FIRMS MAKE FAMILY FRIENDLY POLICIES A REALITY - BUT NEW EMPLOYMENT LEGISLATION HAVING NEGATIVE IMPACT ON BUSINESS
- CBI publishes latest employment trends survey -
Employers are devoting a great deal of time and energy to ensuring that the right to request flexible working is resulting in more flexible work patterns for thousands of employees.
This is one of the key findings from this year's CBI - Pertemps Employment Trends Survey 2005, published today (Monday).
Since the implementation of the Employment Act in 2003, employers have accepted requests to work more flexibly in 90 per cent of cases. A great variety of flexible patterns are available. Eighty-five per cent of firms surveyed offer part-time working, 39 per cent flexi-time and 35 per cent job sharing. A third (35 per cent) offer at least three different employment choices.
But despite the high rate of acceptance - only 10 per cent are refused - there are limits to the number of requests that can be accommodated. The proportion reporting that the right to request is having a negative impact on their business has risen from 11 per cent to 26 per cent - whilst numbers reporting a positive impact has fallen since last year's survey.
The survey highlights growing signs of the cumulative impact this and other new employment legislation, introduced since 2000, is having on employers. Over three quarters of all firms reported spending an increasing amount of time dealing with related administration, and just under 60 per cent reported that valuable senior management time was being diverted to compliance.
Commenting on these findings Deputy Director-General John Cridland said:
"Companies have made great strides during the last 18 months to make a reality of the Government's family friendly policies. But this survey provides a disturbing insight into the impact that new employment legislation is having which a Government committed to better regulation must heed.
"Companies still need to get the job done. The temptation to overwhelm them with unjustified employment law, just to placate the trade union movement, must be resisted."
The survey also shows that since April this year, employers have been rising to the challenge of informing and consulting employees. They use a range of methods to communicate with staff but 87 per cent still prefer to use direct means like regular team meetings rather than staff councils (42 per cent) or through trade unions (42 per cent).
Those companies that have union representation generally report that relationships are working well, especially with union workplace representatives focused on increased productivity, winning new contracts and generally improving conditions - the issues that matter to employees on the ground. Almost a fifth of companies were, however, concerned that national representatives are likely to take an adversarial stance over the coming year.
John Cridland added:
"Too often it is suggested that employers do not take the time to involve their staff in the day-to-day running of the business. This survey exposes that myth yet again.
"Ninety per cent of firms are using tried and tested traditional methods of communication which deliver results. It is encouraging that private sector companies with local union representatives are, on the whole, reporting positive working relationships but this is not as marked at national level.
"Employers want to work constructively with unions to deliver more successful workplaces. It is to be regretted that not all national union representatives are in tune with this mood."
The survey also highlights the threat employers face from unhelpful EU employment legislation. Of particular concern is the draft EU Agency Workers Directive and the impact this is likely to have on business, at a time when UK Government is under increasing pressure from unions to implement it.
Tim Watts, Chairman of the Pertemps Group said:
"Temporary workers are an important part of our economy. Whether used to cover a short-term vacancy, to meet increased demand or cover absence, these jobs offer excellent opportunities to people who want the chance to work and progress to full employment.
"We already know that the UK would be hard hit as it employs 700,000 temporary staff and in the current draft directive, only those assignments under six weeks will be exempt.
"But the survey shows that companies are already assigning almost 20 per cent fewer shorter assignments than they did in 2002. So, draft legislation applying to the more popular medium and longer term contracts will now have an even greater impact on the industry. A qualifying period of one year is essential if we are to safeguard jobs."
The report also indicates the need to retain the individual opt-out from the EU Working Time Directive. Three-quarters of companies believe that removing the opt-out would affect their ability to do business, with nearly half (43 per cent) saying it would have a significant or severe impact.
Other major issues covered by the survey are:
Pensions
The cost of providing pensions is forcing more companies to move away from final salary pensions. Defined Benefit Scheme deficits now stand at £100 billion, with employers paying an estimated £8 billion extra in contributions during 2004. Twenty-six per cent of companies now offer final salary pensions, against 30 per cent in 2004 and 54 per cent in 2002.
Migrant workers
The demand for migrant workers in UK firms is still strong with two-thirds of firms wanting skilled, managerial or professional workers, particularly in the energy and water, construction, banking, finance and professional services sectors. Around 20 per cent of employers recruited from outside the UK last year. Even from newer EU Member States - which have been widely seen as a source of unskilled labour - 43 per cent of recruitment is for the higher skilled groups.
Government-funded training
Nearly all (98 per cent) of employers provide job specific training to their staff and most (94 per cent) use an external provider for at least some of this. But publicly-funded training is failing to satisfy employers. Whereas private sector providers achieve high levels of satisfaction, colleges too often fail to meet business need. Over three quarters (76 per cent) of employers were 'very satisfied' or 'satisfied' with the overall responsiveness of private training providers, compared to only 46 per cent for college provision.
Government skills bodies (LSCs, SSCs) fail to provide employers - particularly SMEs - with the support they need. For example, 61 per cent of firms had contact with their local LSC but only a third of firms had received helpful information.
John Cridland commented:
"These figures are disturbing. We need to seriously consider how best to deliver publicly-funded workplace training. We need to be sure the allocated annual budget of over £1 billion is well spent."
12 September, 2005
Media Contact:
Stephen Cooke in CBI Press Office on 020 7395 8087 or out of hours pager 07623 977 854.
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