Employment Law News Roundup – 27.4.23

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Poor Productivity: Managers Waste 7 Working Days On Admin

New research conducted by CM.com has found that on average, managers in the UK are wasting 7 working days per annum dealing with general administrative and procedural queries. The findings come at a time when the UK is lagging well behind its main competitors in terms of productivity

Low Productivity

The UK has had a long standing problem with skills shortages, low productivity, and a lack of investment in skills and training, which go back many years. Over the last 2 decades, that problem has been masked by the availability of EU workers under the free movement rules. However, with the ending of free movement under Brexit, the problems arising out of the lack of investment in skills and training by employers has returned. Indeed, the problem has been aggravated further by the large numbers of over 50's retiring early during the Covid-19 pandemic, which have added to the labour shortages caused by the ending of free movement

Investment Critical

Kirstie Donnelly, the Chief Executive Officer at City & Guilds Group, points out: “low productivity and growing skills gaps are plaguing businesses and the wider economy. When compared with our G7 counterparts, the UK’s low levels of productivity see us lagging well behind…The government has recently announced far stricter caps on immigration and told employers that the new points-based system will not allow them to fill job roles as free movement has enabled them to in the past. Clearly investing in training is now even more critical and the stakes are higher.“

UK Lags Behind Competitors

Hence, it is particularly concerning that UK managers are wasting as much as 7 working days per annum on average dealing with general admin and procedural queries. The time spent dealing with this problem could be brought right down with the right training and through investment in the right technology. This issue has been quite simply been caused by UK employers looking to do things on the cheap by investing in neither. Since 2008, for instance, the UK's productivity growth has averaged just 0.27% per annum. That compares to 1% in the United States, and 0.7% in Germany.

Other Findings

The CM.com research also found the following:-

  • 24% of the managers interviewed stated that having to deal with admin /procedural queries heightened their stress levels
  • 32% of the respondents had to make up for the time lost dealing with admin / procedural queries through overtime
  • 40% of respondents feel that procedures for addressing queries require improvement
  • 85% of employees are of the view that the required information on general procedures is not readily accessible, while 24% believe that more clarity is required in terms of where to acquire the information
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Reaction

Commenting upon the findings, the Country Manager (UK & Ireland) at CM.com, James Matthews, states: "The ongoing productivity crisis is causing problems for businesses across the UK – and managers are currently being placed under unnecessary stress because of outdated and inefficient internal processes. Not only does this have a negative impact on their mental health and wellbeing, but clunky processes make working life more frustrating for all employees and have an adverse effect on productivity and job satisfaction."

Almost Half Of Employees Have Been Victim Of A Payday Error

New research just released by Caxton has revealed that 47% of employees have at some point been the victim of a payday error by their employer. In terms of the potential consequences, if the error were a serious enough one, 33% of the respondents stated that they would be unable to pay their bills, 32% unable to pay their mortgage, and 29% would be pushed into using their overdraft.

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Reaction

Commenting upon the findings, the CEO of Caxton, Rupert Lee-Browne, stated: "This research truly exposes the deep impact that archaic approaches to employee pay are having on both the payroll professionals and staff. There is an opportunity for businesses, if they make payroll part of their digital transformation journey, to deliver dynamic new ways to support the financial health and wellbeing of their most important asset – their people."

Last Updated:  Thursday, April 27, 2023

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