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How companies can deal with in-work sickness

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The coronavirus pandemic is over, but increased sickness is not. In many developed economies, more working people are reporting illnesses that limit the amount or type of work they can do than pre-pandemic. More sick days are being taken, too. German executives warn high absenteeism is compounding the country’s competitiveness problems; in September, Tesla bosses resorted to snap home visits to check up on absent employees at its Berlin plant. In Norway, workers called in sick in the second quarter more than at any time in the past 15 years.

In the UK, official figures estimated a record 185.6mn working days were lost through sickness absence in 2022, for reasons including minor illnesses, musculoskeletal problems and mental health conditions. Post-pandemic healthcare backlogs are partly responsible. Last year some 3.7mn working-age people were in work with a “work-limiting” condition — up 1.4mn in 10 years. The rate of work-limiting conditions has grown fastest among young workers, with sharp increases in reported mental ill health.

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Having fewer people working means economies do not grow as fast as they could. It reduces tax receipts to fund increasingly strained public services. But it is employers and businesses that have to deal with the immediate effects of sickness — managing staff and rotas, and confronting any legal backlash. Changes in diagnosis rates and generational attitudes to mental ill health, in particular, have influenced employee expectations of the workplace.

Prioritising employee wellbeing is about building trust and loyalty as well as ensuring long-term productivity. Compassion has to be balanced with practicality. Bosses must provide adequate support to absent workers — but also take into account the impact on other staff and operations.

A transparent and fair sickness policy is vital. Companies need to lay out expectations for reporting illness, documenting absences and returning to work — including when doctor’s notes are needed. If employees know they will be treated fairly and consistently, they are more likely to adhere to the rules, fostering a culture of mutual respect and accountability.

Identifying patterns of absenteeism can help to reveal underlying issues, such as frequent Monday absences or sick leave during school holidays, and signal when bosses need to step in earlier to address concerns at home, burnout or stress. But any sense that bosses are using data ultimately to punish staff will backfire, breeding resentment.

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Data should be a conversation starter to better understand the conditions of absences rather than hitting out at those perceived to be slacking. Absenteeism can reflect deeper issues such as excessive workloads, demotivated staff or a lack of support.

But the need for support during poor health is matched by the need for accountability. Problems arise when managers feel trust is being exploited. Setting boundaries on flexible policies and maintaining clear expectations can prevent abuse while still offering assistance. Employees must understand that flexibility is often a benefit, not an entitlement, and respect the parameters set by their employers.

For bosses, employee health information also needs to be handled with the utmost care, and not just to avoid any legal ramifications. When employees believe that their most sensitive information is met with discretion, they will be more open to sharing health issues, and seeking support at their most vulnerable time.

Some companies rely on high pay or rewarding work to attract staff, but in a competitive market, commitments to wellbeing can also help employers to stand out. Building a successful enterprise relies above all, though, on both sides creating a relationship of trust.

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Best Employers Asia-Pacific 2025: interactive ranking

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A woman standing outdoors on a rooftop or balcony in an urban environment, surrounded by tall, modern glass buildings. She is holding a laptop close to her chest and gazing upward

Some 50,000 employees were surveyed by the FT and Statista for the first edition of this annual list

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Nationwide, Santander and HSBC HIKE mortgage rates despite Bank of England cut – see the full list

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October Budget could see A THIRD of Brit businesses activate 'exit plans' thanks to major tax change

MORTGAGE borrowers are being hammered with higher costs as major lenders hike rates and pull top deals despite a recent cut to the Bank of England base rate.

In a blow to buyers, HSBC, Barclays, Santander and Nationwide are among the big lenders that have upped prices this week.

Some of the biggest mortgage lenders have raised rates this week

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Some of the biggest mortgage lenders have raised rates this week

Over the past month around 200 deals have disappeared from the market, in the biggest month-on-month reduction since July 2023, according to analysis from data site moneyfactscompare.co.uk.

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In a blizzard of price increases this week, Nationwide has pushed up rates putting an end to its sub 4% products.

HSBC has now hiked rates twice within as many weeks.

At the same time, Santander has also raised for new and existing customers by up to 0.31%.

It comes after the Bank of England last week cut the base rate from 5% to 4.75%.

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A reduction in central interest rates usually marks a fall in borrowing costs.

Yet, in an unexpected and unwelcome twist, mortgage borrowers are now seeing costs rise.

The average two-year fixed mortgage rate today is 5.44%, pushed up from 5.39% shortly before the Bank of England base rate reduction, according to data from moneyfactscompare.co.uk.

At the same time, the average five-year fix now sits at 5.17%, up from 5.09%.

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Experts said the lenders are pulling back from the market to avoid being overwhelmed by demand in the wake of the cut.

What is the Bank of England base rate and how does it affect me?

Nicholas Mendes, technical director at broker John Charcol, said: “While many lenders have opted to maintain their existing rates to preserve business volumes and service standards, those offering competitive pricing have been forced to adjust likely due to applications levels.

“These influxes often stretch service levels, prompting rapid rate changes to manage demand effectively.”

Market rates typically used by lenders to price mortgages have also been increasing.

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John Fraser-Tucker, head of mortgages at online broker Mojo Mortgages, said: “While the Bank of England’s decision to lower the Bank Rate last week might lead some to expect across-the-board reductions in mortgage rates, it’s important to understand that the mortgage market doesn’t always move in perfect sync with the Bank of England’s base rate decision.

“Fixed-rate mortgages, in particular, are influenced by a complex array of factors beyond just the Bank Rate. These can include the lender’s own funding costs, their view on future economic conditions, competitive positioning in the market, and even their internal goals for new business.”

Here is the full list of major lenders that have hiked rates this week…

BARCLAYS

From tomorrow (November 14) Barclays is increasing rates across purchase, remortgage and reward ranges.

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Among other increases, the change will see a two-year 5.15% fee-free fix at 90% loan to value, jump to 5.49%

HSBC

In the second increase to rates in two weeks, HSBC has today raised the cost on selected two, three, five and 10-year deals.

The rise hits first-time buyer, home mover and existing customers switching deals.

COVENTRY BUILDING SOCIETY

The lender is tomorrow (November 14) raising tracker mortgage rates for buy-to-let borrowers, as well as closing applications to new borrowers.

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NATIONWIDE

This week’s increases from the lender means that most of its sub-4% rates will also go above 4%.

For example, its five-year fixed rate deal with a £999 fee has jumped from 3.94% to 4.14%.

SANTANDER

Santander has upped rates by 0.29% on residential fixed rates for purchase, remortgage, and green products.

The move is u-turn after reducing some rates earlier this month.

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TSB

TSB is upping rates up to 0.3% on selected two- and five-year deals. This includes first-time buyer and homemover deals, as well as remortgage products.

Rates now start from 4.32% for new customers.

It comes after the lender also increased selected rates by 0.10% two weeks ago.

VIRGIN MONEY

The lender has raised selected two and five-year rates by up to 0.15% this week.

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Products now start from 4.29%.

RATE CUT

One smaller lender that has bucked the trend and reduced rates is MPowered Mortgages.

All of its two and three-year fixed rate mortgages have fallen by as much 0.28% for new purchase and remortgage customers.

For new purchase customers, the lender’s two-year fixed rates now start at 4.21% for 60% LTV with a £999 fee and three-year fixed rates start at 4.19% at 60% LTV with a £999 fee.

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Should borrowers fix now or wait?

The volatile market could be a worry for anyone looking to move home or fix their mortgage in the coming months.

Most mortgage offers have a shelf life of up to six months, meaning that if you apply for a deal now the lender will honour the rate even if you don’t need it until early next year.

This is a good way to lock in rates and avoid added costs if prices keep rising.

If rates happen to fall in the mean time, you can then apply for another deal further down the line.

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Nicholas Mendes said: “For clients nearing the end of their fixed-rate terms, it’s essential not to delay in the hope that rates will revert to levels seen weeks ago.

“Securing a deal now provides certainty in an uncertain market. There is always the option to review and adjust if circumstances change but acting promptly minimises exposure to further rate increases.”

How to get the best deal on your mortgage

IF you’re looking for a traditional type of mortgage, getting the best rates depends entirely on what’s available at any given time.

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There are several ways to land the best deal.

Usually the larger the deposit you have the lower the rate you can get.

If you’re remortgaging and your loan-to-value ratio (LTV) has changed, you’ll get access to better rates than before.

Your LTV will go down if your outstanding mortgage is lower and/or your home’s value is higher.

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A change to your credit score or a better salary could also help you access better rates.

And if you’re nearing the end of a fixed deal soon it’s worth looking for new deals now.

You can lock in current deals sometimes up to six months before your current deal ends.

Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost.

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But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal – but compare the costs first.

To find the best deal use a mortgage comparison tool to see what’s available.

You can also go to a mortgage broker who can compare a much larger range of deals for you.

Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender.

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You’ll also need to factor in fees for the mortgage, though some have no fees at all.

You can add the fee – sometimes more than £1,000 – to the cost of the mortgage, but be aware that means you’ll pay interest on it and so will cost more in the long term.

You can use a mortgage calculator to see how much you could borrow.

Remember you’ll have to pass the lender’s strict eligibility criteria too, which will include affordability checks and looking at your credit file.

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You may also need to provide documents such as utility bills, proof of benefits, your last three month’s payslips, passports and bank statements.

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South Korea starts to raise game on workplace mental health

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A worker in a darkened office holds a phone to his ear as he looks at a bank of computer screens

The headquarters of Netmarble, one of South Korea’s leading mobile game producers, used to be called the “lighthouse of Gurodong”, the industrial district in western Seoul, because its engineers often stayed up all night to meet the deadline for game launches.

But Netmarble’s stressful work environment came under the spotlight following a series of worker deaths in 2016, sparking public criticism of so-called “crunch mode” — when developers in the IT industry put in long periods of overtime to finish a project.

And Netmarble was not alone. Naver, South Korea’s biggest search engine, came under fire in 2021, when a developer in his forties died by suicide, leaving a note indicating extreme stress from relentless overtime and workplace bullying.

Now, though, after these cases exposed apparent failures to care for employees’ mental health, a cultural change is afoot in Asia’s fourth-largest economy — albeit slowly. South Korea’s government has promised to overhaul the country’s mental health system, while big companies are providing mental health programmes for their staff.

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“Following the tragic incidents in 2016, we have been actively working over the past eight years to encourage a healthier work-life balance for our employees,” says Seijin Park, Netmarble’s spokesperson. 

The company has eliminated the so-called “blanket wage system”, under which employees were forced to do overtime for free. It has also set up an on-site healthcare centre staffed with professional counsellors.

A worker in a darkened office holds a phone to his ear as he looks at a bank of computer screens
Crunch mode: South Korean businesses are introducing programmes to support workers struggling with deadline pressures © SeongJoon Cho/Bloomberg

Naver, meanwhile, has established an internal human rights committee and says it regularly assesses its corporate culture. It also runs a counselling centre for employees and offers a free annual mental health check-up.

“Employees’ [personal] growth and wellbeing are directly related to corporate competitiveness,” Naver says. “We are trying to ensure that our employees can exert their best ability in their best condition.”

Experts say Korea’s wider work environment has improved since the country limited the maximum working week to 52 hours in 2018 and enacted a law in 2019 to crack down on workplace bullying.

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“Productivity has become much more important for Korean companies as the work hours get shorter,” says Jeon Sang-won, who heads a workplace mental health institute at Kangbuk Samsung Hospital in Seoul. “Big IT companies are actively investing in employees’ mental care as they are increasingly aware of the seriousness of presenteeism as well as absenteeism.”

However, many workers still complain of frequent overtime and a hierarchical corporate culture. The country has among the longest working hours in the OECD, and accusations of bullying continue due to the rigid, top-down management style.

“I have to work overtime almost every day when it gets busy,” says a 34-year-old office worker in one of Samsung’s units. “I am exhausted because of high performance pressure. I really wanted to quit when an executive recently cursed at me.”

Like many other big Korean companies, Samsung — whose electronics subsidiary is ranked 49th on the Best Employers Asia-Pacific list — offers free mental health counselling.

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The employee says he never used this because of fears that the information could be shared by his managers, but the company insists that the service is strictly confidential.

Samsung says it abides by legal working hours and supports its employees’ work-life balance. It also runs various programmes for their mental health and deals firmly with any reported verbal abuse.

Jeon estimates that 60 per cent of Korean employees’ occupational stress comes from relationship conflict, and attributes it to the value put on team work in Confucian culture. 

“They suffer from all kinds of conflict stemming from generational, gender and rank differences,” he says. “Especially, young employees are frustrated with the country’s corporate culture lagging behind generational change, while working mothers show higher occupational stress due to prevalent gender discrimination.”

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DH Kim, a communications manager at one of the country’s biggest conglomerates, recently received external counselling for insomnia because of her heavy workload and conflict with her colleagues.

“It is so stressful to adjust to the collective culture,” she says. “For example, you have to attend a company dinner even if you don’t want to.”

Like Kim, many Koreans remain unhappy despite the country’s fast economic growth. South Korea’s suicide rate, at 27.3 per 100,000 people last year, is the highest in the OECD. And, according to the Ministry of Health and Welfare, the number of South Koreans seeking treatment for mental illness increased from 3.2mm in 2017 to 4.3mn in 2022 — a 35 per cent rise.

Last year, President Yoon Suk Yeol set up a committee to oversee new mental health initiatives. He also promised to offer free counselling services for 1mn people and to increase the number of mental healthcare facilities by the time his term ends in 2027.

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President Yoon Suk Yeol has pledged to tackle high rates of mental illness in South Korea © Kim Hong-Ji/Getty Images

But Jay Kwon, a senior counsellor at MindGym, which provides corporate wellbeing services, says companies are still too focused on performance to give mental health the attention it deserves.

“Employees in cutting-edge industries are more stressed because of stronger performance pressure, but these companies tend to care more about growth and profits than their employees’ mental wellbeing,” he observes.

Jeon believes Korean companies need to make a systematic effort to overhaul toxic cultures — but reckons most see money spent on conventional management consultancy and facilities as a better way to boost productivity than investments in mental health.

“Most top managers still shun consulting on corporate culture because they don’t want to reveal the dark side of their company,” he says.

However, he adds: “When a fish struggles to breathe, you need to change the water in the fish tank.”

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Millions with disabilities feel excluded from products due to accessibility issues

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Millions with disabilities feel excluded from products due to accessibility issues

MILLIONS of consumers with a mental or physical disability feel excluded from products due to accessibility issues from food packaging to clothing design and store layouts.

A poll of 1,000 adults with invisible and visible disabilities revealed over two-thirds (68%) have felt ignored by retailers and manufacturers.

A poll has found those with disabilities have felt ignored by retailers

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A poll has found those with disabilities have felt ignored by retailersCredit: Alamy
Over two-thirds of adults feel excluded from products due to accessibility issues

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Over two-thirds of adults feel excluded from products due to accessibility issuesCredit: Samsung

And 55% believe mainstream brands simply aren’t interested in making products that cater to their individual needs.

With some of the top issues being food packaging, which is hard to open, clothes which have poor sizing or awkward fastenings and stores with high shelves and poor lighting.

As a result, 76% are loyal to companies who offer a good range of accessible option.

While 80% claim brands could be missing out on millions of pounds worth of sales by not considering disabled consumers.

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The spending power of disabled people and their households, known as the purple pound, is estimated to be worth a staggering £274 billion a year.

It also emerged that while 32% don’t expect to see a change from those in the fashion or transport sectors anytime soon – technology has made pace.

With the top tech innovations for people with a disability named as virtual assistants, smart home devices and wearable devices for health monitoring.

Katharina Mayer, head of LifeStyle Lab Europe at Samsung, which commissioned the research, said: “This research has highlighted the huge opportunity for brands to better understand the accessibility needs of consumers to provide greater access for people with disabilities in the UK.

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“Companies are rarely able to test their ideas with diverse people with different needs, but this is a must”.

It also emerged 72% of those surveyed have had to abandon a purchase due to a product’s lack of accessibility.

But 56% would be willing to pay more for a product or service that fully met their accessibility needs.

When it comes to online shopping, 80% struggle with websites that are not optimised for accessibility.

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While 30% battle through a poorly designed checkout process, and 22% bemoan a lack of text descriptions for images.

Samsung’s spokesperson added: “It’s time to re-write this narrative.

“When designers consider varied needs from the beginning, they don’t just serve people with disabilities – they create solutions that benefit everyone and that is the approach we take to inclusive design at Samsung.”

Full list of benefits you can claim if you’re disabled

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  • Statutory Sick Pay
  • Disability Living Allowance
  • Personal Independence Payment
  • Disability Premiums
  • Access to work grant
  • Industrial Injuries Disablement Benefit
  • Universal Credit
  • New-style Employment and Support Allowance 
  • Council tax Support
  • Attendance Allowance 
  • Disabled Facilities Grant
  • Exemption from vehicle tax
  • Disabled persons railcard

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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Best Employers: Asia-Pacific

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Best Employers: Asia-Pacific

Which companies do people most like working for in Asia-Pacific? The FT and Statista surveyed 50,000 employees to find out. Plus: long hours in Japan; caste and corporate India; China’s robot revolution; stressed-out South Korea; Australia’s costly childcare

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John Lewis Christmas advert 2024 LIVE: Watch teaser clip of ad just hours before launch

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John Lewis Christmas advert 2024 LIVE: Watch teaser clip of ad just hours before launch

What was the 2020 John Lewis Christmas advert?

At the peak of the pandemic John Lewis encouraged Brits to do something nice for each other in its Christmas advert.

In total there were nine acts of kindness featured, helping to form a chain of joy and happiness.

The two minute advert featured different forms of moving art – from animation and claymation to CGI and cinematography.

Eight artists helped make the different scenes, including Chris Hopewell, who created music videos for Radiohead.

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John Lewis said it wanted to support the creative industry, which was one of the hardest hit during the pandemic.

The advert told customers to do something nice for each other
The advert told customers to do something nice for each otherCredit: John Lewis

What happens in the Lidl Christmas advert?

THE Lidl Christmas advert tells a heartwarming tale of a little girl who, after helping an elderly woman, makes a wish to share her Lidl woolly hat with a boy she noticed earlier, who looked cold.

This touching gesture embodies Lidl’s message of sharing the magic this Christmas.

It also highlights the return of Lidl Toy Banks, with the aim of collecting and distributing more than 100,000 toys donated by customers to needy children.

Lidl delivers a touching message of sharing the magic this Christmas
Lidl delivers a touching message of sharing the magic this ChristmasCredit: Lidl

Freemans Christmas advert

The Freemans Christmas advert features a catchy tune that will have you singing away after the adverts have finished.

Sophie Ellis Bextor’s catchy song, Freedom Of The Night, is the highlight – with the singer herself making an appearance as part of the Style Squad.

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Sophie rocks up on doorsteps delivering Christmas presents for the exclusively online brand.

It’s a simple ad which will appeal to grown-ups.

Sophie Ellis Bextor stars in the Freemans Christmas ad
Sophie Ellis Bextor stars in the Freemans Christmas adCredit: Freemans

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