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Insight_twitter_logo_2In this week’s issue; Maciej Markowski says most companies are not like Google, so don’t require a Google-cloned office; and Mark Eltringham explains why Charles Handy was largely correct in his pronouncements on the changing nature of work. Take up of leased office space in London hits its highest level since 2000; the UK workforce sees an increasing pay divide; and with new flexi-rights just weeks away, Acas publishes a new free guide on Shared Parental Leave. The Government publishes the latest edition of its ‘Greening Government ICT Strategy report; and the House of Lords’ report, Make or Break: The UK’s Digital Future, predicts that 35 percent of jobs over the next two decades will be automated. Sign up to the newsletter via the subscription form in the right hand sidebar and follow us on Twitter and join our LinkedIn Group to discuss these and other stories.

Job automation seen as a key digital challenge in new policy report

Whichever party or coalition forms the next UK Government will face a raft of serious challenges with the emerging digital economy, including making plans for the automation of up to a third of existing jobs. That is the main conclusion of a new report published this week by The House of Lords. Make or Break: The UK’s Digital Future, argues that the next 20 years will present the UK with a range of profound challenges and opportunities and it is incumbent on the Government to address them at the earliest opportunity. As well as imminent and well known  issues such as the need to roll out ultrafast broadband countrywide and the development of skills and digital clusters, the report also highlights the particular issue of what to do about the claim that up to 35 percent of jobs over the next two decades will be automated.

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Employment confidence is increasing, but so is the pay divide finds CIPD

Employment confidence is growing, but so is a the pay divide finds CIPD The UK workforce is seeing an increasing pay divide between employers that can now afford to increase wages by 2 percent or more and those that are stuck in a pay freeze. According to the latest Labour Market Outlook from the CIPD, almost half of the UK workforce saw either a pay freeze or a pay cut (3% pay cut, 39% pay freeze) in the twelve months to December 2014. In contrast, a similar proportion (40%) have received a pay increase of 2 percent or more and less than a fifth (18%) fall in the middle ground of people who have received a pay increase in the 0.1-1.99 percent corridor. As well as identifying a growing pay divide, the report finds employment confidence is set to remain strong over the next three months with around two thirds of employers (65%) planning to recruit new employees.

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Over a million older people struggle to find employment

employmOver a million older people pushed out of the labour marketentMore than a million older people are struggling to find employment. This is according to the second in a series of reports being produced by Business in the Community around age and intergenerational workplaces. The Missing Million: Pathways back into employment, finds that the over 50s continue to face age discrimination and they are increasingly having to start their own businesses or go into unpaid work, when they would prefer to do otherwise. Older people are more likely to remain out of work once they lose a job and if they want to find new employment, the over 50s have to rely on their own resources and networks. The research, which feeds into BITC’s Age and Intergenerational Workplaces campaign, is being carried out in collaboration with The International Longevity Centre-UK (ILC-UK).

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Over a third of Scottish businesses are based at home (and a fifth started there)

Scottish businesses home workingOver half of businesses in Scotland started in somebody’s home and over a third are still based there, according to a new report from the Federation of Small Businesses (FSB) and researchers from the University of Glasgow. The study of 1,000 Scottish businesses found that 39 percent are based from home and a further 19 percent began life there. The FSB claims that Scottish home based firms turn over around £20 billion a year with three quarters of them with a turnover of less than £100,000 and – perhaps unsurprisingly – only 3 percent with a turnover greater than £500,000. Two thirds also employ at least one additional member of staff. The report’s authors are now calling on Government to acknowledge the significance of these firms and develop policies to help them thrive.

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Digital economy spreads nationwide but London still dominates

digital economyThe UK Government has published what it says is the first comprehensive analysis of the UK’s digital economy clusters as part of an ‘interactive data project’ called Tech Nation*. The project shows the development of digital businesses by region across the UK. The project has been developed by Tech City UK, the government’s flagship organisation focused on the UK’s digital economy. The project suggests that there are now  nearly 1.5 million jobs in the UK digital sector with around three quarters (74 percent) of them outside London. While the Government is keen to portray this as a nationwide success story, this still means that there are twice as many jobs per head in London’s digital sector as the national average and, as we reported earlier, the Government’s rollout of fast broadband to rural areas remains woefully inadequate.

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Political focus on regulation misses real workplace issues, says CIPD

Politician's focus on regulations ignore the real workplace influencers says CIPDOne of the key policies of the Coalition Government is its Red Tape Challenge, intended to ‘roll back’ as many ‘restrictive’ employment regulations as possible. Such deregulation has been lambasted by the Labour party for its negative effect on employer / employee relations and workplace performance. As the parties gear up for the election May this argument looks set to intensify. Yet according to a major new report from the CIPD, Employment Regulation and the Labour Market, neither approach is likely to have any impact on UK labour market outcomes, suggesting there isn’t a case for the next Government to either deregulate or strengthen employment rights. Instead, the CIPD is urging policymakers to focus efforts on improving productivity through a much stronger focus on workplace practices, increasing awareness of existing rights and enforcing them more effectively.

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Employers over-estimate levels of staff happiness and engagement

 Employers over-estimate levels of staff happiness and engagementNearly half (46%) of employers believe their company is a great place to work compared with less than a third (31%) of staff, and UK staff have alarmingly low energy levels, a new survey has revealed. The data from MetLife’s UK Employee Benefits Trends Survey shows how highly employers rate recruitment and retention. Forty percent of UK companies say they will be affected by talent shortages over the next year and their key benefits challenges are retaining (41%) and hiring talent (37%). However, the greatest recruitment and retention challenge is the gap between employer and employee views. Although 32 percent of employees say they are loyal to their employer – just 22 percent believe their employer is loyal to them. In contrast 39 percent of employers’ believe their employees are loyal and 40 percent believe they are loyal to employees.

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Employers need to do more to attract and train older workers says REC

Hiring older workersEmployers need to provide more training opportunities for older workers and how they advertise jobs to attract recruits over 55, according to the results of a survey issued by the Recruitment and Employment Confederation (REC). Asked to identify the most important change businesses should make to encourage applications from jobseekers aged 55 and over, almost four in ten (37%) respondents highlighted issues around advertising, while a third (34%) indicated that they should be providing more opportunities for older workers to upskill or reskill. Twenty percent said that businesses need to be more careful with language used in job adverts while 17 percent said that hirers need to look beyond posting jobs exclusively online. Evidence for the business case for retaining, retraining and recruiting older workers will be published by the Department for Work and Pensions in March.

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Messy offices really are far less productive than those with clear desk policies

Messy offices really are far less productive than those with clear desk policiesI used to have a boss whose solution to dealing with all his paper-based correspondence was to simply let the detritus build up. When he couldn’t see  his desk any more, he would draw his hand across the desk and dump the whole lot into the bin. Invariably he’d miss something important and would often have to search the bin to find an important letter, invoice or memo. I had another boss who ate so much food over her keyboard that it had to be taken away and cleaned – a disgusting job, according to my colleagues in IT. So despite reading with some cynicism that a cleaning company has published new research which proves offices that cut corners on cleaning, or allow employees to work in messy, disorganised surroundings, are far less productive than clean, well-ordered offices; I must agree it shows the benefits of a clear desk policy .

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Unhappy Gen Y talent will move on this year, if you fail to keep them engaged

Uunhappy Gen Y talent will move on this year if you're not carefulThe January Blues can be a major headache for employers, as it tends to be a time when staff consider moving on. In fact, more than a third of UK workers are already planning to change jobs at some point in 2015.[1] Factors including low motivational levels and the feeling of a need to take action combine to provide favourable conditions for job movement among employees. Keeping Generation Y talent is a particular area of concern for management, with a recent study revealing over half of these employees will expect to have moved on from their current employer within two years.[2] The fact is that Gen Y employees are simply not prepared to stay in jobs that make them unhappy.

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Reports highlight the UK economy’s geographical and digital divides

Publication1The divides in the UK economy are not only geographical, but also technological. That is the conclusion of two new reports into the country’s economic makeup and the differences that mark out the North and South of the UK as well as its rural and urban economies. While the Centre for Cities 2015 Outlook report has focused attention on the North South divide with widespread media coverage, the Federation of Small Business (FSB) has also identified a second split between the digital economies of urban and rural areas. The former report paints a picture of a two-speed economy and a widening gap between South-East England and the rest of the UK while the latter highlights the damage done to businesses in rural areas as they struggle to cope with sub-par broadband.

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