Top Stories
Graduate salaries expected to rise in 2012 after 3 years of stagnation
A survey of graduate recruiters has found that graduate pay is expected rise by 4% in 2012 after an "unprecedented period of stagnation", taking the average graduate starting salary to £26,000. This represents is the first rise in graduate salaries since 2009 and the largest annual rise since 2005. Read more
Middle managers feel the most pressure from economic downturn
Middle mangers feel under the most pressure at work, have the least sense of job security and have the worst work-life balance according to a new survey by the Chartered Institute of Personnel and Development (CIPD). Read more
Other HR News...
Government issues revised timetable for pensions auto-enrolment
The Government has issued a revised timetable for pension auto-enrolment, but companies with more than 250 employees will still have to automatically enrol their staff into a workplace pension scheme from October as originally planned. Read more
Executive remuneration reforms
As reported in last week's HR Briefing (27 January 2012), Vince Cable has announced the Government's plans to overhaul executive remuneration. New regulations, to be published later this year, are being developed following responses to the Department for Business, Innovation and Skills' discussion paper on executive pay and a the government will be consulting on a number of the proposals. Read more
Fees for tribunal claims may be counter-productive warns ACAS officer
A senior ACAS official has warned that the introduction of fees in Employment Tribunals could make employers less enthusiastic about tackling workplace grievances. The concern is that employers would only be willing to deal with disputes effectively when they know that the employee is "prepared to pay", causing some grievances to escalate unnecessarily. Read more
Nearly 1.4 million days lost to strikes 2011
Working days lost to industrial action hit a 20 year high last year as unions challenged the Government's attempts to implement austerity measures and reform public sector pensions. The 1,373,200 working days lost to strikes only cover the first eleven months of 2011, yet represent an increase of 376% on the days lost in 2010. Read more
Employee referrals schemes offer a win-win for employers and employees
A new survey by XpertHR has found that 13% of vacancies are filled through employee referral schemes in organisations that operate them. Of the 172 organisations surveyed, 69% had a system for staff referrals, 93% of which offered a financial reward for referring the successful candidate. Read more
Legislation
New compensation limits now in effect
The annual increase in compensation limits, under The Employment Rights (Increase of Limits) Order 2011, came into effect 1 February 2012. Read more
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Top Stories
Graduate salaries expected to rise in 2012 after 3 years of stagnation
A survey of graduate recruiters has found that graduate pay is expected rise by 4% in 2012 after an "unprecedented period of stagnation", taking the average graduate starting salary to £26,000. This represents is the first rise in graduate salaries since 2009 and the largest annual rise since 2005.
Carl Gilleard, Chief Executive of the AGR, said: “The predicted increase to graduate salaries is significant and sizeable, particularly given the context of starting salaries remaining stagnant for the past three years. This will no doubt be welcome news to the Government and the higher education sector, but moreover to graduates themselves.”
The Graduate Winter Survey, conducted by the Association of Graduate Recruiters (ARG), surveyed 214 recruiters, which collectively recruited over 21,000 graduates in 2011.
Recruiters expect the number of graduate positions to fall by 1.2% in 2012. Mr Guilleard said that the relative stability of graduate recruitment was good news given uncertain outlook for the national, European and global economy: "With the job market intrinsically linked to business confidence, I am cautiously optimistic for graduate recruitment in 2012 and it is encouraging to see that only a slight drop is predicted.”
The survey also found that just under one-third of employers did not meet their graduate recruitment targets for 2010-2011. The reasons cited by respondents included a lack of skilled candidates and a high level of 'candidate drop-out'. One respondent from the investment banking sector believes that graduates are increasing focusing on finding "rewarding jobs" that allowed them to "have a life", with the result that "some industries are starting to suffer in the light of the inflexibility of the work-life balance".
The survey also looked at the marketing strategies used by recruiters and found that the overwhelming majority, 96%, were actively targeting graduates online through a mix of social media, job boards and company websites. However, this online strategy was to compliment rather than replace more traditional marketing, with 89% still planning to visit university campuses to attract applicants. (Graduate salaries predicted to rise in 2012 after three year stagnation; Association of Graduate Recruiters) Back
Middle managers feel the most pressure from economic downturn
Middle mangers feel under the most pressure at work, have the least sense of job security and have the worst work-life balance according to a new survey by the Chartered Institute of Personnel and Development (CIPD).
The quarterly Employee Outlook survey of 2,000 employees found that middle managers came in significantly above average on these three key indicators, putting them particularly at risk of work-related stress and burnout.
Only 44% of middle managers say they are satisfied with their work life balance, compared to 70% of non-managers.
When asked about the pressure they were under at work, 49% of middle managers say that they are under excessive pressure either everyday or a couple of time a week. This is compared to an average of 37% across all employees surveyed.
Nearly a third (29%) of middle managers also believe they are likely to lose job in the current economic climate, compared to only 21% non-managers and 15% of senior managers.
Head of Public Policy at the CIPD, Ben Willmott, said: "Middle managers are often caught in the middle between delivering strategic objectives and managing under-pressure line managers. They can also be first in line when organisations look to reduce head count. While middle management will undoubtedly bear its share of job losses in organisations needing to reduce head count, it is also important to remember the crucial role these managers play in managing change, translating the objectives of senior managers into actions, and motivating others."
He also warns employers not to ignore the health and wellbeing of their middle managers: "With a fifth of middle managers saying they are under excessive pressure everyday they are particularly at risk of suffering from work-related stress and burnout." (New meaning to ‘squeezed middle’: CIPD research shows middle managers are under most pressure, have worst work-life balance and least sense of job security; CIPD) Back
During June we are running a series of courses on Managing Stress and Mental Health at Work. Click here for the full programme and booking form. These full day courses cost £249 + VAT per delegate to attend. A three for two discount is available.
Other HR News...
Government issues revised timetable for pensions auto-enrolment
The Government has issued a revised timetable for pension auto-enrolment, but companies with more than 250 employees will still have to automatically enrol their staff into a workplace pension scheme from October as originally planned.
Pensions law expert Simon Tyler with Pinsent Masons, welcomed the Government's clarification: "It was difficult to prepare while the dates were still up in the air for many employers. Now that the dates have been published, all employers and providers can put a plan of action in place. They should leave themselves plenty of time to get their auto-enrolment systems up and running."(Government confirms pension auto-enrolment starting dates; Outlaw) Back
Watch Jacqui Timmins comment on the revised timetable for auto-enrolment in our HR Network TV Programme.
Executive remuneration reforms
As reported in last week's HR Briefing (27 January 2012), Vince Cable has announced the Government's plans to overhaul executive remuneration. New regulations, to be published later this year, are being developed following responses to the Department for Business, Innovation and Skills' discussion paper on executive pay and a the government will be consulting on a number of the proposals.
The responses indicate that the current system fails to effectively link pay to performance and suggest a number of measures to increase the accountability of directors, including: greater transparency in remuneration reports; increasing shareholder powers to vote pay decisions, directors' notice periods and exit payments; and reforming remuneration committees so as to avoid conflicts of interests.
For more information on the responses so far and the Government's plans for reform, read our Update on Executive Remuneration. Back
Watch our HR Network TV Programme on promised new legislation affecting executive pay.
Fees for tribunal claims may be counter-productive warns ACAS officer
A senior ACAS official has warned that the introduction of fees in Employment Tribunals could make employers less enthusiastic about tackling workplace grievances. The concern is that employers would only be willing to deal with disputes effectively when they know that the employee is "prepared to pay", causing some grievances to escalate unnecessarily.
Andrew Waring, Chief Operating Officer at ACAS, told the Telegraph: "Our prime focus is on what it will mean for our ability to resolve cases. If in future a person has to make a payment to make a claim, employers won't be that interested in early mediation."
Selwyn Blyth, an employment law expert with Pinsent Masons, disagrees: "I doubt there is an HR department in the country that takes so disrespectful a view of employment relations that they reduce them to a means of avoiding litigation. Even from a business productivity point of view, good employer-employee relationships are important," (ACAS warns new tribunal rules will lead to more staff disputes; Telegraph) Back
The Ministry of Justice's consultation on the introduction of fees in the Employment Tribunal closes on 6 March 2012. Full details of the consultation can be found here.
Watch Laura Wilson comment on proposal to charge fees for lodging claims in our HR Network TV Programme.
Nearly 1.4 million days lost to strikes 2011
Working days lost to industrial action hit a 20 year high last year as unions challenged the Government's attempts to implement austerity measures and reform public sector pensions. The 1,373,200 working days lost to strikes only cover the first eleven months of 2011, yet represent an increase of 376% on the days lost in 2010.
This exceptional rise was attributed to public sector strikes, which accounted for 93% of the total number of days lost. Dominic Raab, the Conservative MP for Esher & Walton, told the Telegraph: “With the overwhelming majority of strikes failing to win support from a majority of union members, it demonstrates the arbitrary power wielded by union bosses. It is time we looked seriously at the case for reform, to safeguard the hard-working majority from the militant minority.”(Days lost to strikes hit 20 year high; Telegraph) Back
During February we are running a series of courses on Working with Trade Unions. Click here for the full programme and booking form. These full day courses cost £249 + VAT per delegate to attend. A three for two discount is available.
Employee referrals schemes offer a win-win for employers and employees
A new survey by XpertHR has found that 13% of vacancies are filled through employee referral schemes in organisations that operate them. Of the 172 organisations surveyed, 69% had a system for staff referrals, 93% of which offered a financial reward for referring the successful candidate.
The median amount paid for a successful referral is £500, but this can vary widely between organisations and is often dependent on the level of the role, with some firms paying up to £6,000 for senior positions. Nearly half of employers, however, wait for the new recruit to complete their probation period before paying out the reward.
The author of the report, Rachael Suff, said: "Referral schemes can be an effective alternative to formal recruitment - they are typically cheaper and prospective employees are likely to have been given a realistic job preview by the friend who is referring them for employment.
"As well as demonstrating existing employees' engagement with their employer, referrals can boost the level of cultural fit between referred recruits and the organisation." (Employee referrals fill one job post in eight; Personnel Today) Back
Legislation
New compensation limits now in effect
The annual increase in compensation limits, under The Employment Rights (Increase of Limits) Order 2011, came into effect 1 February 2012.
The main increases are:
- the maximum compensatory award for unfair dismissal increased from £68,400 to £72,300; and
- the maximum limit on a week's pay increased from £400 to £430 (this is used for the purposes of calculating amounts including statutory redundancy payments and the basic award for unfair dismissal);
The new rates apply where the effective date of termination is on or after 1 February 2012. Back
Essential Employment Rates & Limits: At A Glance
Feedback
Please provide any feedback on these bulletins or let us know what topics are of interest to you by emailing maria.passemard@pinsentmasons.com. This will help us to shape future editions of this Briefing and HR Network events.