People Matter August 2019
The ageing workforce
A pensions timebomb is ticking in Ireland, according to the government’s 2019 National Risk Assessment. And while this mightn’t be of direct concern to you as an employer, there are plenty of knock-on effects that will be relevant.
First, some context. The number of people eligible for the state pension is set to double over the next 36 years. Two-thirds of private sector workers do not have their own pension. And by 2030, the ratio of the population aged over 65 will rise from one in eight to one in six.
So what does this mean for employers? Quite simply, expect more older employees in your workforce. And plan for it.
We hasten to add that this needn’t be a negative. Like every generation, older employees will bring strengths and weaknesses. By being ready, you can optimise your workplace for a changing workforce. Let’s run through some key areas:
Age discrimination – Age is one of nine grounds which are protected by the Employment Equality Act. Mismanaging an ageing workforce could lead you to a Workplace Relations Commission and discrimination pay-out. Indeed, last year discrimination claims on the grounds of age rose by 343% on the previous year.
Flexible working – It’s not just older workers that may favour flexible working patterns. But for people looking for a phased retirement or who, for example, have caring duties as a grandparent, it will be an attractive feature.
Hiring practices – Your hiring programmes like graduate schemes, internships and apprenticeships may currently be designed with people at the start of their career in mind. Going forwards you may benefit from recalibrating these to accommodate older workers.
Workplace adaptation – Think about your workplace environment and see whether it physically caters to an older workforce.
Retirement planning – The default retirement age has been abolished in all but a few professions so you cannot rely on that. Be consistent in how you implement retirement to help avoid discrimination claims. The government has published guidance on best practice for managing people who wish to work longer.
An older workforce is coming! If you want help preparing, talk to your local HR Dept adviser.
The modern working week
All business owners like productive workers. That’s the name of the game, right? But are our workers too busy here in Ireland?
The economy is almost at full employment, but according to a recent survey, two-thirds of employees say they work overtime. And the same number (although not necessarily the same respondents) say they feel obligated or very obligated to do so.
Unfortunately for most of them, three-quarters say they are not compensated for their overtime. While this may seem like a quick win for a business, it is storing up problems for the future. It’s not fair on workers and will likely lead to a minimum of resentment and staff turnover, and in worse cases stress and even burnout. Better to explore smarter ways of working than rely on hours of unpaid overtime.
Changes to parental leave
Confusion reigns, apparently, among workers who don’t understand their parental leave entitlements as new legislation is introduced. And while larger firms may have a whole HR team who are on it from the employer’s perspective, SME owners and managers may be struggling to make sense of the new rules too. Here is a rundown.
As of 1 September, parents of children up to the age of 12 will be entitled to take up to 22 weeks of unpaid parental leave each. This is an extension from what was available before, which was up to 18 weeks of unpaid parental leave for parents of children up to the age of eight. For parents who had reached their limit previously, they will now have access to the additional four weeks.
The following September, in 2020, a further four weeks will be added, taking the entitlement up to 26 weeks in total. This is made law by the Parental Leave (Amendment) Act 2019.
Scope for further confusion is created by the fact that separately, two weeks of extra paid parental leave are being introduced on 1 November. Both parents can take this within the first 52 weeks of a birth (or placement, if it’s an adoption).
So with lots of dates and entitlements involved, it is easy to understand the confusion. But despite the complexity, it is important that you as an employer understand the rules if a member of staff makes a request. Both so you don’t unfairly deny a legal entitlement, and also that you know when you can say “no”. If in doubt, call us.
The future of NDAs
Non-disclosure agreements (NDAs), are not getting good press right now. Following the #MeToo movement, it’s been shown just how often companies use them to cover-up wrongdoing like harassment and discrimination.
In Ireland, for now, bad press is all they’re getting. Unlike in other jurisdictions, there’s no legislative programme to rein in the use of NDAs. The USA has already acted. And in the UK change is afoot that will make it illegal for a confidentiality clause to prevent disclosure of a suspected crime to the police and other relevant professionals.
Used correctly, an NDA can be a useful mechanism for privately resolving a dispute to both parties’ satisfaction. Even without new legislation, they require careful drafting and a proper process to be followed to ensure they are enforceable. But now that they’re coming under greater scrutiny, we’d recommend a review of your use of NDAs if applicable, to ensure they are fair to the employee. Contact us, to find out more.
Inside the mind of an introvert
Did you know that up to 50% of the population are introverts? Maybe that’s not so surprising seeing that the main alternative is to be an extrovert. Both behavioural types have strengths and weaknesses. But what is interesting is that most companies are set up to suit extroverts. Think open plan offices, social events and generally the loudest voices being heard first.
This won’t be a deal breaker for most introverts. But it does mean that conditions are not optimised for their performance. And they have a lot to offer. Restoring balance could help drive your business forward.
We’re not talking about difficult actions. Giving introverts a safe platform to speak in meetings, creating quieter working zones, and not putting pressure on people to attend every social event are all achievable. A great place to start is with some personality training to help identify your team’s traits and how they work best.
Sleeping on the job
Can you believe an employment tribunal judge fell asleep twice during a hearing? After we’d finished raising our eyebrows, we found some research and it’s not as uncommon as you might think! We’re not just talking about dozy judges. Apparently 12% of office workers have confessed to falling asleep in a meeting.
What should you do if you catch someone, well, catching 40 winks? It may be gross misconduct if, say, they were hungover. But don’t jump to conclusions – pay-outs have been awarded in court for sleep-related unfair dismissals! Check there’s not an underlying medical condition or other mitigating factor before deciding on your course of action.