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A round-up of recent news from the UK and overseas
Senior Managers Blame ‘Glass Wall’ for Lack of Progression
Most senior managers feel trapped in their job but find it difficult to move on because of a ‘glass wall’, which hinders their search for a new post, according to research.
Women's Leadership: The Double Standard
How do women leaders differ from men? They are better at consensus-building and superior in other leadership qualities such as prioritizing and teamwork, reports The New York Times. But experiments show the criteria by which women leaders are judged are vastly different than for men. Clothing and appearance generally matter more for women, research shows, and surprisingly, several studies have found that it is a disadvantage for a woman to be physically attractive when applying for a managerial job, reports the Times. "It's an uphill struggle, to be judged both a good woman and a good leader," Rosabeth Moss Kanter, a Harvard Business School professor who is an expert on women in leadership, told the Times.
Study Reveals Poor Interviewing Skills Hamper Business Performance
74% of HR managers in the UK believe their staff are using inadequate interviewing techniques, according to a survey of 106 HR heads across the country. The survey also showed that 35% of those who responded believe that these techniques result in poor employee performance. 24% believe that such poor performance affects their bottom line but that this was not necessarily the interviewer’s fault. One third of respondents (33%) felt that interviewers were poorly trained with only 16% of people thinking that most people in their organization interviewed well. Bad interview techniques were also seen as a waste of money by some (9%) creating disaffection among staff (7%) and leaving candidates with a bad impression of the organization (16%). Source: www.adcltd.co.uk.
Ten Million Brits Want To Start their Own Business
Over ten million Brits would love to leave their jobs and start up their own businesses, according to new research from Business Link. 35% of workers polled have given starting up some thought, and 20% reckon they'll make the leap in 2008. While 15% think of self employment as an option because they're not happy with their current employment, 37% admit that the main reason for taking the leap would be to earn more money. The research shows that 40% want to start a venture in order to gain more freedom, and 25% want to turn a current hobby into a real, paying business. The research also showed that nearly as many women as men are keen to become their own boss. But the poll of 2,000 Brits revealed that a third of people dreaming of setting up their own business might not get round to doing it because they are unsure how to go about it. Money is another concern with 30% of aspiring bosses saying they are worried about getting into debt or adding to existing money problems. Almost half would worry about getting the money together to fund the business in the first place. The poll also revealed that retail, art and culture and health are the most popular sectors Brits would consider entering when starting up a new business.
Nearly 190,000 Non-EU Medical Professionals in the UK
Figures released show nearly 190,000 doctors and nurses have come to the UK from outside the European Union in just eight years. The figures obtained by Tory MP James Clappison showed that the UK Home Office gave work permits to 22,090 doctors and 165,780 nurses from non-EU countries between 1999 and 2006. Source: Daily Telegraph
London Continues to Outpace Other Regions
Official figures show that London’s economy in 2006 was the fastest growing in the UK for the fifth year running. In cash terms, London was worth £197 billion - an increase of 5.7% over 2005, thanks to strong growth in finance and business services. The national economy’s growing reliance on London, which contributes 17% of UK output and an even higher proportion of taxation, with only 12%of the population, leaves the economy and public finances vulnerable to a London downturn, which could happen in 2008 if the global credit squeeze takes its toll on the City. The north-east and Northern Ireland enjoyed strong growth, largely thanks to public spending, which accounts for more than 30% of these regional economies, compared to 16% in London. However the north-west was the worst performing region for the second year running. Source: Financial Times
Women Business Owners Criticize SBA's New Initiative
TWomen who own small businesses — about a third of all small businesses in the United States, in fact — have been pushing for years for a bigger piece of government contracts, which now total $400 billion a year. The US Small Business Administration has announced a new initiative to ensure 5% of the contracts go to woman-owned businesses, but critics are saying that's not enough. Among other issues, critics say the agency listed only four industries--out of 140--where female-owned business could be preferred for contracts. The agency defines a female-owned business as a company at least 51 percent controlled or owned by females and accounted for $400 billion in government contracts a year.
UK to Reject Unskilled Non-EU Workers
The UK Government will bar low-skilled workers from outside the EU under the new immigration system. The aspect of the points-based measures which would have applied to the low skilled will not be introduced "for the foreseeable future", the minister said. Under the new immigration system, Tier 3, which covers low skilled routes, will only be used if specific shortages are identified that cannot be filled from the UK on domestic or European labour force. Mr. Byrne holds that banning low skilled workers from outside the EU would not lead to labour shortages in the construction and other industries. "We think Britain’s needs for low-skilled workers can be fulfilled from within the EU," he said. Official figures show that 234,000 migrant workers from Eastern European countries such as Poland came to work in the UK in 2006. About 40% of them are thought to be low skilled. In the same year, some 12,000 unskilled migrants from non-EU countries in Africa, America and Asia came to work in the UK. The statement of intent for Tier 1 shows how the new tier will replace eight existing immigration routes for people who are highly skilled, entrepreneurs, investors or have undertaken studies to a high level and want to stay in the UK to work. Applicants will earn points for their skills and the potential they show for economic success, competence in English language and ability to support themselves and their dependents. Some of the factors to be taken into consideration while awarding points to people applying to come to the UK as a Highly Skilled Migrant are their qualifications, age, previous salary or the amount of money they are planning to invest in the economy. Tier 1 is the first of five tiers of the PBS due to be rolled out over the next 18 months. Tier 4, for students, will follow at the beginning of 2009. The UK’s new five-tier system would work for highly skilled migrants, which Mr. Byrne defined as those who are "key contributors" to the UK economy. People who work in the financial and public services, education and health, ICT and business, etc. are included in this category.
Firms prefer Merit-based pay to Annual Rises
The award of traditional annual pay rises is declining, according to CIPD research. Almost half (46%) of organisations no longer award employees an across-the-board annual rise or cost-of-living adjustment, the Reward management 2008 survey has revealed. Manufacturing, production and private sector firms were the least likely to provide such a pay rise. An increasingly popular alternative is to allocate pay budgets to departmental heads to distribute among staff based on their contribution, the survey of 603 organisations found. Pay deals in the public sector, where the government has aimed for settlements every three years to replace annual pay negotiations, highlighted the trend.
New Employment Limits in Force
New compensation limits for tribunal claims came into force on 1 February 2008. The main changes are: A week's pay will increase to £330. A maximum compensatory award for unfair dismissals will increase to £63,600. The new limits apply where the 'appropriate date' falls on or after 1 February 2007. The Regulations and explanatory memorandum are available on the Office of Public Sector Information website.
New immigration Orders for Employers
New immigration orders will bring in a new civil penalty for employers employing illegal workers under Section 15 of the Immigration, Asylum and Nationality Act 2006. The Draft Immigration (Employment of Adults Subject to Immigration Control) (Maximum Penalty) Order 2007 will increase the maximum penalty for employing an illegal worker in the UK to £10,000. The new measures do not significantly alter employers' responsibilities. Employers are already required to check their prospective employees' right to work in the United Kingdom, to establish a defence against conviction for employing illegal migrant workers. The current law provides employers with a statutory defence from conviction if they check and record certain specified documents belonging to potential employees. Under the new measures, employers will similarly be able to obtain a statutory excuse from payment of a civil penalty by checking their prospective employees' documents. In addition, employers will be required to undertake repeat document checks at least once a year for those employees who have limited leave to enter or remain in the United Kingdom, if they wish to retain the statutory excuse. As is currently the case, the excuse will not apply where an employer knows that they are employing an illegal migrant worker.
The Final Report of Equalities Review Published
Fairness and Freedom, the Final Report of the Equalities Review was published on 28 February 2007 by the Equalities Review Panel. The Panel, which is independent from the Government, was asked by the UK Prime Minister to carry out an investigation into the causes of persistent discrimination in British society. Chaired by Trevor Phillips, the report recommends ten steps to greater equality including a new framework to measure progress towards equality, a broader, but simpler positive duty for public authorities to tackle inequality and a simpler legislative framework enabling groups as well as individuals to take action. Further details on the work of the Panel and full text of the final report are available on the Equalities Review website.
Senior Managers Blame ‘Glass Wall’ for Lack of Progression
Most senior managers feel trapped in their job but find it difficult to move on because of a ‘glass wall’, which hinders their search for a new post, according to research by TheLadders.co.uk. The survey shows that three out of four senior managers feel "paralysed" in their hunt for a new job. They often complain of a lack of opportunity or poor understanding of the senior jobs market, the survey reveals. According to the authors of the survey, only 20% of those executives surveyed felt in complete control of their careers. Yet decades of psychological research shows that a high degree of internal control is closely associated with successful career management and job satisfaction, so glass walls in the form of real and perceived barriers could actually be undermining executives' sense of control. The study also found that one in 10 are worried that colleagues will find out if they start looking elsewhere for a new position.
Junior Achievement and Deloitte Challenge High School Seniors to Apply Ethical Decision-Makin
Junior Achievement (JA) and Deloitte have announced the launch of their fourth annual "Excellence through Ethics" essay contest, in which high school seniors are asked to apply their knowledge of ethical decision-making and share their views on the importance of ethics in business. To enter, high school seniors must compose an original essay of 500 words or less in response to an ethical dilemma posted on Junior Achievement's Web site. Entries must be submitted online and will be accepted until March 28, 2008. The contest is part of Deloitte's $2 million commitment to Junior Achievement to promote ethical decision-making among young people. Results of the fifth annual JA/Deloitte Teen Ethics Survey revealed that the majority of teens surveyed (71%) feel fully prepared to make ethical decisions when they enter the workforce. Yet, 38% of that group believes it is sometimes necessary to cheat, plagiarize, lie or even behave violently in order to succeed. Nearly one-quarter (24%) of all teens surveyed think cheating on a test is acceptable on some level, and more than half of those teens (54%) say their personal desire to succeed is the rationale. http://www.ja.org/ethics.
NAMIC Launches Online Diversity Video Network
The US National Association for Multi-ethnicity In Communications (NAMIC) has announced the receipt of its first-ever grant from the Motorola Foundation for funding of the launch of an online Diversity Video Channel. The digital media platform will showcase user-generated video content that reinforces NAMIC's mission to educate, advocate and empower for multi-ethnic diversity in the communications industry. Through an educational grant of $150,000.00, the NAMIC and Motorola co-sponsored initiative will commence in the spring of 2008 on the NAMIC. The online destination will provide a unique user experience through access to user-generated video content, social and professional networking opportunities, professional development, diversity news, webinars, information about careers in technology and other exclusive educational offerings. www.namic.com
Website aimed at helping SMEs win Olympic business
In order to help small companies who may be struggling to meet the qualification requirements for contracts for the 2012 Games the Olympic Delivery Authority have launched Competefor, a “business dating” website where companies of all sizes will be able to register as suppliers and compete for work. ‘CompeteFor’ will match companies to thousands of opportunities supplying London 2012 contractors. Up to a fifth of London 2012 supply chain opportunities are expected to go through the CompeteFor system. The Olympic Delivery Authority (ODA) and the London Organising Committee of the Olympic Games and Paralympic Games Ltd (LOCOG) will advertise their direct contract opportunities online through CompeteFor and direct London 2012 contractors appointed will be encouraged to advertise their supply chain opportunities through the system. More than two-thirds of the 500 contractors who have already won Olympic contracts are SMEs according to the ODA. Half of these are based outside London. All businesses that register on the new website will be required to meet certain standards. Business Minister Stephen Timms has urged businesses across the UK to make the most of opportunities arising from the London 2012 Olympic and Paralympic Games. According to Olympics minister Tessa Jowell, the UK economy will potentially benefit to the tune of £6 billion thanks to the Olympic and Paralympic Games. Already £1 billion of contracts have been let, 98% of these have gone to UK businesses, 50% outside London.
New Class of Super-affluent Britons Emerging
A new study – Racing Away? Income inequality and the evolution of high incomes by the Institute for Fiscal Studies (IFS) says that a new class of super-affluent Britons is emerging who earn more than £350,000 a year, are seemingly impervious to redistributive taxes and only see their incomes fall during periods of extended stock market gloom. The IFS estimates that the “very, very rich” (the top 0.1 per cent of the population) total about 47,000 and mostly live in London and the southeast, working in finance, property or law. They are 90% male and more than half are aged between 45 and 54. They have an average pre-tax income of £780,000 a year.
Graduate Vacancies Set to Increase in UK
Graduate vacancies are set to increase for the fifth year running, in spite of uncertainties regarding the UK’s current economic situation, research has suggested. Recruiter magazine reports that demand for support staff remains strong, with over 22,500 admin and secretarial vacancies featuring on major online job boards.
UK Companies Losing out on Languages
A quarter of UK companies have lost business because their staff do not speak any foreign languages, according to Sarah Carroll, author of the Teach Yourself Business Languages books. Companies in the manufacturing, catering and leisure sectors are most in need of workers with foreign language skills.
Britain’s Hairdressers Best in the World
The Work Foundation recently identified the three iconic jobs in 21st century Britain as hairdressers, celebrities and management consultants. In that order. In fact hairdressing is a remarkable business that has grown by 80% in the UK over the past 10 years, and currently turns over £5bn a year. British women have their hair done more often, and spend on average 20 per cent more doing so, than women anywhere else in the world. The big three multinationals, Wella, L’Oréal and Schwarzkopf, all agree that London is their leading market and, by common consent, Britain’s top hairdressers are the best there are.
Fresh Futures to be merged into National Skills Academy
Fresh Futures in Financial Services is an initiative which has helped hundreds of young people in Tower Hamlets to get a foot in the door of the financial sector by offering work experience placements, mentoring, training and guidance. The project, which is led by Tower Hamlets College, is funded by Equal, a European Social Fund community initiative that provides funds to projects focusing on tackling inequalities in the labour market, but local businesses that have seen the effect of the scheme are now providing half the funding. The project is now to be absorbed into the new National Skills Academy for Financial Services.
Civil Engineers Warn about Added Costs from Skills Shortage
A lack of government co-ordination and a shortage of skills are likely to add £8bn a year to the costs of construction and civil engineering projects by 2015 according to a report issued by the Institution of Civil Engineers (ICE). ICE calls for a new infrastructure planning commission which can smooth out the planning of big projects such as transport links and water treatment facilities. The study also calls on companies and the education sector to do more to make civil engineering attractive to young people. It says that civil engineering employers have been unable to attract and retain skilled staff in sufficient numbers, or to diversify their workforce. The uncertainty over future demand for their services has, for many inhibited investment in the kind of training and work-life balance measures that are now part-and-parcel of employee packages in other professions.
Jobs for the Over-50s helps Employment Figures
The surprising news that despite the credit crunch there was a rise in the employment figures for the three months to November 2007 was largely due to the fact that of the 175,000 new jobs created over the quarter, 90,000 went to the over 50s. The return to the labour market of those who had been economically inactive also explains why unemployment only fell by 13,000 in the same period although the jobless rate fell by 0.1 per cent to 5.3 per cent. Source: The Guardian
What Do Employers Want in College Grads?
Skills matter more than grades in today's multicultural work force. According to a national survey of employers in the US with at least 25 employees and a significant history of hiring recent college graduates, only 13 percent said transcripts were very useful, compared to 33% who said "not useful," reports InsideHigherEd. The survey also found 7% of employers valued more standardized testing over intensive and personally evaluated projects. On the flipside, the survey revealed that 65% of employers feel recent graduates are skilled enough to succeed in entry-level positions; of that, 40% said recent graduates have the skills to advance.
UK Must Win Global Skills Race says PM
Thousands more apprenticeships are to be created so Britain can win the ‘skills race’ in the globalised economy, says British Prime Minister, Gordon Brown. According to Mr. Brown, the training issue for young people is as crucial for the economy as the global arms race faced by Britain a generation ago. To avert a skills crisis, the UK Government will create 90,000 apprenticeships for 16 to 18-year olds over the next five years, on top of the 240,000 that already exist. It will also encourage companies to target girls for jobs in traditionally male-dominated industries such as engineering and construction.
New Tax Relief for Small Businesses
Businesses are set to benefit after the Chancellor of the Exchequer announced a new Capital Gains Tax relief for entrepreneurs. Alistair Darling said entrepreneurs' relief will be targeted on the owners of small businesses, and will apply when they sell their business. The relief will also be available to all employees and company directors who invest a material stake in a qualifying company. It will take effect from 6 April 2008 alongside the rest of the capital gains tax reform package. The relief will deliver a 10% tax rate for up to the first £1 million of lifetime capital gains. Individuals will be able to claim relief for gains made on multiple occasions up to a cumulative total of £1 million. Gains in excess of the £1 million threshold will attract the standard 18% rate of tax.
Do you Include Interests on CVs?
Employers have little or no interest in job candidates’ interests outside work and would like that information removed from CVs. That’s the message from recruitment consultancy Unity Personnel, which claims 67% of employers no longer wish to see such details. The most common and least interesting activity listed on CVs is ‘socialising’, the research found, followed by ‘watching television’ and ‘going shopping’. More unusual hobbies included ‘body-popping’, ‘body-piercing’ and ‘lizard breeding’. According to the company, this section of CVs is also often full of lies or mistruths, and so managers are frequently disregarding the interests of their future employees.
More Final-Salary Plans to Shut
More final-salary pension schemes will close in the next five years, the National Association of Pension Funds (NAPF) has warned. According to a survey of 369 private-sector pension schemes, just 31% of existing final-salary plans remains open to new members with 15% of these expecting to change this policy in the next five years. An additional 6% of all final-salary schemes will close to all members in that timeframe, the research added. The organisation also warned that many companies would struggle to meet their pension obligations in the wake of a tougher economic climate. According to the Association, while the overall picture shows that the pensions landscape is stable, the operating environment for occupational pensions is tough and likely to get tougher.
The number of people wanting to work beyond the age of 65 will increase dramatically in the next 15 years, according to the Chartered Institute of Personnel and Development. The organisation's research revealed that 38% of individuals now intend to work beyond the traditional retirement age, compared to a figure of just 11% who currently do so. The study also suggested that more people would work longer if they were able to do so flexibly. Of those who had said they didn't want to work beyond 65, 31% said they would change their mind if they could work hours to suit them.
Businesses Over-confident about Ability to Change
Many business owners are over-confident about their ability to cope with uncertainty and change, it has been claimed. New research by the Chartered Management Institute suggested that not enough is being done to address the key challenges faced by businesses. Nearly two-thirds of respondents admitted that skills and talent management was a key challenge facing employers. However, only 32% said developing talent was a key issue within their organisation. Less than 40% of those questioned said managing risks was important, demonstrating a ‘worrying level of over-confidence’, according to the report. The survey also noted that 38% of employers believe prioritising the reputation of their organisation is important for long-term success, while 35% said managing the impact of regulation was a necessity.
Funding for English classes in UK to aid integration
The UK Government has published a set of proposals relating to English language tuition for migrants. Secretary of State for Innovation, Universities and Skills John Denham announced that public funding for English language teaching should be targeted where it will have the biggest impact on community cohesion and integration. In practice this will often mean the most deprived and socially excluded groups who may find it hard to find places on English for Speakers of Other Languages (ESOL) courses today. Local councils would get more of a say in how funding for ESOL is allocated. The consultation follows a report published last year by the Commission for Integration and Cohesion, ’Our Shared Vision’, which identified being able to communicate in English as one of the most important issues facing integration and cohesion in Britain. The report suggested that English language binds us together as a single group and vulnerable communities are being left without the English skills they need to get by. According to the consultation document, the national priorities for ESOL include: legal residents expected to stay in the country long-term; excluded women, particularly those with children under 16; parents or carers in families with multiple problems; those identified as raising particular issues for community cohesion; people with low levels of literacy in their own language; those with no secondary education; refugees and asylum seekers still in the country beyond six months awaiting a decision on their status or who cannot return home.
UK Challenges US as Most Popular Study Destination for Overseas Students
Responses from over 11,000 prospective students from 143 countries indicate that the UK may be beginning to challenge the US as the most popular study destination, despite being seen as the most expensive place in the world to study, according to a survey by the International Graduate Insight Group. 95% of those taking part in the study rated the UK as an attractive or very attractive place to study, compared with 93% who felt the US was attractive or very attractive. The survey, which covered 11,000 overseas students from 143 countries, says that prospective students found the UK is safer than the US, has respected higher education institutions and, amazingly given the complaints about British immigration control, is easier to get a visa to study in. The survey is welcomed by the UK higher education world, which has become anxious that the number of foreign students coming to the UK was starting to level off as the competition from countries like Australia grew fiercer for the £60bn international student market. The current number is 385,000 but the latest statistics show a nearly eight per cent rise in applications to UK universities. However, the US will be difficult to shift from its position because of the generous scholarships and grants on offer at US institutions, while the strength of sterling makes the cost of living in the UK one of the highest in the world. The survey shows that the UK is seen as the hardest place to get work as an overseas student after the degree. The rules limiting overseas students from working in the UK for more than a year have been eased to two years from March 2008 and it is hoped that this will boost overseas student numbers. Further information
GE Money to move Global HQ to London
General Electric is moving the headquarters of its consumer finance division from Connecticut to London in what is seen as underlining the global nature of GE Money and also a boost for the UK capital in its challenge to New York as a global financial centre. GE Money origins date back to the 1930s when it was set up to provide credit for cash-strapped Americans to buy GE appliances. Today it has revenues of $25bn a year and $200bn of assets to be the world’s largest provider of private-label credit cards. The announcement coincided with the appointment of London-based William Cary as chief executive. Another of GE’s six divisions dealing with healthcare has been based in Britain since the company bought Amersham in 2004.
US Universities Rush to Set Up Outposts Abroad
The American system of higher education is becoming an important export as more universities take their programs overseas. American universities are competing to set up outposts in countries with limited higher education opportunities. American universities are starting, or expanding, hundreds of programs and partnerships in booming markets like China, India and Singapore. And many are now considering full-fledged foreign branch campuses, particularly in the Middle East. Already, students in the Persian Gulf state of Qatar can attend an American university without the expense, culture shock or post-9/11 visa problems of traveling to America. Overseas programs can help American universities raise their profile, build international relationships, attract top research talent who, in turn, may attract grants and produce patents, and gain access to a new pool of tuition-paying students, just as the number of college-age Americans is about to decline. Even public universities, whose primary mission is to educate in-state students, are trying to establish a global brand in an era of limited state financing. Traditionally, top universities built their international presence through study-abroad sites, research partnerships, faculty exchanges and joint degree programs offered with foreign universities. Most overseas campuses offer only a narrow slice of American higher education, most often programs in business, science, engineering and computers.
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