Project Management – How do you fare?

“A good project manager needs to be an inspirational leader, a diplomat, a good organiser, a good communicator, a mediator and a motivator, thick-skinned, focused and goal-oriented.”  Whilst this description of project management may seem like a tall order, it is undeniably a multitalented and demanding role as those in the role itself or looking to progress to management are well aware. 

Finding out how you fare against industry averages is naturally a burning question for any current or aspiring project manager – so what do other project managers look like and what sort of profile do they fit?

The Association for Project Management (APM) have produced a market trends survey of their membership which gives a well-rounded profile of project managers in 2015.

Their report shows that their average member earns a day rate of between £300 - £500 for contract workers. For those working permanently you can expect to earn “between £40,000 - £49,000, with the average salary of a project professional being £44,167 across all industries and locations” having had around 15 years of project management experience. 

Of course variations between both industry and geography play a part in creating this average with a majority of those surveyed coming from an aerospace or consultancy background and living in Greater London or the South-East. Those based in Greater London and Ireland were (unsurprisingly) the largest share of high end earners (£100k+) compared to the North East and South West. 

What is also clear is that a large proportion of high earning project managers held some form of professional qualification as well as a degree and membership of a body related to their career. APM noted that “as respondents move up the pay chart full-time membership of a professional body such as APM becomes the main differentiator.”

Out of the APM members surveyed, most were male and pay scales between genders changed dramatically towards the higher end of the salary scale “6% of males earned £100,000 compared to only 1% of females.” This gender ratio was reflected in the profile of the average project manager member of APM which was male and between 35 to 44 years of age and most likely working in an organisation with over 250 employees. 

APMs survey and market trends for 2015 reveals interesting data about its members, whether this reflects upon the wider market of those who work under the umbrella of project management remains to be seen. Looking further afield, it lists the comparative success of other managerial roles including change and programme managers who earn considerably more than the average project manager. 

Look out for the next blog in our project management series where we give you some top tips to get ahead in your career and progress to the next step…

To download the APM market and trends survey from their website, you can visit the page here.

HR...Be Proud

“HR add no value, HR are not commercial, HR create initiatives that make no difference, and I am disappointed in HR; why do we need them”….

I am positive that as HR professionals we have all heard or been on the receiving end of these types of comments from the business; all of which I am sure we listen to and reflect on. What I didn’t expect was to hear these types of comments coming from my fellow HR professionals and contributing to the growing layers of the ‘criticism cake’. This was really hard for me, to hear that our own profession is becoming as cynical about the business of the value of HR.

I am disappointed that businesses haven’t evolved enough to realise the value of people. I am also disappointed in us, as HR professionals and our apparent willingness to accept an outdated view of HR; allow me to explain.

As a HR professional I have spent my career equipping managers to manage effectively, how to get people to deliver high performance/manage poor performance, how to recruit and retain the right people when the business need them and how to grow the business through people; the list goes on. Managers and leaders continue to distrust our recommendations, create complexities where there are none, use politics to support personal agendas which results in HR not being able to do what is best for the business, our people. 

Businesses still don’t get that what it takes to operate a business is human intellect; a person. For without people there would be no business, no economy. Furthermore, when HR suggest ideas for ways to develop better relationships, capture engagement and discretionary effort, managers fail to see the benefits; seeing only disruption to making money. The consequence is managers and leaders have failed to accept responsibility for developing authentic adult relationships; choosing rather to criticise HR for not doing a good enough job because its “HR jobs to manage people”….WRONG.

It’s a manager’s jobs to manage people, leader’s jobs to inspire people and HR’s job to equip both with the tools to have authentic adult relationships with their people, which capture their discretionary effort for both individual and business benefit. 

What we do in HR is incredibly invaluable in ensuring the business can operate from product/service to customer to shareholder. As Wikipedia defines it: 'HR is a function in organizations designed to maximize employee performance of an employer's strategic objectives'. We have been around since the beginning of time, from the Ford motor car to now the leading global companies of the world, and very few organisations are able to operate without a strong HR Team made up of enablers, trainers, experts, coaches, facilitators, negotiators, influencers, organisers, great listeners, specialists, managers, leaders and many more roles. We operate in a space very few others do, holding the Company/Leader/Employee confidences and data that remains hidden from view. And finally we ensure the business is able to recruit the right people to do the right role at the right time with the potential to support individual and company growth....how many other roles can say they do so very much.

So as I sign off, I make a final plea to you if you are a business manager or HR person reading this; - we should be proud and if not then we need to ask the business what we need to do to add value to the business. For me, I believe in us, trust us to get on with what we are good at and our ability to continue to grow to support economic and business challenges for the future. And if you have people in your business that are not good at it, talk to your HR Director. For us as HR professionals; I implore you to be proud and to do what you do best every day…give businesses the chance to give and get the best from people every day.

We look and can see great examples of where they do get it including: Menlo run by Richard Sheridan articulated in his book ‘Joy Inc.’ where he and his team have worked hard by recognising people are central to success. This clearly shows it is possible for us to grow, to trust, and to deliver results collectively; surely that’s what we all want?

Strong people who have the ability and potential to perform and grow to deliver future individual and company performance....

Thanks for listening...

Rachel Humpherson is the Founder and MD of SkyeLark HR Consulting, and with nearly 2 decades of experience in people, Rachel is passionate about helping HR to be the best value add team to help organisations create engaged and high performing people, teams and organisations. Rachel has a very diverse background and recently set up SkyeLark HR Consulting Ltd to work with organisations and teams, including HR; in a state of change to help them tap into their potential to create positive high performing individuals and businesses. Rachel is a proud Fellow of the CIPD, holds an MBA in Entrepreneurial Business and is highly qualified in many areas including coaching and mentoring, always seeking opportunities to grow. In her spare time she has a love of being healthy, photography perfectly complimented by her desire for travelling at every opportunity. You can find Rachel @ https://uk.linkedin.com/in/rachelhumpherson.

Legal Update: Will Section 54 affect your business?

Have you considered or are aware of the Modern Slavery Act 2015, and are you ready for Section 54? 

This Act received Royal Assent on 26 March 2015.  Its principal purpose is to consolidate existing legislation containing criminal offences relating to slavery (including human trafficking, forced labour and other forms of exploitation) into a single statue designed to provide law enforcement agencies with stronger tools to tackle modern slavery.  Whilst most readers may now be thinking ‘how and why may this apply to me’, there may be obligations that apply to your organisation. 

Section 54 (transparency in supply chains) is expected to be brought into force in October 2015; Commercial organisations over a certain size will be required to publish a slavery and human trafficking statement each year on their website, setting out the steps that they have taken to ensure that there is no slavery and human trafficking in any part of their own business or their supply chains (Section 54).  Those who supply goods or services and have a minimum total turnover of an anticipated £36 million* will be expected to publicly state each year the action they have taken to ensure their supply chains are slavery free.  *The £36 million threshold corresponds with the Companies Act threshold for determining the size of a large company. 

Companies that qualify as small or medium under the Companies Act will not have to prepare a statement; early signs indicate however, that ‘commercial organisation’ includes all subsidiaries. 

Who does the Act apply to?

A business will need to publish a slavery and human trafficking statement if it:

•    Is a company (not just a listed company) or partnership over a certain size.
•    Supplies goods or services.
•    Carries on a business or part of a business in the UK.

What will the statement need to contain?

Section 54 does not mandate what a statement must contain but there are 6 areas of information a business may include in its slavery and human trafficking statement:

•    The organisation’s structure, its business and its supply chains;
•    Its policies in relation to slavery and human trafficking;
•    Its due diligence processes in relation to slavery and human trafficking in its business and supply chains;
•    The parts of its business and supply chains where there is a risk of slavery and human trafficking taking place, and the steps it has taken to assess and manage that risk;
•    Its effectiveness in ensuring that slavery and human trafficking is not taking place in its business or supply chains, measured against such key performance indicators as it considers appropriate;
•    The training about slavery and human trafficking that is available to its staff.

The use of the word ‘may’ is key; although no business will be obliged to report on these factors, the list is designed to encourage businesses to adopt a more uniform approach.

Further Guidance

The Secretary of State has the power to issue guidance about the duties imposed by Section 54 (54(9); this guidance may include further provision about the kind of information that organisations may include in a statement.

One area where further guidance may be helpful is the issue of what falls within businesses’ supply chains.  Section 54 refers to any of a business’ supply chains, and so it has to be assumed the drafters of this Act intended to cover both direct and indirect supply chains.

The ‘invisible’ volunteering skills employers are failing to notice.

With more people choosing to go to university now than in previous years, it’s becoming increasingly evident that a degree on its own is no longer enough to ensure a job. It would seem pretty fair to assume that a graduate degree will, somewhere down the line, lead to a graduate level job, but for many recent graduates their graduation gown seems a far cry from the dressing gown they now find themselves sat in mid-week.

Most Universities and employers alike want to see evidence of extra-curricular activities and willingness to learn skills outside of what is taught on the course. To them, it implies the individual is going to be well-rounded, proactive and enthusiastic; all qualities that employers want in their company. But with part-time jobs sometimes just as difficult to find as graduate jobs, could the solution to this ‘up-skilling’ be in the form of voluntary work?

There is a widely accepted view amongst voluntary organisations, policy makers, the general public and often the jobless themselves that volunteering can have a positive impact in the search for employment. The most obvious reason being that employers will look for experience on a CV; a lone 2:1 on an A4 piece of paper will soon get lost in the pile of other applications.

   

The experience of working for a voluntary organisation will teach you valuable lessons that are transferrable to the world of paid work; time-keeping, reliability and balancing different tasks are all crucial skills both in the voluntary and non-voluntary sectors.

But even more important is the personal gains one can get through voluntary work. 88% of volunteers said that doing it gives them a sense of ‘personal achievement’; the fact you feel you are able to contribute effectively will increase your self -confidence and help you come across better to employers, thus increasing your chances of being hired.

However, whilst on paper it may seem that voluntary work is the answer to our employment woes, it’s possible we’ve got our rose-tinted glasses on…

A study found that, while 88% of those looking for work believed volunteering would help them to secure paid work, only 41% who did find a job said volunteering helped them get it. So why the big difference? If volunteering provides us with such invaluable employability skills then surely there shouldn’t be this disparity?

Perhaps the answer lies within a new report from the CIPD, which found that only 16% of employers invite applicants to talk about volunteering in their application process, while only 31% ask them about it in a face-to-face interview. Suggesting that a lot of the time, employers may be focussing solely on previous work experience and failing to recognise the voluntary work that can produce the same valuable skills that paid work does. Peter Cheese, CIPD Chief Executive, urged more employers to ask about the experience candidates might have in this area and, in doing so, they may realise that the exact skills they’re looking for are the ones the candidate has developed through voluntary work.

The UK’s recovery is dipping; how do we combat the skills shortage?

It’s the first time that employment has fallen since 2013. In March – May 2015 there were 30.98 million people in work; 67,000 fewer than in the period December 2014 to February 2015. This leaves 1.85 million unemployed people across the UK. This doesn’t necessarily mean that the upward trend in employment we have come to expect is on its way out, but it seems it can no longer be taken for granted.

However, as 74% of UK employers plan to recruit more permanent staff over the next three months, hopefully this dip in the economy in the last two months is a temporary glitch. In fact, Markit’s recent research shows that ‘new product developments, investments in additional capacity and expansion into new markets’ will boost growing support for businesses over the next year. In the private sector at least, employment is expected to grow as more people are hired to tackle rising workloads.

Amidst growing concerns over the UK’s EU referendum and government spending cuts, there is one particular obstacle to employment growth which is proving to be a persistent thorn in our sides. The skills shortage is one of the most urgent problems in the labour market today, yet is perhaps the least ‘quick-fixable’, preventing any significant hiring until training and development catches up. At the moment, a great many businesses are operating at a very high volume, yet 96% have declared that they have ‘no’ or only ‘a little’ surplus capacity to manage any further increase in demand. For the REC’s Chief Executive, Kevin Green, “it’s concerning that instead of meeting this challenge the government is making it harder for employers to bring in the people they need from overseas with the proposed changes to Tier 2 visas”.

But beyond recruiting more, there needs to be a focus on developing staff internally. Three-quarters of employers, according to Personnel Today, worry that there is a skills gap between their current employees’ competencies and what is needed for them to succeed in the future. Not only does L&D raise and adapt an employee’s skills, but it also acts as a strong retainer. It encourages employee loyalty because it shows an employee that they are care about their learning and shows they want to upskill them to take on more responsibility and broaden their scope and capabilities. We must remember that the multitude of ‘underskilled’ workers are, most likely, more than happy to learn and to become more valuable to their organisation. We all want a more stable labour market with minimal unemployment, and if we don’t have the skills to make it happen yet, we certainly have the ability to grow those skills from our current capabilities.

Applying for a job? We've got you covered.

With competition for job roles fiercer than ever, it’s no longer enough to just have a slick CV; they lack personality and fail to mention why you should be hired. This is what a cover letter is for!

Cover letters create a great first impression, are well constructed, grammatically flawless and support your CV. It’s your opportunity to display your most relevant skills and demonstrate your motivation and enthusiasm for the job and employer.

Your cover letter should be short and to the point. A maximum of five short paragraphs on a page should be enough to get your message across. It’s always tempting to write pages and pages but employers are more likely to be put off than impressed, they want a snapshot of who you are.

Before you put pen to paper, do your research. While it may be tempting to create a template cover letter for all applications, don’t; employers can spot a generic cover letter a country mile off - it’s essential that you tailor each one to the role. Find out what the company does, what work they’ve done, who their customers are; then convey what you know in your cover letter.

Beginning

Include the company’s address at the top of your cover letter, just as you would if you were sending a formal letter. Try and find the name and title of the person responsible for the role, this will make the letter far more personal and demonstrates your initiative.

Middle

The first paragraph or two should be about you. Tell the employer why you are well suited to the role, referring directly to the job description and concentrating on how you have the skills and abilities to excel. Mix evidence of relevant skills and knowledge with work experience examples and personal skills.

The next paragraph should explain why you are interested in the job and the company. What is it about the employer and job role that made you apply? This is your opportunity to target your cover letter so that the employer knows you are interested in their job and you’re not mass emailing ready-made CVs and cover letters to everyone under the sun.

End

The closing paragraph should be strong and clear. Reaffirm your suitability for the role and your enthusiasm about working for the company. State that you look forward to hearing from them and are happy to provide any further information.

Before you send anything, it’s a good idea to ask someone to read it over; it’s always useful getting a second opinion as they may think of good points that slipped your mind.

Finally, the last piece of advice is this….Don’t give up! Employers are often inundated with applications so don’t be disheartened if they don’t get back to you, it’s almost certain this will happen but the key thing is to stay proactive.

UPDATE on the Budget & Recruitment; 'it's a taxing thought.'

Two key areas in particular from the recent Budget affect the recruitment sector, and those in the recruitment supply chain.

1.    ‘IR35 / Intermediaries Legislation’

The Budget announced the start of a dialogue between HMRC and stakeholders on the best way to reform IR35 legislation, with the Government wanting to find a solution that protects the Exchequer and (in their words) improves fairness in the system.

Whilst the Government recognises that many individuals choose to work through their own limited company, where people would have been employees if they were providing their services directly, anti-avoidance legislation commonly known as IR35 (introduced in 2000) requires that they pay broadly the same tax and National Insurance as other employees.  As highlighted by reports from the Office of Tax Simplification and the House of Lords, the Government believes IR35 is not effective enough, with non-compliance in this area estimated to cost over £400 million a year.

2.    Travel and subsistence

The Government intends to consult on detailed proposals to restrict tax relief for travel and subsistence for those working through an employment intermediary and under the supervision, direction or control of any person. 

A twelve-week consultation was launched 08 July 15 (changes intended to take effect from 6 April 2016).  The intention of these proposed changes is to prevent temporary workers employed through employment intermediaries, and their employers, from benefiting from tax relief for home-to-work travel expenses; relief is not generally available to other workers employed directly or through temporary work contracts.

A series of round tables are being planned by HM Revenue and Customs over the summer, in order to facilitate dialogue, improve understanding of the proposals and to help develop responses to the consultation.

The consultation is very similar to the Onshore Employment Intermediaries Consultation, proposing the use of the same supervision, direction and control tests.  Where the worker is subject to the right of supervision, direction or control then the payment intermediary (which could be the umbrella company or the worker’s personal service company (or ‘limited company’) cannot offset or reclaim any reliefs on travel and subsistence expenses incurred. 

Bear in mind we are only at consultation.  Regardless of what we end up with, one thing is very clear: the assessment of supervision, direction and control will be critical.  Failure of this test may see a worker’s income from an assignment fall, which in turn may put pressure on rates.  The limited company worker currently paying themselves outside IR35 may find they have to move to a deemed payment calculation as they would now be caught.

As the proposals stand, it is clear that detailed discussions will be required between recruiters and their clients to ensure the implications are fully understood and appreciated.   

3.    Increased funding for HMRC

You may already be aware the Government have an aggressive approach to identify and penalise individuals using tax avoidance schemes. The Chancellor emphasised this message in the latest Budget, with additional funding for HMRC of £750,000 to encourage investigations into this area.

Conclusion

It is clear that the combined effect of all of these changes will result in significant changes for the sector.

With a discussion document being published shortly re IR35 and RSG taking an active part in the consultation and round table, details will be provided as these progress.