Employment: profiting from people, flexibly and ethically

Work-life rights

Employers and employees can access a help-line service on flexible working, launched by the government on January 2, in preparation for changes to UK employment law from April 2003. Under the new system, employers will be obliged to consider and discuss all requests for flexible working arrangements made by working parents with children under the age of six. Employers must provide a written explanation for any refusals within 14 days. The government announced in early January that companies which do not take employees’ requests seriously will be liable for compensation claims of up to eight weeks pay.

Meanwhile, the Equal Opportunities Commission is calling for employers to be liable for up to 53 weeks pay, and for the standards to be extended to parents of older children. The call follows new research published by the EOC on January 13, which finds that fathers now carry out a third of all childcare in the UK.

However, seven out of ten small firms believe that the new rules on flexible working will damage their businesses, and that they may have to cut staff in order to cope, finds a survey published by law firm Peninsula on January 6. Contact Ayesha Hazarika, DTI, on 020 7215 5377 (http://www.dti.gov.uk)

Ethical motives

A third of all UK employees (32%) say they are likely to look for other work because their current employers have a poor record on corporate social responsibility. The Ethical Employee report challenges perceptions among employers that money is the main motivator for those that resign, with only one in ten of employees leaving because they are unhappy over pay.

The research also identified a tenth of the workforce as “ethical enthusisats”. Normally aged between 18-24 or over 45, this group holds such strong views on CSR that it is likely to influence their choice of employer. An additional one in ten workers aims to marry self-sacrifice with self-interest, looking for an employer with responsible employment practices such as flexible working arrangements or compassionate approaches to illness.

The research was published by The Work Foundation and the Future Foundation on December 19, and is based on interviews with over 1,000 working adults. Contact Julia Bacon, Work Foundation, on 020 7004 7224 (http://www.theworkfoundation.com)

Profitable people

Advisers from KPMG, The Royal Bank of Scotland, Cadbury Schweppes, BPand PricewaterhouseCoopers are joining a government task force to advise how organisations can focus on people as key to business success, it was announced on January 28. Accounting for people will create best practice guidance for companies on how to relate people management to profits in their annual reports.

New research finds that businesses that have a documented HR strategy are more profitable, with revenues per employee an estimated third (35%) higher than organisations where no such HR strategy exists. Published by PricewaterhouseCoopers on December 11, the research shows that organisations with an average five days absence per employee per year have profit margins that are three-fifths (60%) higher than organisations with an average ten days absence per employee. Contact Caroline Sturdy, DTI, on 020 7861 3889 (http://www.dti.gov.uk); Jane Voisey, PWC, on 020 7212 2170 (http://www.uk.pwcglobal.com)

Flexible benefits

Two-thirds of personnel specialists whose organisations offer flexible working hours believe that such arrangements help to reduce absence, and nearly half (48%) agree that occasional homeworking can also help, according to a survey published by The Work Foundation on January 27. Absence rates are at their highest since 1996, at 4.1% (or nine days per employee per year), up from 2.9% in 2001.

Meanwhile, nearly half (46%) of jobseekers cite flexible working as the benefit they would most look for in their next job, and nearly a third (31%) would prefer the opportunity to work flexible hours than receive a £1,000 per year salary increase, according to a survey published on January 2 by the DTI. Contact Nick Turner, DTI, on 020 7215 0157 (http://www.dti.gov.uk); Julia Bacon, The Work Foundation, on 020 7004 7224 (http://www.theworkfoundation.com)

in brief

Bacardi Martini is the only UK company in Fortune magazine’s second annual Top-ten best European companies to work for survey, published in the January 2003 edition. The family-owned company was selected for the extent of on-site facilities available to employees, its flexibility, and a culture of openness (see table above). Contact Rob Friedman, Fortune, on 00 1 212 522 7149 (http://www.fortune.com)

BP and Debenhams won prizes for good practice at the 2002 European Agency for Safety and Health at Work Awards in December. Contact David Wilson, BP, on 01324 476863 (http://www.bp.com)