The CIPD has urged the Chancellor to focus on delivering a “Budget for Productivity” when he delivers his 2014 Budget on 19 March. The employment body has today put forward a package of proposals which call for labour market inclusion and the development of more productive, inclusive, and engaging workplaces. It is calling for a fundamental review of UK skills policy, together with a new focus on the workplace, the nature of jobs for the future, and how skills are being utilised. This, the CIPD argues, is critical if the necessary leap in productivity is to be delivered to boost real wages. A recent CIPD report  found that already weak UK productivity has worsened as a result of a slow-down in job turnover during the recession and an extraordinary run of hiring that has preceded the recent return to growth. More →

The latest labour market statistics shows employment has continued to rise, but at a slower rate than seen last month. However, at 67.2 per cent, record-breaking numbers of women are now in work, the highest since records began. The figures published today by the Office for National Statistics (ONS) show the employment rate in the three months to December 2013 rose to 72.1 per cent, lower than the previous three months and with just a small rise in total pay of 1.1 per cent. This slower pace of growth in employment and pay is reflected in the latest CIPD/ SuccessFactors quarterly Labour Market Outlook survey, which reveals that, although recruitment intentions remain positive, the rate of increase has slowed significantly and the vast majority of organisations expect to give pay awards below the current rate of inflation. More →

The Chartered Institiute of Personnel and Development has today released a report analysing the most sustained and severe fall in real wages since at least the Second World War, and warns that the decline will not be reversed until there is a substantial improvement in the UK’s productivity.  The report is accompanied by new survey data showing many employees expect pay rises in 2014 to be below inflation – a repeat of their experience in 2013. ‘Have we seen the end of the pay rise?‘, which is the third in a series of four Megatrends surveys exploring the future of work and the economic challenges which lie ahead, examines the effects of average weekly earnings that are now between 7.8 percent and 10.2 percent lower in real terms than they were five years ago, in January 2009, leading to a sustained squeeze on household finances.

More →

The number one priority of business leaders worldwide this year is how best to develop, engage, manage, and retain existing talent. This worker-centric approach means that employee engagement and better management will take centre stage as the way to improve competitiveness, win new customers and raise productivity. According to new research from The Conference Board and UK partner CMI (Chartered Management Institute), CEOs will concentrate on creating a strong internal talent pipeline rather than seeking to recruit externally, with nine out of the top 10 global Human Capital strategies focused on current employees, including providing training and development, raising employee engagement and increasing efforts to retain critical talent. Other closely linked priorities identified in the CEO Challenge 2014 are customer relationships, innovation, operational excellence, and corporate brand and reputation. More →