Author: Melanie
Blue Tree HR Newsletter January 2025
An introduction to salary benchmarking
What is Salary Benchmarking?
Salary benchmarking is a data-gathering exercise that allows you to compare your compensation packages against other companies.
What’s the goal of salary benchmarking?
To ensure that your company is offering competitive and equal pay – helping you to attract and retain your people and keep them engaged and happy.
What are the benefits of salary benchmarking?
• Competitive salaries help to attract top talent and reduce employee turnover.
• Fair and competitive compensation can lead to higher job satisfaction and employee morale.
• Standardising compensation can help you to manage your budgets more effectively.
• Salary benchmarking is often a legal requirement.
Are you legally required to benchmark your salaries?
If you have more than 250 employees, you are legally required to publish gender pay gap reports under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.
There is no legal requirement if you have less than 250 employees.
However, several laws and regulations effectively encourage or necessitate aspects of salary benchmarking to ensure compliance and promote fair pay practices.
As an expert HR consultant, we advise you to use salary benchmarking, because it helps you in many different ways and creates a framework for you to use when compensating your existing and future employees.
The importance of treating employees fairly for engagement…
As an employer, you will know that treating people fairly and equitably is one of the foundation stones of engagement.
You’ll also know that if you don’t reward people adequately, they will find somewhere else that will.
We remain in a candidate-driven market and our businesses are trying to balance the cost of living (which is outside of our control) with the affordability and retention of talent.
Worried about salary transparency?
You might fear a wave of salary increase requests once employees see their pay ranges. While managing this will require some effort, it offers long-term benefits.
Engaging managers in the pay process, and giving them authority to recruit within pay scales, can empower them and improve their budget management and performance discussions.
Senior leaders may resist this shift, but younger workers expect transparency and fairness. Companies that don’t adapt risk falling behind the evolving workforce’s expectations.
Getting salary benchmarking right is really important…
Pay is an important topic, especially when you’re taking strategic strides and implementing new policies.
Therefore, if you are not equipped with the experience to undertake the project, you’ll be wise to call upon expert help to support you.
To summarise…
In summary, progressive employers are more attractive, and being progressive and appealing to an emerging workforce means being transparent about how you do things and make your decisions.
Engaging with a third-party reward consultant can offer an unbiased view, access to expensive but reliable data and the confidence to structure a meaningful remuneration strategy that ensures that your people (including you) are treated fairly.
Contact us today
Please get in touch if you’d like a confidential chat about salary benchmarking, our process and how we can help.
Email us on info@bluetreehr.uk
Blue Tree HR Newsletter November 2024
Blue Tree HR Newsletter October 2024
How unconscious bias can affect employee engagement and retention
How unconscious bias can affect employee engagement and retention
While most of us have heard the term ‘unconscious bias’, it’s easy to dismiss it as something that affects others and not us.
The reality is that unconscious bias affects everyone to some degree. Described as a ‘hidden flaw’, evidence suggests that, regardless of our role or position at work, everyone can think in a way that involves hidden prejudices at some point – without realising it.
For business leaders, recognising and addressing our unconscious bias is crucial, so that it doesn’t influence our behaviour and decisions at work.
Left unchecked, unconscious bias stops you from developing an inclusive and open-minded company culture; it compromises integrity, inhibits a diverse workforce and hinders career progression.
Before we delve any further, let’s take a look at the definition of unconscious bias and the different forms it can take.
What is Unconscious Bias
According to Imperial College London, unconscious (or implicit) bias is “a term that describes the associations we hold, outside our conscious awareness and control”. It also says that it is ”…triggered by our brain automatically making quick judgments and assessments”. These associations can be influenced by a whole range of factors, including personal experiences, our own background and cultural contexts.
Contrary to popular belief, it is not exclusively reserved for gender or ethnicity, for example. Height, names, even our choice of sport, can automatically trigger mental shortcuts that our brains use to unleash unconscious bias.
What are the types of unconscious bias?
Hidden prejudices can manifest themselves in different ways and in different workplace scenarios, including:
- Affinity Bias: Our unconscious human tendency to stay in our comfort zone and lean towards other people with similar backgrounds, interests and beliefs as us.
- Confirmation Bias: When we actively seek out evidence about a candidate that confirms why we like them; or, if we don’t like an applicant, selectively look for the reasons that prove we’re right.
- Cultural Bias: When we judge a person or a group by the standards fundamental to our own culture.
- Gender Bias: Prejudicing an individual based on their gender and perpetuating stereotypes, i.e., calling a woman ‘bossy’ for showing ambition while describing a man as ‘focused’.
Why does it matter?
Put simply, unconscious bias can impact our perception of, and interaction with, others. Not only is this harmful for your ED&I efforts, but it can have a detrimental impact on your overall business success. It can influence key business decisions and create inequality in areas such as recruitment, performance management and career progression.
So, as business leaders, what happens when we let our unconscious biases come to the surface:
Our hiring practices are biased
Recruitment is the pipeline for new types of people into your business. However, if we only hire people we like, or we believe are the right ‘fit’, then our organisation becomes homogeneous and we miss out on a broader, more diverse talent pool. Also, if your adverts or job descriptions use gendered language, or if you’re advertising on social media only, you may be excluding certain groups.
Our judgement is clouded during performance management
Unconscious bias could impact how managers approach performance reviews and feedback in their teams; for example, they could unfairly inflate, or deflate, ratings during appraisal season, and impact pay rise or disciplinary actions. If someone feels overlooked, and you’re not giving the people a chance when they deserve it, then you might have a flight risk – or an employment tribunal claim.
We promote the wrong people
Our promotion decisions become misguided if we fail to give someone an opportunity because we ascribe certain characteristics to them that they don’t necessarily have, rather than base our decision on merit. This also means we can favour someone unfairly because we think they have positive characteristics, again that they don’t necessarily hold.
We repel top talent
Attracting top talent into your organisation will drive creativity and innovation, bring in a ton of new ideas and enhance your brand image – and you are building your future leaders. But, if you don’t offer, in return, a business with a diverse and inclusive workforce that’s bursting with a broad range of perspectives, backgrounds and experiences, then you’ll push that talent away in droves.
Our engagement plummets
Unconscious bias is a contributing factor to a spike in turnover and a drop in retention rates. If people don’t feel they’re being treated fairly, that their contributions are not being valued, and they feel excluded and isolated, it will lower their engagement. Disengagement could soon lead to their departure.
Unconscious bias can’t be erased overnight and it’s an ongoing, continual process of elimination. However, not only facing up to but actively moving past our unconscious biases and building an awareness of our thinking patterns can make us better leaders.
HR leaders and business owners bear a responsibility to make a difference through their behaviours and attitudes, by fostering a culture where people feel included, are treated fairly and are valued for who they are.
For more information or HR support in your workplace please get in touch.
Blue Tree HR Newsletter June 2024
Everything you need to know about menopause in the workplace
Experiencing menopause at work can be challenging for a number of reasons, and the physiological and psychological symptoms of menopause can vary greatly from person to person.
While menopause isn’t explicitly a protected characteristic under the Equality Act 2020, a recent landmark employment tribunal case (Mrs M Lynskey v Direct Line Insurance) found that menopause symptoms can, in fact, be considered a disability if they have a long-term and substantial impact on a woman’s ability to carry out normal day-to-day activities.
A key takeaway from the case is that it may be possible to discriminate against employees experiencing menopause symptoms, by refusing to make reasonable adjustments and by penalising them for poor performance.
The ET ruled that the employer failed to make reasonable adjustments for Mrs Lynskey’s menopausal symptoms – namely: low mood, anxiety, mood swings, poor self-esteem and impact on memory and concentration – and that these symptoms were legally classed as a disability. This led to unfavourable treatment and her resignation.
Case Summary
- The employee joined Direct Line in 2016 and had performed well for four years. However, in 2019, she began to experience menopausal symptoms, including poor concentration and memory issues and was also frequently tearful.
- After initial support, in 2020 she was transferred to a lower paid role, rather than reasonable adjustments being made to her existing role. She struggled with the new job, including difficulty with accessing computer systems, experiencing ‘brain fog’ and struggling for words.
- In 2021, she was told she would not receive a pay rise and her performance was criticised, wrongly attributed to low confidence.
- Subsequently, she was placed on a formal performance-improvement and, although she had repeatedly mentioned her menopausal symptoms, her manager claimed there were no mitigating reasons for her performance.
- She resigned the next year, claiming against Direct Line for unfavourable treatment and lack of reasonable adjustments.
Menopause Policy
Therefore, it is crucial to build an inclusive culture that encourages open discussion about the menopause, along with a supportive environment both in the office and when working at home. Having a menopause policy that educates, informs and helps people show understanding to their colleagues, without awkwardness or embarrassment, is a great place to start.
Our latest guide covers everything you need to know about these changes.
Get in touch for your FREE copy.
Easing the Work-Life load for Deliveroo drivers
Deliveroo has launched two exciting new initiatives to lend a helping hand to its rider community, free and flexible childcare hours and a new education and skills programme.
The partnership with childcare app Bubble offers 15 hours of free childcare to 1,000 riders, allowing them to work flexibly and effectively juggle caring responsibilities with busy schedules. Deliveroo is also teaming up with Lynx Educate to give riders and their families access to over 1,500 educational courses, including languages, data and business management, and sponsoring 100 riders to pursue higher qualification certificates.
These strategies form part of Deliveroo’s ongoing commitment to support rider growth, development and wellbeing, and deliver the kind of benefits that facilitate a good work-life balance. We hope this positive step inspires other leading market giants to consider the best ways to foster a supportive and inclusive environment for their workforce, ease the work-life burden and recognise the importance of career and skills advancement.
https://hrreview.co.uk/hr-news/diversity-news/deliveroo-offers-free-childcare-hours-to-riders/374848
A pain in the neck (and back) for UK Workers
Did you know that, since 2019, the number of cases of neck and back problems causing economic inactivity in the UK has risen by an astonishing 28%?
As highlighted in a recent report by health and safety experts, Blue Trolley, back problems are causing rising economic inactivity across the UK due to long-term sickness. Worryingly, lower-paid employees are particularly vulnerable as they are taking longer periods of sick leave for back issues.
This raises serious concerns about the impact on both individuals and the economy, and shines a light on the need for employers to take preventative and urgent action.
Blue Trolley has provided some valuable guidance for employees and employers to prevent long-term back issues. This includes highlighting the risks associated with work through health and safety training and risk assessments, maintaining good posture and using the right equipment to safely handle heavy goods, taking regular breaks and having a healthy lifestyle. Early intervention and a proactive approach to workplace safety is crucial in mitigating the long-term consequences of back problems in the workforce.
https://hrreview.co.uk/hr-news/28-rise-in-long-term-sickness-from-back-problems/374730
Businesses are increasingly relying on contractors to guide them through the uncertainty of the current economic landscape. Recent findings from specialist recruiters, Robert Walters, reveal that 32% of employers intend to ramp up their hiring of contractors in 2024, attracted by the benefits of flexibility, specialist expertise and cost savings.
Although some challenges persist, the shift towards contracting shows that employers are taking a pragmatic approach to remain competitive and resilient in the face of rapid change.
https://hrreview.co.uk/hr-news/recruitment/1-in-3-employers-lean-towards-hiring-contractors-in-2024/374790
How to celebrate Pride Month without corporate “rainbow washing”
Observed during the month of June, Pride Month is an annual celebration across the globe that celebrates the resilience, diversity and contributions shown by LGBTQ+ communities every day of the year. For employers, it’s an important event and sends a clear message that your organisation is an inclusive place to work where everyone feels valued and respected.
While Pride is notably marked with colourful outdoor parades and marches, displaying a rainbow flag or simply changing your logo could lead to accusations of “rainbow washing”.
This is a term to describe making superficial gestures without authentically showing commitment to LGBTQ+ rights and equality in practice. It can be seen as piggybacking an awareness month, which could lead to anger and disengagement, and it’s also harmful as it detracts from the true meaning of Pride – a protest against discrimination.
Here’s some suggestions for how to meaningfully celebrate Pride Month, avoid backlash and ensure that your efforts during this month can make a positive and lasting impact for your LGBTQ+ colleagues.
- Commit to year-round inclusion. Show a consistent approach by reviewing your policies, initiatives and company benefits to ensure they are fully inclusive.
- Get people involved. Creating, or elevating, your LGBTQ+ Employee Resource Group can transform the experiences of LGBTQ+ people at work. An ERG can provide useful peer-to-peer support, raise awareness and ensure accountability.
- Educate and raise awareness. Consider hosting inclusion workshops with an external LGBTQ+ advocate/expert, or webinars and events that cover the history of the LGBTQ+ movement, to engage and inform people.
- Share stories and realities – Invite colleagues to share their stories and experiences that provide first-hand accounts from a range of LGBTQ+ voices. Allies can then help spread the word that diversity is celebrated by your business.
- Listen to your employees. Avoid falling into the trap of second-guessing what people want. Speaking to your employees – both LGBTQ+ and non-LGBTQ+ – about what inclusion looks like in your business will help ensure your strategy is right and help get people on board with your vision.
If you feel you’ve fallen short, don’t worry! Use Pride Month as an opportunity to pledge your commitment to being a more inclusive workplace.
Adopting these strategies will demonstrate to your organisation that LGBTQ+ inclusion takes place not just during Pride month, but every day of the year.
Q&A
Can I request evidence from an employee requesting statutory carer’s leave?
Put simply, no! The Carer’s Leave Regulations 2024 prohibit employers from requiring an employee to provide evidence to support their request for carer’s leave. Employees do not need to provide proof of their dependents’ care requirements.
If an employee clocks in 10 minutes late, can I make a deduction from their pay?
If it is specifically agreed in the employment contract, you may be able to deduct pay for lateness. However, before any action is considered it’s important to be fair and reasonable; explore the reasons for the lateness with the individual first (i.e. a family emergency) and always follow your own policies.
Can I demote an employee as a result of a disciplinary?
Depending on the reason, a demotion could be an outcome and a reasonable alternative to dismissal, if a contract clause permits this. However, it’s crucial to follow both a fair disciplinary procedure and your company policies to the letter. Always consult with the individual, obtain their agreement and only consider demotion if it’s proportionate to the findings of a full investigation. If justified, a performance improvement may be a suitable option.
Mental Health Support For Employees
HR Investigations
Watch our short video which outlines the process for workplace investigations.
If you need any support during a workplace investigation please get in touch.
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