HR news round-up: From multigen workforces to everywoman

Say-do gap on multigenerational workforces

There is a ‘say-do gap’ between what British employers say about multigenerational workforces and what they do to support managers to create age-inclusive workplaces, according to a new report from the Work Foundation.

A survey for the report, based on the views of 1,167 business leaders, shows seven in 10 senior business leaders agreed that their organisation benefits from the diverse perspectives brought by a multigenerational workforce and nearly nine in 10 employees reported high productivity levels in firms where the employer had introduced intergenerationally-inclusive work practices, compared to around six in 10 employees in firms without these practices.

However, while close to one third of senior business leaders (31%) agree an emphasis on inclusivity and diversity initiatives is important in creating a positive work culture for a multigenerational workforce, only 18% of leaders include age in their equality, diversity and inclusion policies, only 16% have a menopause support policy and only 13% have age champion schemes.

Moreover, although almost half of leaders (49%) agree flexibility in work hours and location is important in creating a positive work culture, only 32% of SMEs (less than 250 employees) offer training for remote and hybrid working (compared to 44% of large organisations).

And while just under half of leaders (45%) agree clear communication and transparency from leadership is important, only 21% have line management training specifically designed to support managers to lead in multigenerational workplaces in place.

When asked about policies around socialising at work, 34% of leaders agree opportunities for socialising in person are important, but 81% of employers do not have guidance on inclusive social events and, while over a quarter of business leaders (28%) think that social events that accommodate employees who choose not to drink alcohol are important to create a positive work culture for a multigenerational workforce, just 21% have a workplace alcohol policy on responsible consumption in place.

Read more here.

Rayner meets business heads to talk employment rights

Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds have hosted a meeting with business representatives and trade unions this week to discuss the government’s plan for workers’ rights.

The Employment Rights Bill aims to ban the “exploitative” use of zero-hours contracts and end “fire and rehire” practices among many other changes, including reforms relating to parental leave, sick pay and unfair dismissal . While unions have largely welcomed the proposals, some business groups have expressed reservations about ‘unintended consequences’, for instance, day one rights to protection from unfair dismissal resulting in fewer new hires and more dismissals during probation periods. The Institute of Directors stressed the importance of meaningful dialogue to determine the impact on economic growth.

Unemployment fall slightly

Unemployment fell slightly on the quarter to 4.2%, according to the latest Office for National Statistics figures.

However, economic inactivity rates showed little change at just over 22%.

The estimated number of vacancies in the UK fell in May to July 2024 by 26,000 on the quarter to 884,000, although vacancies are still above pre-pandemic levels.

The figures come as a survey of 2,000 employers by the Chartered Institute of Personnel and Development found they expect to hand out the smallest pay rises in two years – they anticipate wage growth for the next 12 months to fall to 3%. The CIPD urged employers to consider boosting other benefits like flexible working.

Its Labour Market Outlook report also showed that two thirds of employers (66%) plan to recruit in the next three months with employment intentions remaining highest in the public sector (81%). 37% of employers said they have hard-to-fill vacancies. These vacancies are much higher in the public sector (48%) compared to the private sector (34%).

Meanwhile, another report from the High Pay Centre showed pay for the bosses of the UK’s 100 biggest listed companies has reached a record high, with the average chief executive earning over 100 times the salary of the average full-time worker. Analysis by the High Pay Centre shows that median pay for a FTSE 100 CEO increased from £4.1m in 2022 to £4.19m in 2023, with the 12.2% increase taking the rate to the highest on record.

Parents struggle with holiday childcare costs

Over two-fifths of working parents see total childcare costs rise over the summer holidays, with an average estimated increase of £1,683 per month, according to a new survey.

Phoenix Group’s survey of over 2,000 UK adults finds younger parents (those aged 18 – 34) are particularly impacted, facing an even greater cost – with an average increase in childcare costs of £2,218 per month. That includes the amount spent on formal childcare, as well as activities for children over the summer holidays. The average monthly household income in the UK is £3,277, the rise in cost of childcare over the summer months represents over half (51%) of the average monthly UK household income, or 67% for parents aged 18-34.

A lack of flexible working arrangements is exacerbating costs and preventing parents staying in work, says Phoenix. Three in five UK adults (64%) say they’d like the option to work more flexibly during school holidays to save money on childcare. Despite this, almost two-fifths (38%) have been denied flexible working over the school holidays and 39% feel as though they can’t work because they can’t find a job that lets them juggle childcare.

Read more here.

Age UK ordered to pay compensation for age discrimination

Age UK, Britain’s leading charity for the elderly, has been found guilty of age discrimination by an employment tribunal.

In a preliminary hearing, the charity has been ordered to pay over £4,300 in compensation to a 58-year-old candidate who suffered age-related harassment after applying for a design job.

The tribunal concluded that the charity imposed a higher standard on the candidate due to his age. Although the candidate lost claims of disability discrimination and victimisation, he was successful in his claim of age-related harassment.

An Age UK spokesperson told the Civil Society website: “We are disappointed that this claim was upheld, but we fully respect the court’s decision.

“Age UK prides itself on being a fair employer that actively supports and encourages diversity and inclusion in our recruitment, and we are sorry that on this occasion an applicant did not experience the normal high standards we strive for.”

Tax credit could address skills shortages, says think-tank

The Inclusive Growth Commission, a business-led think-tank, has called on the Government to introduce a “skills tax credit” to incentivise employers to address skills shortages.

The commission found that the UK’s human capital stock, which represents the value of workers’ skills and knowledge, would be £1.8trn higher if it had grown at the pre-2008 financial crisis rate.

This shortfall could cost each UK worker an estimated £55,000 over their working life since the financial crash.

The proposed skills tax credit would allow companies to deduct more than they paid towards training costs through the tax system and offer a credit for loss-making companies. The commission also highlighted that the average investment in training per employee has fallen from £2,200 in 2011 to £1,800 in 2022.

In addition, it is calling for a devolved employment and skills service, encouraging demand for the Lifelong Learning Entitlement among excluded people and populations, embedding the teaching of innovation skills into the education system, improving the health of the workforce and providing the means for people to access bigger jobs markets.

Female entrepreneur network looks to smash glass ceiling

AllBright, the world’s largest network for professional women, has bought learning and development organisation everywoman as it seeks to boost female career progression and create a level playing field for women.

AllBright is a global organisation which aims to advance women’s professional growth at all career stages. everywoman, which has just celebrated its 25th anniversary, was founded by Maxine Benson and Karen Gill, who will remain as advisers and investors.

AllBright says the acquisition will help it to achieve its ambition of reaching 20 million professionals by 2030 and addressing the gender parity gap projected by the World Economic Forum to take 132 years to close. It says everywoman will enhance the business with events, awards, training programmes and content collaborations.

Viviane Paxinos, CEO of AllBright and AllBright InvestCo, said: “We are super excited to announce our partnership with everywoman. Founded by two brilliant and successful women, it has a proven track record of changing the world of work for women. Together we will double down on our shared mission to create a world where every woman can thrive and achieve her full potential.

“We are thrilled to see progress being made at board level with 42.6 per cent of FTSE 100 boards having a woman, but there’s still a lot of work to do across the business ecosystem given all female teams only received 2 per cent of funding in 2022 and only 1 per cent of all businesses that sold a majority stake in the past 10 years were female-founded. Our partnership is a great example of a female-led organisation, selling to another female-led organisation and doing it successfully and collaboratively.”

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