Search Results for: pay ratio

August 15, 2017

Job vacancies are on the rise, but pay and productivity remains stagnant

by Sara Bean • Legal news, News, Workplace

UK employment is predicted to grow strongly in the third quarter of 2017, but wage growth is likely to remain weak, according to the latest CIPD/The Adecco Group Labour Market Outlook. Although the UK labour market remains buoyant, basic pay award expectations for the next 12 months remain at just 1 percent. Put against the backdrop of poor productivity growth, the report points to an increase in labour supply over the past year as a key factor behind the modest pay projection. This is driven by relatively sharp increases in the number of non-UK nationals from the EU, ex-welfare claimants and 50-64 year olds. This increase in labour supply may explain why the jobs market remains challenging for some jobseekers, especially those seeking lower-skilled jobs. Employers report a median number of 24 applicants for the last low-skilled vacancy they tried to fill, compared with 19 candidates for the last medium-skilled vacancy and eight applicants for the last high-skilled vacancy they were seeking to fill. Overall, employers felt that around half of applicants were suitable for each role they were trying to fill.

June 29, 2017

Self-employed would value receiving sick pay above other benefits ⁰

by Neil Franklin • Flexible working, News

UK micro-business owners and freelancers would be more interested in receiving sick pay than any other statutory benefit, according to new research carried out in collaboration between cloud accounting software firm FreeAgent and The Freelancer & Contractor Services Associatio n (FCSA). A poll of nearly 900 UK micro-business owners conducted by FreeAgent and FCSA claims that sick pay provision is the benefit that self-employed workers would most welcome, coming way ahead of other benefits such as maternity pay, job seekers allowance and pension auto-enrolment. The survey claims that 76 percent of respondents currently do not have any method of providing sick pay, maternity/paternity leave, holiday or redundancy pay in their business. Projected across the country’s 5.2 million-strong micro-business sector, this potentially equates to millions of people working without the same kind of basic entitlements that employed workers have. Notably, people’s appetites for additional benefits varied depending on the structure of their business with sole traders more likely to value benefits (rating sickness provision 8.7 out of 10) compared to those working through their own limited companies who gave a score of 6.4 out of 10 for sickness provision.

May 16, 2017

Pay levels are falling but job market remains robust, despite Brexit relocation plans ⁰

by Sara Bean • News, Public Sector, Workplace

The UK economy is about to be hit by a fall in basic pay awards and real wages warns the CIPD, which has found that employers’ median basic pay expectations in the 12 months to March 2018 have fallen to 1 percent compared to 1.5 percent three months ago, which is lower than at any time during the past three and a half years. The findings from the latest CIPD/The Adecco Group Labour Market Outlook survey are consistent with recent Labour Market Outlook reports, which have indicated a slowing in the rate of basic pay growth, and with official labour market data. The report also found that 12 percent of private sector firms say the UK’s decision to leave the European Union has led them to consider relocating some or all of their business operations abroad. Popular relocation destinations include the Republic of Ireland (18 percent), Germany (17 percent) and France (13 percent).

May 3, 2017

How the fourth industrial revolution might help to solve the challenges of mobility and migration ⁰

by Mark Eltringham • Flexible working, News, Technology

The already cack-handed Brexit negotiations and the ongoing saga of President Trump’s ‘wall’ have ensured that the issue of migration has stayed at the top of the political agenda so far this year. Yet, one potentially significant factor that has stayed out of the headlines so far is the potential for people to migrate digitally across nations and the globe. The World Economic Forum’s Global Future Council on Migration, in conjunction with Remote.co, has now published a report into the subject called Mobile Minds: An Alternative to Physical Migration in the Fourth Industrial Revolution. The white paper claims to outline the benefits of, and challenges associated with, cross-border remote hiring. Led by Rajeeb Dey, Tolu Olubunmi, and Sara Sutton Fell, the goal of Mobile Minds is to explore the global impact of remote work as it relates to both the mobility of the twenty-first century workforce and workplace.

April 12, 2017

Research shows how the gender pay gap can be directly related to motherhood ⁰

by Sara Bean • Comment, Flexible working, News, Workplace

A new piece of academic research provides more evidence that the underlying reason for the gender pay gap is the discrepancy between the way women with children are treated compared to men, and other women without children. According to new research from Université Paris-Saclay, mothers are paid 3 percent less for every child they have compared to their female colleagues who do not have children, while fathers suffer no such penalty at all. The figures were compiled from a 16-year study of data from organisations in the French private sector between 1995 and 2011 by Lionel Wilner, Director of Graduate Studies at engineering and statistics school ENSAE, a founding member of Université Paris-Saclay. He separated the effect of childbirth from other firm-specific wage determinants, and accounted for full-time and part-time work, to find that the difference between mothers and non-mothers is approximated a 3 percent lower hourly wage. The effect was found to be more pronounced after the birth of the first child. More →

April 4, 2017

Majority of employers still not ready for mandatory gender pay gap reporting ⁰

by Sara Bean • Legal news, News, Workplace

UK employers are unprepared for gender pay gap reporting legislation, with more than a third (32 percent) failing to review salaries across genders to safeguard against pay discrimination. This is despite the fact that the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 come into force later this week (6th April) which will require UK companies with more than 250 staff to keep records of gender pay and bonuses. Totaljobs’ survey of 4,700 employees and 145 employers found that 82 percent of companies are not reviewing their gender equality/equal pay policy and 58 percent don’t have salary information available across roles and genders. Little more than half (53.1 percent) of employers feel “very confident” that salaries are equal across the genders. While employers will be required to keep salary records, the research showed men are currently more likely to receive a bonus than women and typically receive more. In the past year, 43 percent of men received a bonus of £2,059, on average, versus 38 percent of women, who, on average, received £1,128.

March 23, 2017

Employers blame gender pay gap on career breaks and part-time work ⁰

by Sara Bean • Legal news, News, Workplace

Over a quarter (29 percent) of senior managers within UK enterprises do not see the gender pay gap as an issue for businesses and many believe the gap is partly due to women’s personal career decisions, a new survey claims. Research by NGA Human Resources (NGA HR) found that despite the UK gender pay gap sitting at 13.9 percent, only 17 percent of decision makers surveyed believe that regulations on gender splits will reduce the divide. Nearly half (49 percent) of senior leaders in businesses blame the disparity on the fact that women are more likely to take career breaks or work part-time (42 percent) as the main factors for pay disparities. Other reasons given for the gender pay gap are the lack of representation of women in the overall workforce (20 percent) and fewer women in senior management positions (27 percent).

February 22, 2017

MPs criticise the Government’s response to gender pay gap recommendations ⁰

by Sara Bean • Flexible working, Legal news, News, Workplace

If the Government will fail to achieve its goal of eliminating the gender pay gap in a generation if it continues to ignore the evidence which it is being given, a cross-party committee of MPs has said. The Women and Equalities Committee is disappointed with the Government’s response to a series of recommendations it put forward last March, which it says shows that the Government is not effectively tackling the structural causes of the gender pay gap. While the Government’s recognises the business case for reducing the gender pay gap and acknowledges structural factors contributing to the pay gap, including women doing jobs for which they are overqualified, concentration in part-time work, and being penalised for taking time out of work to raise children; it rejects most of the Committee’s seventeen evidence-based recommendations for addressing these issues. Instead it highlights gender pay gap reporting, as “key to accelerating progress,” and maintains that current policies on Shared Parental Leave, flexible working, and supporting women back into work are adequate.

February 21, 2017

Executive pay should be linked to health and safety performance, claims industry body ⁰

by Mark Eltringham • Facilities management, News, Workplace

Leaders would have and even greater incentive to improve health and safety if their performance was more transparent and executive pay and bonuses were linked to it, suggests the Institution of Occupational Safety and Health (IOSH). This is one of nine summary recommendations made by IOSH in its response to the UK Government’s Corporate Governance Reform Green Paper proposals, which follow public concern about serious failures, such as those at Sports Direct. IOSH agrees with the Prime Minister’s views, expressed in her foreword to the green paper published last November, where she said: “…big business must earn and keep the trust and confidence of their customers, employees and the wider public”. The suggestions IOSH makes contribute constructively to those aims.

February 17, 2017

CIPD calls for more ethical approaches to pay and reward ⁰

by Sara Bean • Legal news, News, Workplace

The CIPD and the High Pay Centre have launched a formal partnership to advocate fairer and more ethical approaches to pay and reward. Together they are calling for a major re-think of corporate governance to improve CEO pay transparency and ensure boards recognise their broader responsibility towards the workforce when decisions on executive pay and business investment are made. In their joint response to the Government’s green paper on corporate governance, which seeks views on how to curb excessive CEO pay and boost employee voice at board level, the CIPD and High Pay Centre point out that if FTSE 100 CEO pay continues to increase at the same rate for the next 20 years as it has for the last two decades, the average ratio between a CEO and average pay would increase from about 129:1 to more than 400:1. The CIPD chief executive Peter Cheese argues in the report that current levels of executive pay undermine both trust and sustainability and making small adjustments to current system isn’t the right approach.

February 10, 2017

Gender pay gap for Millennials is closing, but for the wrong reasons ⁰

by Sara Bean • Flexible working, News, Workplace

Millennial men are earning less than Generation Y did in their earlier careers reflecting a shift towards young men doing low paid work traditionally carried out by women. In his Grigor McClelland lecture on 21st century inequality to Manchester Business School yesterday, Resolution Foundation Director Torsten Bell drew on upcoming research for the Foundation’s Intergenerational Commission on the labour market prospects for younger generations, which highlights the stark gender differences on inter-generational progress on pay. According to the data, Millennial men have earned less than Generation X men in every year between the ages of 22 and 30, resulting in a cumulative pay deficit during their 20s of £12,500. In contrast millennial women have experienced neither generational pay progress or decline. This has narrowed the gender pay gap for millennials, but for the wrong reasons, a shift towards lower-skilled jobs, often part-time, which have stunted the pay progress of young men.