Britons are richer and more stressed than when the Queen came to the throne, a report by the Chartered Institute of Personnel and Development has found.

The CIPD report found the workforce in the UK has increased by six million, thanks to an influx of women since 1952.

However the total number of hours worked has stayed the same – driven by a big rise in part-time working.

Despite that reduction the CIPD claims work related stress has increased.

Workless homes

One cause for this, according to the report, is the increase in unemployment.

Measured by the number of people claiming the job-seekers allowance, unemployment has increased from 2.2% of the workforce in 1952, to 5.5% on the most recent figures.

More worryingly the report found that the number of households where nobody earned had increased dramatically from 4% to 18.8%.

“With the threat of unemployment an underlying concern even in good times, people do not seem much happier about their working lives and many exhibit the symptoms of work-related stress,” said Dr John Philpott, chief economic advisor for the CIPD.

Women workers

The report argued that the increase in the number of workless homes was linked to changes in the way we work, with fewer men in the workforce and more households with two earners.

However, with just 75% of men employed compared to 96% in 1952, this increased the number of households with no breadwinner.

On the other hand the female working age employment rate has risen from 46% to 66%.

Rising productivity

However the report accepted that people have become more productive over the last 60 years.

Despite the same number of hours being worked the value of the goods and services produced by the economy has quadrupled.

However this increase has come with increased pay inequality and a significant shift in the kind of work being carried out, the CIPD said.

The number of people in manufacturing jobs fell from 8.7 million in 1952 to just 2.5 million today while the number in managerial, professional and technical jobs has nearly doubled to 44% of the workforce.

Institute secures £800,000 funding in bid with CFA

Aspiring HR professionals will soon be able to kick start their career with an HR apprenticeship, after the CIPD secured £800,000 of government development funding through a partnership with apprenticeship body CFA.

As many as 725 people could take the new Higher Apprenticeship in HR Management by 2016, setting them up for a career in HR as well as developing their broader professional business skills.

The funding available for the qualification is part of the government’s strategy to address record unemployment rates and concerns about future skills shortages. An £18.7 million fund to support 19,000 higher apprenticeships was announced last December.

Development of non-traditional career routes such as apprenticeships could help address high levels of youth joblessness and support fair access into the professions.

It was mentioned that: “The HR apprenticeship will help to attract the brightest and best talent to a profession that has a crucial role to play in driving productivity and growth for organisations”.

“HR is a rewarding career of choice in itself and can also provide a route into other business disciplines. Gone are the days when HR was a predominantly administrative profession: today’s brightest HR professionals display a huge amount of business savvy and are real agents of change who contribute significantly to sustainable organisational growth.”

John Hayes, Minister for Further Education, Skills and Lifelong Learning, said: “I want more bright young people to build careers in vital professions like HR, and to receive nationally recognised training to the highest standards. By giving practical learning the same status and recognition as academic study, the government will help build a stronger economy and redefine the concept of higher education.”

There has been an enormous expansion of apprenticeships in this parliament, with government figures for the 2010/2011 year showing 442,700 new apprenticeships – 163,000 more than the previous year, and almost double that of 2005/2006.

Some commentators have expressed concerns about the dilution of the apprenticeship ‘brand’ through such rapid expansion, and the Business, Innovation and Skills select committee are to start an inquiry this month into apprenticeship policy. Such concerns were not helped by the, apparently coincidental, resignations of the chief executives of the two main apprenticeship bodies, the Skills Funding Agency (SFA) and the National Apprenticeship Service (NAS), on the same day last week

Claire Churchard 25 January 2012

‘John Lewis economy’ will boost productivity, says Clegg

Increasing employee share ownership in the UK could be the key to unlocking growth and boosting productivity, deputy prime minister Nick Clegg has said.

The Liberal Democrat leader told an audience in the City this morning that giving individuals a stake in their companies and promoting a “John Lewis economy” would lower absenteeism, staff turnover and production costs.

Clegg said he wanted to ensure that employee ownership got “into the bloodstream” of the British economy, and that the coalition planned to reduce red tape and revise the tax system to accommodate the concept.

Speaking at an event hosted by the City of London Corporation and Centre Forum think-tank, Clegg said: “We don’t believe our problem is too much capitalism – we think it’s that too few people have capital. We need more individuals to have a real stake in their firms. More of a John Lewis economy, if you like.

“And what many people don’t realise about employee ownership is that it is a hugely underused tool in unlocking growth,” he continued.

“Lower absenteeism, less staff turnover, lower production costs. In general, higher productivity and higher wages. They weathered the economic downturn better than other companies.”

Clegg added that he did not advocate employee ownership because it was a “somehow nicer” alternative to the traditional corporate world, but because those businesses were “just as dynamic, just as savvy, as their competitors”.

The John Lewis group is co-owned by all of its 76,000 permanent staff – called partners – who share in the firm’s annual profits. The model also gives workers a democratic voice in some business decisions through representation on a staff council.

Clegg suggested that the right for workers to request shares in their companies could be introduced in his bid to promote “responsible capitalism”.

Business secretary Vince Cable is expected to unveil the government’s full package of boardroom reforms next week, after recent outcry over executive pay and bonuses in relation to company performance and shareholder accountability.

Shadow business secretary Chuka Umunna claimed Clegg’s speech had followed Labour leader Ed Miliband’s calls for more responsible capitalism. “If Nick Clegg wishes to follow Labour’s lead in promoting shareholder activism and engagement, that is welcome,” Umunna added.

Michelle Stevens 16 January 2012

Carmaker will discuss Swedish derogation model

BMW has agreed to put on hold plans to employ agency workers thorough the so-called ‘Swedish derogation’ model while it has talks with unions on the issue.

Swedish derogation – under which agency workers become permanent employees of the agency and are contracted out to the employer – is being used by some companies as a response to the Agency Workers Regulations which came into force last year. The method, used by large employers including Tesco, Morrisons and Jaguar Land Rover, effectively means that the employers can get around the requirement to give agency workers the same pay and conditions as permanent staff after 12 weeks of employment.

But BMW has agreed not implement the plan for the time being while it enters talks with the union Unite, which is concerned about the implications of the move.

A BMW statement said: “The company and Unite, the union, have jointly agreed to enter into discussions relating to the use of agency staff. While these discussions are ongoing the company will not proceed with its plan to use regulation 10 of the Agency Workers Regulations [the Swedish derogation].”

The carmaker also said it would not proceed with its plan to close the current pension scheme to new entrants while negotiations with unions are ongoing.

Roger Maddison, national officer for Unite, said: “As always we are prepared to have meaningful discussions with companies in the car industry. Unite is determined to protect all the terms and conditions of our members and ensure that agency workers are treated fairly, in the true spirit of the agency workers legislation.”

13 January 2012

Workforce planning vital to gain full business benefit from 2012 Games

Nearly a third of UK employers have not yet made any preparations for the impact the 2012 Olympics will have on their workforce, research has found.

A survey of 1,200 businesses by BT revealed that 29 per cent did not have plans to deal with Olympic disruption – which could include a fall in staff attendance and employee transport problems – when the event takes place between the 27th of July and the 12th of August this year.

This lack of planning is surprising given that nearly all the employers surveyed (93 per cent) recognised that there would be some negative knock-on effects on their workforce capability during the London Olympics.

With less than 200 days to go, the research suggests that if organisations remain unprepared large numbers of them will “miss out” on the financial boost that the Games has to offer. In addition to employees taking time off to volunteer for the Games and to watch certain events, employers also said they expect to see supply chain and travel disruption, lower staff attendance and productivity issues.

Yet the potential business benefits were widely recognised, as 68 per cent said they expected a spike in demand for goods and services as up to a million visitors arrive in the UK for the event.

Almost half the businesses (45 per cent) predicted a rise in sales and the same number (45 per cent) expected new international business opportunities.

Previous BT research on the Vancouver 2010 Winter Olympic Games backs the idea that businesses will not profit fully if they ignore workforce planning. Research on those Games found that half of the companies in and around the Canadian city felt they could have done better from the event or that they had missed out on opportunities.

Colin Hansen, former British Columbia Minister responsible for the Vancouver 2010 Winter Olympic Games, said that British companies are right to be optimistic because the Olympics had a huge economic benefit in Vancouver and across Canada as a whole.

However, he said that the scale of the event was bigger than anybody expected and many companies were “not geared up” for the size of the opportunity.

“Nobody in the UK should expect next summer to be business as usual, but with the right plans in place, such as flexible working, every business – large or small – can take advantage of the occasion and seize the long-term economic benefits,” Hansen said.

Geoffrey Mead, partner at law firm Eversheds, said: “It is not too late for HR to prepare their organisations for the Olympics.

“Clarifying the likely staffing needs of the business, refining or developing clear staff policies, especially those dealing with absence procedures, as well as ensuring they are communicated clearly to staff will go a long way towards avoiding many of the short term problems that could arise.”

Clear strategies for holiday leave must be in place, especially as some organisations will have an increase in work and may not be able to allow any holiday requests at this time, he said.

“As part of any strategy, employers need to understand the extent of likely demand for time off. Staff should therefore be asked about their plans to request leave over the Olympics well in advance so that the organisation can consider the best approach.”

Acas also has guidance available for employers on managing holiday during the event and for those who have staff volunteering for the Games to help avoid misunderstandings

Claire Churchard 11 January 2012

Government accepts Future Forum proposals

Employers in the NHS will be ‘put in the driving seat’ of planning education and training in order to make local workforces more flexible, according to a policy framework published today.

The report – “Liberating the NHS: Developing the Healthcare Workforce” was produced following two in-depth consultations by the NHS Future Forum, and has been approved by the Department of Health. It outlines a new system for England in which Local Education and Training Boards (LETBs) will play a key role in identifying local training and workforce planning priorities, while the national body Health Education England (HEE) will oversee strategy and resources, and some important national functions such as medical trainee recruitment.

The aim is to promote education and training that is “responsive to the changing needs of patients and local communities” while the LETBs will be “the vehicle for providers and professionals to work with HEE to improve the quality of education and training outcomes” according to the report.

Responding to the report, health secretary Andrew Lansley said: “We are setting up a new system that can produce the flexible workforce we need to address future challenges, that aspires to excellence in training as well as a better educational experience for trainees, and is supported by a fairer and more responsive funding system… making these changes work is all about placing accountabilities in the right place. Locally, with providers supported by professionals who understand the local needs of their workforce, and nationally with Health Education England to interpret workforce intelligence and planning and then lead in support, guidance and oversight for the commissioning of education and training.”

Dean Royles, director of NHS Employers, welcomed the plans. “It’s great to see a strong focus on the role of employers in driving the new system. This has been lacking in the current machinery. This is a real opportunity to link the planning and development of the workforce with local patient needs and future service delivery.”

He said it was important that the new LETBs avoided a “one-size-fits-all model” and that their governance arrangements allowed for creativity and innovation at a local level.

“Building early confidence in the new system is essential. Employers will want to see that Health Education England as well as local LETBs are seen to be driven by patient need and employer demand. If this is the case, employers will relish the opportunity for increased involvement,” said Royles.

Also among the recommendations published today by the NHS Future Forum was the proposal for NHS workers to play a more proactive role in promoting public health, making ‘every contact count’ in getting across preventative health messages to patients.

10 January 2012

Watching a happy customer leave the forecourt in their brand new car is far from the end of the relationship between manufacturer and driver. Providing a high standard of aftermarket care builds brand loyalty, which means customers are far more likely to return in the future to purchase more cars, accessories and servicing options. Car companies are now realizing that what happens when a sale is completed is crucial to building long-term relationships and boosting profits.

“Aftermarket, or servicing, is highly profitable for automotive manufacturers – which means it is important customers are retained,” says Michael Martin, Vice President for Aftermarket at DHL Supply Chain.

The key to this is the way the industry’s cost base is structured, and in particular the greater margins to be found in car parts. “The sale of a car actually generates fairly low profits, especially as the automotive market is so competitive,” explains Martin. “Profits are generated from keeping the car on the road for longer.”

But challenges and competition in the aftermarket sector mean many manufacturers are missing out on the value of servicing. Industry research has shown that after three years, owners are more likely to opt for an independent or fast-fit chain for routine maintenance, as they can often undercut manufacturers by selling “gray market” imported parts. The EU Block Exemption means independent dealerships in any European country are free to import car parts from other EU member states. It aims to give consumers more choice and value for money, but for manufacturers it squeezes already pressured margins.

Automotive trends in the West add to the problem. With soaring oil prices, people are driving less, with concerns over emissions also foremost in their mind. Fewer miles means less servicing and brand loyalty is also on the wane: a recent US study found that only around 20% of car buyers stayed with the same brand when they purchased a new vehicle, compared to a high of 80% in the 1980s. All this is diminishing a vital value stream for manufacturers – but could an improved supply chain hold the answer?

It makes sense: save money from the back end and pass the savings on to the customer, gaining a competitive advantage over independents and increasing customer retention. Studies have found that strategically thinking about the aftermarket can lead to cash flow improvements of 10%, inventory reductions of up to 50% and service level improvements of 20%.

Moving from national to regional storage hubs for essential car parts, for instance, allows manufacturers to deliver to franchised dealerships several times a day, speeding up services and increasing same-day fulfilment. This helps reduce the inventory held at dealerships, freeing up space for other value-adding services. DHL works with Volvo and BMW dealerships in the UK, many of which now receive deliveries up to three times a day, as well as overnight. Receiving multiple deliveries in the day can help dealers increase revenues as they can encourage customers to get things fixed that they may otherwise postpone. Meanwhile, focusing on other back-end activities such as warehouse management, parts storage and forecasting can both slash costs and improve the customer experience – crucial for retention.

“Time is the most valuable asset for customers with busy lives,” says Martin. “An efficient and flexible supply chain in the aftermarket keeps the time required to maintain a car to a minimum, meaning they spend less time doing things they don’t enjoy.” And by making car maintenance as painless as possible, automotive companies can ensure customers are kept firmly on-side as they notch up the mile

Opportunity for employers to secure talent pipeline

The government has announced plans for a new type of privately funded ‘science university’ which could enable employers to secure a talent pipeline.

In a speech at the Policy Exchange think tank, Universities Minister David Willetts invited proposals for a new scheme aimed to bridge the gap between limited public funding and strong demand for higher education and research.

The new institutions will focus on science, technology and postgraduate courses.

“Local economic partnerships, universities, businesses and international partners can come together to put forward proposals,” the minister said.

“There will be no additional government funding. This time we will be looking to private finance and perhaps sponsorship from some of the businesses that are keen to recruit more British graduates.”

Willetts also said that “a lot of interest” had already been expressed in this type of university and that now the government wanted to “move this to the next level”.

It is no surprise that businesses are interested in securing skills for their future workforces as many employers expressed concern about the increase in university tuition fees. Certain sectors, such as the nuclear power industry, have also predicted future skills shortages if education and training issues are not addressed now.

Employers, such as KPMG, have already launched sponsorship schemes for university students to support talented individuals following the rise in tuition fees with a view to employing them in the future.

KPMG launched its sponsored degree in January 2011 to cover the cost of study and guarantee graduates a job with them. Meanwhile, more employers including Ernst and Young and PwC have looked to attract talent with in-house training described as being “as good as a degree”.

Claire Churchard

05 January 2012

Year-long paid placements offer ‘two-fold benefits’ for employer and intern

Chelmsford Borough Council is to take a second cohort of interns this autumn after the success of its inaugural programme. The local authority introduced a 12-month internship scheme last September after its workforce development plan revealed that only 14 per cent of town hall employees were in the 16-24 year old age group.

The council hoped the programme would not only identify potential talent for its own workforce, but would help equip successful young candidates with the experience and employability skills to set them apart in a increasingly competitive labour market.

Six interns – a mix of school leavers, graduates and masters graduates – undertook a rotation of three real-time projects during the year-long programme, in departments including HR, Property, Planning, Customer Service and Leisure.

Kerry Knowles, the council’s HR strategy and development team manager, explained that the programme co-ordinators had aimed to match recruits’ experience and aspirations to appropriate projects available within the council.

“HR reviewed the managers’ bids for placements, ensured they were set at an appropriate level and allocated them to the interns based on their education, qualification and career aspirations,” she explained.

The interns were paid in excess of the minimum wage for a 30-hour week, and enjoyed the same benefits as regular employees, plus tailored coaching and development opportunities.

“As much as we want to give people an insight into local government, we are not necessarily in a position to offer everyone a job at the end of the programme,” Knowles added. “So we made sure there were various development opportunities throughout the scheme – including coaching and mentoring for interns from their placement co-ordinator and line manager, and skills workshops around interviewing skills and how to compete application forms.”

There were more than 120 applicants for this year’s five placements, which will now encompass a 37-hour working week and are scheduled to begin this October.

The council has also announced two advanced internships to run alongside the standard programme, which will be focused on specific career areas such as business management and leisure services. Lasting for two years, the placements will culminate in a professional qualification.

Steve Packham, chief executive of Chelmsford Borough Council, described the first year of the internship scheme as “a real success” with “two-fold benefits”.

“It supports the council’s succession planning needs”, and “offers successful candidates the opportunity to improve their skills and enhance their educational experience through practical work assignments,”

Michelle Stevens 6th September 2011

Promise to ‘root out needless bureaucracy’ following Lofstedt Review

Self-employed people should be exempt from health and safety regulations, while businesses should have the right to appeal to a new panel over decisions that affect them, a major review of health and safety for business has concluded.

The Lofstedt report which was published yesterday and has been adopted by the government as policy, also recommended a review of HSE approved codes of practice to make them more understandable and a ‘consolidation’ of regulations to lower the overall burden of red tape. Other proposals include the removal of strict liability’ for employers in some regulations, and for the HSE to be given more powers over local authority inspections to ensure a consistent approach.

Employment minister Chris Grayling said that the changes, which are subject to a consultation, would “root out needless bureaucracy”, bringing back more individual responsibility into the system and reducing the red tape burden on business. There are over 200 health and safety regulations and the government hopes to reduce this by half in the next three years.

“Professor Löfstedt’s report is an important step in the Government’s ongoing efforts to put common sense back into health and safety,” said Grayling. “But changing the health and safety culture for good will take a sustained effort from all of us – central and local government, enforcement agencies, the judiciary, insurers, consultants, employers and employees.”

The Lofstedt report builds on previous work done for the government by Lord Young, whose measures for the simplification of health and safety were also adopted last year.

The TUC welcomed the conclusions of the report but took issue with the move to exempt self-employed workers, which it said would affect one million people.

“These people, who often work in the most dangerous of jobs, are already much more likely to be killed or injured,” said TUC general secretary Brendan Barber. “There is little doubt that removing the self-employed from the regulations will increase their risk of illness and injury and lead to a rise in the number of bogus self-employed in sectors like construction.

“It is time the government stopped tinkering around with regulations to save business from non-existent ‘red-tape’ and instead started looking at what positive steps it could take to improve Britain’s health and safety record.”

But changing the ‘compensation culture’ is easier said than done as so much rests on the interpretation of rules, said David Young, partner at law firm Eversheds,

“The use of policy reviews to further political and economic agendas is nothing new, even if they are usually the proverbial elephant in the room,” said Young. “In the case of health and safety, the government will learn how King Canute felt. From the evangelists to the apologists, achieving reform in the name of health and safety will prove more than tough; Pandora’s box was opened some time ago.”

Terry Woolmer, head of health and safety at manufacturers’ organisation the EEF, said that European legislation is the biggest burden for many firms.

“The report is a welcome recognition of the fact the UK health and safety legislation is generally fit for purpose, which gives the UK a health and safety record which is the envy of Europe,” said Woolmer. “Whilst there is always room for improvement, especially directed towards those riskier businesses or who flout the law, it backs our view that there is little if any need for future substantial domestic legislation.

“However this is not the case at EU level where the appetite for further legislation shows no signs of abating. UK government must now grasp the nettle at European level and pursue a culture that ensures any proposed legislation is risk and evidence based.”

James Brockett 29 November 2011

Almost half of under-24s say they would not work for a company where social media was banned, a survey has claimed.

The research by recruitment provider Hyphen, which surveyed 1,000 people, found that 48 per cent of people aged 16-24 reject the idea of a workplace where social networking tools were prohibited. Six out of ten (59 per cent) of the same group believe that using social media increases their effectiveness as an employee.

Attachment to social media drops off markedly for older age groups, with only 28 per cent of 35-44 year olds, and 20 per cent of those aged 45-54, objecting to a ban. The findings show that employers are out of touch with ‘Generation Facebook’ who expect to be able to communicate using their chosen method, said the researchers.

“The impact of social media on the UK’s younger workforce is very evident and is something that should be both accounted for and sufficiently appraised by businesses,” said Zain Wadee, managing director of Hyphen. “Generation Facebook has grown up with 24/7 social media access and they see no reason why LinkedIn, Facebook and Twitter should not also play a part in their working life.

“Tailoring benefits and office policies for the younger generation and making adequate provisions for the use of social media in a professional context is a worthwhile consideration for all businesses wishing to attract young talent. “

The research suggests that employer concerns over employees wasting time on social networking sites could be ill-founded, with over half (55.5 per cent) of the total UK workforce claiming to spend less than 10 minutes a day on their personal affairs. Almost a third (31 per cent) of all workers say they do not use social media for personal use at all during work time.

“From my experience with clients, they are increasingly adopting flexible policies towards social media use, which is the right approach,” said Wadee. “For some organisations, there are benefits to having their employees use social media in a sensible way. There are several potential business development opportunities that social media channels could also present and managers may in fact benefit from listening to ‘Generation Facebook’, whose insights into the new shape of business to business communication could be hugely valuable for their organisation.”

James Brockett

28 November 2011

Nestlé is to create 300 new jobs in the UK and establish a talent academy for graduates and apprentices, the food manufacturer has announced today.

The additional roles will be available at the company’s coffee manufacturing site in Derbyshire, following a £110 million investment to extend the plant and treble production capacity.

The Tutbury factory’s workforce has grown from 160 to 500 employees since 2006, and the workforce will now expand to 800 by 2013.

Of the 300 new recruits, some will form part of the first intake into the Nestlé Academy – a new initiative which sees the company commit to doubling its number of graduates, apprentices and internships.

In 2012, the firm plans to boost its gradate intake to 50 places and open up a further 22 placements for university interns.

Nestlé has also launched a new “confectionary apprenticeship” and intends to broaden its existing programmes across the HR, finance and supply chain functions, doubling  apprentice numbers to 100 by the end of next year.

Nestlé said the academy would “grow our own team of future leaders” and focus on “developing a commercially driven work force” to move the business forward. The employer added it would work with universities to improve the employability of students and attract interns and graduates.

“Recruiting the best people for our business is the key to our continued success,” said Paul Grimwood, chairman and CEO of Nestle UK & Ireland

“Through the Nestlé Academy we will double our number of apprentices, graduates and internships, supporting the economy through the training of skilled workers. We will also provide on-the-job training which will open academic study to those who otherwise might not feel this is a route open to them.”

Michelle Stevens 24 November 2011

Management guru Marcus Buckingham pans formulaic models

Employers strangle innovation when they impose standard models of competency and strategy rather than playing to people’s personal strengths, said Marcus Buckingham yesterday.

In the closing keynote of the CIPD conference, management guru Buckingham explained that innovative techniques that work for one leader don’t necessarily work for another because such tactics play to a set of personal strengths or “algorithms”.

Buckingham has consulted lots of successful leaders who all use different ways of innovating, and motivating their staff. But he found that when these successful ideas had been transferred across the company, or scaled up, they had lost their impact. “When corporate leaders see an innovative way of doing something, they write down the tactic. Once it’s written down they feel it needs lots of rules. It’s like there’s no way of doing things in a non standard way!”

A good idea is turned into a process and becomes part of a formulaic model that stifles originality, he explained. “We can’t have a formulaic model for innovation. We can’t define a few of the right behaviours then scale them up to the many.”

When corporate organisations take this approach the problem can be exacerbated as leaders “process the idea and strip it of the idiosyncrasies that made it work in the first programme”, he added.

“And when you get an instruction from corporate head office to use a certain process, if it does not fit with your strengths, people hunker down until it withers.”

Buckingham explained that people are the most productive and creative in the areas where they are already strong, therefore leaders need to match innovative techniques to people’s strengths. Pointing to Facebook as an example, he said that the social network site had been so successful because the first question it asks people when they sign up is ‘who are you?’.

By finding out about the individual or “figuring out their personal algorithm” the site then targets adverts, products and information relevant to that person.

This principle is what employers need to embrace to accelerate innovation among staff, he said. Buckingham outlined his new assessment concept, called StandOut, which he said aims to give individual leaders “the competitive edge”. The tool helps individuals understand their personal strengths and then highlights innovative case studies and information that will work for them.

However, he said: “StandOut is not about affirming you, it’s about finding out what your comparative advantage is and then using your strengths as a filter to give you techniques that will fit you and give you the edge.”

Claire Churchard 11 November 2011

Third of organisations report disciplinary issues with use of sites like Facebook.

Nearly a third of employers have disciplined staff for inappropriate behaviour on social media sites, according to a report suggesting employers are “failing to keep up” with online developments.

The report ‘Knowing your tweet from your trend: keeping pace with social media in the workplace’ from law firm DLA Piper, found that most organisations recognise the value of a presence on sites like Facebook (86 per cent) LinkedIn (78 per cent) and Twitter (62 per cent).

In addition, 65 per cent of employers actively encourage staff to use it for work.

Employers said the main reasons they encourage workers to log onto these sites in office hours were to boost brand awareness (80 per cent), marketing (60 per cent), and recruitment (42 per cent), while employee engagement (37 per cent) and team working (28 per cent) were also cited.

But it said that employers are failing to protect themselves from risks posed by work-related social media use, as a 21 per cent had taken disciplinary action against employees for information posted on a social media site about co-workers, and 31 per cent had disciplined staff for comments posted about their organisation.

More than a third, 34 per cent, of employers said they are exposed to risk because confidential information may be posted on social media sites. Additionally, most employers recognised the risk posed by former employees accessing confidential client lists via social media after they have left the company.

The majority restrict this behaviour by including clauses covering it in staff contracts; however, 28 per cent still do not do this. Surprisingly, only a quarter of organisations have a dedicated social media policy, while less than half (43 per cent) had relevant rules included in HR or IT policies.

Kate Hodgkiss, partner in DLA Piper’s Employment practice and the report’s author, said: “The study highlights that many employers are failing to protect themselves against the legal ramifications of social media use, as social networking practices outpace business policies. It highlights the growing need for a definitive social media policy which is regularly assessed and updated.”

Earlier this year research showed a rise in companies blocking access to social media with nearly a fifth blocking the sites this year compared to less than 10 per cent in 2010.

ACAS also launched its first guide to social media to help employers make the most of the online communications and avoid stifling potentially useful communications with over-zealous restrictions.

Claire Churchard 14 October 2011

‘No scapegoating’ approach key to success, says HSE

Britain’s safety watchdog has praised the construction of the London 2012 Olympics venues, saying that the whole industry could learn from its exemplary health and safety record.

The Olympics Delivery Authority has adopted an inclusive, “no scapegoating” approach to managing risks which should be adopted by projects of any size, according to a new report from the Health and Safety Executive (HSE).

There have been only 114 injuries and eight dangerous occurrences during the 66 million hours of work on the Olympic Park, the HSE said in the report ‘Leadership and worker involvement on the Olympic Park’.

The report praised the leadership of the authority in establishing a safety culture, as well as the behavioural safety training given that encouraged reporting of near misses and concerns with no blame attached. The project’s leaders “acknowledged the inherent dangers of creating perverse incentives by placing too strong an emphasis on incentivising success and punishing failure,” said the report.

Communication and monitoring of the supply chain has also been a strength, as has the focus on engagement: “wellbeing was emphasised rather than a narrow focus on safety,” said the HSE. Individual contractors were rewarded for good safety practice with “simple and low-cost incentives such as plaques, trophies, breakfast vouchers and branded fleeces and badges,” the report pointed out.

With the construction industry remaining one of the most dangerous occupations in the UK, there is much that can be learned from the Olympics’ example, the executive concluded.

Stephen Williams, HSE’s Director for London 2012, said: “The report shows how strong leadership and worker involvement are key to a safer working environment. The ODA’s creation of a no scapegoating culture allowed workers to raise issues without fear of reprisal, learning lessons to apply across the site and reducing the risk in hazardous activities.

“The construction industry has for many years been one of the most dangerous in which to earn a living. London 2012 is important because it shows it doesn’t have to be that way. No matter what size your organisation, no matter what size your project, small changes in the way you operate can have a huge impact on the health and safety of your workers.

“I want the rest of the construction industry to follow London’s lead. London 2012 is entering the final stages of preparation and it is important that all those involved continue to manage risks sensibly until the whole project is across the finishing line.”

Business group calls for more support for major UK job creators

The CBI has called on government to unlock the potential of the “forgotten army” of medium-sized UK employers, which generate 16 per cent of all jobs.

In its “Future Champions Report”, the business lobby group said that firms with a turnover of between £10 million and £100 million represent less than 1 per cent of businesses but generate 22 per cent of economic revenue in the UK.

With the potential to inject between £20bn and £50bn into the economy by 2020, this group of employers could play a vital role in rebalancing the economy, and could also create new jobs in areas most affected by public spending cuts, according to the CBI.

In the North East, where unemployment reached 11.3 per cent in the three months to August 2011, medium-sized firms already account for about 20 per cent of all jobs. Meanwhile, these companies also account for 30 per cent of the UK’s manufacturing base, said the report. However, these employers are “overlooked by government” and face financing constraints as tighter bank lending continues.

The report recommended that government could increase growth in this sector by plugging the funding gaps that this group face with access to new financing options. Development strategies within medium sized businesses also need to change to boost growth.

The report pinpointed a lack of confidence and ambition, and skills and capabilities among these employers as other barriers to expansion.

John Cridland, CBI director-general, said: “Medium-sized businesses are truly a forgotten army, and now is the time to unlock their potential.

“I want the UK to have its own version of the German “Mittelstand” – a backbone of medium-sized firms which export, innovate and generate growth. These future champions would help the UK weather unexpected economic shocks, and act as a new engine for growth.”

He called for UK bond markets to be opened up to medium-sized businesses, more use of venture capital, and for changes to make it easier for large companies to invest in medium ones, possibly in their supply chains.

Tudor Brown, president of ARM Holdings, a medium sized IT technology business highlighted in the report, said: “We have relied on good technology and a talented workforce but, above all, we have shown the ambition and the confidence needed to expand globally.”

However, the growth rate among firms in this band varies greatly, according to the think tank NESTA. It found that just 6 per cent account for more than 60 per cent of the total job creation from these businesses, while 65 per cent of this group create less than 1 per cent employment growth. This is the area where a focus on improving skills and capabilities could enhance firms “lagging behind” to the level of their “gazelle” peers, the report found.

Claire Churchard

24th October 2011

Tesco “had thousands of leaders, not just one”

Encouraging leadership and people management skills at every level of an organisation is key to success, says Sir Terry Leahy. This he commented upon ahead of next months presentation in Manchester where the former chief executive of Tesco, after 14 years at the helm of the retailer will be sharing his experiences .

Speaking ahead of the event, he said that while strong leaders can be an inspiration – citing Sir Ernest Shackleton and Sir Alex Ferguson among those he admires – the key to organisational success is for people from every rung of the corporate ladder to take responsibility.

“Leadership matters everywhere,” said Leahy. “The great thing that we always tried to achieve at Tesco was to have thousands of leaders, not just one. It might just be somebody working in a depot who steps forward when there is a problem with a delivery and takes it upon themselves to sort it out. You’ve got to empower people to take responsibility – that really is the kind of leadership that works.”

Leahy became one of the most acclaimed chief executives of modern times not only through his low-key, consensual leadership style, but by his thorough knowledge of every aspect of the business, gained from 32 years at the company. His successor, Philip Clarke, is also a dyed-in-the-wool Tesco man of 30 years’ experience. So is a long stint at a single firm the best way of becoming an effective leader?

“I do think it’s the best way, and all the research backs that up,” said Leahy. “If an organisation is to have a stable and successful strategy, then it’s always best that its leaders come from within. Only when an organisation is failing can it make sense to bring somebody in from outside to sort it out. Coming from within allows the person to really understand the business from top to bottom – how it goes about its work.”

Although he admits that a leader in this position runs the risk of becoming “insular”, he says that he never felt he had missed out by devoting his whole career to Tesco. “You’ve just got to get out and about into the world at large, and be open to new ideas,” he adds.

Speaking of the world at large, Tesco has excelled in recent years by expanding in new markets overseas, particularly in Asia, and by breaking into entirely different sectors, such as financial services and telecoms, in search of constant growth. So how does a company in that position find the right talent to retain the formula that has made it a success?

“It is a challenge, and I think the answer is to be very explicit about the values of the company, so that young people who join the company, whether that is in banking or telecoms, understand what the company stands for,” he answers. “You have got to live and breathe those values so that they are more than just some words on a wallchart.”

Chief among those values are four basic tenets of employee engagement that he would impart into all managers.

“People really only need four things at work: a job that interests them, a chance to get on, to be treated with respect and to have a boss that helps them. It’s not a lot to ask,” he continued.

“As we employed so many people, HR was everybody’s responsibility. You could not just expect it to be something done by the HR department – every manager has to be skilled in HR. Of course, you have to have specialist resource, but our approach was to really embed the importance of managing people into the wider workforce.”

Leahy, who has been pursuing interests in private investment since stepping down from the chief executive’s chair, remains bullish about the prospects of growth for Tesco. He said that he viewed the people management challenges in Asia – Tesco’s key area for growth – as little different from the UK.

“The challenges in a way are the same, because the needs of people are universal. If you manage those four demands of people – if you look after them, train them and develop them – then you’ll do well,” he concluded.

Graphene technology ‘demonstrates UK technical excellence’

The future growth of UK plc depends on the country getting the full value from its most skilled workers and reforming welfare services to “make work pay”, cabinet office minister Oliver Letwin told delegates at the Conservative party conference.

Speaking at a fringe event organised by the Social Market Foundation, Letwin said that it was vital that the UK jobs recovery was bolstered by “strong fiscal arithmetic” bringing market confidence. This is why the government is sticking to its deficit reduction plans, he said.

However, as well as short-term measures, the minister said that there are long term challenges to address to ensure job and economic growth.

“The truth is whether you look at the skills and training of our people [in the UK] or the extent to which our businesses are regulated or the way our markets, like the housing market, operate, what you see over and over again is the supply side, or the productive activities of our country, are not actually harnessing our people to anything like the extent that they could and should do,” he said.

Letwin highlighted one of the UK’s leading strength areas, scientific research, as he cited the UK development of futuristic material graphene, which could replace current touch screen technology.

“We have not been good at putting [those strengths] into economic activity and gaining the value from that,” said Letwin. “One of the things we are doing that is particularly relevant is developing the technology and innovation centres which will mirror the work that the Germans have done.

“The world we encounter now is one where skills win and the competitiveness advantage of our country depends on the skills of our people. And in the long-run we will not improve that unless our schools do better and better.”

Letwin explained that public service reforms were also central to economic growth.

“To prosper we don’t just need people who are skilled enough to do the work, we also need people who have the propensity to do the work that will support that world beating effort”.

Claire Churchard

05 October 2011

YouTube “a phenomenal learning resource” for staff

Google is using its success as a world-leading content provider to constantly improve its internal learning and development provisions, the company’s global head of learning technologies has said.

Sudhir Giri told delegates at the Charity Learning Consortium conference yesterday: “We are inspired by what the world is doing – we are trying to take what we’ve seen our products do and create that same sort of feeling within Google itself.”

Google’s search engine now processes one billion searches daily, while 48 hours of content is uploaded to Google-owned YouTube every minute – a platform Giri described as “a phenomenal learning resource”.

Giri told the London attendees that the company – whose workforce now numbers more than 20,000 across 30 countries – was keen to emulate this type of content generation and knowledge sharing across it internal learning platforms.

Google’s goal was to improve its L&D search infrastructure and encourage collaboration, connectivity and content creation among staff, he said.

“We have a great starting point at Google – we have the culture and attitude that breeds innovation,” he told delegates. “Out talent philosophy is if you give people freedom, they will amaze you.”

He explained that the organisation had implemented several strategies based on this principle, including the ‘20 per cent time’ rule – where employees have the equivalent of one day per week to develop Google projects they feel passionate about. This initiative has spawned both Google News and Google Ocean, part of Google Earth.

The L&D team were also able to give support to “anyone to teach a topic of their choice”, so the company “could tap into” staff expertise, said Giri. The organisation now has 300 ‘Gtrainers’, who last month provided 25 courses to other members of staff, known as ‘Googlers’.

An internal Gwhiz tool was developed so staff could connect with one another by searching for employees with relevant expertise. The platform relied on social tagging, although staff could amend their personal profiles and areas of experience, as well as offer themselves as informal mentors, he continued.

Google has also invested in dedicated learning media studios, where films can be shot and produced for uploading to ‘G2G TV’, to be viewed, rated and commented on by other employees.

“If only a few people get excited about it in the company, then that’s enough”, Giri told delegates, when advising how a small number of early adopters or champions could have a successful wider impact.

Giri was delivering his keynote speech yesterday at the first conference hosted by the Charity Learning Consortium – a group of 100 charities who are collaborating to make e-learning more affordable for their organisations through collective procurement and resource sharing

Michelle Stevens 16 September 2011