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August 10, 2020

Royal Bank of Scotland report on jobs

Scottish labour market conditions remained challenging in July, with hiring activity continuing to contract substantially overall. That said, the pace of the downturn softened further, with permanent appointments and temporary billings falling at the slowest rates since February and January, respectively. Meanwhile, there was further downward pressure on pay, as the number of available candidates rose again amid ongoing job cuts. Permanent starting salaries fell rapidly during July, despite the rate of decline easing since June, while the reduction in temp wages was among the quickest on record.

Slower, but still marked, drop in permanent appointments

The seasonally adjusted Permanent Placements Index posted well below the crucial 50.0 neutral mark in July to signal a further marked drop in permanent staff appointments in Scotland. That said, the index made up a further 12.6 points from June and indicated the softest reduction since February. Some panellists reported that looser Covid-19 related restrictions had led more companies to reopen and resume hiring, but that the pandemic continued to suppress overall recruitment

A similar trend was observed at the UK level in July, where the decline in permanent placements also eased. The fall in Scotland continued to outpace that at the national level, however.

Latest survey data highlighted an eighth successive monthly reduction in temp billings across Scotland. The latest decline was the softest since January, albeit still sharp overall. Although there were still frequent mentions of delaying hiring decisions, some respondents noted that the easing of restrictions had led firms to take on additional short-term staff.

The fall in temp billings also eased at the UK level in July, with the overall reduction softer than that seen in Scotland.

Further substantial increase in permanent candidate availability

Recruiters in Scotland signalled a back-to-back monthly increase in the supply of permanent staff during July, with the rate of expansion remaining among the quickest on record, despite slowing from June. Panellists frequently associated the uptick to redundancies as a result of the coronavirus pandemic.

July data highlighted a further rise in the availability of temporary candidates in Scotland, extending the current sequence of increase to four months. According to respondents, further lay-offs and company closures resulted in a greater number of job seekers. Moreover, the rate of expansion was the quickest for over 11 years and marked, with growth in Scotland also outpacing that seen at the UK level.

Reduction in permanent starting salaries eases

A fourth successive monthly fall in salaries awarded to permanent new joiners was recorded in July as a greater number of available candidates continued to put downwards pressure on pay. The latest decline in starting salaries was the softest for three months, but still marked.

Recruitment consultancies across Scotland signalled a reduction in average hourly wage rates for short-term staff during July, extending the current sequence of decline to four months. Albeit still rapid, the rate of wage deflation was the softest since April.

Further marked drop in permanent vacancies

The seasonally adjusted Permanent Vacancies Index registered well below the neutral 50.0 mark in July and signalled a fifth successive monthly reduction in demand for permanent staff. The latest drop in vacancies was the softest since March, but marked nonetheless.

Scottish recruiters highlighted a fifth successive monthly reduction in temporary vacancies during July. That said, the rate of contraction softened further and was the slowest since March. Nonetheless, the reduction in Scotland again outpaced that recorded at the UK level.

Sebastian Burnside, chief economist at Royal Bank of Scotland, commented: “Latest survey data continue to highlight the immensely challenging conditions encompassing the Scottish labour market at present. Permanent appointments and temporary billings declined further, with the reductions remaining substantial despite easing.

“Although there were frequent mentions that looser restrictions around the Covid-19 pandemic had allowed businesses to reopen, substantial uncertainty and excess capacity is stifling firms’ appetite to take on additional staff. Where they do, feisty competition among candidates for roles is driving pay down further, as both permanent salaries and short-term wages declined markedly again.

“Overall, data are moving in the right direction, with signs that the labour market is edging towards stabilisation, but it is likely that it will take more time before any meaningful recovery takes place.”

Read the Royal Bank of Scotland Report on Jobs (PDF 1.8MB)

August 10, 2020

CII and university launch MBA in Islamic Finance

The Chartered Insurance Institute and Islamic Insurance Association of London have worked with the University of Bolton to launch an MBA in Islamic Finance (Executive).

This part-time two-year graduate degree focusses on management and commerce, with the aim of helping insurance professionals progress into senior positions in organisations that follow Islamic principles.

Applicants for the MBA need at least two years relevant work experience and a UK honours degree, postgraduate degree or equivalent.

The MBA will ensure professionals develop a comprehensive knowledge of methodologies and concepts of Islamic Law, and the application of legal principals within Islamic business transactions.

Students will be taught how to assess unique issues associated with Islamic financial products and operations, identify risk elements and mitigating techniques relating to Islamic banking.

A masters’ level dissertation must be submitted to achieve the MBA.

Max Taylor, chair of the Islamic Insurance Association of London, said: “We are extremely pleased to have played our part in the creation of this MBA, which will provide a recognised qualification in an ever more important area of the global risk and insurance profession.

“The Involvement of the University of Bolton and the Chartered Insurance Institute ensures this course will set the standard for a qualification which we believe will be recognised and valued by employers across the industry.

“We very much hope this will be seen as an attractive opportunity for students across the world to utilise the MBA in their efforts to pursue a career within Islamic insurance and it forms a significant part of the Islamic Insurance Association of London’s efforts to create the foundations for the establishment of sharia-compliant capacity within the London market.

“As the University’s partners in this MBA we will work with Professor Abdel Haq and his team to ensure that students have access to the expertise within the London market.”

Sian Fisher, CEO of the Chartered Insurance Institute, said: “Insurers need professionals who are well informed about the market, its challenges and opportunities if they are to succeed commercially by meeting the needs of new and diverse customers.”

“This qualification combines the specialist understanding of Islamic insurance and risk management with the core University of Bolton MBA suite of modules supporting critical business and leadership skills.

“Islamic insurance is of growing importance to the global insurance profession. An MBA focusing on this area would make a relevant and positive contribution.”

August 6, 2020

Finance job numbers down 61.2% compared to last year

According to the latest job market data from CV-Library, the UK’s leading independent job board, the amount of finance jobs being advertised fell by 61.2% in July, when comparing data with a year ago. Despite this, there were 25.7% more vacancies up for grabs than there were in June; suggesting that the job market is slowly picking back up.

The job board analysed data from its site throughout the month of July and compared the findings with data from July 2019 and June 2020 to build an understanding of how the UK job market is fairing right now.

It reveals that applications to these roles have increased by 17.9% year-on-year and 18.5% month-on-month; causing the application to job ratio to soar by a massive 204% since last year.

Lee Biggins, founder and CEO of CV-Library, comments on the findings: “Demand for jobs is still outstripping supply and this will be a trend that we’ll continue to see for some time. Naturally, the summer months tend to be a quieter time for both recruitment and job searching. However, the fact that our economy is struggling means there are less opportunities up for grabs than normal and more people looking for work; not an ideal combination.”

Interestingly, despite there being less jobs available, average pay actually rose by 5.5% year-on-year; from £35,532 in July 2019, to £37,484 in July 2020. Despite this, average salaries did drop 2.2% month-on-month.

Biggins continues: “While it’s a promising sign that salaries are higher than they were a year ago, the month-on-month dip in pay for new jobs does suggest that companies are starting to make difficult decisions about their workforce. Candidates may well expect to take a pay cut during an economic downturn, but be prepared to have difficult conversations with applicants who may be expecting more than you can offer right now.”

August 5, 2020

PwC encourages staff back into the office but finance teams across the UK do not want to return

On Monday, Kevin Ellis, chair of accountancy firm PwC – which has more than 22,000 staff across the UK – said he hopes to have around half of the company’s employees back at work by next month, according to the Sunday Times. Ellis said the age of presenteeism –  the fear of leaving your work desk  – has been annihilated by the pandemic as employees work from home.

This comes as last week, Barclays boss Jes Staley signalled that he wants employees working from home during the pandemic to return to the office ‘over time’. He told Bloomberg TV: “it is important to get people back together in physical concentrations.” City-based firms appear to not be sending the majority of their staff back into the office. Earlier this month, just 800 of Goldman Sachs’s 6,000 London staff have returned, while fewer than 2,000 of the 12,000 at JP Morgan are back.

Theta Financial Reporting, a consulting and accounting firm that promotes flexible working for highly qualified accountants, has released new research into the financial services and in-house finance teams and their return to work. It reveals that:

  • 26% of Brits say their company’s finance teams will not be returning to the office with other employees in August and will now work at home for the majority of the time
  • 24% of Brits say their employer hasn’t explored any flexible working options to help them or their colleagues return to work
  • 70% of City-based workers do not feel comfortable commuting to work via public transport anymore and think it will be one of the most stressful parts of their day
  • Over a third – 35% – of Brits say going back to work in a traditional office environment will have a negative impact on their mental health, which in turn will negatively affect their productivity
  • Nearly a fifth – 17% – of UK workers say their business will no longer be in a permanent office when they return to full-time work

This research shows Brits and their finance teams are not returning to work despite calls from the prime minister and business leaders to return to normality. With a quarter of Brits not being offered flexible working options to keep them safe and a third of workers saying returning to the office will impact their mental health, this period is pivotal to the survival and growth of the UK economy. Chris Biggs, managing director and founder of Theta Financial Reporting, commented:

“This research demonstrates the clear desire for people both in the Capital and finance teams not to return to their pre-Covid working environments, regardless of the calls from business leaders. Accountancy teams across the country have been getting on with their work in testing times through year-end and have demonstrated how well the vast majority of professionals can perform away from the office.

Many businesses have adapted to working away from the office and with so many people caring for vulnerable relatives, friends and children, it seems people do not want to return this month, despite the easing of lockdown restrictions. This will have a significant impact on how our workplaces will look beyond lockdown.

From the commute to boosted productivity when working from home, there are numerous benefits to flexible working that this period has uncovered for millions of employers and employees alike. Business leaders would do well to realise this and adapt now to pivot their business, remove unnecessary overheads and plan for a post-Covid future.”

August 4, 2020

Young people and adults to benefit from new training courses to help them gain jobs

Young people in the West Midlands will benefit from new one-year training courses at further education colleges and private providers to equip them with the skills needed to gain jobs, as the region recovers from the Covid-19 pandemic.

To support young people who may struggle to get a job or apprenticeship due to the impact of Covid-19, the WMCA is funding the training through its devolved adult education budget, thanks to an extra £5.3m from the Department for Education.

The WMCA is also using the money to set up sector-based work academies to help local employers with immediate and future vacancies by upskilling the unemployed to fill these jobs.

Through devolution, these new training courses, which will start in September, show how the WMCA is supporting local people in gaining qualifications, upskilling or retraining for new jobs.
Being responsive to the needs of regional and local businesses and working closely with employers also means the WMCA can provide young people with the skills required for employment, both now and in the future.

Andy Street, the Mayor of the West Midlands, said: “We know that young people are expected to be hardest hit by the economic fallout of the coronavirus pandemic and that many adults will sadly lose their jobs.
“It’s critical therefore that we support young people and adults back into work quickly by equipping them with the skills that local employers need.

“This extra funding from government will help do exactly that as it allows us to fund one-year training courses in high-value subjects and match local jobseekers with employers who are recruiting.”

The new one-year courses will give 18 and 19-year-olds the opportunity to gain qualifications at levels 2 and 3 to get jobs in growth sectors where there are vacancies, such as construction, health and care, and engineering.

Cllr George Duggins, leader of Coventry City Council and WMCA portfolio holder for productivity and skills, added: “Young people are our future and we must do everything we can to help them through this difficult time, especially if they haven’t gained the exam results they were hoping for. This additional funding is a welcome boost.

“I would also urge local employers who are recruiting to talk to their local Job Centre and find out more about sector-based work academies, which are a great way to get new talent into their business.”

Sector-based work academies last up to six weeks and comprise pre-employment training, a work experience placement and a guaranteed job interview.

To find out more about the training opportunities for young people being funded by the adult education budget, visit https://beta.wmca.org.uk/what-we-do/covid-19-support/online-resources/

August 4, 2020

Employers risk breaching regulations if impact of CJRS on pensions is misunderstood

Employers and trustees could be at risk of inadvertently breaching regulations if the Coronavirus Job Retention Scheme (CJRS) is not fully understood in the context of calculating pension contributions says RSM.

The leading audit, tax and consultancy firm urges trustees and employers to make sure they fully understand the implications of not getting the pension calculations correct for furloughed staff.

If contributions have been incorrectly deducted and not invested in members’ chosen funds, any unwinding at member level will be costly and complex. Any errors could lead to employers being faced with expensive remedial work to make sure members of the pension scheme have not been disadvantaged in any way.

Trustees could also be in breach of their statutory duties if contributions are not calculated and paid in line with the Payment or Contributions Schedule, and a report is required to The Pensions Regulator.

Karen Tasker, audit partner at RSM, said: ‘This will become a greater issue as the furlough scheme reaches its end, with reduction of the grant and flexi furloughing adding another layer of complexity.

‘This issue is particularly complex when it comes to salary sacrifice arrangements. Some employers may not appreciate that furlough pay should be based on post-sacrifice pay and this is what the government grant will be based on. HMRC has confirmed that the full grant should be paid in money to the employee and cannot be used towards benefits provided through salary sacrifice schemes, including pension contributions.’

Under the government grant, employers can only claim employer pension contributions based on statutory minimums. Legislation allows for 100% penalties for incorrect claims and recovery of overclaims from employers and directors.

Finally, any employer that has mistakenly taken a salary sacrifice off the furlough grant pay received from HMRC before it then paid the employee, needs to correct the position by 20 October for claims made before 22 July or within 90 days of any new furlough claim to avoid HMRC penalties, or any possible claims for unlawful deductions from wages

July 31, 2020

Job losses are expected to rise but how many businesses can afford the cost of redundancies?

As the Coronavirus Job Retention Scheme comes to end and short-term funding boosts run out, we are starting to see the inevitable – restructuring by companies as they look to downsize and align themselves to a post-Covid market.

With unemployment forecast to increase to around 9%, the question, is how many companies will actually be able to pay for redundancy termination payments? Yesterday’s government announcement, coming into force today, requires both statutory notice and statutory redundancy pay to be calculated disregarding any reduction in the amount payable as a result of an employee being furloughed, so costs will be more.

Lindsey Cooper, Restructuring Advisory LLP, RSM said: “No business wants to make redundancies and there are lots of options to explore before any decisions are made. However, the problem many companies could face is that there simply won’t be enough cash available to fund redundancy costs and borrowing for this purpose from mainstream lenders is unlikely to be a viable option.”

Carolyn Brown, employment legal partner, RSM said: “From today government has changed the law at under 24 hours’ notice. Statutory notice and statutory redundancy payments are to be calculated disregarding any reduction in the amount payable as a result of the employee being furloughed. This means that reduced pay rates agreed due to furlough do not apply to these payments. However, it is worth remembering that there is support for process costs where the redundancies have been planned for. We now have clarity from HMRC that CJRS grants can be used for wages during both collective and individual consultation as to redundancies. The CJRS scheme has also been updated so it can support either contractual or statutory notice periods which are served on furlough. It should also be possible for accrued holiday to be taken during a furlough leave period provided of course that furlough was not just for holiday. However, it cannot be used for pay in lieu of notice or to support redundancy termination payments.”

Redundancies termination payments can be expensive especially for a long serving workforce, and businesses could struggle to afford them. What other options are there?

Lindsey Cooper continued: “Businesses can consider the Company Voluntary Arrangement process which has been used extensively in the casual dining and retail sector and allows a business to restructure by effectively compromising its debts whilst enabling the directors to remain in control of the company. These debts can include the costs of redundancy which will be paid by the government. In addition, the government recently introduced new insolvency and corporate governance legislation which may assist in some circumstances. This includes a new Corporate Restructuring Plan (CRP), which has recently been used by Virgin.

“There is also the government Redundancy Payments Service (RPS) Loan for Financial Assistance (FA), in place for many years, but seldom used as cumbersome and slow. There is a strong argument for government to revisit the FA scheme for businesses which but for the costs of redundancy would be viable, as in the absence of a scheme to fund redundancy costs, then often the only alternative for companies is a formal insolvency where by default the government will pick up the redundancy costs in any event and in addition HMRC is likely to be a creditor for unpaid VAT, PAYE and NI.”

What options are available if a company cannot afford redundancy costs:

Redundancy Payments Service (RPS)
Companies can apply for financial support in the way of a loan via the RPS; however, this scheme is cumbersome in terms of information to be supplied and time consuming and will take upwards of 6 weeks for a decision. Often the only alternative is insolvency, leading HMRC to act as creditor for unpaid VAT, tax and National Insurance in addition to covering the redundancy costs.

Company Voluntary Process (CVA)
Businesses considering insolvency may opt for a Company Voluntary Process (CVA). In this case, creditor claims are compromised and, subject to the creditors’ and shareholders’ approval, the company continues to trade under the control of its directors, however, the rights of secured creditors cannot be affected without their consent.

Many in service sectors such as retail and casual dining are familiar with CVA as a means of dealing with landlords and leases. CVAs can also be a practical way to handle redundancy liabilities, as claims can be bound into the CVA, subject to 75% of creditors voting in favour of it. Whilst CVA’s can work very well, a CVA is a formal insolvency process, companies will often have to trade for up to 5 years within it. This can impact on working capital, credit rating, management and employee incentivisation. It can sometimes also prevent companies from winning new work, particularly within the public sector.

Corporate Restructuring Plan (CRP)
The government has recently enacted the Corporate Governance and Insolvency Act 2020 which includes a new Corporate Restructuring Plan (CRP). This is not an insolvency process; it is similar to the existing Companies Act Scheme of Arrangement. Under the new CRP, while 75% of creditors must vote in favour of it, the court has the power to sanction and bind creditors to it, even if they didn’t vote for it. Whilst the CRP won’t directly deal with redundancy claims of employees, by compromising its debts, it can enable the company to rebase its cost structure and therefore deal with the restructure of its employee base. This could be an attractive option for larger companies as it is not an insolvency process and the directors remain in control throughout.

Administration
This is where the business and assets are sold to a new entity, leaving the liabilities behind. However, in many cases, where there is a successful business and asset sale, the employees will transfer to this new entity under the Transfer of Undertakings Protection of Employment Regulations, or TUPE which involves their continuity of service being preserved. This can often put potential buyers off or impact on purchase prices, as they don’t want to risk incurring redundancy costs for these employees further down the line in this uncertain post-covid world. The government will not meet redundancy costs where TUPE applies.

Insolvent Liquidation
Here the business ceases and employee are made redundant. The Liquidator will look to realise the assets of the company and the government will pay the costs of redundancy (and other employment claims) up to the statutory limits.

July 30, 2020

First rail companies pledge £300,000 to boost apprenticeships

Two large employers are helping the region’s economy recover from COVID-19 by pledging £300,000 to the Apprenticeship Levy Transfer Fund set up by the West Midlands Combined Authority (WMCA) to boost jobs and skills at smaller businesses.

CrossCountry and Chiltern Railways, part of the Arriva group, one of the leading providers of passenger transport in Europe, are the first train operators to join the scheme.

The WMCA set up the Apprenticeship Levy Transfer Fund to cover the costs of training apprentices at small and medium-sized enterprises (SMEs) in the West Midlands and last month funded training for a record 232 apprentices across the region.

A total of 936 apprentices and 302 SMEs have now benefited from the fund, demonstrating the WMCA’s commitment to keeping levy money within the region, boosting skills, job opportunities and productivity by supporting more young people and adults of all ages into work.

Andy Street, the mayor of the West Midlands and former managing director of John Lewis, said: “It is absolutely critical that we do everything we can to support new job and training opportunities following the COVID-19 pandemic, which is set to see many people lose their jobs.

“Our Apprenticeship Levy Transfer Fund is a fantastic way to do this, as it allows smaller firms to hire apprenticeships and help train and skill them up, when normally they would not be able to afford to do so.
“But the success of this fund depends entirely on contributions from big employers in the region, so it is brilliant news that CrossCountry and Chiltern Railways have become the first train operating companies to join the scheme.

“I would urge more firms to come forward and pledge their unspent apprenticeship levy money, so we can create more apprenticeship opportunities in the region at a critical time for our local economy.”

Charged by HM Revenue and Customs on all businesses with a payroll of over £3m, the levy is held by the government for businesses across the country to utilise the funds to pay for apprenticeship training and assessment by bringing in new talent or plugging skills gaps with their staff. Any unspent levy is retained by the government after a two-year period.

The WMCA uses its strong local knowledge and relationships to identify large businesses which can donate unspent levy to SMEs through the Apprenticeship Levy Transfer Fund, covering 100% of their apprenticeship training and assessment costs.

Tom Joyner, managing director at CrossCountry, which has pledged £200,000, said: “We are delighted to be the first Midlands-based train operator to support this initiative.

“Birmingham is at the heart of our network, so it’s fantastic to be able to support apprenticeships in our home city, helping to develop skills and drive economic growth in the region.”

Mary Hewitt, interim managing director at Chiltern Railways, said: “Promoting skills and training is a top priority for our business. Chiltern Railways is committed to supporting our own people in apprenticeship roles across our business. We are proud to partner with the WMCA to offer the same opportunity to the employees of businesses across the region.”

Cllr George Duggins, WMCA portfolio holder for productivity and skills and leader of Coventry City Council, said: “As we recover from the COVID-19 shutdown, it’s vital that we support local SMEs to expand. Apprenticeships can now also be undertaken by staff who are on furlough.

“The Apprenticeship Levy Transfer Fund is a great way for young people and adults of all ages to gain new jobs and qualifications.

The WMCA is now calling on employers who may not have considered hiring apprentices to tap into the Apprenticeship Levy Transfer Fund. Large organisations are also being encouraged to get in touch to discuss transferring their unspent levy.

 

July 30, 2020

Barclays boss urges staff back to offices

Yesterday, Barclays boss Jes Staley signalled that he wants employees working from home during the pandemic to return to the office ‘over time’. He told Bloomberg TV: “it is important to get people back together in physical concentrations.”

He said 60,000 Barclays staff were working “from their kitchen tables”, but stressed that another 20,000 were in offices, branches and call centres. In April, Mr Staley had said big-city offices “may be a thing of the past”.

This comes as large, city-based firms appear to not be sending the majority of their staff back into the office. Earlier this month, just 800 of Goldman Sachs’s 6,000 London staff have returned, while fewer than 2,000 of the 12,000 at JP Morgan are back.

Theta Financial Reporting, a consulting and accounting firm that promotes flexible working for highly qualified accountants, has released new research into the financial services and in-house finance teams and their return to work. It reveals that:

  • 26% of Brits say their company’s finance teams will not be returning to the office with other employees in August and will now work at home for the majority of the time
  • 24% of Brits say their employer hasn’t explored any flexible working options to help them or their colleagues return to work
  • 70% of City-based workers do not feel comfortable commuting to work via public transport anymore and think it will be one of the most stressful parts of their day
  • Over a third – 35% – of Brits say going back to work in a traditional office environment will have a negative impact on their mental health, which in turn will negatively affect their productivity
  • Nearly a fifth – 17% – of UK workers say their business will no longer be in a permanent office when they return to full-time work

This research shows Brits and their finance teams are not returning to work despite calls from the prime minister and business leaders to return to normality. With a quarter of Brits not being offered flexible working options to keep them safe and a third of workers saying returning to the office will impact their mental health, this period is pivotal to the survival and growth of the UK economy.

Chris Biggs, managing director and founder of Theta Financial Reporting, commented:

“This research demonstrates the clear desire for people both in the capital and finance teams not to return to their pre-COVID working environments, regardless of the calls from business leaders.

Many businesses have adapted to working away from the office and with so many people caring for vulnerable relatives, friends and children, it seems people do not want to return in August, despite the easing of lockdown restrictions. This will have a significant impact on how our workplaces will look beyond lockdown.

From the commute to boosted productivity when working from home, there are numerous benefits to flexible working that this period has uncovered for millions of employers and employees alike. Business leaders would do well to realise this and adapt now to pivot their business, remove unnecessary overheads and plan for a post-COVID future.”

 

July 28, 2020

Aon report highlights gig worker needs and HRD expectations

A new report from Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, shows that gig workers are looking for a balance between stability and flexibility – but have yet to find it. The report, ‘Gig Economy: Financial Security or Greater Control’, examined the issues by asking views of gig workers and HR directors from across Europe, in order to help organisations better understand potential impacts of this growing workforce.

The research found that 26% of European HR directors believe that in five years’ time their workforces will comprise 51-75% gig workers, while 18% of UK HRDs believe 75% or more of their workforce will be made up of contractors over the same period.

The report was developed from 500 interviews with three groups of people: 200 HR directors, 150 B2B/white collar gig workers and 150 B2C/blue collar gig workers. They were interviewed from across France, Germany, Netherlands, Spain and the UK. Alongside the more traditional B2B gig workers, there has also been the emergence of B2C gig workers, who connect customers to products and services. Their employers include Amazon, Deliveroo and Airbnb.

The report found that:

  • 66% of gig workers say it is important to plan financially for the future as well as enjoying the present.
  • 64% say security and stability are important to them.
  • 54% are worried about their future and finances.

The research also found:

  • If they were offered an attractive health and benefits package 67% of gig workers would be more likely to recommend a company to friends as a good place to work.
  • Benefits also have the potential to make gig workers more effective at work – 67% would feel more engaged and positive towards the company they are working for if they were offered benefits, while 66% said they would feel more valued.
  • When asked about what was important when choosing a role as a contractor at one company over another, 73% of women and 66% of men stated they wanted a comprehensive package of benefits, including for example, income protection insurance, maternity/paternity pay and life insurance.
  • Convenience and location also rated higher for women at 73% compared to 59% for men. Women also rated flexible working hours more important to them than their male counterparts (74% vs 59%).

In the UK, gig workers are most keen on portable products – 40% would like a benefits package that easily transfers between different companies.

Andrew Cunningham, chief commercial officer, EMEA Health Solutions, Aon, said:

“If businesses want to continue to draw upon the responsive talents and skills of gig workers, they need a better understanding of the economic outlook that this group of workers will face in a post-COVID-19 world. The reality is, that the pandemic has already had a considerable impact on them. While some are operating our delivery services, food, transport and sanitation industries – and have proved to be vital to running our economies – the same can’t be said for white collar gig workers where the pandemic, in some cases, has been devastating for their work.

“Businesses should be concerned about their responsibility and duty of care towards their gig workforce. If we are to get the best out of people, gig workers and traditional employees need to be treated equally, regardless of their contracts. Both groups are likely to have similar concerns, financial pressures and commitments.”

Across Europe, 37% of B2B gig workers said the company for which they work the most currently provides benefit options, although just 24% of B2C workers said the same.

The top five benefits gig workers are currently offered are:

  • B2B – 24% training and development, 27% pension benefits, 27% sick pay, 24% paid holiday allowance, 23% employee discount.
  • B2C – 29% maternity/paternity pay, 25% training and development, 24% critical illness cover, 24% disability insurance, 24% private health/medical.

However, the benefits they would value most are:

  • B2B – 23% training and personal development opportunities, 23% sick pay, 19% income protection, 19% life insurance and 18% professional indemnity insurance.
  • B2C – 21% accidental death and disablement insurance, 19% income protection insurance, 19% training and personal development opportunities, 19% professional indemnity insurance, 19% public liability insurance.
  • 15% of both B2B and B2C gig workers would value paid holiday allowance and 14% would value pension benefits.

Matt Lawrence, chief broking officer, EMEA Health Solutions, Aon, said:

“The factors driving the exponential growth of the gig economy will force businesses to address frameworks and structures that have previously created a two-tier system within the workforce.

“More than two-thirds of gig workers said they would feel more engaged and positive towards the company they worked for if it offered an attractive health and benefits package. While legal and regulatory factors might play a part in an organisation’s thinking around benefit provision for gig workers, organisations can’t afford to have a blind spot when it comes to attracting talent as we look to the future.

 

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