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Employment Review - Policy, Practice and Law in the workplace
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  THE EDITOR'S MESSAGE Issue 883  
 2008 PAY ROUND TO START ON A HIGH
Mark Crail, Editor

Pay settlements look set to be 3.5% or even higher in 2008, the latest annual IRS pay prospects survey suggests.

Now in its 19th year, the survey’s forecasts have always proved to be a remarkably accurate guide to future pay setting. This year, the 350 employers taking part believe that the headline rate of settlements established in 2007 will be sustained into the new year.

One respondent in three believes that their 2008 pay award may even be higher than their 2007 award, and a remarkable one in eight says they may settle at 5% or more.

However, salaries for new graduates appear to be falling behind, with starting rates rising less rapidly than wages as a whole. This and other important data for recruiters can be found in our annual graduate recruitment survey.

We also report on a significant EAT decision on indirect discrimination in GMB v Allen. Although the ruling offers unions some protection from members angry at their failure to win equal pay, there are concerns at the EAT’s narrow interpretation of the law.

Other articles of interest include:

Finally, visit the Employment Intelligence blog for everything you need to know about the Pre-Budget Report and the Comprehensive Spending Review.

XpertHR Mark Crail,
Managing Editor,
Employment Review

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  EMPLOYMENT TRENDS

Review: CIPD’s Competencies Toolkit

An expert in job evaluation and competency frameworks, Martin Simon, assesses the Chartered Institute of Personnel and Development’s Competencies Toolkit and how it can help HR practitioners in their work.

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Workplace biometrics cause controversy

Concern over the use of workplace biometric systems is growing in Ireland, where the Data Protection Commissioner has voiced fears about the use of fingerprints and other sensitive data in timekeeping and attendance records.

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Survey request: HR roles and responsibilities 2008

How many people are there in your HR department, and what is the ratio of HR practitioners to all employees in the organisation? What roles and responsibilities does HR fulfil? Are budgets becoming tighter? Our anonymous survey seeks to set HR benchmarks for 2008.

RELATED ARTICLES ON XPERTHR

The IRS guide to competency frameworks

IRS surveys now in progress

Latest European employment intelligence

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  PAY AND BENEFITS

Pay prospects 2008: Key findings and forecasts

Discover the main points of the 19th annual IRS pay prospects survey at a glance. Or go direct to the detailed findings by following the links below.

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Forecast: Employers predict higher pay awards running into 2008

Pay awards look set to cluster around 3.5% during the next pay round, this year’s IRS pay prospects survey reveals. The survey is based on responses from 350 employers in the private sector and covers 559 pay groups and more than 1 million employees. Key findings show that:

  • one employer in three expects to settle at 4% or higher in 2008;
  • one employer in three expects to settle at a higher rate in 2008 than in 2007; and
  • pay levels in the same industry are a bigger influence over settlements than local or job-specific going rates.
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Review of 2007: Merit budgets rise to 3.5% in 2006/07 pay round

One in four of the 1,302 pay awards monitored by IRS this year was based entirely on merit. Our analysis reveals that the headline rate for merit-based payments was 3.5% – up from 3% a year earlier – and that median maximum payments also increased.

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Review of 2007: Inflation boost keeps deals high

Looking back over the past two years, our pay researchers analyse how a surge in inflation broke pay-setters’ love affair with a 3% going rate for pay settlements that had barely been abandoned in eight years.

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Review of 2007: Summer takes heat out of the economy

There were floods in the UK this summer, and the US mortgage industry was engulfed in controversy. This sent ripples across the Atlantic that sank Northern Rock. We look at the state of the economy in 2007 and prospects for 2008.

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Briefing: The pay bargaining calendar in focus

Our experts explain the shape of the pay year, indicating when most settlements are due and the variations by economic sector.

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IRS pay databank: 19 October 2007

The full findings of the IRS pay databank, providing analysis of basic pay settlements across the economy by sector. The pay databank analysis is based on information from around 1,000 pay settlements collected by IRS pay researchers every year.

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The IRS pay databank: FAQs

We answer some frequently asked questions about the IRS pay databank.

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Pay prospects 2008: Index of articles

Bookmark this page for an easy reference guide to all articles in the IRS pay prospects 2008 series.

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RELATED ARTICLES ON XPERTHR

Pay prospects 2008: Index of articles

Pay prospects 2007

IRS Pay and Benefits Bulletin newsletter

IRS Pay Intelligence: September 2007

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  ATTENDANCE AND ABSENCE

Case study: Tackling absence at Wisdom Toothbrushes

Absence rates halved when line managers at Wisdom Toothbrushes were equipped with the skills and knowledge needed to tackle the problem. In this case study, we look at the company’s new policy and at the training and coaching programme used to make sure that it worked.

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RELATED ARTICLES ON XPERTHR

Line manager briefing on short-term sickness absence

Line manager briefing on long-term sickness absence

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  RECRUITMENT AND RETENTION

Recruiting graduates – the 2007 IRS survey

Starting salaries for new graduates are falling behind earnings increases as a whole, the 18th annual IRS graduate recruitment survey shows. The study, based on responses from 105 graduate recruiters with more than 1.5 million employees between them, shows that while employers are recruiting more graduates, universities are keeping pace with demand.

Findings from the survey include:

  • the impact of age discrimination legislation;
  • starting salaries by vacancy type, economic sector and organisation size;
  • the most effective ways of overcoming recruitment problems; and
  • plans for change in graduate recruitment practices.
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RELATED ARTICLES ON XPERTHR

Assessment centres: the IRS report

Graduate recruitment at Centrica

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  EMPLOYMENT LAW

Perspective: Allen – the correct test of justification for indirect discrimination?

The EAT decision in GMB v Allen, in which it allowed the union’s appeal against the tribunal’s finding that it had indirectly discriminated against female members, must have come as a relief to the GMB and other unions. However, employment law consultant editor Darren Newman questions the EAT’s narrow reading of the test of justification for indirect discrimination.

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Casenotes

Indirect sex discrimination: GMB v Allen

Where, on the facts, the EAT was satisfied that the means used to attain a legitimate objective were, in effect, determined by the nature of that objective, it could not be said that the means were disproportionate.

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Constructive dismissal: GAB Robins (UK) Ltd v Triggs

An employer’s mishandling of its grievance procedure is not subject to a “range of reasonable responses” test where it is relied on only as the “last straw” in a constructive dismissal case. Where illness caused by breach of mutual trust and confidence culminating in constructive dismissal arises prior to the date of dismissal, post-dismissal loss of earnings owing to continuing incapacity are recoverable in an unfair dismissal action.

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Equal pay: South Tyneside Metropolitan Borough Council v Anderson and others

Employees and their comparators who worked at different establishments, but whose contractual terms and conditions were derived from the same collective agreement, were in the same employment within the meaning of s.1(6) of the Equal Pay Act 1970.

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Case digest

Disability discrimination

Tina McKevitt, solicitor and lecturer in law, rounds up recent disability discrimination cases.

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Model policies and documents

Voluntary redundancy policy

Use this document to provide a non-contractual framework for managing voluntary redundancies where there is a genuine need to implement redundancies.

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Letter regarding deadline for voluntary redundancy applications

Use this letter to inform employees that the deadline for applying for voluntary redundancy has passed and no further applications can be accepted, or to extend the deadline.

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Letter informing of outcome of a voluntary redundancy application

Use this letter to inform an applicant for voluntary redundancy whether or not the application has been accepted.

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Invitation to a meeting to discuss employee’s voluntary redundancy

Use this document to invite an employee who has been accepted for voluntary redundancy to a meeting to discuss the termination terms.

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Agreement setting out terms for voluntary redundancy

Use this document to set out the terms applicable to the termination of an individual’s employment following acceptance of his or her application for voluntary redundancy.

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RELATED ARTICLES ON XPERTHR

Legal timetable

Forthcoming law

Statutory rates

Quick reference

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  EMPLOYMENT INTELLIGENCE

This week on the XpertHR/IRS blog

Alistair Darling launched his first Pre-Budget Report and Labour’s second Comprehensive Spending Review in the wake of an agenda-setting Conservative party conference.

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  MORE FROM IRS...

Today's tip: try the new user guide

XpertHR is designed to be as user-friendly as possible. But with more than 24,000 articles, model policies, line manager briefings, a comprehensive legal reference manual, plus a legal advice line, and sophisticated tools to manage information, you might occasionally need some help. Try the XpertHR user guide, now rewritten to take account of the site's new look.

Best of the web

News highlights updated daily by the editor. Bookmark this page or add it as an RSS feed.

IRS conference: Performance Management

This one-day conference, to be held on 7 November 2007 in London, will provide best practice in aligning performance with strategic goals and how to make performance management work for your organisation. It will feature case studies from West Bromwich Building Society and the London Borough of Sutton. Find out more...

Missed something?

You can also see earlier editions of this e-journal and others published by IRS. More...

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