INSIGHTS

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Childcare Vouchers: What’s Going On??

Childcare Vouchers: What’s Going On??

You could be mistaken for thinking that the current Childcare Voucher scheme has now closed (after all we have been talking about it since 2017 now….) however it has now been extended for new members by another 6 months following a Commons debate, with a revised closing date of October 2018 (exact date still tbc).

The current Childcare Voucher scheme (which means that parents can save up to £933 a year on childcare) was due to close to all new members on 6th April, making way for the new Tax Free Childcare scheme which was launched in April 2017.

So, what’s the difference between them? In short, both schemes reduce the cost of childcare but one scheme may suit an individual’s circumstances better. The most significant difference between the 2 schemes is that Tax-Free Childcare offers savings per child per year, while childcare vouchers offer savings per parent per year.  

With childcare vouchers, each parent can take up to £55 each week from their salary before tax and National Insurance, or £243 a month, to spend on childcare no matter how many children they have, as long as the parent is a basic-rate taxpayer and the employer has chosen to run the scheme.

The Tax-Free Childcare initiative however is much more akin to a savings scheme and under the rules parents have 20% of their childcare costs each year met by the Government, up to a limit of £2,000 a year per child (or £4,000 if your child is disabled) The scheme is directly managed by the employee and not the employer and so employees are not restricted based on whether or not their employer runs the scheme.

What do you need to know as an employer?  If you don’t offer child care vouchers to your employees you don’t need to do anything! However, if you do offer Child Care vouchers you should be aware of the following:

    • Anyone who joins the Childcare Vouchers scheme before the scheme closes can continue to benefit from the savings for as long as their child remains eligible, they must also stay with the same employer, or have received a voucher within the last 12 months;
    • Employers will continue to benefit from up to £402/year savings in employer NI for every parent on the scheme;
    • Once an employee has left Childcare Vouchers to move to Tax Free Childcare scheme, they cannot rejoin
    • Employees can’t use both schemes at the same time.

For help or guidance on Child Care Vouchers or any other benefits related query contact us at www.thehrhub.co.uk.

Image Credit: Unsplash

HR Futures: Engagement With A Fractional Workforce

HR Futures: Engagement With A Fractional Workforce

Fractional: [adjective] Relating to only a part of something; Extremely small or insignificant

The fractional workforce is a phrase new to many. But not for long I suspect.  A term used to loosely describe those who provide work to one or more businesses, it includes many of the 5 million people in the UK who are classified as ‘self-employed’ –   the contractors, the freelancers, the ‘gig’ workers, the temporary staff you have on your books – not to mention those who might be on your payroll on a part time basis. The common denominator of all of these being that they are just not solely dedicated to your business.

But far from these being just the ‘giggers’ who have grabbed the headlines in recent months – those who deliver your food, clean your house or ferry you home at the end of an evening – 60% of these fractional workers are found to be in highly skilled or managerial professions (ONS), and most of whom have turned to fractional work out of choice.

Over half our SME client base are increasing their use these types of workers to supplement their own teams on a regular basis – as accountants, marketeers, designers, data analysts, developers…even HR folks – but a handful have gone one step further by having them as core members of their senior or leadership teams. And anecdotally I know of plenty more highly innovative businesses who use diverse and fractional teams gathered from their wider networks to deliver high profile projects, because they just don’t have the skills they need in their existing employee pool.

But given that many of these highly skilled people turn to fractional work because it supports the things which motivate them most: freedom (in location, work patterns, scope) and ownership of what they do, how do you as a business owner make sure that these broader team members are as ‘engaged’ and ‘onboard’ as your permanent staff members, whilst balancing the risk (and fear associated) that you may lose control over some of the work? From extensive experience on both sides of the fence, here are our pointers on some things you can practically do to rapidly assemble a crack team and get the most out of your working relationships with this group:

  1. Get the basics right, but recognise that a contract simply cannot cover ‘every eventuality’: It goes without saying that a properly worded contract is a no-brainer to manage your legal risks, however our experience is that a properly worded contract is not one which attempts to try and control every single thought and word a person emits during their time working with you (having had many run-ins from those not willing to sign away their entire thought catalogue in a crudely worded IP clause, this is a route which does not bear well with many!). One which seeks to do this beyond what is necessary for the delivery of the work will no doubt hold up the process for any onboarding as wordsmithing goes back and forth, giving your competitors a chance to steal a march on you!
  2. People are people, regardless of ‘working status’ & so speak to them as such: The Contractor’ is not an appropriately named designation for most to respond to and is something which should be reserved only for an introduction by  Hollywood-voiceover-man to something infinitely more fictional….
  3. Treat your wider teams as a community: communities support each other and work for the greater good; they embrace differences, thrive when there is co-operation and provide a vast array of talent for you to pull from which you might otherwise not get access to. Communities do not take the pi** with each other, as they know that they may be the one asking for a favour the following week….
  4. Communicate in a way which is fluid & which builds trust: ask yourself whether you really need different email lists for ‘employees’ and ‘contractors’? Many businesses also exclude non-permanent staff from their communications platforms, however this serves to alienate at best and cause productivity issues at worst. Remember (see point 1) they’ve already signed the same sort of confidentiality clauses as anyone else in the business…
  5. Don’t ignore wider development needs: from onboarding and beyond, make sure you are inclusive and relevant in providing development opportunities. This doesn’t mean sponsoring someone on the MBA if they are only with you for 2 weeks, but may include including them in your onboarding programme, lunch and learns etc
  6. Reward is still important (but outside of traditional methods look to recognition and referral as currency to use): You may think that paying the monthly invoice is reward for these team members done and dusted, however (even if you haven’t read oodles of posts about this one – really??) ‘reward’ to most people is more than just a wedge of cash…. Angela Mortimer, a successful recruitment firm specialising in PA and support staff hold an annual event to celebrate and recognise their temporary staff who don’t get to always get to join in on the social side from the organisations they provide service to or be included in their reward practices. A nice touch I think, which in addition plays to point 3 (above).

This post doesn’t (purposefully) address some of the legal ramifications for employing different types of workers that make up this section of the workforce – that’s definitely for another day and is dependant on ever evolving legal challenges being made – however fractional work is on the increase & those who can strategically think of their workforce as beyond those on their payroll, will already be one step ahead.

For more details on integrating your workforce or any other HR challenges you might have, drop us a line at hello@thehrhub.co.uk or call 0203 627 7048.

Image Credit: unsplash

 

New Toolkit Encourages Businesses To Promote Healthy Eating And Exercise To Employees

New Toolkit Encourages Businesses To Promote Healthy Eating And Exercise To Employees

Public Health England and Business in the Community have published a toolkit in an effort to encourage employers to promote healthier eating and exercising to their employees. Keen to stress the business benefits, the toolkit explains that such initiatives can boost productivity, slash absence rates, and play a key role in facilitating a happy workforce.

And while this might fall into the yet-another-thing-I’ve-got-to-do category (quite far down for many if I’m honest) of what to look at whilst running a business, what is becoming increasingly clear is that the health of the nation is a ticking time bomb. According to the NHS, the number of people being diagnosed with diabetes has more than doubled in the past 20 years, and rising obesity levels continue to grab headlines. As an employer, you have the ability to make a positive impact in your staff’s lives, as well as strengthen your business for the future, so it might be worth having a gander…..

Occupational health isn’t just about ensuring your staff have comfortable chairs to sit on (although yes, that is one of thing basics…) as the real benefits will be gained by those who are more proactive with their responsibilities as employers, tapping into the opportunities that exist for all of us to have a much more holistic impact on our team’s lives.

The toolkit includes:

  • Suggestions that healthier food and drink options should be available within the workplace, including at meetings and events
  • Ideas around organising ‘family days’, so staff can get their loved ones onboard with healthier habits
  • Advice for managing shift workers and remote workers: two groups of staff that will experience unique difficulties when it comes to maintaining their health and wellbeing
  • Guidance for handling sensitive mental health issues in the workplace

Though the suggestions are comprehensive and provide a lot of food for thought for employers, it’s also stressed that there’s rarely a one-size-fits-all approach. Businesses are encouraged to involve their staff in any initiatives from the very earliest stages, giving them a voice and the opportunity to hone a way forward that’s really going to work for them. After all, if your staff aren’t engaged and onboard, then your efforts are going to fall on deaf ears and fail to meet their objectives.

We recognise that employers have a lot on their plates. You may well think that you simply don’t have the time to consider promoting better levels of health and wellbeing to your staff. You’ve got performance reviews to handle, back to work meetings to schedule, and a whole load of paperwork that seems to mount up on your desk on an hourly basis. 

But there are benefits to be had by adopting some of the suggestions here ( others we’ve seen and shared previously), so if you can find the time, you should definitely give some careful consideration to how you can ‘borrow’ a couple of the ideas in order to boost the long-term prospects of your business.

Not got the time but like the idea? Drop us a line at hello@thehrhub.co.uk for a quick chat on how we might be able to help or call 0203 627 7048.

Image: Unsplash