Not to be outdone by CIPD and ACAS (who have both set out their predictions for what 2016 will hold), we have also gazed into our crystal ball. Here we outline some of the issues that will need to be considered for the year ahead, and provide some hints and tips on how to prepare…
Gender pay equality
Employers with more than 250 employees will be required to complete gender pay audits, and to publish the results. The Government’s response to the ‘Closing the Gender Pay Gap’ consultation will, once published, provide more detail of the final policy and the implementation date, but in the meantime consider:
- Who will be responsible for monitoring and analysing gender pay within your organisation? We recommend a committee approach consisting of representatives from HR, accounts/payroll, and senior/executive management.
- What internal documentation will need to be scrutinised – is the information currently available in a format which can be easily audited or do new procedures/reports need to be established?
- How can the organisation be bench marked against other employers within the sector?
The National Living Wage
As from April 2016, the National Living Wage will replace the minimum wage for over 25’s. Starting at £7.20, it will rise to £9 per hour by 2020. According to a survey compiled by CIPD 54% of employers expect their total payroll cost to increase as a result. Before April consider:
- Auditing your workforce to identify those employees who will be affected.
- What you can do to off-set the additional expense, for example improving efficiency or productivity etc.
Preparing for generation Z (‘GenZ’)
Personnel Today describes GenZ as the ‘new kids on the virtual block‘. Born in the mid 90’s to early ‘naughties’, GenZ is now starting to emerge into the employment market. In tune with technologies they can’t conceive of a world before everyone owned a smartphone, or where there were only 4 channels on the TV. Their world is at a touch of a button, and they receive instant gratification. Conversely they have also experienced a world post 9/11 where talks of terror threats are the norm, and they have lived with the uncertainty of a global recession. As a result their approach to life, and in particular to work, is expected to be very different to their predecessors. Be aware and get prepared. Look out for our blog (coming soon) which looks at the issue of GenZ employees in more detail.