The HR profession spends its time balancing its concern with fair and lawful people management and the needs of the businesses for which its members work.

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Employment Review - Policy, Practice and Law in the workplace
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  THE EDITOR'S MESSAGE Issue 904  
 NUMBERS MATTER TO HR
NEIL RANKIN

HR has to balance fair and lawful people management with the needs of the business for which it works. Several of our research reports in this issue reflect this tension.

Considerations of morale, recruitment and retention that push for levels of pay that are felt to be fair are coming second place to the economic pressures experienced by employers. Our latest analysis of pay rises finds that many are failing to keep pace with the rising cost of living.

This pattern is reflected at even the highest levels of the public sector, such as judges, military chiefs and NHS trust executives, finds our round-up of pay review body reports. Their recommendations were accepted by the government, which will award increases well below the retail prices index.

Two case studies in this issue shed light on how HR is finding ways of resolving its conflicting priorities. At Co-operative Financial Services, HR is working in close partnership with business managers to produce a series of performance-related metrics, several of which involve key HR measures, such as absence and staff retention. The metrics represent different facets of employee engagement, the health of which underpins organisational effectiveness.

At office furniture manufacturer Orangebox, HR has decided to intervene in what is generally seen as a business-led issue: line managers’ responsibility for absence management. In just seven months, the impact of HR’s involvement has been considerable.

Also in this issue:

XpertHR Neil Rankin,
Section Editor,
Employment Review

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  EMPLOYMENT TRENDS

Case study: Human capital management raises performance at CFS

Co-operative Financial Services provides a striking example of how HR can be integrated into the business. Line managers have ready access to a series of “people dashboards” that use colour and graphics to provide vivid displays of key metrics, such as absence and labour turnover rates and costs. The results inform action plans that lead to improvements in both individual and organisational performance.

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International: Gaz de France signs Europe-wide CSR agreement

French energy multinational Gaz de France has signed a Europe-wide agreement on corporate social responsibility with European and national trade union organisations. It includes commitments in areas such as training, health and safety, skills management, diversity and employment conditions.

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Survey: HR's role in managing organisational change

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  PAY AND BENEFITS

Analysis

Pay awards drop further behind inflation

The median pay award has risen to 3.5% in the three months to the end of July, but the gap between pay settlements and retail prices index inflation has widened to 1.5 percentage points, according to the latest analysis of pay settlements from IRS.

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Public sector pay review bodies (3): senior salaries

We look at: the recommendations of the Review Body on Senior Salaries; parliamentary pay; and the Armed Forces' Pay Review Body supplementary report on the defence medical services.

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News

Survey highlights legal sector pay inequality

The gender pay gap in the legal sector is 32%, according to a report from the Law Society.

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Salaries in electronics industry remain flat

The median basic salary across all ranks of electronics industry employees has barely changed from the median recorded a year ago, according to the latest annual survey from Croner Reward.

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Most EU employers think that pay should reflect ethical behaviour

More than two-thirds of European employers would like to see some of their employees' salary or bonus linked to "ethical behaviour", according to research from international risk management consultancy Integrity Interactive Europe.

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Graduate salaries rise by only 1.8% in 2008

Research from the Association of Graduate Recruiters finds that the median graduate starting salary in the year to June 2008 is just 1.8% higher than the median rate recorded one year previously, representing the lowest rate of growth since the survey began in 2000.

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Poor pensions knowledge abounds

A large proportion of the workforce still does not have a basic knowledge of pensions, according to a survey undertaken on behalf of the National Association of Pension Funds.

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Easing the pressure: non-financial rewards

Pay deals are proving difficult to settle and budgets have been slashed, but there are still ways to reward your staff despite the credit crunch, says Personnel Today.

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Pay reports

Metropolitan Police: 2.5% pay increase

Scottish and Northern Irish plumbing industry: 4.6% rise in minimum hourly rates

Pay review update: 29 August 2008

The latest pay review update table contains pay settlements at the Department for Work and Pensions, Jarvis Rail, npower, the Royal Shakespeare Company, Scope, and many more.

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Statistics and forecasts

The datafile contains the most recent inflation, earnings and labour market statistics, pay settlement data and inflation and earnings forecasts collected by IRS. Our panel of City and academic forecasters expects headline inflation to peak at 4.7% in the third quarter of the year, but fall to 3.4% by the second quarter of 2009. Average earnings growth is expected to remain stable, averaging 4% in 2008 and 3.9% in 2009.

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Pay Intelligence, August 2008

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  ATTENDANCE AND ABSENCE

Case study: Orangebox introduces a dedicated absence phone line

Office furniture manufacturer Orangebox has reduced short-term absences and strengthened its attendance culture by partially centralising absence management, shifting responsibility for absence reporting and recording to its HR staff. Their duties include staffing a new freephone absence reporting line for absent employees.

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France: National agreement reached on work-related stress

France's main trade union confederations and employers' organisations have reached a national cross-industry agreement on preventing work-related stress. The accord implements an EU-level framework agreement on stress, and deals with:

  • the description of stress;
  • the identification of stress-related problems;
  • employers' and workers' responsibilities; and
  • preventing, eliminating or reducing problems.
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Legionnaires' disease: a hazard for business travellers

Of the more than 450 cases of legionnaires' disease recorded in residents of England and Wales last year, one-third were contracted as a result of spells spent in hotels, either in the UK or abroad, notes the guide to this health issue.

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Safety eyecare guide

A guide to the health and safety considerations when buying prescription safety software.

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Notifying, reporting and recording absences from work

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  RECRUITMENT AND RETENTION

Recruiting and retaining volunteers

Volunteering is on the increase, yet many charities and other organisations still struggle to find and keep the unpaid staff they rely on to carry out their valuable work. We look at the ways of recruiting and retaining voluntary workers, and the sources of help and advice on offer.

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Employing volunteers

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  EMPLOYMENT LAW

Guidance note

The abolition of the statutory dispute resolution procedures

This article looks at the practical implications for employers of the repeal of the statutory dispute resolution procedures.

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News

Government consults on flexible working

The government has launched a consultation on ways of helping businesses deal with flexible working requests, following its announcement that the right to request flexible working will be extended to parents of children aged 16 and under.

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Casenotes

Collective redundancies: Haine and another v Day

The Court of Appeal holds that a protective award made after the employer company went into liquidation in respect of its failure to consult before making collective redundancies was a provable, and therefore potentially recoverable, debt.

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Statutory dispute resolution procedures: Selvarajan v Wilmot and others

The Court of Appeal holds that a failure to comply with the general requirements of the statutory dispute resolution procedure cannot be equated with a failure to complete the procedure. Thus, an unreasonable delay between dismissal and an appeal hearing did not render the dismissal automatically unfair, because the statutory dismissal and disciplinary procedure had been completed.

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Statutory dispute resolution procedures: Procek v Oakford Farms Ltd

The EAT holds that a letter stating that a complaint was informal and not intended to invoke the statutory grievance procedure was a valid grievance under step one of the procedure.

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Model policies and documents

Policy on employees breastfeeding/expressing milk

Use this document to communicate the organisation’s policy regarding facilities for employees who are new mothers. [full XpertHR subscription required]

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Letter offering suitable alternative work to a breastfeeding employee

Use this document to offer alternative employment to an employee who, for health and safety reasons, cannot continue to perform her normal job while she is breastfeeding. [full XpertHR subscription required]

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Amended documents on holiday and maternity/adoption leave

XpertHR provides amended model documents on holiday entitlement during maternity and adoption leave. These take account of changes to the law applying to employees with an expected week of childbirth on or after 5 October 2008 and those with a child expected to be placed with them for adoption on or after this date. [full XpertHR subscription required]

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Legal timetable

Forthcoming law

Statutory rates

Quick reference

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 EMPLOYMENT INTELLIGENCE

This week on the XpertHR/IRS blog

The prospects for graduate recruitment during the coming academic year are discussed in several recent postings. Why it doesn’t pay to be a graduate in 2008 highlights research that reveals a growing number of graduates are being recruited to low-level jobs.

Three linked postings pave the way for our survey of graduate recruitment. The first examines the numbers of new graduates since 1994, while the second looks at the most effective candidate-attraction techniques as revealed by recruiters over the past nine years. The third instalment covers graduate starting salaries from 1992 onwards.

The impact of the worsening economic downturn on pay levels continues to attract our attention:

Our law team are keeping up to date, too, with recent posts on:

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 BENCHMARKING WITH IRS SURVEYS

Taking part in our IRS surveys provides a fast, free and easy way to benchmark your HR policies and practices against competitors and other employers. In return, you’ll receive a complimentary copy of the relevant survey’s findings. We are currently researching:

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  MORE FROM IRS...

Today's tip: using the XpertHR quick reference section

Want to check the time limit for responding to a discrimination questionnaire, the qualifying periods for employment rights or the most recent tribunal figures? The XpertHR quick reference section pulls together in one place these and many other key employment law facts.

Print all articles in this newsletter

This newsletter now has a "print all" button. Before pressing it, please be aware that this uses a lot of paper. Recent editions have run to 170 pages, and others may be longer in future. For the sake of the planet and your toner cartridge, consider whether you need to use it. If you press "print all", this will send to your printer all articles linked from the newsletter. It will not print chapters of the employment law reference manual or blog posts. Print all articles.

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