• Payroll processes are changing. See how recruiters have been told to prepare.
• The national minimum wage has increased. We evaluate its significance to the British workforce.
• Female graduates expect to earn less than men. But why?
• We have found your dream job. Spoiler: it involves travelling and eating.
Employment Rights Act update: Recruiters told to prepare
New payslip rules could catch out unprepared recruiters.
New payslip rules which come into effect this weekend could land recruiters in trouble, experts have warned.
Two new amendments to the Employment Rights Act (1996) will impact the way employers must handle payslips in future. The changes will also increase the scope of which employees will fall under the new regulations.
Extending the Payroll Rules
From April 6th, employers will be expected to issue accurate written, electronic, or printed payslips for all personnel – including those on zero-hours contacts, and agency workers. For the time being, self-employed staff will continue to fall outside of the changes to the laws.
This is unlikely to create too many changes to payroll procedure in itself. Most organisations already issue some form of payslip. But for the first time, the new terms will also require payslips to provide a detailed breakdown of hours worked. This is an additional requirement that will be new to many employers.
These latest amendments to the Employment Rights Act are an attempt to bring greater clarity to the complex subject of employee pay. Rosalind Elsmore, payroll manager at financial advisors Kreston Reeves commented on the new rules:
“It is believed to be part of a wider move by the government to give individual employees more information and a right to know exactly what they are being paid for. It will clearly highlight where employers are failing to meet the minimum wage.”
What recruiters need to know
It means that agencies must take heed of the changes, and ensure they have the correct tools to carry out new payroll obligations. Agencies who place temporary workers should consider whether their software and recruitment solutions offer the necessary functionality under the new rules. For example, pay slips are a lower priority feature for most recruitment CRM.
• Read more: Is recruitment software the same as HR software? We explain the differences.
Automated reporting may help solve some of the new payslip obligations. But there will be difficulties for businesses that do not already keep records of employees’ hours worked. For these organisations, experts say that introducing some form of time log should be the top priority. Without this data, businesses will struggle to issue compliant payslips.
In 2018, eight recruitment firms were found to have failed meeting national minimum wage obligations for their staff.
Low-paid workers see earnings increase
4 million workers will earn more from April, the government has announced.
The government has introduced a five per cent (5%) increase to the national minimum wage.
Both the national minimum wage and national living wage will see a rise. It means that around four million low paid workers will take home more pay from the start of this month.
The national minimum wage (NMW) now stands at £6.15 an hour for a young adult worker. 16 and 17 year olds can still receive a lower rate, which goes up to £4.35 per hour. The minimum salary for a worker on an apprenticeship scheme will be set at £3.90 an hour.
Workers over the age of 25 receive the national living wage (NLW), instead. From April 1st 2019, their pay packets will go up to £8.21 per hour.
National Living Wage
• 25 year old+: £8.21/hour.
>National Minimum Wages
• 21-24 year old: £7.70/hour.
• 18-20-year-old: £6.15/hour.
• 16-17 year old: £4.35/hour.
• Apprentice rate: £3.90/hour.
20 Years of a minimum wage: impact and changes
The pay increase will be a significant one for low earners. But it is also an indication of the changing salary structure of Britain’s workforce. The NMW is a greater presence in the fortunes of recruitment and employment in the UK than ever.
On the one hand, minimum wages have increased faster than the UK average, since being introduced in 1999. During that time, the NMW has risen by 50 per cent. Average wages have increased by only 15 per cent in the same time.
On the other hand, a larger portion of the UK workforce is now on minimum salary than at any time in the nation’s history. Approximately four million people will be positively impacted by this month’s earnings increase.
However, campaign groups have suggested that the increase still falls short of a real-terms living wage. The Living Wage Foundation charity says that its own research finds a real living wage in Britain is currently £9 an hour. In London, the figure stands at £10.55.
Graduate expectations show gender pay disparity
New study finds that female graduates expect to earn less than men.
Female graduates’ wage expectations are £4,000 lower than male graduates’, a new study has learned.
The survey conducted by Bright Network found that female graduates expected a starting salary of £25,900. Male graduates aimed for £29,700 in their first roles. The “What Do Graduates Want?” study also discovered that pay expectations become less equal as time progresses. When asked about their salary goals after five years in full time employment, mens’ expectations (£54,200) were a staggering £12,000 higher than womens’ (£42,400).
Graduate recruitment is a fiercely competitive corner of the UK recruiting industry. In the increasingly lean market, with skills in short supply, agencies compete to win top talent. Yet expectations on the other side of the market still reveal doubts on the part of graduates on whether they will secure a suitable position.
70 per cent of male graduates believed they would secure a role which suited their expertise. But just 50 per cent of female graduates thought that they would find a vacancy that matched their qualifications.
The Bright Network organisation holds events and programmes aimed at bringing graduate recruits into the jobs market. Its founder, James Uffindell, said employers should become more aware of pay disparity at the earliest stages of recruits’ careers. “It will take time but addressing the foundation of this issue will have a positive knock-on effect for the future”, he said.
Eat your way around the world with this dream job
If you enjoy travelling and eating then here’s the job for you.
We always like to find those “dream job” types of post. Here’s one for anybody who loves travelling and eating (that’s everyone then, right?).
The Vibrant Vegan Co is currently advertising a vacancy for its new Director of Taste. The role, which comes with a £50,000 salary and travel expenses, requires a globe-trotting candidate to test new food for the brand.
Duties will include a 35 hour week; extensive international travel – sometimes for up to four months at a time; and a smart business mind. The new recruit will be expected to set up global partnerships for the brand along the way. Perks of the job include full sick pay and 28 days’ holiday. Although it’s unlikely you would be able to tell the difference.
But the company says that the position will not be a holiday for the winning candidate. The job requires food industry experience, a rigorous screening process, and an in-house taste test assessment.
Vibrant Vegan says that, although their products are all plant based, applicants do not need to be a vegan to be successful. Founder Iain Burke-Hamilton said “I don’t think we’ve ever recruited for a job this exciting before. This is a very unique and rewarding job but despite its extensive perks we acknowledge it’s also very demanding.”
Sounds like your sort of job? You can apply top be an international eater here.