Skill shortages are costing UK businesses £5 billion, states a recent government report, which estimates that 3.5 million UK workers do not have the basic skills expected of an eleven year old. BAA, Sainsbury’s and Virgin are lending their support to the Department for Employment’s Get On initiative, launched on March 14. The campaign calls on employers to carry out skills audits and to provide skills training where necessary, including basic literacy and numeracy. Contact DfES on 0870 000 2288 (http://www.dfes.gov.uk)
New research from The Aspen Institute suggests that most MBA students would like to see corporate social responsibility integrated into their core curriculum, rather than as an added extra amongst elective courses. Published on January 29, the report shows today’s students pay more attention to social and environmental conditions than current business leaders do, although they still mirror their older peers in ranking social and environmental conditions well below the needs of shareholders in their decision making. Contact Nancy McGaw, Aspen ISIB, on 00 1 212 895 8007 (http://www.aspenisib.org)
A group of engineering bodies is responding to acute skills shortages in the sector by offering £50,000 sponsorship to three state specialist schools. Led by the Engineering Employers’ Federation, the initiative will focus on skills-based education, including teaching the new GCSE and A-level in engineering. Contact Ann Bailey, EEF, on 020 7222 7777 (http://www.eef.org.uk)
Students on the e-skills4industry youth training project (see Briefing 62), led by Deloitte & Touche, are embarking on their first round of work experience placements with the scheme’s participating companies during April. Contact Richard Stone, Deloitte & Touche, on 020 7303 7149 (http://www.deloitte.co.uk)
AstraZeneca is investing £200,000 to help 50 Chemistry undergraduate students, it announced on March 13. As well as annual grants of £1,000, the students will also have the opportunity to visit AstraZeneca’s research sites and to take up work experience with the company as part of their studies. Contact Emily Denney, AstraZeneca, on 020 7304 5034 (http://www.astrazeneca.com)
Asda tops the ranks of this year’s Sunday Times 100 Best Companies to Work For in the UK list, which draws on a survey of 21,000 employees at 167 companies. In addition to the company’s share option scheme, performance bonuses and medical cover, workers at Asda report that they particularly value being listened to, respected and recognised by managers. Other companies noted in the list for their employee management include Microsoft (work-life balance), Volkswagen (“I’m proud to be here”) and WL Gore (approachable management).
However a survey of final year university students shows prospective employees to have a different perception of British companies than current workers, with none of the top ten in the Sunday Times’ list featuring in the graduates’ chart of prefered companies to work for. Published on March 13, the Universum UK graduate survey 2002 lists the BBC as the students’ most desired place to work, followed by the Foreign and Commonwealth Office, with British Airways and Accenture in joint third place. The students listed the most attractive characteristics in a first employer to be international career opportunities, a variety of assignments, and secure employment. Contact Mark Adams, Great Place to Work, on 01978 856 222 (http://www.greatplacetowork.co.uk); Tony Engstrom, at Universum, on 00 46 703 757977 (http://www.universum.se)
Nearly half of British employees want to reduce the hours they work, with almost a sixth (16%) of the workforce putting in more than 48 hours a week, according to a new survey from the Trades Union Congress published on February 4. The TUC findings substantiate a report released at the same time by Investors in People, which shows that three quarters of employees feel their time at work would be more productive if they could tailor their hours to better fit their lifestyles. IIP is currently developing a new work-life balance model, which will become an extension of the existing Investors in People Standard.
The UK is currently the only European country that allows staff to opt out of the EU directive setting a 48- hour maximum working week. Contact Paul Sellers, TUC, on 020 7467 1302 (http://www.tuc.org.uk); Kate Love, Investors in People, on 020 7255 5488 (http://www.iipuk.co.uk)
Alcohol related sickness costs business £2 billion a year, and one in four of those seeking help for a drug problem are in employment, according to a new report from the City of London Drug Action Team. Launched on February 26, Tackling alcohol and drugs in the workplace is a new toolkit for employers, which outlines the risks associated with substance abuse for employees and businesses and offers companies advice on combating such misuse. Contact Andrew McKie, Corporation of London, on 020 7332 1754 (http://www.cityoflondon.gov.uk)
John Lewis announced it is to increase the contribution level to its noncontributory final salary pension scheme from 9.8% to 10% of total pay, benefiting the fund’s 69,000 present and former staff members to the tune of £64 million during 2002. The announcement goes against the trend, however. Barclays, ICI, Lloyds TSB, Marks & Spencer and Abbey National are among the flurry of companies to have closed their final salary pension schemes to new staff since February. Ernst & Young and Iceland have gone one step further and frozen their final salary schemes to existing members as well as new employees.
The move follows the shift in government policy, initiated in April 2001, to encourage individuals to invest in personal money purchase schemes (termed, stakeholder pensions), whereby their contributions are defined but their final benefits are not.
Over half of UK workers (51%), however, feel ill-informed by their companies about changes to pensions schemes, according to a report published by the research agents, NOP, for PR Week in March. Meanwhile, a MORI poll for Age Concern on February 28 shows that nearly seven out of ten people ‘have little or no confidence about their income in retirement?f. Contact Helen Dickinson, John Lewis, on 020 7592 6274 (http://www.johnlewis.com)
British companies may be forced to offer temporary workers whom they employ for longer than six weeks the same basic pay and employment rights as permanent staff, according to a proposed directive published by the European Commission on March 20. The UK government is lobbying for the time-period to be extended to 12 months. Contact DG Employment & Social Affairs, EC, on 00 32 229 1111 (http://www.europa.int/comm)
Companies addressing gender equality issues are to win recognition through the government-sponsored Castle Awards. Equality of opportunity, equal pay and training opportunities for part-time workers represent three of the criteria against which the award panel will judge nominated companies and individuals. Entries must be in before June 15. Contact Kate Rounce, Women and Equality Unit, on 020 7273 8027 (http://www.womenandequalityunit.gov.uk)
Editorial Comment
The newspapers have been full these last few months of the ‘pensions crisis’. We first raised pensions here as a CSR issue last summer and suggested companies had three immediate duties: to inform employees about their personal situations, only to decide on ‘fair’ remuneration levels in the round by including retirement prospects and to account fully on this issue in their social reports. There’s little evidence this is yet happening; ignorance and confusion continue to reign. Of course the UK ‘pensions crisis’ goes deeper than any one company – increased life expectancy; shorter earning periods, with fewer 55 plus year olds staying in work; reduced state contributions (the lowest in Europe as a proportion of GDP and the only one falling); removal of tax credits on funds’ dividend income, to mention only a few contributory factors.
However the rush of companies to exit from final salary schemes has become Gadarene. The TUC estimates there are at least two million fewer members of occupational schemes today than a decade ago. It’s clear those worst affected are the middle aged, middle managers on whom senior management relies to achieve increasingly demanding corporate goals. At this point, the socially responsible company should pause for thought about the long term consequences of scrapping defined benefit schemes, especially for this crucial group. The costs in staff performance, retention and recruitment, not to mention reputation, may well exceed the apparent savings.
Corporate Citizenship Briefing, issue no: 63 – April, 2002
COMMENT:
The newspapers have been full these last few months of the ‘pensions crisis’.
The newspapers have been full these last few months of the ‘pensions crisis’. We first raised pensions here as a CSR issue last summer and suggested companies had three immediate duties: to inform employees about their personal situations, only to decide on ‘fair’ remuneration levels in the round by including retirement prospects and to account fully on this issue in their social reports. There’s little evidence this is yet happening; ignorance and confusion continue to reign. Of course the UK ‘pensions crisis’ goes deeper than any one company – increased life expectancy; shorter earning periods, with fewer 55 plus year olds staying in work; reduced state contributions (the lowest in Europe as a proportion of GDP and the only one falling); removal of tax credits on funds’ dividend income, to mention only a few contributory factors.
However the rush of companies to exit from final salary schemes has become Gadarene. The TUC estimates there are at least two million fewer members of occupational schemes today than a decade ago. It’s clear those worst affected are the middle aged, middle managers on whom senior management relies to achieve increasingly demanding corporate goals. At this point, the socially responsible company should pause for thought about the long term consequences of scrapping defined benefit schemes, especially for this crucial group. The costs in staff performance, retention and recruitment, not to mention reputation, may well exceed the apparent savings.
Corporate Citizenship Briefing, issue no: 63 – April, 2002
COMMENTS