UK’s financial sector damages SME recruitment, according to Work Foundation

The UK’s financial sector is systematically failing SMEs, which could provide the greatest source of innovation, jobs and growth, according to a submission to the Independent Banking Commission (ICB) by Will Hutton executive vice chair of The Work Foundation.

His paper, co-authored with Paul Nightingale from SPRU at Sussex University, shows firms with the greatest potential for high growth are the most likely to face financial restraints on their growth. This is leading to a “discouraged economy in which innovation, investment and dynamism are stymied by a self-serving and inflexible banking sector.”

Read full article: http://www.hrmagazine.co.uk/hro/news/1019740/uks-financial-sector-damages-sme-recruitment-work-foundation

Why should SMEs invest in occupational health?

OH services can play an important role in helping to maintain workplace health and wellbeing in this sector. Anecdotal evidence suggests that small businesses can receive huge benefits from the provision of readily available OH advice, providing there is awareness of the issues that motivate the SME and the ability to motivate and educate the small business in seeing the bigger picture.

While SMEs experience the same types of difficulties as larger businesses, there are a number of differences when focusing upon the OH needs of this sector.

Read full article: http://www.personneltoday.com/articles/2011/07/01/57551/why-should-smes-invest-in-occupational-health.html

ACAS Advice: Retirement Process and the removal of the Default Retirement Age

The Default Retirement Age (DRA) changes from 6 April 2011

Subject to Parliamentary approval, the Default Retirement Age (DRA) is being phased out over a transitional period running until 30 September 2011. Details will be set out in Regulations coming into force on 6 April 2011.

The last day employees can be compulsorily retired using the DRA is 30 September 2011, so the last day to provide 6 months’ notice required by the DRA provisions is therefore the 30 March 2011.

Employers can still use the DRA between 30 March and before 6 April 2011, but if they do so they must use the short notice provisions, under which an employee could claim compensation (subject to a maximum of eight weeks’ wages).

Employers will not be able to issue new notifications of retirement using the DRA on or after 6 April 201

Read full article and download full ACAS Guide: http://www.acas.org.uk/index.aspx?articleid=3203

Retirement age change: the reactions

The CBI has called the decision to scrap the default retirement age “unpleasant and costly” for bosses. But what do entrepreneurs think?

Real Business asked entrepreneurs for their views on the government’s decision today to phase out the default retirement age. Most business owners have given the decision the thumbs up.

Glenys Berd, MD of online footwear retailer LoveThoseShoes.com, says it’s an “excellent move”: “Whether someone retires should be about their ability to continue to do the job, not some arbitrary thing such as age,” she says. “However, there has to be better mechanism to allow employers to force retirement where someone is no longer capable, it’s a very difficult area.”

Read more opinions: http://realbusiness.co.uk/employment/retirement_age_change_the_reactions

Firms take pragmatic approach to staffing and pay

A survey of 450 businesses conducted by the British Chambers of Commerce (BCC) has found that despite increasing pressures, firms are taking a practical approach to setting pay conditions for 2011.

According to the study, 45% of respondents said they will increase pay this year, while 49% will freeze pay and just 6% plan to reduce wages. Furthermore, a quarter of firms polled (26%) do not see the government’s spending cuts as detrimental to their business.

The research revealed that 33% of businesses believe that government cuts will have an impact on their profitability, however only 13% would see this resulting in a reduction of staff numbers.

Read more: http://www.mybusiness.co.uk/YRDtVwNo6VWuDg.html

Businesses stung by employment tribunal costs

The average cost for employers to defend themselves in tribunals is £8,500, according to the latest figures released by the British Chambers of Commerce (BCC), which has called for the system to be reformed.

With the number of employment tribunals increasing – last year saw the highest ever number of claims – businesses are facing escalating costs to defend themselves. However, the average settlement is £5,400, often making it cheaper for employers to settle, even if faced with a false claim. Overall, 58% of cases are settled, 39% through the Advisory, Conciliation and Arbitration Service (Acas) and 19% privately.

According to the BCC, rather than fearing losing the claim, the main reasons employers chose to settle was to keep costs down (51%) and because it was convenient to do so (25%).

Read more: http://www.mybusiness.co.uk/Yas4d5do6VWuDg.html

Firms plan to increase recruitment in 2011

More than a quarter of small and medium-sized enterprises plan to hire more staff in 2011 than they did in 2010, according to new research.

The survey found that 76% of businesses are optimistic about the coming year, with more than three quarters predicting either a more prosperous year, or the same level of success as 2010.

According to the poll of over 2,100 firms conducted by Orange, 74% of small companies are considering introducing flexible working options in 2011, citing staff efficiency as the main driver.

Read more: http://www.growingbusiness.co.uk/firms-plan-to-increase-recruitment-in-2011.html

CBI: Businesses need clarity on retirement rules

British firms will face considerable uncertainty and greater risk of tribunal claims if the government fails to tackle the unintended consequences of scrapping the Default Retirement Age (DRA), a leading business group has cautioned.

According to the Confederation of British Industry (CBI), the government needs to urgently clarify its position on retirement rules and how it will respond to businesses concerns, before it scraps the DRA next year.

Despite announcing that the DRA will be phased out from April, the government has not yet produced any guidance or draft regulations to clarify for employers or staff what the new legislative framework will look like. The removal of the DRA will be one of the most significant changes to employment law in 2011.

Read more: http://www.growingbusiness.co.uk/cbi-businesses-need-clarity-on-retirement-rules.html

Managers attracted to high growth start-ups

Directors and senior managers are willing to take a pay cut of as much as 50% to work at a small or medium business, according to new research.

A recent study has revealed that senior managers are prepared to slash their pay from the £757 per day that they currently receive on average, to £350 per day, to work at a small or medium sized firm.

The research, by Interim Partners, also found that temporary managers saw small and medium businesses as the number one choice for their next placement. 31% said they would prefer their next role to be at one of these firms, compared to 20% who would prefer it to be at a FTSE-100 companies.

Read full article: http://mybusiness.co.uk/Yc1IyVBo6VWuDg.html

Free UK Internet Payroll – HMRC approved

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For more Info :  www.Payroo.com