November 11, 2014

More than three-quarters of workers are reluctant to switch employer, finds CIPD

There is little appetite among workers to switch employer, despite the growth in employment prospects in the UK. This is according to the CIPD quarterly Labour Market Outlook report which suggests that employment will again grow strongly in the final quarter of 2014 but wage growth is likely to remain subdued. The latest report shows that near-term employment expectations have risen to a seven year high, which can be partially attributed to fewer employers looking to make redundancies, as well as an expected continuation of the trend for many employers to be hiring new staff. The proportion of employers reporting hard-to-fill vacancies is broadly unchanged (44%) and two fifths of these are reported as ‘skill shortage’ vacancies. With over three-quarters (77%) of employees saying that they aren’t currently looking to change employers, there is a resultant reduction in churn amongst the existing workforce. This, combined with a growing number of EU immigrants and older people seeking work and an ongoing skills shortage, goes some way to explaining weak pay growth. More →

November 11, 2014

City of London’s iconic building the Gherkin, sold to Brazilian billionaire

by Sara Bean • Architecture, News, Property

The Gherkin, otherwise known as 30 St Mary Axe, has been sold to The Safra Group, controlled by Brazilian billionaire Joseph Safra. Although the financial terms of the deal agreed with Deloitte, the receiver for the London property were not disclosed, it is reportedly to be around £700m. Designed by Norman Foster, the 180-metre office tower encompasses approximately 50,000 square meters of office space and is the second-tallest building in the City of London. It was completed in 2004 for Swiss Re, which still occupies half the space, along with law firm Kirkland & Ellis. Safra Group said that the acquisition: “Is consistent with our real estate strategy of investing in properties that are truly special – at the best locations within great cities. While only ten years old, this building is already a London icon that is distinguished from others in the market, with excellent value growth potential. We intend to make the building even better and more desirable through active ownership that will lead to a range of enhancements that will benefit tenants.”

November 10, 2014

Stockholm is Europe’s top tech start up location, claims interactive report

by Mark Eltringham • Cities, News, Property, Technology

A new study by videoconferencing firm Atomico shows that the European centre for billion dollar technology start ups in Europe is Stockholm, followed by London and Berlin. The interactive visualisation from the survey shows that Stockholm is second only to Silicon Valley as a successful founding location for successful Internet businesses with a current market valuation of over $1 billion founded since 2003. Silicon Valley remains in a completely different league to locations on the rest of the planet with 53 startups, followed by Beijing with 17, New York with seven and Stockholm with five. London, meanwhile, has only three tech start up businesses in the £1 billion category despite its reputation as a hotbed of tech entrepreneurialism, the same number as Berlin. According to the report, Stockholm’s ability to foster successful tech startups is even more impressive based on its population of around one million, which makes it the second most prolific per capita location worldwide,with 6.3 billion-dollar companies per million people compared to Silicon Valley with 6.9.

November 10, 2014

New report urges firms to protect against BYOD security breaches

by Mark Eltringham • Flexible working, News, Technology

According to a new report from BT, security breaches related to the practice of Bring Your Own Device (BYOD) and related forms of mobile working have affected 41 percent of UK organisations over the last year. Despite this, the report claims organisations are still not taking sufficient measures to protect themselves against threats such as lost or stolen devices and malware infections. The report reveals that at least one fifth of respondents’ organisations that suffered a mobile security breach, experienced more than four incidents in the last year. The research is based on a total of 640 interviews with IT decision makers from large sized organisations (1000 or more employees) across 11 regions: Australia, Brazil, France, Germany, Hong Kong, Middle East, Singapore, Spain, South Africa, UK and USA. Respondents’ organisations were from the financial, retail and public sectors. It shows that uptake of BYOD (Bring Your Own Device) and COPE (Corporately Owned Personally-Enabled) devices is very high, with 95 percent of UK organisations allowing employees to use these devices for work purposes.

November 7, 2014

Worldwide fall in levels of trust by employees in their workplace leaders

by Sara Bean • News, Workplace

They say a fish rots from the head, and with overwhelming evidence this week that workplaces are torn by backbiting, lying and bitching, a global analysis on workplace trust reveals a deterioration in the levels of trust employees have for their bosses. Interaction Associates annual workplace trust research, Building Workplace Trust 2014/15, found that more than half of the people surveyed gave their organisation low marks for trust and effective leadership. More than half of the 500 people surveyed at companies worldwide, give their organisation low-to-poor marks for trust and effective leadership. When asked to rate the statement “Employees have a high level of trust in management and the organisation”, just four out of ten agreed. The majority (58%) found their organisation lacking, and in fact, trust may be going from bad to worse at many organisations, as a quarter (26%) of those surveyed say they trust their boss less this year than in 2013.

November 6, 2014

Two new reports claim firms and employees are out of step on flexible working

by Mark Eltringham • Flexible working, Legal news, News, Workplace

The two latest stones to be tossed into the flexible working maelstrom in the hope of creating a ripple both suggest that employers are out of step with the expectations of their staff when it comes to working hours and conditions. The CIPD launched a new report Getting Smart About Agile Working, at the start of its annual conference in Manchester on 5 November which claims that a third (35 percent) of employees would like to change their working arrangements with nearly half (43 percent) saying they would most like to change the start or finish time of their working day. Meanwhile a separate report from BUPA claims that half of employees of SMEs think their employees underestimate the part that benefits including flexible working have to play in the overall feel of the company, and a similar number (51 percent) believe that not offering such benefits damages an employer’s attractiveness to new recruits.

November 6, 2014

Nationwide availability of office space declining at fastest rate since 1990s

by Sara Bean • Facilities management, News, Property

The availability of office space across the country has declined for the sixth consecutive quarter and at its fastest pace since the late 1990s, according to the latest RICS Q3 Commercial Market Survey. One in five said more than 10 per cent of office space in London is now earmarked for residential conversion. Twenty per cent of respondents report that a rise in transactions of commercial properties being sold with Permitted Development Rights (PDR) had led to more than 10 per cent of available commercial properties being earmarked for conversion into residential use. At the same time, over half (51%) of surveyors reported a growth in demand for office, industrial and retail space, with two thirds suggesting that if PDR exemptions are not extended then the availability of commercial properties will fall further. Demand for commercial space has risen across the whole of the UK, with 32 per cent saying availability across office, retail and industrial properties had fallen, while demand has risen to a net balance of 44 per cent. More →

November 5, 2014

More than half of workers report feeling stressed, but most keep it secret

by Sara Bean • News, Wellbeing, Workplace

New research by Mind to mark today’s National Stress Awareness Day has found more than half of workers (56%) say they find work very or fairly stressful; citing excessive workloads (52%), frustration with poor management (54%), not enough support from managers (47%), threat of redundancy (27%) and unrealistic targets (45%) as key stressors. The YouGov survey of over 1,250 people in Britain found that workplace stress is impacting on other areas of people’s lives, more so than debt or financial problems (38%), health (29%) or relationships (20%). One in five (20%) said it had put a strain on their marriage or relationship with significant other, while 11 per cent had missed important events such as birthdays or weddings. Stress was also having a physical impact, with 53 per cent agreeing that it affected their sleep, 22 per cent their appetite and 27 per cent their physical health. The research also revealed that mental health at work is still a taboo. Nearly a third (30%) of respondents said they wouldn’t be able to talk openly with their line manager if they were stressed.

November 5, 2014

Employers warned that landmark legal decision could cost them dearly

by Sara Bean • Legal news, News, Workplace

A ruling by the Employment Appeal Tribunal (EAT) is significant and could be potentially financially crippling, employers have been warned, following yesterday’s ground-breaking decision by the EAT to uphold an earlier Employment Tribunal’s decision that both compulsory and voluntary overtime must be included in addition to basic salary for the purposes of calculating a worker’s holiday pay. According to Shivali Chaudhry, an Employment solicitor at law firm Hamlins LLP: “Not only will employers have to increase the amount of holiday pay they pay workers to take into account all overtime, they may also face historic underpayment liabilities going back up to 16 years in respect of some workers.” However, Mike Emmott, Employee Relations Adviser at the CIPD says the ruling still leaves much to be resolved – particularly on the issue of backdating. He said: “The ruling means that employers will have to change how they calculate holiday pay in future to take account of voluntary overtime. However it does seem to have limited the scope for substantive retrospective claims, which was the biggest concern in terms of possible costs for employers.” More →

November 5, 2014

Failure to adopt strategic facilities management costs UK £1bn annually

by Mark Eltringham • Facilities management, News, Public Sector

A new report from the Royal Institution of Chartered Surveyors (RICS) claims that over a quarter of UK organisations are failing to adopt a strategic approach to facilities management. For those firms without this approach, the annual average cost is calculated by the report’s authors as £120,000, suggesting a total cost to the economy of nearly £1 billion. The claim is based on a study of around 700 organisations in both the public and private sector and across a range of organisational types and sizes. Around half of those with a ‘dedicated FM programme’ said that doing so had saved their organisation money, 59 per cent reported an increase in productivity, a fifth (21 percent)reported a drop in absenteeism and nearly half (49 percent) claimed it had made them more attractive to customers. The best results were recorded in the public sector with 70 per cent saying strategic facilities management had increased productivity and 71 percent claiming they had seen an increase in employee engagement.

November 4, 2014

Badmouthing, arse-covering and bluff are main unethical behaviours in workplace

by Mark Eltringham • Knowledge, News, Workplace

A new report from the Institute of Leadership and Management reveals the most common unethical behaviours displayed by employees in the workplace. Unsurprisingly they form a catalogue of low-level, generalised obfuscation, bluff, blame-shifting, bullshit and outright lying that will be very familiar to many people. The three most cited unethical behaviours according to the survey of 1,600 managers are cutting corners (72 percent), lying to cover one’s own mistakes (72 percent) and badmouthing colleagues (68 percent). People are, unsurprisingly, also prone to pass the buck when they miss deadlines (67 percent), cover up for the mistakes of colleagues (63 percent) and pinch low value items from work (52 percent). The ILM claims in its ‘The Truth About Trust’ report that these behaviours arise from a miasma of misunderstanding of what might be considered unethical behaviour, although equally they could just be things that people do if they think they can get away with them.

November 4, 2014

New CBRE report claims to debunk multi-generational workplace myths

by Mark Eltringham • News, Workplace, Workplace design

Age is less of a factor than widely thought when it comes to workplace preferences in the US, according to a new report by CBRE Group. The study, Designing the office of the future? Don’t plan it around (what you think you know about) US millennials, is based on aggregated workplace strategy surveys from more than 5,500 office workers across a number of sectors. It found that, while current assumptions about the multi-generational workplace and millennials are driving the design of many offices today, there is actually little difference in preferences between millennials, Generation Xers and baby boomers. (We’ve been suggesting this for some time at Insight). The report claims that “with a projected 75 percent of the workforce being millennials by 2025, much has been made about this new workforce generation, particularly when it comes to workplace strategy. While this is causing many companies today to debate how to balance the needs of millennials with those of a more tenured workforce, the study suggests that the generational divide is more perception than reality”.