Matthew Pinto-Chilcott, Owner of Consensus HR comments: “When I saw this latest press article in relation to Equal Pay and the fact that they are predicting now that the pay gap will not close until 2044, I was shocked. The Equal Pay Act 1970 was one of a range of equality Acts such as Race Relations Act 1976, the Sex Discrimination Act 1975 and the Disability Discrimination Act 1995 to name a few. These were all repealed in October 2010 when the Equality Act 2010 was introduced and considering this was over 48 years ago, we still have a long way to go! The Equality Act 2010’s main points are:
Legally protects people from discrimination in the workplace and in wider society. It replaces previous anti-discrimination laws within a single Act making the law easier to understand and strengthening protection in some situations. Full details of the Act can be found by clicking here on the Governments Legislation website.
As outsourced HR Consultants we ensure that all our clients work to best practice and the law and the Equality Act 2010) EQA 2010) is just one piece of Legislation we ensure our clients, and their teams adhere to throughout as nobody should receive unfavourable treatment in the workplace. We work with all our clients to ensure that a comprehensive, user friendly Employee Handbook is provided that is written in plain English and that full access is always available through our IT system should it be needed by any member of the team. The protected Characteristics under the EQA 2010 in part 2, Chapter 1, sections 5-12 are:
Age, Disability, Gender reassignment, Marriage and Civil Partnerships, Pregnancy and Maternity, Race, Religion or belief, Sex and Sexual Orientation.
Awards if proven at an Employment Tribunal can be unlimited
NEWS ARTICLE: Gender pay gap will not close until 2044.
Analysis by the Trade Union Congress (TUC) shows that the gender pay gap is almost 15% and widens “dramatically” after women have children. The report also reveals that women effectively work for free for 54 days due to the discrepancy between what men and women are typically paid. Women aged between 50 and 59 have the highest pay gap of 20.8%, while for those aged 60 and over it is 18.4%. The gender pay gap is largest in the South East of England (17.9%) and East of England (17.5%). TUC analysis of official data shows that the gender pay gap has fallen by an average of 0.4 percentage points a year since 2011. At the current rate of progress, it will take until 2044 for pay parity to be achieved. TUC general secretary Paul Nowak said: “Working women deserve equal pay, but at current rates of progress, it will take more than 20 years to close the gender pay gap.” He added: “It’s clear that just publishing gender pay gaps isn’t working. Companies must be required to publish action plans to explain what steps they’ll take to close their pay gaps, and bosses who don’t comply with the law should be fined.”
The Importance of Human Resources in Business – Human resources (HR) is a vital function within any successful business. Its primary purpose is to attract, retain, and develop talent, which is crucial for growth and competitiveness in today’s ever-evolving business environment. In this article, we’ll delve into the significance of HR in business and examine the many roles it plays in driving organisational performance.
To begin with, HR is responsible for attracting and retaining top talent. In today’s job market, with increased competition and a limited pool of available employees, it’s essential for companies to stand out and appeal to the best candidates. HR plays a crucial role in this regard by creating effective recruitment strategies that attract top talent to the organisation. This may involve utilising a variety of methods, including career fairs, social media, and employee referral programs, to reach potential candidates and showcase the company’s values, culture, and opportunities.
Once the top talent is on board, HR must then ensure that they are properly trained, developed, and integrated into the company culture. The success of a business is directly tied to the performance of its employees, and HR must make sure that employees have the necessary skills, knowledge, and support to excel in their roles. HR can do this by providing job training and development programs, implementing performance management systems, and conducting employee engagement surveys. These initiatives not only help employees perform better but also increase their job satisfaction, motivation, and overall engagement.
In addition to talent acquisition and development, HR also plays a critical role in ensuring that the company operates within the legal and ethical framework. This includes compliance with labour laws and regulations, as well as addressing workplace conflicts and disputes. HR must also be proactive in promoting a culture of diversity, equity, and inclusion, and ensure that the company operates in a manner that aligns with its values and ethical principles.
One of the significant benefits of having a strong HR function is that it helps to create and maintain a positive and productive workplace culture. A healthy work environment fosters employee engagement and motivation, leading to higher levels of productivity and overall performance. HR plays a key role in shaping and maintaining the company culture by creating a welcoming and inclusive work environment, promoting open communication, and recognizing and rewarding employees for their contributions. By doing so, HR helps to reduce employee turnover and increase employee satisfaction, leading to improved business results.
Another crucial role that HR plays in business is employee relations. This involves managing employee benefits and compensation, addressing employee concerns, and resolving disputes. HR must ensure that employees are paid fairly and receive adequate benefits, such as health insurance and retirement plans. They must also be knowledgeable about the company’s policies and procedures and be able to communicate them effectively to employees. Additionally, HR must be available to listen to employee concerns and provide guidance and support when necessary. By fostering a positive and productive work environment, HR helps employees feel valued and appreciated, leading to higher levels of employee engagement and satisfaction.
Finally, HR is responsible for supporting the overall strategic objectives of the organisation. This involves aligning HR initiatives and policies with the company’s goals and objectives and working with other departments to ensure that the company operates as effectively and efficiently as possible. For example, HR may work with the marketing department to develop and implement employee branding and recruitment initiatives that align with the company’s marketing strategy. Additionally, HR may partner with the finance department to develop and implement compensation and benefits programs that support the company’s financial objectives.
In conclusion, the importance of HR in business cannot be overstated. From attracting and retaining top talent, to creating a positive workplace culture, and supporting the overall strategic objectives of the organisation, HR plays a critical role in driving organisational performance and success. Companies that invest in their HR function will reap the rewards of improved employee engagement, higher productivity, and a more effective and efficient business operation. Investing in HR programs and initiatives, such as leadership development, diversity and inclusion, and employee engagement, will ensure that the organisation remains competitive in today’s fast-paced business environment and attracts and retains the best talent.
In addition to the tangible benefits of a strong HR function, there are also intangible benefits that are equally important. A company with a positive workplace culture and engaged employees is more likely to have a good reputation, which can lead to increased brand recognition and a positive image in the eyes of customers and stakeholders. This, in turn, can lead to increased customer loyalty and a more stable customer base, which is critical for long-term success.
It’s also worth mentioning that HR is not just about managing employees, but it’s also about managing the company’s most significant asset: its people. By providing support, guidance, and development opportunities, HR helps employees reach their full potential and contribute to the success of the organisation. Additionally, by fostering a positive and inclusive workplace culture, HR can help to create a workplace that employees are proud to be a part of, which in turn leads to higher levels of employee satisfaction, motivation, and performance.
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If you want to know more on how we can help your business with Human Resources and the importance of getting it right, contact us now.
Matthew Pinto-Chilcott, Owner of Consensus HR comments: “This is a very interesting article and appeals to me due to my early career days working and managing a team within the hospitality service. We had many students, both foreign and UK that wanted to gain experience, especially customer service and working within the public domain and the restrictions helped to ensure that their studies did not suffer but could work more hours during the holiday period. They were a total asset to the business, who without we probably would not have survived. My concern with this plan would be that some employers would take advantage and it would lead to what the legislation aimed to prevent, and student visas being used as backdoor routes to UK jobs. It will be interesting, should this go ahead what the overall outcome is, but of course it would take a few years to fully analyse and by then the doors are open and it becomes common practice.”
NEWS ARTICLE: UK plots rethink on foreign student working hours
Foreign students in the UK could be allowed to work longer hours under plans to boost the economy, with ministers looking at ways to encourage students to take more part-time jobs to tackle shortages in certain sectors. Britain’s 680,000 overseas students are limited to 20 hours of paid work a week during term time to prevent student visas from being used as backdoor routes to UK jobs, but officials are contemplating raising the cap to 30 hours or removing it entirely. The plan comes at a time when there are 1.3m vacancies in the UK, almost half a million more than before the pandemic. Work and Pensions Secretary Mel Stride is leading a review that will assess ways of tempting some of the UK’s 9m economically inactive people back to work and encourage those already in employment to do more hours. Students could be targeted to fill vacancies in hospitality and retail.
Consensus HR realises that many UK based SMEs understand the importance of Human Resources (HR) and Health & Safety (H&S) but cannot justify the cost of a full time HR person / team within their business, whilst knowing that when running a business of any size (from one employee to 250) that there will be a time when they will have to deal with a range of HR and H&S issues and employee problems. Consensus HR can be your organisation’s HR department providing everything you would expect to find in a big company but in a more cost-effective way. We provide our clients access to unlimited HR advice and employment law which is accredited by leading professional bodies, including the Solicitors Regulation Authority and the Bar Standards Board.
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We help companies recruit for all sectors and types of contracts and if we can help you, give us a call now.
Matthew Pinto-Chilcott, Owner of Consensus HR comments: “Automated systems seem to be the in thing these days with GP’s and now HMRC changing its systems to be more text orientated with the intention to reduce queues. When it comes to HR and IT – Artificial Intelligence (AI), Gwynneth Tan, employment partner at Shoosmiths (People Management) gives some Dos and don’ts on Data protection and employment law implications:
Dos and don’ts
Do ensure you have fully trained, experienced individuals responsible for the development and use of AI to minimise the risk of bias
Do establish clear and transparent policies and practices around the use of any AI to make recruitment decisions
Do identify appropriate people to actively weigh up and interpret recommendations and decisions made by AI in the recruitment process before applying it to any individual
Don’t solely rely on AI but ensure AI is used only as an element to assist in recruitment decisions
We believe AI and IT can help many businesses with processes and systems but good old fashioned human support and contact when it comes to HR and its Policies and Procedures and implementing it into business is a MUST for all businesses. Consensus HR by supporting, coaching and explaining current employment law and best practice whist speaking plain English with its clients, helps to ensure that they are always at the forefront of any changes to ensure the success of their business.”
NEWS ARTICLE – HMRC trials answer by text system to cut call queues
Routine calls to HM Revenue and Customs will be answered by text, rather than by a human, in a trial aimed at improving its customer service record. From Thursday, the tax authority will send a direct website link by text to some people who want to find their reference number or reset a password. The trial will continue until the start of April and is designed to free up call handlers for more complex issues. Routine requests that will be answered with a text and a website link include locating a Unique Tracking Taxpayer Reference (UTR) number; registering for HMRC online services; and resetting a lost or forgotten online service password or user ID. Richard West, director of personal tax operations at HMRC, said: “Redirecting these sorts of queries to online services should help customers find the answer more quickly. It also means calls from customers during the current self-assessment peak, whose questions cannot easily be answered online and require help from an adviser, get the appropriate support they need.”
Consensus HR realises that many UK based SMEs understand the importance of Human Resources (HR) and Health & Safety (H&S) but cannot justify the cost of a full time HR person / team within their business, whilst knowing that when running a business of any size (from one employee to 250) that there will be a time when they will have to deal with a range of HR and H&S issues and employee problems. Consensus HR can be your organisation’s HR department providing everything you would expect to find in a big company but in a more cost-effective way. We provide our clients access to unlimited HR advice and employment law which is accredited by leading professional bodies, including the Solicitors Regulation Authority and the Bar Standards Board.
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If you wish to always keep up with the changes in Employment Law and ensure your business is working to best practice and the law, give us a call now.
Matthew Pinto-Chilcott, Owner of Consensus HR comments: “Another interesting article in relation to available job vacancies pre and post the Pandemic, with figures now showing that job posting are below those seen before the pandemic. Businesses are still having to adapt to demands which are still continually changing with an ever changing economic climate. We continually advice our clients to ensure that they work to best practice and the law when / if they have to make changes to the team as poor practice can result in extremely bad adverse effects such as poor moral, motivation and sales to name a few. Correct Contracts and Terms and Conditions of Employment can help companies manage many of the problems / concerns that are being thrown at them at the moment with the ever changing economy and help to ensure a motivated team and continuation of sales.”
NEWS ARTICLE: Number of online job adverts falls
The number of job adverts posted online has fallen below pre-pandemic levels for the first time in nearly two years, according to data gathered by job search website Adzuna and published by the Office for National Statistics (ONS). The number of postings fell below those seen before the pandemic in the first week of this year, marking the first time since April 2021 that the number of vacancies dropped below the benchmark. Job adverts fell by 3% in the week to January 6 compared with the previous week. The largest drop was recorded in the human resources and recruitment industry, which saw a 19% fall. Vacancies hit a high of 1.3m in the three months to May 2022, according to ONS figures, but fell for several consecutive quarters to reach 1.19m in the three months to November. An exodus of about half a million people from the labour market reduced the supply of workers for companies during the pandemic. However, with the cost-of-living crisis hitting demand for goods and services, companies now have less of a need for workers.
Consensus HR realises that many UK based SMEs understand the importance of Human Resources (HR) and Health & Safety (H&S) but cannot justify the cost of a full time HR person / team within their business, whilst knowing that when running a business of any size (from one employee to 250) that there will be a time when they will have to deal with a range of HR and H&S issues and employee problems. Consensus HR can be your organisation’s HR department providing everything you would expect to find in a big company but in a more cost-effective way. We provide our clients access to unlimited HR advice and employment law which is accredited by leading professional bodies, including the Solicitors Regulation Authority and the Bar Standards Board.
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If you are looking to recruit at the moment, give us a call now.
Matthew Pinto-Chilcott, Owner of Consensus HR comments: “Retention of good members of the team is crucial for the success of any business whilst ensuring you do not create employees that become clones and only do the basics whilst never thinking outside the box as jargon goes. At Consensus HR, we have personally noted how hard this can be for businesses as members of our team have wished to go to pastures new to progress their careers or return to family duties. Unfortunately, / fortunately, this is becoming more common for businesses in general and with the cost of recruitment continually increasing, businesses need to work with their team, ensuring regular performance reviews take place and Job Descriptions are updated on a yearly basis / discussed, whilst making the working environment a place people want to go to work with flexibility such as Hybrid if possible. It is always good for people to leave a business for the right reasons and give positive feedback to their new employer about their previous employment as we have seen many times, the opposite and I am personally proud to know that although they may no longer work for me, they have now gone on to progress their career with an employer who can provide more of what they are looking for in a new career.”
Over half of workers intend to look for a new job in 2023, according to a Hays poll of 13,500 professionals and employers. The Mail says that with more than 1.1m unfilled jobs in the UK, those looking for a new challenge are likely to see plenty of opportunities. Areas with shortages that are set to see demand for roles include engineering, construction and technology, while the drive for green jobs will mean the need for more energy and sustainability managers. The most sought-after employees are expected to be electrical and automation engineers – with these among roles on the UK government’s shortage occupation list. Cyber security managers are expected to continue to command some of the highest average salaries, at around £81,500 a year.
Matthew, Owner of Consensus HR comments: “Initially, I was not a fan of zero-hour Contracts when they were introduced but they have shown if managed fairly and reasonably that they do suit some businesses and especially where students are involved. However, in this news report shown below in The Guardian it shows from statistics that they are being used extensively for the over 50’s. At Consensus HR and as per the Equality Act 2010, (EQA) age should not be a factor when employing somebody and hence why the past process of some people adding their Date of Birth to their CV is now none existent and if anybody is still doing this, they should be told at interview by the employer that this is not best practice and we as HR professionals advise against it.
If your business wishes to use Zero-hour Contracts, then make sure it is for the right reasons for the worker such as flexibility, Opportunities and Extra Income and not to take advantage of a protected characteristic under the EQA which as previously stated in our blogs, is protected from day one of employment and could result in an unlimited penalty to the business.”
NEWS ARTICLE – Zero-hours contracts among over-50s hit record high.
Analysis of Office of National Statistics data shows that zero-hours contracts among the over-50s have reached their highest level since records began. There are nearly 300,000 people aged 50 and older with zero-hours contracts, the highest number for this age group since records began in 2013. The total has increased from 149,000 between October and December 2013 to 296,000 in July to September 2022. More than a quarter of the total number of zero-hours contracts are held by workers over 50. Stuart Lewis, chief executive of Rest Less, said: “The large rise in the number of people aged 50+ working under zero-hours contracts is worrying.” He added that while many have turned to zero-hours contracts because they were unable to find a more permanent or structured type of work “thanks to age discrimination or a lack of workplace flexibility . . . Others are juggling zero-hours contracts alongside other part-time roles to top up working hours to make ends meet amidst double-digit inflation.” Caroline Abrahams, charity director at Age UK, said that zero-hour contracts are on the rise among older people because, “sadly, it’s often very hard to find a new job in your 50s and beyond, because ageism is rife in the labour market.” Dr Emily Andrews, deputy director for work at the Centre for Ageing Better, said that while zero-hours contracts support many older workers to remain active in the labour market as their circumstances change, “all too often, these contracts mean one-sided flexibility in favour of the employer
Matthew Pinto-Chilcott of Consensus HR Comments: “Talk of the four-day week has been going on for some time now and especially since the Pandemic occurred but what are your views and the companies on this? It will be interesting to see the feedback in the future with this initial 100 British companies and the affect it has had on moral, health, motivation and company profits. We await the outcome, but have you considered it? Is it the way forward? Personally, I believe as long as the correct Policies and Procedures are put in place for the team and company and the required results are achieved, then why not have a four-day week? I look forward to hearing client’s views in the future and seeing how many do actually give it a go!”
NEWS ARTICAL:
One hundred British businesses have signed up for a permanent four-day working week that will see no loss of pay for staff. Around 2,600 employees are set to benefit from the new working pattern. The two biggest companies to have signed up are Atom Bank and global marketing company Awin, which each have about 450 UK staff. Accredited firms have demonstrated that they have genuinely reduced hours for workers rather than forced them into longer days. A global trial has seen more than 3,300 employees across 70 companies and charities taking part in a six-month experiment. At the half-way point in September, the trial – which involves researchers at the universities of Cambridge and Oxford, Boston college and think-tank Autonomy – saw 88% of the UK respondents say the four-day week was working well for their business. Around 95% said productivity had either stayed the same or improved. However, it was noted that only around half of those taking part responded to the survey canvassing opinion at the three-month mark.
This article talks about 100 companies going over to a four day week, but what are your views? If you would like to discuss how this could be achieved from a HR perspective, give us a call email now.
Matthew Pinto-Chilcott, Owner, of Consensus HR comments: Investigation reveals harsh conditions at Boohoo factory – “An interesting article in ‘The Times’ in relation to working conditions at a UK company where the team call themselves “Slaves”! How can any company employ a team where they make comments such as this and in extremely poor conditions. A reputation of a company is vital for its success and employees making extremely poor comments about it, does not help. In this article, they comment about temperatures reaching 32 degrees which I could understand in the height of summer but in November! There is no legal limit on how high a temperature can get in a workplace but surely if you had an environment like this, you would aim to get some sort of air-conditioning in so that the team felt comfortable when working and producing more!
This investigation gives perfect examples of how not to look after your team and how to go against everything a good HR strategy would provide. The current economic climate may not give companies surplus funds to provide excessive HR benefits, but all of these listed within this article are conditions that do not cost a fortune and are purely down to mismanagement by the team and failure to work to best practice and Health & Safety regulations. I dread to think what their sickness / absence and retention must be and the continual additional costs of recruiting more employees both financially and in view of their reputation!”
An undercover investigation by The Times has revealed the harsh conditions at Boohoo’s warehouse in Burnley, where workers label themselves “slaves” and have complained of racism, sexual harassment, gruelling targets, inadequate training and ill-fitting safety equipment. The investigation found the conditions, where workers are forced to walk the equivalent of a half-marathon per shift in a sweltering warehouse in which night-time temperatures can reach 32C, have led to workers collapsing in the aisles. An undercover reporter revealed staff complained they are treated as “fodder,” with managers timing their lavatory breaks and no allowances made for injuries they said they had suffered as a result of the manual work. Justin Madders, Labour’s shadow minister for employment rights and protections, said: “These shocking revelations must be a wake-up call for ministers. The government has repeatedly failed to deliver their promised Employment Bill to tackle conditions in warehouses run like Victorian workhouses.” He said there needed to be “urgent guidance for safe indoor working temperatures.”
Matthew Pinto-Chilcott – Owner of Consensus HR comments: “National Living Wage rising to £10.42 in April – When writing this, it is November 2022, but I believe it is best for all businesses to know well in advance what the new National Living Wage (NLW) is going to be in the next financial year, so that they can plan accordingly. Wages / Salaries are one of the highest financial outgoings that companies face on a weekly, monthly and yearly basis and need to be fully considered and part of the plan when planning their Recruitment / Organisational structures. Employees are what helps make a business successful but having the funds available to have them, is key to a successful business and team. Business Owners / Managers have to ensure, as with all areas of HR and business in general that the correct measures are taken when faced with an increase in anticipated costs such as wages to ensure the growth / success of the business and motivation / culture of its team. Failure to plan can result in a demotivated team, poor customer service and sales and believe me, it is not easy as I have found during the past 10 years and the economic difficulties businesses have had to endure.”
The National Living Wage – the legal minimum wage for workers aged 23 or over – will increase from £9.50 to £10.42 an hour in April, a rise of 9.7%. Chancellor Jeremy Hunt has also revealed that the National Minimum Wage for those aged 21-22 will increase from £9.18 to £10.18 in April; the rate for 18 to 20-year-olds climbs from £6.83 to £7.49; those under 18 will see minimum hourly pay increase from £4.81 to £5.28; and the Apprentice rate will be lifted from £4.81 to £5.28.
Matthew Pinto-Chilcott – Owner – Consensus HR comments: “What has age got to do with being able to work if they have the ability to do so? This article in ‘The Times’, at a time when many organisations are experiencing difficult in recruiting suitable members to the team, just shows how many business owners judge a book by its cover. Thankfully peoples Date Of Birth (DOB) is no longer expected to be outlined on a Curriculum Vitae although many people still do. Age is one of the Protected Characteristics under the Equality Act with unlimited awards from day one of employment and should never play a part when recruiting for a new member of the team. Companies need to ensure that their recruitment processes and procedures are legal and to best practice and only take into account what is needed for the role for the success of their business and the member of the team. I remember when I worked in Operations for a well known Hospitality business and the majority of our team were older and this played a key part in the service we were able to offer, especially when new members joined in their development. Age is irrelevant!”
NEWS ARTICLE
Nine in ten economically inactive over-50s are considering returning to work due to the soaring cost of living. Data from online jobs website CV-Library show that 91% of inactive workers in the age bracket are considering re-entering the workforce due to record inflation, pension worries and higher energy bills. The report shows that since the beginning of the pandemic, the number of people aged 50 to 64 classed as economically inactive has risen by 3.6m, or 10%. Lee Biggins, chief executive of CV-Library, said: “With many vacancies still unfilled, it’s great news that a significant number of experienced workers are planning on returning to work.” He added that employing staff aged over 50 would allow companies to “add experience and stability, as well as diversifying the workplace.”
Why should age make a difference to whether people can work and return to business? If you are experiencing recruitment problems and wish to discuss this with us, give us a call or send us an email.
Matthew Pinto-Chilcott – FCIPD, ACEL Owner of Consensus HR comments: “Wow! Another report into discrimination in the workplace, following one of our last blogs on the 8th November 2022 titled ‘One in five Britons faced workplace discrimination’, this recently placed news article in the press shows that many ethnic minority groups are suffering a large pay gap compared to their white colleagues. How can this be the case in 2022 when everybody should be treated equally regardless of any of the protected characteristics under the Equality Act 2010? An employee’s Salary should be for the role and performance of the employee managed accordingly through the use of a consistent user friendly Performance Review process. Companies who are guilty of this should face the consequences of Employment Tribunal claims from day one of employment with uncapped awards. We have always encouraged open transparency of salaries for roles within a company and when advertising for a role, to ensure this is shown both internally and externally with details of salary or salary banding. This is an area in the future which may change drastically when ALL companies are required to publish salaries and ethnicity of employees.”
Most ethnic minority groups in Britain still suffer from a substantial pay gap compared with white employees, according to a study by the Institute for Fiscal Studies (IFS). The study found that while young people from south Asian backgrounds and black African groups were now more likely to attend university than white peers, minorities still trail white people on wages. The IFS report shows that the average weekly earnings of Bangladeshi men were 42% below the white average in 2019. The figure was 22% for Pakistani men and 13% for Caribbean men. However, the average British Indian man earned 13% more than the average white worker. Professor Heidi Safia Mirza, of University College London, said that most minority groups “continue to earn less than their white British counterparts, and all earn less on average than we would expect given their education, background and occupation.” She added: “Evidence of discrimination in the labour market is clear, and wealth inequalities are likely to prove especially hard to shift.”
Human Times – 14th November 2022 – Monday November 14, 2022, 12.01am, The Times –
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If you are concerned about your current pay structure for the team and how to do it correctly and to best practice, contact us now.
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