The latest business Intelligence for HR professionals and people managers everywhere
Sign UpOnline Version
UK Edition
7th March 2025
 
THE HOT STORY
New work coaches aim to reduce welfare costs
Ministers are responding to potential welfare budget cuts by redeploying 1,000 work coaches to assist the long-term unemployed. The Department for Work and Pensions said that these coaches will provide "personalised and intensive" support to those on health-related benefits, aiming to help them with CV writing and interview techniques. However, the Resolution Foundation says that only about 3% of those likely to lose benefits will find employment. The DWP acknowledged that the current system is "defined by poor experiences and low trust" among users, with 2.8m people economically inactive due to long-term sickness.
LEGAL
Soames questions workers' rights bill
Rupert Soames, president of the Confederation of British Industry and chairman of Smith & Nephew, has voiced concern that the government's employment reforms are "highly damaging" to companies' willingness to invest and hire. Despite recent amendments to the legislation, Soames believes the Employment Rights Bill will deter both domestic and foreign businesses from expanding their workforce in the UK. He has also highlighted that the reforms come amid significant increases in employment costs, including changes to employers' National Insurance and the living wage, as well as increases in business rates and taxes on the "intergenerational transfers of business assets." These factors, he said, are "deeply damaging to investment and growth," adding that government estimates suggest they will add £5bn to companies' costs.
Union deals will give UK employers wriggle room on zero-hours jobs
Employers will be able to sidestep obligations to offer staff guaranteed working hours and pay if they have a deal in place with a union, under new workers’ rights legislation.
WORKFORCE
Blunkett backs conditional disability benefits
Labour grandee Lord Blunkett has endorsed a report from the Policy Exchange thinktank advocating for conditional disability benefits for individuals aged 16 to 30. The proposal suggests that young people should be required to work, volunteer, or engage in training to maintain their personal independence payment. The cost of disability benefits has surged from £40bn pre-pandemic to £65bn last year, prompting calls for clearer requirements and improved support for those seeking assistance. Meanwhile, work and pensions secretary Liz Kendall has told the Guardian that helping more people back into a job is the best way to cut the benefits bill. The Department for Work and Pensions is due to publish a green paper on welfare reform in the coming days, in advance of Chancellor Rachel Reeves's statement on 26 March.
REMUNERATION
John Lewis and Currys boost pay
John Lewis Partnership and Currys have both announced significant pay rises for their employees. John Lewis is investing £114m in a 7.4% increase for 65,000 workers, while Currys is allocating £8m for a 6% rise for 15,000 staff. Other retailers, including Marks & Spencer and Sainsbury's, have also announced above-inflation pay rises, reflecting a broader trend in the retail sector. The Bank of England is closely monitoring wage settlements, particularly in light of the upcoming 6.7% increase in the national minimum wage to £12.21.
HIRING
Recruiters see profits slide as jobs market slows
Profits at recruitment firms PageGroup and Robert Walters have declined due to a stagnant hiring market. PageGroup's revenues fell by 13.5% to £1.74bn, with pre-tax profits slipping to £49.1m from £117.4m. Similarly, Robert Walters reported a 16% drop in revenues to £892.1m, with profits down 98% to £0.5m. The downturn is attributed to geopolitical uncertainties and a lack of substantial pay increases, leading both companies to reduce their workforce by 20%. Robert Walters CEO Toby Fowlston said it remains “uncertain when a sustained improvement” in the jobs market might arise.
STRATEGY
Schroders looks to cut costs
Schroders is set to cut £150m from its cost base as part of a turnaround strategy led by new CEO Richard Oldfield. The London-based asset manager has already seen 200 employees leave in the past two months and anticipates further reductions by year-end. The firm has earmarked £200m for a three-year transformation plan, which includes severance costs and investment in labour-saving technology. Additionally, Schroders plans to expand its private markets arm, targeting £20bn in new business over three years.
Lloyds shifts skilled IT jobs from UK to India
Lloyds Banking Group is hiring hundreds of IT engineers in India, to be based in a tech centre in Hyderabad, while planning to cut hundreds of similar jobs in the UK.
DIVERSITY, EQUITY & INCLUSION
Special Report : Women in Business
A series of Women in Business-themed reports in the FT consider issues including: how women and men share home and work duties, and why having a baby remains a career obstacle.
WORKPLACE
Drax whistleblower sacked over unsustainable wood claims
Power company Drax has been accused of dismissing an employee after she raised concerns about the company's wood sourcing practices. A tribunal heard that while Drax commissioned a KPMG investigation into its wood sustainability, Rowaa Ahmar was instructed not to share interim findings that indicated the use of unsustainable wood and suggested that the firm misreported data to regulator Ofgem. While Drax has maintained that it uses wood from sustainable sources, it last year agreed to pay £25m after Ofgem found that it had submitted inaccurate data on the sources of biomass from Canada.
Professor alleged sexual assault after female colleague 'patted his bottom'
A professor at Birmingham University accused a female colleague of sexual assault after she patted him on the bottom and asked, "How are you, chuck?" Dr Peter Lee alleged that the behaviour of the colleague, referred to in court as Ms X, constituted "sexual grooming, sexual harassment and sexual assault" and sought £500,000 in damages after his complaints were dismissed. However, the tribunal found no evidence to support his claims, saying that Dr Lee was "unable to 'agree to disagree'" with the university's handling of the situation. Employment Judge Christopher Camp noted that the evidence did not support Dr Lee's allegations, and there was no indication he was treated differently than a woman would have been in a similar case. The tribunal concluded that the messages exchanged between Dr Lee and Ms X were "jocular" and could be interpreted as mildly sexual.
INTERNATIONAL
Boeing needs to change its insular culture, CEO says
Boeing CEO Kelly Ortberg has said the company needs a more open culture where staff are encouraged to speak up and communicate across divisions, according to a transcript of a meeting seen by Reuters. "We're very insular" and "we don't communicate across boundaries," Ortberg said in the webcast from St. Louis, Missouri, the headquarters of Boeing's defence and space division, adding that the company's teams "don't work with each other as well as we could . . . And the power of the Boeing Company is in us all kind of rowing the boat together." He said cultural change would boost morale, and "the results will show in the marketplace."
Australian retail workers embrace four-day work week
The four-day work week is gaining traction in Australia's retail sector, with companies like Ikea and Bunnings leading the way. Ruth Tan, a retail worker, shared her positive experience, saying: "It's great — it allows me to plan my 'me time' and lots of activities outside of work." The Australian Retailers' Association (ARA) has proposed a flexible four-day work week for all retail workers, but concerns have been raised about the lack of overtime pay for longer shifts. Chris Wright from Sydney University's business school cautioned that the ARA's proposal could erode worker conditions, saying: "This is a misrepresentation of the four-day work week."
OTHER
Foreign student enrolment plummets
The number of foreign students enrolling in higher education courses in England has decreased by 11% this year in the wake of stricter visa regulations. According to the Office for Students, there were approximately 306,000 new overseas entrants, and the annual Higher Education Students Early Statistics survey also revealed a 17% drop in overseas master's degree recruitment. This decline is attributed to the ban on students in taught master's courses bringing dependents into the UK. Universities such as Lincoln, Bedfordshire, and Kingston University have reported significant enrollment falls, with Kingston planning to close its humanities department, which includes English literature and modern languages. UCU, the lecturers' union, noted that 5,000 job cuts have been announced this academic year.
 


The Human Times is designed to help you stay ahead, spark ideas and support innovation, learning and development in your organisation.

The links under articles indicate original news sources. Some links lead directly to the source material. Others lead to paywalls where you may need a subscription. A third category are restricted by copyright rules.

For reaction and insights on any stories covered in the Human Times, join the discussion by becoming a member of our LinkedIn Group or Business Page, or follow us on Twitter.
Follow us on FacebookFollow us on XFollow us on Linkedin

This e-mail has been sent to [[EMAIL_TO]]

Click here to unsubscribe