Employment Law 2015; might you be affected?

Employers and employees alike will need to familiarise themselves with the changes which will come into effect in April this year. We have highlighted some of the major changes, so take a look and see what applies to you!

Are you, or are you about to be, a parent?

A lot of laws regarding parental leave are undergoing revision. Statutory pay for maternity, paternity, adoption and shared parental leave will increase to £139.56 per week (from £138.18), and the laws surrounding parental leave are about to become more balanced. 

Beforehand, only mothers could take time off and adopting parents had to nominate one guardian to be the ‘primary adopter’. This ‘primary adopter’ was then entitled to all adoption leave, while the other had none.

As of the 5th April however, both mums and dads will be able to share up to 50 weeks parental leave and pay between them. This is subject to the mother taking off the first two weeks following the birth of a child as compulsory maternity leave. The shared parental leave must be taken within 52 weeks of birth or adoption placement, but the leave can be stopped, started and staggered between the parents in whatever way suits them. The logistics will be complicated for employers, but the vast improvement to work/life balance for the parents in those vital first few months will make a huge difference.

Previously, parents were allowed to take up to 18 weeks unpaid parental leave in order to deal with their childrens’ health and wellbeing on short notice. This only applied up until a child’s 5th birthday, but from 5th April 2015, the right will be extended up to a child’s 18th birthday. However, whilst the timeframe will grow dramatically, the amount of leave will not. It will remain at 18 weeks in total, and will just have to be stretched over the longer period. 

Going on holiday?

The issue of holiday pay has been on the table for a long time, but change may be in the air. Since a number of major cases of holiday pay contention made the headlines, employees have been trying to negotiate the inclusion of their overtime in holiday pay calculations. Employers are meeting them halfway, saying that ‘non-guaranteed overtime’ payments should be included; that is, only the overtime taken as and when necessary, as opposed to any overtime agreed in a contract. The consequences of these decisions for some employers could be huge, and could open the floodgates for backdated claims. We will have to wait until early February for a government decision, which will hopefully clarify things.

Are you on a zero hours contract?

The Labour party announced that it will introduce new laws to protect zero hours workers, should they win the May General Election. Until then the government plans to ban employers from prohibiting their zero hours employees from working for other businesses at the same time. They looked at potential loopholes in the current law in November 2014, and we’re waiting for their response.

And there you have it!

The world of employment law is always shifting and fluctuating. This is only a handful of the changes affecting the workplace, but at least we know where we stand for now. Let’s make the most of it.

- Nick Walrond, Managing Director

Sustainability, flexibility and vigour; the pieces of the productivity puzzle?

Looking back…

2014 was the year of resilient businesses, flexible working and the fall of unemployment. Although 2014 didn’t show the fastest growth since the recession, UK PLC demonstrated the most optimistic hiring in Europe. The CIPD found that each low-skilled vacancy attracted 50 applicants on average and each high-skilled vacancy attracted over 20. More importantly, 40% of these applicants were appropriate for the role; signs of a healthy labour market.

This might have something to do with the shifting attitudes of jobseekers. In 2014, a better work/life balance became a priority, meaning employers had to quickly adapt their overall employment package. The 2014 Deloitte Millennial Survey found additionally that young jobseekers were keen to work for ethical organisations, it concluded that to attract and retain talent, businesses need to show millennials that they are in tune with their worldview.

Looking ahead…

Compared to the growth of employment, productivity has grown very little, and we expect this to be a major topic for 2015. Productivity fell significantly during the recession of course, but we haven’t yet returned to pre-recession levels of output per hour and economists are struggling to understand why. This has coined the top buzzword of 2014; the ‘productivity puzzle’. Fixing this will be up to both employers, who need to be prepared to upskill their workforce if they want to survive the impending skills shortage, and the government; our arduous recovery will be intensified by the uncertainty of the upcoming General Election.

Perhaps the productivity puzzle is partly explained by a change in the UK worker demographic. The deepest recession of the last few years has seen an increase in the much talked of ‘zero hours’ contract approach, in both limited hours and non-permanent working arrangements. With UK PLC looking to secure stronger productivity in what will remain a challenging economic environment, RSG’s Managing Director Nick Walrond predicts further growth of specialised freelance resource; ‘we expect to see more vigorous hiring processes, but also greater flexibility regarding how and where people work’, such as working from home, job shares and Bring Your Own Device (BYOD).

Another prediction for the coming months is lower inflation, relating predominantly to the falling price of oil. Cheaper energy will boost the spending power of both people and businesses, and it is even possible that inflation could turn negative over the next few months. While no one is expecting prices to fall for any prolonged period of time, this could mean a widening gap between earnings and prices for a little while. It seems that 2015 will be the year of ‘hanging in there’ as we trudge towards better productivity and higher salaries; it won’t be until next year at least before we start feeling the effects of an improving labour market, but hopefully, it’ll be nice when we get there.

New Year’s evolution: how to better yourself in 2015

The holidays have passed and we have reached that time of year when everybody discusses their New Year’s resolutions. Whilst goals such as quitting smoking or ‘getting fit’ are positive ideals, the majority fall short. This year, why not also pursue an endeavour focused around your work? Below are four things to consider for 2015…

1.    ‘Rev up your résumé’ - Amy Levin-Epstein (CBS Moneywatch)

Whilst you might not be actively seeking new employment, effort should be made to regularly update your CV. When you’re comfortable in a job this might seem inconvenient, but in the current business environment the employer often comes to you. This is especially true for highly skilled individuals, who may be approached by head-hunters with time-sensitive offers. Presented with a lucrative offer, would you really want to be rushing to update your CV? 

Another benefit is that you automatically review your progress and establish ‘where you’re at’ in your current role and career. Considering most employment involves reviews and appraisals with management, this can help you provide a comprehensive justification of your contributions and achievements to date. If you are not satisfied with the outcome, then consider steps you could take and ways you could ‘upskill’ yourself to improve your CV.

Read more about ‘upskilling’ yourself in our recent blog: ‘New Year’s Resolution; three easy ways to upskill yourself outside of work’.

2.    ‘A healthy work-life balance’ - Mike Harden (CEO, Clarity Group)

Another great New Years resolution is to ensure you are content with your work-life balance; you should be working to live, not living to work. As remote working becomes more common and the traditional working day becomes less common, it is increasingly difficult to establish when work finishes. As a result an ‘always on’ culture has materialised, so to counter this it’s vital that you establish your own boundaries and fill your time away from work with activities you enjoy.

30% of UK employees experience a mental health problem annually due to long hours and thinking about work away from the office, so the issue clearly needs to be addressed. Pursue hobbies, socialise, do things that relax you and to the best of your ability, leave work at work. Consider your out-of-office/annual leave approach: some people prefer to check emails once daily, some wish to remain contactable only by phone/text and others don’t want to be disturbed at all. Those with limited annual leave should try to stagger it across the year and whilst at work, take regular breaks whilst eating and drinking sufficiently.

Read more about work-life balance in our recent blog: ‘Life-Work balance; employers and employees need to get their priorities straight’.

3.    ‘Put another oar in the water’ - Liz Ryan (CEO & Founder, Human Workplace)

Alternatively, if you find your self with an abundance of time available and an ambition to increase your earning potential, why not generate a new revenue stream? Most of us have marketable skills and many individuals have side-businesses consulting, bookkeeping, designing websites and providing administrative support. Liz Ryan states that “everybody has marketable skills and everybody can grow entrepreneurial muscles by selling their expertise”. Whilst acknowledging your extra earning potential, a healthy work-life balance should still remain your priority.

4.    ‘New year, new career?’ - Rachel Emma-Silverman (Wall Street Journal)

Finally, serious consideration should be given to your current position in the work place. Do you feel happy, valued, adequately rewarded and motivated? Or do you frequently regret the one (job) that got away? The most difficult step towards evolution in 2015 could be to change jobs or even career. Consider your career so far and whether your vocational goals can be achieved with your current employer.

Whichever goals you decide to pursue in 2015 we wish you the best of luck!

8 Hints & Tips for the Jobseeker of 2015

How do you make sure 2015 is your best year yet? When you make your New Year’s Resolutions, think about these simple tips to give yourself the best chance possible, whatever stage of the recruitment process you are at.

Stay positive - Job Searching

1. If grammar and formatting aren’t your strong suit, get a few friends to help you with your CV. 65% of employers said that poor spelling and grammar is the most likely reason for them to bin a CV. You can’t fall at the first hurdle; it’s too small!

2. Updating your skills is a great way to make yourself more valuable on the job market. There are many free and online courses you can take, where you can practice your professional skills in a safe place. This extra training will help convince a potential employer that you are driven and committed, as well as having tangible, relevant skills. Here are some easy ways to upskill in your spare time.

3.  If you have a good relationship with a previous employer, arrange to meet up for a chat about your options. If they don’t know of a vacancy that suits you, they can surely put you in touch with valuable people in the industry.

Stay cool – The Interview

4. The signals your body language displays leave an impression of your personality in the interviewer’s mind, and this impression will inevitably affect their decision. Make sure your body issaying the right thing by using this guide, which will show you some handy tricks to help you exude interview confidence.

5. Nobody’s perfect, and giving nothing but a glowing account of yourself may come across as false. Without selling yourself short, be willing to talk about your weaknesses. Show them that you are shrewd enough to identify and accept them, and then that you have the drive to improve them.

6. It’s not enough to glance over a company’s website, so do your research. Find out about their achievements in the last year, their work ethic, their history and their vision for the future. How can you be a part of their growth?

Stay humble – Responding to an offer

7. Once you have accepted an offer, send a formal letter of acceptance. You will find plenty of templates online to help you with this. Taking the time to do this will show your new company how grateful you are, and how seriously you will take your new position.

8. If you’re going to decline, do so gracefully. You never know, you might reapply! You may need their help in the future, so maintain the relationship and take the opportunity to learn from the interview experience. You want their memory of you to be a good one.

New Year’s Resolution; three easy ways to upskill yourself outside of work

A skills gap is set to rear its ugly head next year, but some employers are still reluctant to train their staff. This may be because they are afraid that employees will move on and take their skills to another employer (or worse a competitor), but according to research, they shouldn’t be so worried. 57% of ‘upskillers’ develop themselves in the hope that they may get promoted with their current employer. As we approach 2015, we’ve decided to put together a few ideas for how you can develop your own career and skillset to make yourself especially valuable in the New Year.

Here’s how to make sure you are part of the 66% of UK employees who are seeking additional education or training outside the workplace. Below are three of the top skills globally recognised as needing development in the workplace, and ways in which you can easily improve them without significantly eating into your spare time:

1. Learn to lead

According to KGWI 41% of workers want to improve their leadership skills, and one of the best ways to do this is to become a school governor. You don’t have to be a parent, just passionate about education in your area. Not only will it develop your skills in analysing data, dealing with budgets, performance management and employment issues, but it will also give you the chance to make a difference in your community.

Developing your boardroom skills as a school governor is a great opportunity to focus on the strategic, innovative aspects of leadership, without having to worry about administrative tasks. Even better, this won’t take up all your time; not only do most school’s governing bodies meet just twice a term but, under employment law, employers may give employees who are school governors reasonable time off to carry out their duties.

2. Learn a language

As more and more organisations branch out globally, KGWI found that 64% of workers want to add value to their skillset by becoming bilingual. There are many ways you can do this. One of the most popular (and free!) is an app called Duolingo; it teaches you in a similar way to how you learn to speak as a child, making it very logical and easy to learn quickly.

If your organisation is international, show your commitment and keenness to improve by asking to spend some time in another country. This is by far the best way to learn; most people can become fluent in a language in just three months if they throw themselves in at the deep end! But there are some more passive learning techniques for you if you’re a busy bee, including watching films, listening to audiobooks and reading children’s books in your chosen language. You will be surprised how quickly and subconsciously you can pick it up once you begin surrounding yourself with it.

3. Read more

All jobs require some form of written communication. Luckily, improving your written communication skills can be effortless; just read! Find just half an hour before bed each night, on your commute or in a coffee shop to read a book. Your literacy will grow without you noticing it, and this will automatically improve your own writing skills.

These are the types of skills which will set you apart from other jobseekers. Demonstrate your initiative and thirst for knowledge, and show the employers of 2015 that you are exactly what they are looking for!

Life-Work balance; employers and employees need to get their priorities straight

“Once upon a time, work took place outside of the home during designated hours. Today, that world is a fairy tale” – Ron Friedman, CNN

Work-life balance is a topic consistently dividing opinions. With developments such as UK flexible working laws, Germany’s proposed anti-stress legislation and findings regarding work related mental health issues, it has never been more important. 39% of 2013-14 work related illnesses were caused by work stress, depression or anxiety and over 40% of employees neglected other aspects of their life. Whilst an employee issue, employers need to increase their understanding and realise that an effective leadership response could be hugely beneficial. 

A number of factors have contributed to the issue’s prominence, perhaps most critically: the increasingly global business environment (time zone disparity), flexible working and the consistently accelerating integration of technology into the workplace. As a result the ‘9-5 working day’ is growing outdated, whilst the line between work and home life is becoming increasingly blurred; thus giving birth to the ‘always on’ culture that plagues many employees. Both employees and employers are culpable, and whilst neither can have total control of the relationship, improvements can be made.

What can employees do?

With 30% of UK employees experiencing a mental health problem each year, action is clearly required. Long hours are stressful enough, but those continuously planning and thinking about work when they get home, never truly leave the office. Therefore, it is important to have hobbies, interests and activities that they can escape to in their free time. In addition, employees should take regular breaks at work and time away to re-energise; if they have set limited annual leave, they should try to stagger it across the year. One idea championed by many is to only respond to texts and phone calls when out of office, ignoring emails. This way, people only contact you if issues can’t be sorted out independently or if they’re desperate. Helen Taylor (Head of HR, The Instant Group) advised: “when you do take time out, leave work at work, you won’t deliver anything meaningful and reading emails endlessly will prevent you from having a good break”.

When working, time management can be a crucial tool and Helen Taylor suggests that “...we often get caught up completing ‘easy’ tasks; using our best hours for the most important tasks is key”. By working smarter, they may be able to avoid working longer. If employees feel taken advantage of with unreasonable workloads/deadlines, they need to communicate this with management. 

What can employers do?

Only 13% of employees worldwide are engaged in their work, with twice as many disengaged/hostile. Richard Straub (ex-IBM Executive) writes: “Instead of liberating the creative and innovative energy of employees, blind processes and rigid hierarchies hold them down”. Businesses need to embrace flexible working and trust employees, therefore empowering them to work how and when they are most effective. This gives employees the freedom to handle distracting personal tasks as and when required, enabling a sharper focus on work. 

The required transformation is to measure overall output, not input. People work best in different ways; if an employee is exceeding their targets, does it matter if they visit the supermarket at 3pm on a Wednesday? Outdoor clothing company Patagonia enabled staff to set their own hours, use on-site day-care and take regular breaks for exercise; their profits tripled in the last 5 years. Friedman concludes that: “Instead of ‘work-life balance’, organisations are better off empowering employees to integrate work and life in ways that position them to succeed at both”.

Market confidence for 2015 as apprenticeships grow

Since the release of the Chancellor’s Autumn Statement, UK PLC has breathed easy with the prospect that the British economy is set to grow by 3% in 2015, much higher than previously predicted (+2.4%). As we continue to climb out of recession we have come to expect impressive growth in the UK economy, but not quite on this scale! In October, unemployment fell below the two million mark for the first time since the financial crisis, with a record 30.8 million people in work.

Despite this growth, there has been a sudden loss of momentum for contract roles. According to APSCo, the temporary jobs market had slowed recently, although permanent jobs are still strong (driven mostly by growth in Engineering and IT). This growth in the IT sector has been profound, and probably largely due to the ‘app economy’; developers and programmers in particular are in high demand. Another major factor pushing this growth is the threat of cyber-attacks on businesses and their data, which, though awful, does offer the IT industry a silver lining; a huge number of jobs have been created to combat hacking.

Looking to the future however, APSCo’s Chief Executive Ann Swain notes ‘as we approach the end of what has been an incredibly buoyant year… it seems clear to me that there is just one real challenge ahead’. The dark cloud over 2015 she refers to is the impending talent shortages…

The demand for professional talent has reportedly risen by almost a third, and can only be resolved by reassessing talent attraction strategies. Encouragingly, however, this is beginning to emerge. The CIPD reported that two million apprenticeships have been created in the last four years and, steadily, the outdated attitude that somehow apprenticeships are less valuable than a university degree is dissolving. More and more young people are questioning the automatic university route, hoping to earn while they learn and set themselves apart from the millions of Bachelor degree holders. But more can be done; Katerina Rudiger, Head of Skills and Policy Campaigns for the CIPD, spoke of a “need to incentivise schools to promote apprenticeships more strongly as a pathway into work, and more generally, to improve links between business, schools and colleges to help prepare young people for work”. Along with the announcement that post-graduate students are now able to obtain government-backed student loans of up to £10,000, the hope is for a boost in. Minister of State for the Department for Business, Innovation and Skills Nick Boles commented that “apprenticeships have a vital role to play in supporting the long term economic plan… ‘[they] are a solid route into some of the country’s most prestigious professions.”

Though not expected for some time, all this may well result in higher average earnings growth in the future. As salary growth remains markedly below 2014’s employment growth, it is unlikely that we will feel the effects of a healing economy just yet. The CIPD predict that, as there is a strong supply of labour at current salary levels, it will take a while before employers are compelled to raise salaries, but as the year closes, we feel there is much to look forward to.