Final salary pension schemes in the public sector should be replaced by those calculated on the basis of career average earnings, the government-commissioned Hutton report has recommended. The final report of the Independent Public Service Pensions Commission, led by former Labour work and pensions secretary Lord Hutton, also called for higher retirement ages as part of efforts to make public

service pensions more affordable. Although benefits accrued under final salary schemes should be honoured, the report said that a career average format would be more sustainable in the long term, while still guaranteeing a retirement income proportional to pay and resulting in a fairer deal for lower earners. This move alone is expected to save the public purse £2 billion a year.Read the full story at bit.ly/fzdwcg

Insurance alternative to sick pay consideredRead the full story at bit.ly/h8bN16

The government is set to consider a reform of the sick pay system that would see employers opting to pay for income protection insurance for their staff instead of providing paid sick leave. Under the income protection insurance model, insurers would take responsibility for paying income protection when employees were off work sick. This in turn would incentivise insurers to supply health and well-being support to get people back to work more quickly.

Business case for mediation is robust, say employersRead the full story at bit.ly/e03tWH

There is a robust business case for adopting mediation within organisations in addition to the benefits of improved employee relations, the CIPD’s Conflict Management conference heard. Both the Arcadia Group and BT told delegates at the London event how adopting mediation practices at their firms had secured buy-in from top executives by saving money, as well as resolving more workplace issues.

Comment: Investing in staff pays offRead the full story at bit.ly/hjYR0z

Susanne Jacobs compares the bonus strategies of Northern Rock and John Lewis, both of which have been in the news for the size of their payouts.

Comment: Innovative working in a Big SocietyRead the full story at bit.ly/h7Fm14

With public-sector cuts starting to hit home, Somerset County Council HR director Richard Crouch mulls the meaning of the Big Society at local level.

Employers urge tribunal reformRead the full story at bit.ly/hlNfRt

The majority of employers support an overhaul of the “broken” employment tribunal system to minimise the burden of spurious claims, results of a new CIPD survey have revealed. Half of employers would advocate a system that awards costs against losing claimants, while 54 per cent want to see more effective management of tribunal cases to identify “vexatious” claims, found the Conflict Management research.

Hutton calls for public pensions shake-up

CIPD Employee Outlook- Focus on pensions

bit.ly/gd95rw

Stockholm Network: The welfare state after the crisis

bit.ly/hFEhfM

Acas - mediation

bit.ly/gIMNoj

John Lewis profits fund 18% staff bonuses

Independent http://ind.pn/eewdVt

Number of ministers must shrink to realise Big Society,

say MPs

Public Finance bit.ly/ieSNrx

CIPD survey report: Conflict management

bit.ly/fzq5jM

Legislative timetable – what’s new in the law

People Management bit.ly/eZwGXm

☛ MORE NEWS ON NEXT PAGE

LINKS

This week in HRFollow us on… …and SlideShare

Get HR news, comment and jobs daily by email. Sign up at www.peoplemanagement.co.uk/daily

A round-up of the top HR and management storiesWeek ending 11 March 2011

LINKS

© People Management is published on behalf of the CIPD by Personnel Publications Ltd, 17-18 Britton Street, London EC1M 5TPsubscriptions Magazine 020 8950 9117 CIPD members 020 8612 6208

editorial General 020 7324 2729 News 020 7324 2729 PM Online 020 7324 2733 www.peoplemanagement.co.uk Email editorial@peoplemanagement.co.uk

Check out the latest vacancies, sign-up for job details by email, upload your CV and get careers advice

People Management is the official magazine of the Chartered Institute of Personnel and Development

☛ PEOPLE MANAGEMENT ‘THIS WEEK IN HR’ CONTINUED...

Use our classified guide to identify suppliers of HR goods and services

Asda launches maternity leave mentoring schemeRead the full story at bit.ly/i1Z48R

Asda has launched a mentoring initiative for female staff on maternity leave, as part of efforts to support them to return to the workplace. The “Mum2Mum” scheme will assign each mother-to-be a mentor from the business, another working mother who will give support to them over a 12-month period.

British Safety Council demands debate on HSE cutsRead the full story at bit.ly/gOYWND

The impact of Health and Safety Executive (HSE) funding cuts on workplace safety must be opened up to a public debate, the British Safety Council has said. The HSE’s plans to reduce unannounced workplace inspections, as part of the cuts, were revealed in a letter leaked to the BBC this week. Under the plans, budgets will be slashed by as much as

35 per cent, which could mean the withdrawal of surprise inspections from entire areas of industry.

Network Rail chiefs will not receive bonusesRead the full story at bit.ly/h5Vse9

Top executives at Network Rail will not receive bonuses this year, the state-funded track maintenance company has confirmed. The move follows heavy criticism of the £2.4 million awarded to senior management in bonuses last June, which the secretary of state for transport, Philip Hammond, described as “very disappointing”.

Sex diversity is responsibility of business, finds HSBCRead the full story at bit.ly/dEKbuo

Employers must take the lead in encouraging more young women to play a role in business in the future, according to a global survey by HSBC. The bank’s Shape of Things to Come survey asked businessmen and businesswomen about how the world of work could change to increase the opportunities for women in the next 50 years. More than half (51 per cent) of the 258 respondents – drawn from New York, London and Hong Kong - said the onus should be on businesses to improve gender diversity.

State pension to be simplifiedRead the full story at bit.ly/eWI0lo

The government is planning to radically simplify the state pension system to make it easier for people to plan for retirement, work and pensions secretary Iain Duncan Smith said today. In a speech to the charity Age UK, Duncan Smith said that the basic state pension and the state second pension would be combined into one flat-rate payment for men and women, while means-tested pension credit would be abolished to incentivise saving.

Recruitment increased in February, says REC reportRead the full story at bit.ly/dZPvFh

Job growth accelerated sharply last month, but the UK is developing a “two-speed” labour market as vacancies in the public sector diminish, a monthly recruitment survey has revealed. The number of permanent placements rose at the fastest rate in 10 months, while temporary staff placements saw the greatest rise since May 2007, according to February’s Report on Jobs from the Recruitment & Employment Confederation (REC) and KPMG.

Asda: Mum2Mum help scheme launched on International

Women’s Day

bit.ly/h4OlI4

Leaked HSE letter shows safety checks at risk from cuts

BBC http://bbc.in/h8PJVI

Network Rail fined for health & safety offence

www.rail.co bit.ly/fRSY61

The Shape of Things to Come survey

bit.ly/eNkARB

Equality Act 2010 - what it means for HR

People Management bit.ly/igAx1Y

‘Iain Duncan Smith reveals plan for flat-rate £140 state

pension’, The Guardian

bit.ly/iiyAEz

Recruitment & Employment Confederation

www.rec.uk.com