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Subscribe to this list via RSS Blog posts tagged in Redundancy

Recent high-profile job losses announced at HMV and Rolls Royce are a reflection of wider sentiment towards job security, with the beginning of 2013 seeing an overall drop in confidence among UK workers, according to Legal & General’s Job Security Index. 

The drop has been most notable among part-time workers, whose confidence in their job security is 10% lower than full-time workers.

The Job Security Index, which has been running since January 2012, shows that only 65% of part-time workers are confident about their job security compared to 75% of full-time workers.

In comparison to this time last year, confidence in job security has fallen further among part-time workers (from 69% in January 2012 to 65% in January 2013) than full-time workers (from 77% in January 2012 to 75% in January 2013).  Both part-time and full-time workers’ confidence in their job security was at a high of 73% and 79% respectively in October 2012.

This trend is mirrored by last month’s ONS employment statistics which showed that the number of people in part-time employment decreased by 23,000.

Employees still face an uncertain future in 2013, as UK businesses are increasingly unsure if they will need to make redundancies over the next six months.

According to a survey of 783 UK businesses by Right Management, around one in twelve UK employers (8%) are uncertain if they will need to make redundancies in the next six months. This figure has risen by six percentage points in the last six months, up from just 2% in 2012.

The survey also reveals a slight drop in those reporting they will make no layoffs at all; 77% of employers feel they will make no layoffs at all in the first six months of 2013, down from 81% in 2012. However, this is a higher figure than the global average of 69%, and no employers reported they would make significantly more layoffs (down from 4% in 2012).

Only 22% of UK employers believe their companies are very effective at redeploying employees rather than making redundancies. This is a global problem, almost three in ten employers believe their organisations are “not too effective” or “not at all effective” at redeployment.

New figures have shown that employers are struggling to hang on to workers, despite the turbulent employment market, with more than 283,000 managers walking away from their jobs in the 12 months to September 2011.

The 2012 National Management Salary Survey, published by the Chartered Management Institute (CMI) and XpertHR, collected data from 38,843 individuals across 160 UK organisations. The survey revealed that nearly one in ten managers (9.4%) resigned from their jobs last year – more than twice as many as quit the year before (3.9%). Overall labour turnover for management roles – those resigning, retiring, transferring internally and being made redundant – has also increased dramatically, almost doubling from 10.5% in 2011 to 20.3% this year.

Christopher Kinsella, Acting Chief Executive of CMI, says: “Employers are struggling to recruit and to retain high quality managers. One in ten managers resigned from their jobs last year, presumably for better offers elsewhere. However, there is a risk that a substantial proportion of these managers left the profession altogether, a grave situation when UKCES/Government data estimates that the UK needs 544,000 new managers by 2020.”


Call for Evidence on dismissal

Posted by on in Dismissal

Proposals to examine the current dismissal process have been announced by the Government with the publication of a Call for Evidence.

Through the Call for Evidence, the Government is seeking to establish a strong evidence base on the current understanding of the dismissal process, including awareness, understanding and use of the Acas Code of Practice on Discipline and Grievance. The Government will be seeking the views of employees, business organisations and all other interested parties.

The Government has also published the Employment Law Review annual update in the Houses of Parliament, outlining how the review has been taken forward. The report summarises the current programme and looks ahead to further areas it is considering as part of the Review.

In addition, it was also announced that the Employer’s Charter, first published in January 2011, has been updated to include pointers on sickness absence and recruitment. The Charter aims to counter the misconception that employment protections are all one-way - towards the employee. It will give greater clarity to managers on what they can already do to deal with issues in the workplaces, on subjects such as performance, sick leave, maternity leave, requests for flexible working and redundancy.

Small businesses are looking to employ in the coming months as small business confidence picks up after a quarter of shedding staff, new figures from the Federation of Small Businesses (FSB) show.
 
Figures from the FSB's ‘Voice of Small Business' Index shows a net balance of 8.1% of small firms laid off staff in the three months to February – the highest figure since the survey began, in some cases partly due to rises in wages rises eating into 28.2% of firms margins.
 
Though hiring intentions among small firms may be picking up, unemployment is still set to rise this week – especially youth and female unemployment.

The FSB is calling on the Government to help small firms take on staff in the Budget later this month to help stem rising unemployment by putting measures in place, such as:

  • Increasing the National Minimum Wage for apprentices to £123 per week – eight in ten small firms have said they would support a rise in apprenticeship wages.
  • Ensuring Work Trials are made available to all suitable candidates on demand with no complicated qualifying criteria.
  • Introducing fees for the majority of claimants at employment tribunals to reduce the number of serial claimants and speculative claims, or those which have little foundation.
  • Encouraging small businesses to offer jobs they place with Jobcentre Plus as a Work Trial opportunity.

A recent study by the International Labour Office (ILO) has found that the current financial crisis has led to a significant increase in workplace inequality across Europe. 

The study, 'Work Inequalities in the Crisis: Evidence from Europe' analyses how workplace issues, such as working conditions, wages and incomes, employment and gender equality have been deteriorating across the continent since the start of the crisis.

“The central message of this volume can be summarized in simple terms: not only did work inequalities contribute to generating the economic crisis, but these inequalities have even become worse as a result of it”, says Daniel Vaughan-Whitehead, the ILO’s Special adviser, and editor of the book.“Our general economic system will thus continue to be at risk until we properly address this critical issue.”

Key findings of the study include:

  • Wage differentials between the top and the bottom earners increased in countries like Bulgaria, Hungary and the United Kingdom.
  • Young people are experiencing unemployment rates nearly double those among older workers in the majority of European countries.
  • Despite male workers being initially more affected by the crisis than women, discriminatory practices against female workers have worsened over the past years.
  • Women employed in male-dominated sectors were the first to be dismissed or experienced higher wage cuts than men.

The latest Chartered Institute of Personnel and Development (CIPD) quarterly Labour Market Outlook (LMO) survey has found that the first quarter of 2012 will be the most difficult quarter for the jobs market since the recession, as a greater number of private sector firms surveyed are planning to make redundancies.

The report’s net employment balance, which measures the difference between the proportion of LMO employers that intend to increase total staffing levels and those that intend to decrease total staffing levels in the first quarter of 2012, has fallen to -8 from -3 since the autumn 2011 quarter. This is the report’s worst figure since spring 2009.

The results also suggest a further widening of the north-south divide in job prospects. The net employment balance for the south of England has improved modestly to -1 from -4 in the past three months. London is the only region in the UK to register a positive score (+3). In contrast, employment prospects in the north have fallen to -20 from -17 over the same period.

This follows the most recent official Labour Force Survey unemployment statistics which showed that the north east of England (+2.3%) and the north west of England (+1.2%) saw the largest unemployment increases in the 12 months to November 2011.

Other key findings of the report include:

  • Organisations that are planning to make redundancies expect 4% of their workforce on average to be made redundant.
  • Six out of ten LMO employers are not planning to create any new roles in the next three months.
  • Looking ahead to the next five years, LMO employers anticipate an increase in demand for roles in business and development (28%), sales and marketing (24%) and IT staff (20%).
  • Business support functions have borne the brunt among those employers that say they have been prevented from creating new roles during the past two years.

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