Monday, March 1, 2004
1 in 5 outside the job market
A record number of economically inactive people highlights job market conundrum and presents a policy challenge. John Philpott, Chief Economist at the Chartered Institute of Personnel and Development, commented as follows on the latest UK labour market statistics published recently by The Office for National Statistics:
‘As today’s official figures confirm, the number of people of working age without a job and not actively seeking work has reached a record level of 7.85 million (2.12 million of whom say they want a job). Despite continued good news on employment and measured unemployment, the existence of 1 in 5 people outside the labour market, most dependent on benefits, presents both a conundrum and a serious policy challenge.
The conundrum is in large part explained by an ongoing pattern of job gains and losses which remains more favourable to women than men. Although the UK employment rate dipped at the end of 2003 it is close to the 1990 record peak of 75%. But the male employment rate of 79% is still 3 percentage points lower than the 1990 figure and a massive 10 percentage points lower than a generation ago.
Failure to provide today’s large army of jobless men and women with the opportunity, incentive and ability to work makes talk of ‘full employment’ in the UK premature, even though the labour market is relatively tight and there is growing emphasis on the need for increased immigration to fill job gaps. Policy makers and employers must in tandem do more to draw the inactive back to the world of work”.
O.N.E. comment
“Employers are eager to fill gaps in their employment strategy, citing skills shortage as the main contributing factor. The two areas need to communicate with each other.”
above: 1 in 5 outside the labour market presents both a conundrum and a serious policy challenge.
The “non-uniform” uniform arrives at Eurostar
1700 staff to wear new uniforms from today. Drivers opt to wear polo shirts, not ties.
Passengers on Eurostar, the fast train service that carries passengers between the UK, France and Belgium, will see a new look from today — new uniforms for 1700 staff, including drivers, train crews and customer services teams.
The chic uniforms, designed by Jacqueline de Baer, are described as a “non-uniform uniform” because of their more informal, casual look. The dark grey and charcoal uniforms, with yellow features, include beanie and baker boy’s hats as well as wide winter scarves and polo shirts. In what is believed to be a first in the rail industry, drivers’ uniforms will be without ties.
Jacqueline de Baer, founder of de Baer corporate clothing, has designed uniforms for travel companies for over 20 years and says this was one of her most challenging assignments:
“Through these uniforms, we are introducing the unexpected. Baker boy’s hats and polo shirts indicate the modern, European feel of travelling by high-speed Eurostar — most passengers won’t be expecting something so innovative. I love the informality of this uniform, which will ensure that Eurostar staff feel as comfortable and relaxed as their passengers.”
O.N.E. response
“But do we want them to be as relaxed as us, they are working after all!”
New book on appraisal designed to overcome “going to the dentist” feeling
Launched today, Appraisal and Feedback: making performance review work, newly revised, by Professor Clive Fletcher, is aimed at both HR professionals and line managers and brings fresh insight into how best to implement an appraisal system against a backdrop of 360 degree feedback, increased used of technology to monitor performance (e.g. in call centres) and the internationalisation of business.
The book reports that 80% of organisations say that their appraisal system is not achieving its aims and is a timely reminder that organisations must continuously review their arrangements.
Author, Professor Clive Fletcher says: “Mention the world appraisal and some people will think of it in terms of painful experiences such as a trip to the dentist. It has become an emotive word partly because it tends to be done rather poorly and partly because in the public sector it has sometimes been thrust upon employees as part of centralised government policy and target setting.
“But appraisal, when carried out effectively is a tremendous motivator, identifies potential and improves business performance. Organisations leave it to chance at their peril.”
The practical publication presents detailed guidance from design, aims and content, through to appraisal as part of performance management, feedback systems (including multisource feedback), training of managers and appraisal in the public sector.
Appraisal and Feedback stresses that performance appraisal cannot stay the same and still claim to be relevant. It makes the point that the old style central model delivered to all staff, in the same manner is no longer appropriate.
And performance appraisal makes a difference. A study of 61 hospitals (West and Patterson 2002) showed that there is a strong correlation between appraisals and patient mortality rates, with the former accounting for 23% variance in the latter.
Concludes Fletcher: “Performance appraisal can make a big difference to employee attitudes — we have the evidence that proves this.”
More
New Pensions Bill
The response? Employees should share burden of protecting pensions and Employers should be encouraged to improve provision.
Protection of company pensions should not only be risk based, but also shared between employers and employees, according to people management experts at the CIPD.
Charles Cotton, Pensions and Employment Conditions Adviser offered the following comments on the new Pensions Bill:
Attitude to pensions:
“We must move away from seeing pensions as being a purely financial matter to be considered by accountants and actuaries. The skills gap and the consequent competition amongst employers for the best employees should encourage companies to look at the impact that an attractive, well-funded pension scheme can have on their ability to recruit and retain the people that will make their business succeed.
“Our research shows that companies are not telling employees enough about pensions. Although 88% of companies tell staff about pensions during recruitment and induction, only 46% keep staff updated on an ongoing basis. Employers are failing to communicate their pensions arrangements effectively after recruitment, which means that the full value of their rewards package is not appreciated, and employees don’t often understand the full importance of issues such as saving enough for their retirement.”
Tax breaks:
“More thought should also be given by Government to encouraging companies to provide good pension schemes, through the use of tax breaks and other incentives.”
O.N.E. response
“The individual should be driving the change. Awareness of their own personal shortfall in pension provision should be enough to make change. And yet, the equity stored in their property has become the new (yet dangerous and vulnerable) pension.”
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