group discussed how the business supported the wellbeing of employees before and during the Covid-19 (Coronavirus) pandemic. Read story

Osborne Clarke repays government for cost of employee furlough scheme
Employee Benefits: Law firm Osborne Clarke has repaid back in full the money it received as part of the government’s employee furlough scheme. Read story

Mercer Marsh Benefits report finds less than a third of employers believe they provide a “great” user experience with HR and benefits tech
Employer News: Most companies think they are failing to provide the seamless, connected benefits experience their employees expect and that is fit for purpose in the current world of work, according to research by Mercer Marsh Benefits (MMB). Read story

Opperman's pensions for house deposits comment ‘disappointing’ - TPP
Pensions Age: Pensions Minister, Guy Opperman's, suggestion that he is open to exploring ways for pensions to be used for house deposits has been described as “disappointing” by The People’s Pension (TPP). Read story

Pensions industry concerned at current level of regulation
Pensions Age: The pensions industry is concerned at the current regulation of the UK pension system, with 71 per cent considering it to be “too burdensome”, according to research from the Pensions and Lifetime Savings Association (PLSA). Read story

Flexibility and family-friendliness boosts pandemic productivity
HR Magazine: Organisations with flexible and family-friendly policies have seen increased levels of productivity throughout the coronavirus pandemic. Read story

At-retirement regulatory framework needed for schemes to support savers, says PLSA
Professional Pensions: The Pensions and Lifetime Savings Association (PLSA) has called on the government to implement regulations for schemes to better assist savers with complex decisions regarding pot access at the point of retirement. Read story

2021 will bring 'triple whammy' for covenant support
Professional Pensions: Sponsor covenants are facing a “triple whammy” moving into 2021 as the effects of Covid-19, Brexit and macro-economic conditions combine, Lincoln Pensions warns. Read story

What did someone with 13 million subscribers tell the pensions industry about engagement?
Professional Pensions: Martin Lewis founded Money Saving Expert, a website that has since built up an email following of 13 million people, after investing just £100 in a website at the beginning of the millennium. But how has Lewis achieved such cracking engagement? And what are the lessons he thinks the pensions industry can learn from his experience? Read story

Bupa extends early access to pay to 5,500 dental staff
Employee Benefits: Healthcare provider Bupa is extending early access to pay to support the financial wellbeing of 5,500 dental care staff. Read story

NHS organisations offer employees a multi-faceted financial wellbeing approach
Employee Benefits: As one of the largest employers in Europe, with 1.5 million employees across multiple organisations, the NHS recognises the importance of making sure that financial wellbeing is a key component of the reward strategy. Read story

Schemes must face the future to drive better outcomes
Professional Pensions: Julian Mund writes about planning for the future and the four challenges he sees for the pension industry over the next five years. Read story

Two in five schemes expect to transfer risk within three years, finds Willis Towers Watson
Professional Pensions: Two in five UK defined benefit (DB) schemes expect to complete a bulk annuity or longevity swap transaction within the next three years, Willis Towers Watson research finds. Read story

Second pensions bill expected in this parliament
Professional Pensions: A second pensions bill is likely during the “life of this parliament”, according to pensions and financial inclusion minister Guy Opperman. Read story

Flexible working more popular with male employees since lockdown, survey finds
People Management: Widespread home working has lessened the stigma around men requesting non-conventional arrangements, say experts. Read story

UK’s ‘light touch’ gender pay legislation falling behind other countries, report shows
People Management: Experts warn Covid risks stalling ‘snail like’ progress, and call on HR to proactively tackle disparities. Read story

Spanish government introduces law for businesses to disclose gender pay gap figures
Employee Benefits: The Spanish government has passed a law for employers to disclose the pay of its male and female employees, to tackle gender inequality in the workplace. Read story

Dropbox introduces permanent remote-working policy
Employee Benefits: File hosting organisation Dropbox is introducing a permanent remote working policy for its 2,323 employees, due to its success during the Covid-19 (Coronavirus) pandemic. Read story

76% of organisations measure sickness absence levels
Employee Benefits: Three-quarters of respondents (76%) actively measure their organisation’s sickness absence levels, according to research by Employee Benefits. Read story

How Samsung used 'love letters' to boost wellbeing
HR Grapevine: Employee wellbeing has been a focal point for HR leaders since the coronavirus pandemic hit. As staff continue to work from home, away from their teams and regular day-to-day interaction, the morale and wellbeing of staff has unsurprisingly taken a hit. Read story

'Biggest ever' EAP data analysis reveals ROI for UK employers
Cover: For every £1 spent on an employee assistance programme (EAP), UK employers see an average return on investment of £7.27. Read story

TPR to publish DB superfund guidance to trustees next week
Pensions Age: The Pensions Regulator (TPR) will publish further guidance to pension schemes considering transferring to a defined benefit (DB) superfund, next week. Read story

DC small pot solution ‘must not recreate the retail market’
Pensions Age: Solutions to the DC small pots challenge must not result in the institutional pensions market mirroring the retail market, The People’s Pension head of pensions policy, Tim Gosling, has warned. Read story

1 in 3 workers say mental health is better working from home
HR News: Specialist recruiter Randstad has revealed that nearly a third of workers (31%) claim that their mental wellbeing is better working from home. The survey was carried out to help raise awareness of World Mental Health day, and further educate the nation’s employers on how to ensure their staff are mentally healthy as they work remotely. Read story

Hybrid working: Nearly half of HRDs worried about delivering a consistent employee experience
HR News: Applaud, the workforce experience layer, today released research revealing that 45% of HR Directors (HRDs) think the biggest challenge of delivering a good employee experience in the next six months will be making sure that all employees are receiving a consistent experience, regardless of whether they’re remote or office based. Read story

Prioritising staff wellbeing key to retaining talent
HR Magazine: Putting staff wellbeing first is central to retaining and attracting employees as businesses emerge from disruptions caused by the coronavirus pandemic, according to a new report from Gallagher. Read story

National Work-life week: how to support your employees in finding a balance
HR Review: With remote working becoming a vital part of 2020, HRreview asks the experts how employers can help their workers to find a useful balance between different parts of their lives. Read story

Gender pay gap reporting: UK lags behind other countries, research finds
HR Review: A new report has concluded that the UK is “unique in its light touch approach” as it does not require private employers to produce a plan to tackle gender pay gaps. Read story

YouGov discusses the importance of data to drive reward success
Employee Benefits: Josephine Smith, head of reward at YouGov discussed the importance of using data to improve reward strategies. Read story

BT adopts forward-thinking approach to remote working
Employee Benefits: Although the Covid-19 (Coronavirus) pandemic has reshaped the way many employers work in terms of remote working, BT has had a small percentage of employees working from home as far back as 1992. Read story

London records 23.8% median ethnicity pay gap
Employee Benefits: London has the highest median ethnicity pay gap of 23.8%, a 2.1% increase from the year before, and a significant difference compared to the lowest pay gap in the UK of 1.4% in Wales, according to research by the Office for National Statistics. Read story

Lily’s Kitchen enhances its reward and wellbeing strategy
Employee Benefits: Lily’s Kitchen enhanced its reward and wellbeing strategy to support its employees during the Covid-19 (Coronavirus) pandemic. Read story

CEO 'demands' workers return to office so he can have 'personal life'
HR Grapevine: Despite a September U-turn over a push to get workers back into the office, many are still heading back – and for some bizarre and illogical reasons. Read story

The wellbeing needs of men and women can be very different
Workplace Insight: There are currently 15.6 million women in work in the UK, and each of these women is likely to have differing wellbeing needs which must be supported to help retain talent and enable them to meet their full potential in the workplace. Read story

Older workers key to post-Covid-19 recovery
Money Marketing: Older workers are critical to driving the economic recovery to coronavirus a major report finds. Read story

Workers give over 1,000 unpaid hours a year to their employers
HR News: Millions of Brits give up more than a month of time each year by working additional unpaid hours, totalling five years over their working life, research reveals. Read story

Why managing absence will be key post pandemic
HR News: New Employee Benefits Healthcare research[i] has revealed that just under half (41%) of employers has a strategy in place to manage employee absence, with this figure hardly changing over the past three years. Read story

Majority of middle-aged fail to get pension forecast
Corporate Adviser: More than one in two middle-aged savers have not calculated when they can afford to retire, according to research. Read story

Industry pushes for AE intervention so members don't squander pension pot
Professional Pensions: The pensions industry must personalise interventions and auto-enrolment (AE) conversations to prevent members from squandering their pots at retirement age, according to industry experts. Read story

55% of employees would take a pay cut to continue working remotely
Employee Benefits: Just under half (45%) of employees would be interested in taking a pay cut to continue working remotely long-term, according to research by Owl Labs. Read story

Pension industry members back HMRC P800 net pay anomaly solution
Pensions Age: Pension industry organisations have come out in support of the HMRC P800 solution in response to the government's consultation on pensions tax relief administration, emphasising the need to protect existing tax benefits. Read story

PDP launches pensions dashboards Usability Working Group
Pensions Age: The Pensions Dashboards Programme (PDP) has launched the Usability Working Group (UWG) to discuss best practise for user needs and usability for the pensions dashboards. Read story