Category Archives: Pay and Reward

Healthcare, Healthcare Careers, Job Opportunities, Jobs, News, Pay & Reward, Pay and Reward

Kick start a career in the NHS by joining as a Clinical Support Worker – Open day at Maidstone and Tunbridge Wells NHS Trust on 11th June 2022

Clinical support workers assist healthcare professionals in the delivery of patient care, taking on tasks such as welcoming and preparing patients, explaining treatments and updating patient records[i]. The role is a great opportunity for anyone interested in working for the NHS to get their first step on the ladder.

Maidstone and Tunbridge Wells NHS Trust (MTW) is currently on a recruitment drive for clinical support workers and is hosting an open day on 11th June 2022 for people to find out more about what the role entails and what it’s like to work at the Trust.

People don’t need previous healthcare experience and joining as a clinical support worker could kick off a lifelong career in the NHS. It’s an opportunity to learn and develop acute care nursing skills, in a fast-paced, high patient turnover environment.

The Trust offers a supportive environment where staff members are given the chance to develop and progress their careers. New starters will attend the Trust’s Clinical Induction Programme which lasts for two weeks and involves travelling to both of the Trusts sites in Maidstone and Tunbridge, before starting work on the wards.

The open day takes place at the Reception Area, Main Entrance Tunbridge Wells Hospital, Tonbridge Road Royal Tunbridge Wells, TN2 4QJ on 11th June from 9am until 3pm. On the day there will be a presentation about the role and Trust, a tour of the hospital and the possibility of being interviewed for a specific role.

For more information on the recruitment event, job descriptions and main responsibilities– please click here – http://jobs.mtw.nhs.uk/job/UK/Kent/Maidstone_Tunbridge_Wells/Maidstone_Tunbridge_Wells_NHS_Trust/Tunbridge_Wells_Maidstone/Tunbridge_Wells_Maidstone-v4252681?_ts=1

MTW is a large acute hospital trust in Kent. The trust provides a full range of general services and some areas of complex care to around 760,000 people in the south part of West Kent and the north part of East Sussex.

MTW recently launched a major recruitment drive focused on clinical roles. This comes at an exciting time as the trust has invested in new facilities, service developments, training centres and digital transformations. To find out more about career opportunities, go to: Home – Maidstone and Tunbridge Wells NHS Trust (mtwcareers.com)

—

[i] https://www.healthcareers.nhs.uk/explore-roles/wider-healthcare-team/roles-wider-healthcare-team/clinical-support-staff#:~:text=Healthcare%20support%20wokers,dietetic%20assistant

[ii] https://www.mtw.nhs.uk/2021/10/mtw-hits-cancer-target-2-years-in-a-row-to-place-in-top-three-performing-uk-trusts/

[iii] https://www.england.nhs.uk/nhs-parliamentary-awards/

Pay and Reward

The Power of Recognition and Reward in the Workplace: What should Managers Know?

Among the most valuable assets in any workplace are the employees that actually do all of the work. In some cases, those employees might be rare and talented, and tremendous amounts of time and energy might have gone into building up their skillsets.

It’s therefore critical that we do whatever we can do to get the best out of our employees, whether by bolstering productivity, reducing absenteeism, or reducing staff turnover.

There are ways to do this which don’t involve spending large amounts of money. In fact, among the more effective measures is to simply recognise when something has gone right, and single out the person responsible for praise. This is often a simple matter of crafting the right internal communications policy.

Why does recognition matter?

Lets’ take a look at some of the more immediate effects of recognising valued employees.

Firstly, it’ll make them more motivated to work for you. This effect is actually quite contagious. Other employees might see that, in this organisation, effective people are recognised, and therefore strive to be more effective. Obviously, any reward of this kind will also give a powerful incentive to the person receiving it.

Handing out rewards will also bring out the naturally competitive side in your employees. Workers might compare their performance to that of the person who’s been singled out and strive to do better. It’s partly for this reason that public praise is more effective than private praise.

Finally, we should consider that positive workplaces are more fun to work in. This means that you’ll have an easier time retaining key members of staff, and that those who do remain will be more productive.

Achieving all of this isn’t just a one-off process, or even a series of them. For best results, you’ll want to create a cultural shift, so that everyone who is in a position to recognise good work feels empowered to do so.

How to create a culture of recognition and reward?

Recognition and reward should be meaningful, and should always correlate with behaviour. If you’re handing out rewards to those who don’t really deserve them, or you’re displaying favouritism, then the effect can actually be negative.

The reward should also arrive shortly after the positive contribution of the worker. If efforts are not being recognised for months, then the recognition will be considerably less effective than it would have been.

Remember also that there are many different types of appreciation, and that certain workers will be more receptive to different types than others. Have an idea of what makes each employee tick, and then hand out rewards accordingly.

You don’t have to break the bank every time you do this. Remember that a little bit of reward can go a long way, if it’s targeted and timely.

HR News, News, Pay & Reward, Pay and Reward

Subdued pay awards reveal impact of pandemic

In the three months to the end of May 2020 the median basic pay award is worth 2.2%, according to the latest findings from pay analysts XpertHR.

As the UK starts to emerge from the coronavirus pandemic, our headline pay award remains subdued as the impact on the economy hits organisations’ ability to reward their employees.

The research shows many employers cancelling or deferring 2020 pay awards, while others have had to introduce pay cuts and the fear of redundancies lingers. Among the pay deals recorded by XpertHR for the current three-month period, 15.2% resulted in a pay freeze.

 

Latest pay award findings

Based on a sample of 243 basic pay awards effective between 1 March and 31 May 2020, we find the following:

  • The median basic pay award is worth 2.2%, the same level as in the previous rolling quarter.
  • Almost one in four (23.9%) basic pay settlements is worth 2%, making it the most common pay award in our three-month sample, while deals worth 2.5% and 3% account for 11.9% and 9.9% of basic pay awards respectively.
  • The middle half of pay deals are worth between 2% (lower quartile) and 3% (upper quartile), unchanged from the previous rolling quarter.
  • In a matched sample analysis, 44.6% of the pay awards made are lower than the same employee group received in the previous year. More than one in four (28%) are at the same level, while a similar proportion (27.4%) are higher.
  • Among the total sample of pay settlements recorded, 15.2% are pay freezes, almost double the number recorded in the three months to the end of April 2020 (8.5%).

In the three months to the end of May 2020, pay awards in the manufacturing-and-production sector are at a median 2% and fall behind pay deals in the services sector, where the median is 2.3%.

Based on a 12-month measure, pay awards in the private sector – where the median is 2.3% – continue to be outstripped by those in the public sector, where the median is 2.5%.

XpertHR pay and benefits editor Sheila Attwood said:

“Across the private sector, alongside the many organisations delaying a decision on their annual pay review, the number reverting to a pay freeze is increasing. With the potential for redundancies looming, frozen or reduced pay is likely to be used as a way to minimise the number of job losses.”

News, Pay & Reward, Pay and Reward

Brand analysis – eBay, Apple and Facebook named the highest paying employers

Small Business Prices has revealed the top 10 best brands for customers and employees. The study highlights which brands offer the highest average salary, which companies are the most followed on social media, as well as how positively these companies have been reviewed by their customers and employees. You can view the full campaign here.

Across the globe are renowned brands that we all recognise and love, from Apple to McDonald’s. But how good are these brands according to their customers and employees?

The top five brands for customers and employees are:

Rank Best Companies for Customers Best Companies for Employees
1. Lego Google
2. Amazon Facebook
3 Lexus Microsoft
4. Nivea Mastercard
5. Sap Cisco

Analysing the data to find the world’s best brands for employees vs. customers, Facebook is the only brand appearing in both rankings. Despite Google being reviewed almost four times as much by their employees with 16.K reviews, Facebook comes a close second to them with just 4.8K reviews.

In terms of social following, Facebook leads the way with over 200M followers on Facebook, and Adobe ranks as the second most followed brand on Twitter.

The top ten brands for the average annual salary

A large part of employee satisfaction comes from the amount they are paid by their employers. All brands included in the research are known globally for being worth billions and yet some have an average salary of under 45K.

Here are ten of the brands that are the most generous with their pay and bonuses.

Brand Average Salary Avg Bonus
Ebay $124,000.00 $12,000.00
Apple $123,000.00 $4,000.00
Facebook $120,000.00 $13,000.00
Microsoft $119,000.00 $14,000.00
Google $115,000.00 $16,000.00
PayPal $111,000.00 $10,000.00
Oracle $109,000.00 $9,000.00
Visa $109,000.00 $11,000.00
Cisco $106,000.00 $12,000.00
Adobe $104,000.00 $10,000.00

Huawei ranks first for average annual salary, followed by Ebay and Apple. Cisco, one of the best companies for employees, ranks 10th amongst the companies paying the highest salary ($106K average). Microsoft is also one of the best brands to work for, with eight stars out of ten according to employees’ reviews.

Brands like McDonald’s, Zara and Budweiser appear amongst the companies with the lowest annual average salary (ranging between $50K and $56K).

According to the data analysing how women and men compare in terms of average salary, Adobe is the only company where women earn more than men 126K vs 105.5K.

The best paying company for men is Facebook (129K average annual salary).

The best company for gender equality in the workplace is Ebay, with men earning $199.5K, and women earning $114.5K, followed by Microsoft ($119K men vs. $113.5K). Facebook shows one of the highest inequality rates, with a gap of 17K between men and women’s salaries.

Ian Wright from Small Business Prices comments:

‘At Small Business Prices we help small businesses across the UK to find the best pricing information to compare the different products and services for them to acquire to grow their businesses. In a world where big brands leading the way, we want to make sure we build a better understanding of which specific assets to rely on to help businesses to grow.

But what specific characteristics make these big brands outstanding and where can their success be found? How important is customers’ satisfaction and employees’ happiness to them? We’ve measured the success of these companies analysing people’s reviews, for our customers to recognise what makes a company successful and loved .’

Benefits, Business Advice, COVID-19, FInance, HR News, Pay and Reward

Furlough and Pensions: An Update for Employers

Rachel Meadows, Head of Proposition – Pensions and Savings, Broadstone, gives an update on furlough pay and pensions for employers 

COVID-19 has already had huge implications on SMEs and their staff. The government has introduced myriad emergency measures over recent months to try to limit the damage to the UK economy with one key measure being the Coronavirus Job Protection Scheme, or furlough scheme.

In very welcome news for business owners, the scheme has recently been extended until the end of October 2020, with some increased flexibility coming in from July allowing staff to return to work on a part-time basis, albeit with employers starting to pick up some costs thereafter.

Until the end of July, in addition to 80% of wage costs, capped at £2,500 per month, employers can reclaim the employer National Insurance contributions and minimum automatic-enrolment employer pension contributions on the 80% wage. This combined amount is the maximum government grant available.

Of course, there was a good deal of confusion around the nuances of the scheme, yet many businesses needed to furlough staff in advance of full details being available around how the scheme would operate. Cashflow may have been an issue for some with salaries needing to be paid, and pension contributions made, before employers could be reimbursed by the grant.

Furlough Extension – more generous than anticipated

Month

Government

Grant

Employer

Costs

June & July

 Continues to provide 80% of staff salary (capped at £2,500 per month), plus employer NI costs and statutory minimum employer pension contributions No change

August

 Continues to provide 80% of staff salary (capped at £2,500 per month) Employer pays employer NI costs and statutory minimum employer pension contributions

September

 Government to pay 70% of staff salary (capped at £2,187.50) Employer pays 10% of staff salary to make up pay to 80%, employer NI costs and statutory minimum employer pension contributions

October

 Government to pay 60% of staff salary (capped at £1,875) Employer pays 20% of staff salary to make up pay to 80%, employer NI costs and statutory minimum employer pension contributions

November

 Scheme Closed

 

Flexible Furloughing

Flexibility is to be built into the scheme with effect from 1st July, a month earlier than originally expected. This flexibility gives employers the ability to bring staff back on whatever part time basis the employer requires – essentially providing full flexibility to employers to determine what works for their own businesses.

The example cited by the Chancellor was that if an employee were brought back into work two days per week, the employer would pay them in full (as normal) for the two days, then the rest of the week would be covered by furlough grant provisions.

Furlough salaries are pensionable

Pensions are a particular area of complexity. Government guidance made clear immediately that furlough salaries are pensionable. Employers can reclaim the costs of pension contributions made until the end of July, but only to the extent of minimum automatic enrolment contributions (3% of qualifying earnings). For those paying more generous employer contributions into pensions, any additional amounts in excess of the minimums would not be reclaimable from the government.

Key areas of pensions’ complexity to be aware of:

  • If you provide staff with top-up salary in addition to the 80% level, the whole salary is pensionable, not just the 80% furlough level. Costs of employer pension contributions made on top up salary amounts are not covered by the scheme, and are met by the employer.
  • What is ‘pensionable’ pay for your staff? Whilst often ‘actual furlough pay’ is classed as pensionable, employers need to check what is included within their own pension scheme rules around pensionable salary definition – it may be different. This will especially apply where employees are members of defined benefit or hybrid pension schemes, or where employers with defined contribution schemes are certifying under a different auto enrolment basis, i.e. Tier 1, 2 or 3 which are not based on qualifying earnings. Contractual commitments to staff will still stand through furlough.
  • Auto-enrolment rules still apply, and businesses are not able to take ‘payment holidays’ in respect of pension contributions. The usual deadlines also apply in terms of paying over pension contributions deducted from employee pay.
  • Employees will still make their own pension contributions, based on ‘pensionable salary’ as above. Employees can opt out, or cease contributing should they choose to, but this would mean they would then also potentially lose the right to receive employer pension contributions (depending upon their pension scheme terms and rules).
  • In some specific cases, employers might be paying less than statutory minimum levels – in any event, the maximum that businesses can reclaim under the government grant is the amount actually being contributed, i.e. they cannot claim grant reimbursement that is not covering a genuine cost.
  • Salary sacrifice is especially complex, and businesses should certainly seek advice if they are operating such schemes. Employers should be aware when budgeting for furlough costs that they will need to continue to fund both employer and employee elements of pension contribution for those who were sacrificing, as the employee element has become a non-cash benefit (as will any other benefits provided via salary sacrifice). Many businesses hadn’t initially factored this into their furlough cashflow planning. The process of calculating contributions is complex and varies from business to business, and additional calculations may need to be done in payroll compared to normal times. Although staff can opt out of salary sacrifice through COVID-19 as a lifestyle event, as this would not increase their furlough pay it is unclear what advantage they would personally gain from doing so.
  • If employers utilise Flexible Furloughing to bring staff back into the business part time, or for some ad hoc shifts, then these working hours would not only attract full normal pay, but also full normal pension contributions. Clear records should therefore be kept of hours worked so that payroll and pension contributions can be correctly processed.

Last Window of Opportunity

In introducing flexibility into the Furlough Scheme, the government has also introduced a limited time frame in which employers are able to newly furlough staff.

From June 30th, the Furlough Scheme will be closed to new entrants. This means that newly furloughed employees must be on the system by June 10th at the latest to provide for the minimum furlough period to be satisfied.

Professional advice

Any employers considering any change to pension contributions during furlough should definitely seek pensions and legal advice before acting and should engage in writing with affected staff and their representatives providing as much consultation as possible. Businesses that are experiencing difficulty in paying contributions should proactively engage with the Pensions Regulator.

SMEs need to appreciate the costs associated with their pension schemes and understand the potential gap between costs and the amount that the government grant will reimburse. It’s also important to understand the impact that Flexible Furloughing will have on pensions. Failing to spot additional costs that the business will bear may cause financial difficulty and make a tricky situation even more problematic.

Business Research, Pay and Reward

Having an employee representative on the company board does not reduce CEO pay

Having an employee representative on the director’s board has absolutely no impact on reducing the pay level of the company’s CEO, according to research from Vlerick Business School. This research finding comes contrary to the belief that employee representation on the board reduces high profit margins and greater controls the remuneration of CEOs, giving more ownership and finances to a company’s employees.

This research comes from Xavier Baeten, a professor in reward and sustainability at Vlerick Business School and director of the school’s Executive Remuneration Research Centre, alongside Vlerick researcher, Bettina De Ruyck. The study examined the pay levels, habits and incentives of CEOs in 899 major European companies. The main focus of this was on the STOXX 600 – a stock index of the 600 largest firms across European countries, including 159 UK firms.

Analysis of the data by the researchers revealed that there was absolutely no relationship between having an employee representative on the board, and the level of CEO remuneration. This type of board representation is not as common in the UK as it is in other European countries, such as Germany, France and Scandinavia, where the percentage of companies with employee representation on the board were, 78%, 72% and 60% retrospectively.

Professor Xavier Baeten said,

“This finding runs counter to the belief that having an employee representative on the board would lead to more modest remuneration levels at the top, as an employee representative could be expected to keep an extra eye on pay ratios. I would not push it that far to say that employee representatives on the board do not care that much about executive remuneration, but the least we can say is that such an intervention in corporate governance does not seem to be very effective. Moreover, we have found that in Germany, a country with strong employee representation on the board, CEOs are among the highest paid in Europe.”

The analysis also found that the more nationalities that featured on a company’s board, the higher the CEO’s remuneration tended to be. Whilst this was also the case with directors who had a broader network and other ventures they were involved in, meaning that firms should not construct their boards around as many nationalities as possible, and that they should also not hire as many directors as possible who have many other board obligations – otherwise none as ‘busy directors’.

Professor Xavier Baeten also said;

“Our research has already proven quite frequently that ‘modesty’ seems to be a key word in the field of executive remuneration. In this respect, having some diversity on the board will help, but having too much diversity in terms of nationalities might negatively impact board cohesion, making the board more vulnerable to the exercise of CEO power.”

The researchers also found a number of other interesting results about European CEOs, including the average, median remuneration of a STOXX 600 seeing being €2.88m, UK CEOs earning significantly more than their colleagues in Belgium, Netherlands, Scandinavia and South Europe and long-term incentive grants being much bigger in the UK compared with rest of Europe.

The Executive Remuneration Study by Professor Baeten from Vlerick Business School, has been carried out for nine consecutive years.