Professional October 2017

MEMBERSHIP INSIGHT

On your behalf

Policy team update

Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update on a range of topics

Consultation for evidence on the NMW In July, the CIPP submitted its formal response to provide evidence of the impact that the national minimum wage (NMW) and national living wage (NLW) rates are having, and will continue to have, on businesses. We collected the views of our members and others within the payroll profession through an electronic survey which ran from 13 June to 5 July and received a total of 55 responses. Summary of key findings: ● 82.5% of respondents report that their paybill has increased since the introduction of the NLW ● 80% state that the NLW has not affected the total number of jobs in the business ● 22.5% have reduced the overall number of hours worked in the business ● almost 80% say that the business is now making more use of zero-hours contracts ● 60% report staff turnover has reduced as a result of the NLW ● the majority (61.5%) state that the NLW has not affected premium and overtime

pay in the business ● responses are divided as to the effect of NLW on pay differentials, with 48.6% saying pay differentials have been maintained and the same number saying they have reduced ● more than three quarters of respondents (76.9%) report the NLW has had no effect on the total benefits package offered by their business ● an overwhelming 92.5% say the NLW has had no effect on the age profile of the workforce ● 94.8% report that the introduction of NLW has not affected the number of workers employed below the age of 25 ● no respondents say that the increased apprentice rate has affected the number of apprentices they employ, with almost 44% saying they pay above the apprentice rate ● more than 80% say they have no problems complying with the NMW or NLW ● many respondents raised concerns about the impact the introduction of the NLW has had on salary sacrifice arrangements

● though several respondents feel the introduction of the NLW has been a positive move, concerns have been raised about the reduced ability to reward staff for skills and experience ● several respondents suggested the NLW rates should be based on abilities rather than age. The full consultation response and survey results, including the CIPP’s conclusions and recommendations, are available in the MY CIPP/Policy Hub/ consultation area of our website. Have you begun preparation for GDPR? During July 2017, the CIPP ran a poll asking about employer readiness for May 2018 when the General Data Protection Regulation (GDPR) is implemented in the UK. We received 343 responses in total: 31% of respondents said they have begun data preparation, but almost the same amount (29%) had not actually heard of GDPR. Although just over a third (34%) have a plan in place to start preparations, 29% stated that reading the poll was the first time they had heard of GDPR, and the last 6% had heard of GDPR but did not think it applicable to their organisation.

...29% stated that reading the poll was the first time they had heard of GDPR...

| Professional in Payroll, Pensions and Reward | October 2017 | Issue 34 4

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