All posts by Katherine Heffernan

Bonus schemes: a flexible means of linking pay to performance

Bonuses remain an integral – albeit discretionary – element of the reward package on offer at many employers, particularly within the private sector: according to the ONS, the combined value of all bonuses paid in Great Britain reached a record level of £46.4 billion in 2016/17. Our recent survey of 30 mostly large employers across the manufacturing and primary sectors and private sector services looks at the design and typical payout levels of 41 bonus schemes – from comparatively simple all-employee schemes to more complex arrangements covering senior managers (eg Board members or executive team members).

Continue reading Bonus schemes: a flexible means of linking pay to performance

Call centre employers start to see upward pay pressure

This year’s survey of pay and conditions in contact centres has found that median pay settlements have increased slightly this year. Meanwhile, last year’s improvements in recruitment and retention may only have been temporary. Continue reading Call centre employers start to see upward pay pressure

NLW leads to significant pay increases in retail

The introduction of the National Living Wage (NLW) in April 2016 has led to a 5.3% increase in median minimum pay rates for established staff across retail. Many employers have revised their pay structures to accommodate this increase, typically by eliminating starter rates or harmonising premiums for unsocial hours. At £7.20, the median rate for the whole sample equals the NLW, though food and non-food retail firms tend to pay higher on average than employers in catering/hospitality. Many firms are paying the new minimum to all staff, despite it being a legal requirement to only pay it to staff aged 25 or over. Continue reading NLW leads to significant pay increases in retail

IDR survey: gender pay reporting at forefront of employers’ plans for 2017

The latest IDS survey of employers’ pay intentions, received almost 160 responses from a wide range of organisations. The survey, which looks at reward plans for 2017, suggests a stable picture in terms of pay increases and headcount levels. While new regulations on gender pay reporting already appear to be informing reward strategy, the vote to leave the European Union has had a negligible effect on pay decisions so far.

Influences on reward strategy
Looking at the main factors influencing reward strategy for 2017, the top three concerns show the difficult balancing act employers face in monitoring paybill costs without detrimentally affecting staff morale. Keeping labour costs in check was the most significant factor, rated as ‘very important’ or ‘important’ by all but one respondent, while recruiting and retaining key staff was the second most important issue, regarded as important by 94% of organisations, closely followed by employee engagement and motivation (90%). Continue reading IDR survey: gender pay reporting at forefront of employers’ plans for 2017

Factsheet: holiday entitlement

Basic statutory paid leave entitlement for all workers is 5.6 weeks. This can include eight bank and public holidays, although employees are not necessarily always allowed to take time off on the public holidays themselves. For employees working a typical five-day week, the entitlement equates to 28 days’ leave each year. This figure of 28 days also applies to those working six or seven days a week.

Employers can, of course, improve on these minimum provisions in the contractual leave that they offer. Any holiday entitlement that goes beyond the minimum does not have to follow the statutory rules – for example, it may be subject to length of service. Continue reading Factsheet: holiday entitlement