Professional July - August 2018

Official publication of The Chartered Institute of Payroll Professionals

in Payroll, Pensions & Reward

Issue 42 July - August 2018

CIPP benchmarking survey

A week in the life of A Chartered Member

Workplace wellbeing Methods and tools

Hours on payslips No time to lose

CIPP update | Policy hub | Professional development

Our innovative cloud based payroll & HR solutions include software, consultancy, training and managed services which are quick to set up, with no need for installations, downloads or upgrades.

Friends, though absent, are still present. Marcus Tullius Cicero (106BC–43BC)

I was saddened on hearing of the premature death of my friend Heather Post (page 12). I had the good fortune to work with Heather for a while and fondly remember her unwavering enthusiasm for all- Editor’s comment

being paid. This issue’s feature topic on workplace healthcare – a topic that is broad and includes financial wellbeing – evidently sparked much interest (see pages 35–42). Though there is a cost to the employer in enhancing or providing workplace healthcare, the evidence is that incurring such expenditure will prove effective and beneficial; for example, in improving staff recruitment and retention. On page 9 you’ll find details of the CIPP’s 2018 benchmarking survey which will measure key strands of providing a payroll service.

At the start of this year, when our new directors attended their first CIPP board meeting, seems so long ago. Yet we’re already nearing the deadline to look for new candidates who will be part of the election process prior to, and at, our annual general meeting on 4 December. I was delighted that so many members decided to put themselves forward for election last year. So, as I’m nearing the end of my period as chair of the CIPP, I’d be delighted if we could have the same choice for members to decide who will join the board this year. I understand it’s a big decision to make, with the commitment between nine and twelve days a year, so it’s important that if you choose to apply you have your employer’s approval. Have a look on the CIPP website for the criteria, and if you want to have a chat with me, or any of the other directors, please just let one of the CIPP team know, and I’ll be delighted to give you a call. You’ll also find a focus on wellbeing in this month’s magazine – and it’s the time of year when a lot of us find ourselves outside At the time of writing (early June) the sun is shining brightly so let’s hope the inklings of recent good weather bode well for our summer ahead, or perhaps we’ll have our normal mixed bag of weather. Nevertheless, I hope you all get a chance to have a well-deserved summer break. In last month’s editorial I promised to set out our planned strategy for 2018/19. Firstly, the CIPP board set out a review of our payroll and pensions Foundation Degree qualifications, which will see us liaising with key stakeholders including; business leaders, academics, tutors, students, and CIPP staff. We’re undertaking this review to ensure these qualifications reflect the exacting standards appropriate for our industry and that it is fit for purpose within the digital arena, which is moving along at a pace. This review will take place during the remainder of this calendar year. I’ll keep you updated on the outcomes. Also mentioned last month – and highlighted as part of our 2018/19 strategy – is a review of our membership package CEO’s message things payroll. I liked Heather. On page 16 is an article providing information on impending changes to content and issue of payslips for the purpose of assisting in compliance with national minimum/living wage rules. (See page 20 for an article revealing complex NM/LW issues such as annualised hours.) Though the changes generate problematical challenges for employers, payroll professionals and software developers, they will surely enable payees to check the accuracy of the earnings they are Chair’s message

Mike Nicholas MCIPP AMBCS Editor

enjoying the sunshine (in between the rainy days of course). It’s important for all of us to look after ourselves, and I know there is a lot of hype in the media about health. Things are always changing in legislation, but not all of it reaches the news, like the General Data Protection Regulation and sugar tax. But we have that obligation to keep up to date with everything that affects people’s pay, and that’s where the CIPP can help. Whether it be a training course, webinar, national forum, our Annual Conference and Exhibition, or our Scottish National Conference, they are all there for your benefit; so, ensure you take advantage and keep up to date with the education opportunities available to you. Hopefully, I’ll see lots of you over the next few months at one of the CIPP events. Please come and introduce yourself.

Eira Hammond ChFCIPPdip Chair, CIPP

to make sure it provides all aspects of education and training necessary to ensure you stay ahead in our industry; plus, news of further enhancements to be announced in the autumn. Being a member of the CIPP is essential for your personal development in payroll and pensions particularly in confirming, where appropriate, use of those hard-earned CIPP designations, as well as ensuring continuous professional development to retain your membership. The final piece of the 2018/19 strategy was around the CIPP’s digital strategy. Ensuring we communicate, educate, train and advise using the various media platforms. The use of technology is essential within the mix of our membership demographic. In all these strategic areas, hopefully you will see a positive impact on your journey with the CIPP.

Ken Pullar FCIPP Chief executive officer, CIPP

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| Professional in Payroll, Pensions and Reward |

Issue 42 | July - August 2018

in Payroll, Pensions & Reward PROFESSI NAL

Also available online at payrollpensionsandreward.org.uk

Contents

July - August 2018

43

The future of workplace healthcare

Julie Lock discusses health and financial developments

Features

18

20

16

Hours on payslips Samantha Mann provides background and explanation

NMW/NLW compliance matters Tim Bridgett discusses major risk areas

Holiday pay calculations Jill Smith covers the basic procedures

28

30

23

The future of workforce management Stuart Price sets out arguments for modern T&A

Dismissal, harassment, disability Nicola Mullineux reviews decisions in three cases

Is SShPP discriminatory? Danny Done discusses, highlighting growing uneasiness

| Professional in Payroll, Pensions and Reward | July - August 2018 | Issue 42 2

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Editor Mike Nicholas 01273 412 836 | editor@cipp.org.uk Advertising Jill Bonehill 0121 712 1033 | advertising@cipp.org.uk Design James Bartlett and Nicole Gumery design@cipp.org.uk Printing Warwick Printing Company Ltd

Get emotional about pension savings Johanna Nelson identifies use of emotions

Are pensions too hard for employers? Henry Tapper explains that radical change is needed

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40

Chief executive officer Ken Pullar FCIPP CIPP board of directors

Is spending on workplace wellbeing worth it? Lisa Gillespie reveals ways to save on absence costs

Financial wellbeing – the role payroll can play Asesh Sarkar explains how and why it makes sense

Jason Davenport ACIPP Suzanne Gallagher MCIPP Stuart Hall MCIPPdip Eira Hammond ChFCIPPdip Ros Hendren MSc FCIPP, Mgr, FCMIdip, FHEA Lizabeth Lay MSc FCIPPdip Karen Thomson MSc ChFCIPP, FHEA Cliff Vidgeon FCIPP Ian Whyteside MCIPP, FMAAT, ATT

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Useful contacts Membership membership@cipp.org.uk 0121 712 1073 Education education@cipp.org.uk 0121 712 1023 Training admin@cipp.org.uk 0121 712 1063 Events events@cipp.org.uk 0121 712 1013 Marketing and sales marketing@cipp.org.uk 0121 712 1033 General enquiries

Importance of workplace healthcare Elaine Gibson explores how employers can support

Workforce wellbeing Jerome Smail reveals developments

Regulars

01 Editor’s comment, and Chair’s and CEO’s message 04 Membership insight On your behalf, Advisory, Five minutes with, Benchmarking 10 Events Horizon 12 CIPP update 13 Professional development A week in the life of, Diary of a student, CPD Events, news and developments

28 Reward insight 32 Pensions news 33 Pensions insight 37 Industry news 38 Feature articles

info@cipp.org.uk 0121 712 1000

cipp.org.uk @cipp_uk

Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2018. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retreival system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.

Workplace healthcare 52 Confessions of a payroll manager Additional online content 26 Paying for waiting time 27 Closing the gender pay gap 36 Protecting pension savers 38 The financially forgotten generation

16 Payroll insight 22 Payroll news

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| Professional in Payroll, Pensions and Reward |

Issue 42 | July - August 2018

MEMBERSHIP INSIGHT

On your behalf

Policy team update

Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update on consultation responses and about a new AEO

T he Policy team extends thanks to all those who have taken the time to complete any of our many surveys in the last three to four months. It is your valuable input that informs our responses to all important consultations. UK labour market The government’s response to the Good work: the Taylor review of modern working practices (‘the Review’) included a consultation on increasing transparency in the labour market (https://bit.ly/2E7tn0i). Much of the content involves areas that are of interest to both human resources and payroll departments. Key findings from our survey are as follows: ● 55% of respondents have provided a written statement to permanent workers within the past twelve months ● 59% said that individuals receive a written statement before commencing paid employment ● 70%, however, state that individuals receive an employment contract before commencing employment ● 56% believe that it takes, on average, less than half an hour to produce a written statement for a new starter ● 63% rarely or never seek legal advice before producing a written statement ● 100% feel that the current prescribed contents of a principal written statement are helpful in setting out employment particulars ● 94% agree that written statements should be provided on or before an individual’s start date ● 87% agree that other parts of the written

...strong support for the holiday pay reference period to be extended...

statement should be provided within two months of an individual’s start date ● 57% agreed that the holiday pay reference period should be amended; with 77% saying it should be 52 weeks but with the option to shorten this period if both employer and employee agree ● opinion was divided as to whether the existing exemptions to the break in continuous service rules are sufficient ● more guidance in all areas of continuous service would be helpful. The responses reveal that written statements are a helpful way of setting out employment particulars and should be provided on or before an individual’s start date. However, whilst perhaps considered good practice, the research suggests that not all employers are providing these statements to new employees; a situation which becomes even less clear, when non- permanent workers are provided through an agency. Rules relating to continuous service are not clearly understood and respondents feel that clear, comprehensive guidance addressing all areas of continuous service would be helpful. There is strong support for the holiday pay reference period to be extended to reduce the impact of seasonal peaks and troughs. The CIPP has recommended that further work should be undertaken to explore how the measures explored in this consultation

can be introduced whilst minimising the administrative burden on employers, and should be supported by clear, comprehensive and timely guidance. Agency workers The government’s response to the Review included a consultation on agency worker recommendations (https://bit.ly/2nOpdjy). information provided to work seekers both in terms of rates of pay and those responsible for paying them ● extending the remit of the Employment Agency Standards (EAS) to cover policing umbrella companies and other intermediaries in the supply chain and to include compliance with the Agency Worker Regulations 2010 (‘the Regulations’) ● repealing the legislation that allows work seekers to opt out of equal pay entitlements (known as the ‘Swedish Derogation’). Our survey, which ran from 6 to 27 April 2018, produced key findings as follows. ● Everyone agreed that a ‘key facts sheet’ would support work seekers in making decisions about work, with the overall response that it should form part of the joining process, e.g. when signing the contract. Survey feedback is that the information in the sheet should be a clear explanation/instruction on what deductions will be made, to whom and show amounts The recommendations include: ● improving the transparency of

| Professional in Payroll, Pensions and Reward | July - August 2018 | Issue 42 4

Policy hub

to be deducted. ● It is inconclusive as to whether an hour would be sufficient time to develop a fact sheet: 50% said yes and the other 50% were unsure. ● All respondents confirmed that they had used an umbrella/intermediary company, but this split 50/50 for a good and bad experience. ● The problems for an agency worker using an umbrella or intermediary company were the lack of clarity on employment issues, lack of transparency and ownership when problems arise. ● When asked about extending the remit of the EAS there was 100% agreement that there needs to be someone in control of legislation and for a point of contact as this would be fairer for all. ● It was agreed that some or most of the legislation around enforcement of the Regulations should come under the remit of the EAS inspectorate. Minimum wage We ran a survey throughout May 2018 to gather views on the Low Pay Commission’s annual review of minimum wage rates for April 2019. The key findings of the survey are as follows: ● 86% of respondents stated that the introduction of the national living wage (NLW) had increased their wage bill to some extent since its introduction in April 2016 ● 100%, however, reported that the NLW had not affected jobs and that they had not been forced to make any workers redundant nor recruit fewer staff ● only 14% stated that they had been forced to reduce staff hours due to the NLW ● 67% have made more use of zero-hours contracts since the introduction of the NLW ● 100% said the NLW has motivated staff, with 50% saying absenteeism and staff turnover has reduced ● 95% say that the NLW has had no impact on benefits packages ● 100% said there has been no impact on the age profile of the workforce ● though 25% believe the expected increase to the NLW in April 2020 will have no effect on their business, 10% believe it will have a big effect ● 25% say they have begun recruiting apprentices as a direct result of the apprenticeship levy and a further 10% are planning on doing so

...difficulties when it comes to HMRC enforcement of the minimum wage... Whilst the introduction of the NLW has affected many businesses, the impact on jobs and worker hours has been minimal. Though our research shows the NLW has had a positive impact on staff morale, there has been a significant increase in the use of zero-hours contracts. Where the number recruiting, or intending to recruit, apprentices following the introduction of the apprenticeship levy has shown a slight increase, there are those who feel that the levy is simply another form of taxation from which they will not benefit. Every year – and this year is no exception – our members tell us that although they pay above minimum rates, they still experience difficulties when it comes to HMRC enforcement of the minimum wage and in understanding government guidance which still appears unclear and difficult to interpret. All our open consultation surveys and formal consultation responses can be found under My CIPP / Policy hub on cipp.org.uk . New Northern Ireland AEO The Enforcement of Fines and Other Penalties Regulations (Northern Ireland) 2018, (‘the 2018 Regulations’), which came into operation on 1 June 2018, are made under provisions of the Justice Act (Northern Ireland) 2016 (‘2016 Act’). The Justice (2016 Act) (Commencement No.2) Order (Northern ● the majority pay their workers more than the minimum rates ● experience of HM Revenue & Customs’ (HMRC’s) minimum wage enforcement is not good ● use of zero-hours or short-hours contracts is not commonplace, with only a quarter stating that they are used to some extent ● 56% of those using flexible employment contracts said that workers tend to work similar hours each week.

Ireland) 2018 (‘the Order’) brings into operation from 1 June 2018 provisions in relation to the collection of fines and other penalties. New enforcement powers include deductions from benefits, attachment of earnings orders (AEOs), bank account orders and vehicle seizure orders. Though the 2018 Regulations mirror the changes in England and Wales that enable recovery of fines from earnings under provisions of the Courts Act 2003, they seem to borrow from direct earnings attachment (DEA) rules rather than using Courts Act 2003 AEO rules for the recovery of fines. Note that though DEA rules specify tables for daily, weekly and monthly rates, the new AEO for Northern Ireland only specifies weekly and monthly. If your payroll software does not (yet) have the functionality to deal with the AEO – which, given the effective date of 1 June, would be unsurprising – using DEA capabilities in your software could cover the requirement. However, you need to understand what your software will do and the implications. Neil Tonks, ChMCIPPdip, commented on this when we posted the item on our LinkedIn group: “Entering these things into the payroll as DEAs might well calculate the correct deduction, but sadly that’s not the whole story. The problem is the rest of the payroll system will treat them as DEAs too, which may be inappropriate. For starters, they may be described on the payslip as being a ‘DEA’, which could confuse the employee. Additionally, you’re required to explain the nature of any deductions on the payslip and describing an AEO to recover a fine as being a DEA (which is not used for that purpose) doesn’t really achieve this, does it? They’ll also be picked up by any reports relating to DEAs, on which they’ll be provides information for the DEA schedule you sometimes have to submit (depending on how you pay the money over), and also on any financial reporting relating to DEAs. If the payroll generates BACS output to pay the DEAs, these new orders may be included there, too, which is not what’s required. Because of these unwanted consequences, payroll systems will have to be amended to treat them separately, but this won’t happen overnight. It would have been good to have had a reasonable amount of time to prepare!” n mixed in with the genuine DEAs. ”This will affect any report which

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| Professional in Payroll, Pensions and Reward |

Issue 42 | July - August 2018

MEMBERSHIP INSIGHT

the week in which falls the 1 September following their 15th birthday or their 16th birthday if the child is disabled. The second condition is regarding the premises of the nursery: it cannot be a private dwelling i.e. it cannot be the employee’s home under the provision of a nanny or a childminder’s home. The premises must also be registered under one of the Acts: In England, those specified under Part 3 of the Childcare Act 2006; in Wales, those specified under Part 2 of the Children and Families (Wales) Measure 2010; in Scotland, those specified under Part 1 or 2 of the Regulation of Care (Scotland) Act 2001; and, in Northern Ireland, those specified under Part XI of the Children (Northern Ireland) Order 1995. Thirdly, the employer must meet the ‘scheme employer’ condition or be in partnership with another employer. To be classed as a scheme employer they would be the employer that operates the scheme under which care is provided. Finally, the fourth provision is that it should be open to all employees or all employees working at the site where the provision is provided. The meaning of ‘care’ in regard to a workplace nursery for this exemption to apply can be defined as any kind of care and supervised activity apart from compulsory education provided in schools. If the conditions are not met, then it would become a benefit to the employees and the ‘marginal additional expense’ of providing the benefit to the employees is what should be reported in the P11D return. Q: This month we have an employee who wishes to have a share save deduction of £1,800 taken. Will this affect the NMW calculation for this employee? A: This will not affect the NMW. The guidance – national minimum wage and National Living Wage – calculating the minimum wage (see https://bit. ly/2waOo6F) – states that deductions from pay or a payment by the worker does not reduce NMW or national living wage if these deductions are for the purchase of shares, other securities or share options. Q: If we receive a new starter checklist for an employee and their home address is in Scotland, should we as the employer enter their tax code on to

Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m.

to 4.30p.m. on Fridays. It is free to all CIPP members * , students and attendees of approved CIPP courses and conferences in the last six months. Call 0121 712 1099 , email advisory.service@cipp.org.uk or visit cipp.org.uk for frequently asked questions.

Advisory

*please see summary at cippmembership.org.uk for details.

Q: An employee, who has received the maximum 28 weeks’ entitlement of statutory sick pay (SSP), would like to know when they will become eligible for SSP again. Is it a rolling twelve-month period or in the new financial year? A: If an employee has exhausted their entitlement to 28 weeks’ SSP for a period of incapacity for work (PIW) and has then been claiming employment and support allowance (ESA) from the Job Centre Plus, then on their return to work they should receive a letter from Job Centre plus explaining when they will be entitled to SSP again. HM Revenue & Customs (HMRC) provides guidance in the Statutory Payments Manual which explains that the employee will not be entitled to SSP if they are sick within twelve weeks of receiving ESA (https://bit.ly/2LpDzk3). Alternatively, if they return to work immediately after 28 weeks of SSP they will need to be back at work for at least eight weeks to be entitled to further SSP. If the new absence is less than eight weeks from the previous PIW, this absence will be linked, and the employee will not be entitled to SSP; you would have to issue a SSP1 form. Q: We are a bureau. A client pays their two employees a standard salary each month along with a very large bonus payment each quarter. Their standard salary will no longer meet the national minimum wage (NMW), but their bonuses from last year equated to over £70,000. We would like to understand

whether their basic salary should be increased to meet NMW or can it remain as it is because they will receive large bonus payments through the year? A: It is possible to account for some of the bonus towards NMW. For example, if you pay a bonus in March which relates to January, February and March and you pay the employees monthly you can allocate one third of the bonus to the February and March pay periods, but you wouldn’t be able to attribute any of the bonuses to the January pay period. This would mean that if the client did not increase the January salary it would be below NMW. If the bonus was paid monthly, then this could be used each pay period towards NMW. The latest guidance for NMW ( National minimum wage and national living wage – calculating the minimum wage ) can be found here: https://bit.ly/2waOo6F. Page 16 explains how annual bonuses can be applied to the NMW and the principle here is the same; however, the bonus is divided by twelve instead of three. Q: Would a ‘before and after school’ club meet the conditions for the income tax exemption for a workplace nursery? A: This could be included providing all four conditions are met for a workplace nursery. The first is that the person who receives the care must be a child or stepchild of the employee maintained wholly or partly at the employee’s expense, live with the employee, or be a child for whom the employee has parental responsibility. A person is a ‘child’ for the purposes of this exemption up to the last day of

| Professional in Payroll, Pensions and Reward | July - August 2018 | Issue 42 6

Policy hub

KEEPING THE UK PAID 3-7 September Get involved and celebrate National Payroll Week 2018

the system with prefix ‘S’, or do we just apply the standard tax code relating to the statement that they have selected and wait for HMRC to notify us via a P6 coding notice? A: The ‘S’ prefix for Scottish tax codes should only be actioned on the advice of HMRC. So, even if you know that the employee resides permanently in Scotland you would not enter the ‘S’ to the tax code until you have received a P6 notice from HMRC. If the employee has provided a P45 form and this does indicate a ‘S’ prefix then it is okay to operate this Scottish tax code on the employee’s record for the new starter on this occasion. Q: On our payroll this month we have an employee who will be going off on maternity leave. In the months we use to calculate her average weekly earnings (AWE) for statutory maternity pay (SMP) she was only paid SSP, therefore she has not earned enough to be entitled to SMP. We think this seems very unfair as she was off sick and only in receipt of SSP that she does not get SMP from us. Can you please clarify the rules? A: Unfortunately, if she doesn’t meet the AWE criterion she won’t qualify for SMP. You can only use the actual earnings in the relevant period to determine the AWE. You will have to issue a SMP1 form to the employee and she may be able to claim maternity allowance from the Department for Work and Pensions. The time frame is wider for maternity allowance i.e. the test period is 66 weeks up to and including the week the baby is due and it is over thirteen weeks instead of eight. The thirteen weeks do not have to be in a row and the employee has to earn at least £30.00 per week. Q: We are currently updating our expenses policy and wondered if you could assist. Currently employees are claiming business expenses and they are being reimbursed amounts tax and National Insurance contributions (NICs) free through the payroll but without receipts. Is this acceptable? A: Best practice would state that receipts should be provided (where possible) to support business expense claims. Generally, employers are within their rights to refuse to pay the claims if receipts are not provided to support the claim. Expenses can potentially be claimed if

they are not receipted but you must be confident that they are genuine business expenses which have been incurred wholly and necessarily in the performance of their duties. For example, you make a journey via the London Underground and could not keep the ticket or get a receipt – the expense could be reimbursed as long as you could demonstrate that they did make the journey. If the proof cannot be provided HMRC would see this and therefore it would not be tax allowable. They may also consider that the individuals could have negligently or fraudulently made claims and you would then be going down the penalty route – which could mean HMRC potentially imposing a penalty of 100% of the tax lost plus interest. The guidance on gov.uk states as follows. If you reimburse an employee’s travel expenses – you will need to keep a record of when and why the employee travelled, and where possible keep receipts as evidence. Checking expenses You must have a system in place to check payments you make at benchmark or bespoke rates. Your employees aren’t allowed to check their own expenses, so someone else within your company needs to do this to make sure they’re legitimate. Tell your employees to keep proof of their expenses, e.g. receipts or bills, in case you need to check them. Evidence To prove that they are expenses actually incurred by employees in carrying out their work you must be able to provide evidence of the actual business expense. The type of evidence will depend on the item of business expenditure. For example, evidence could include: a log of business phone calls or visits; credit card bills; receipts; work diaries showing the employee’s engagements; a representative survey of the costs involved (that is a scale rate). You can see that best practice would dictate that claims should be receipted (where possible). HMRC’s Employment Income Manual sets out what HMRC would look for (https://bit.ly/2HmzkDe). n

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Issue 42 | July - August 2018

| Professional in Payroll, Pensions and Reward |

MEMBERSHIP INSIGHT

5 minutes with…

Dr Sue Smith EdD, MA, BEd, FHEA, FCMI, CMgr, Assoc CIPD, Associate director of professional education, CIPP

What do you think you can bring to the future strategy of the CIPP? I’d like to see practitioners making a conscious decision to develop a career in this profession and make confident choices to progress along a clear pathway. I believe I can help people craft a strategic career progression, by building the supporting development to enable these practitioners to continually raise the standards of their own profession. What does the future hold for the future of payroll, pensions and reward? There are many exciting ways in which we can support our learners and students to learn more effectively and shape the profession. I’d like to see innovative partnerships with payroll, pensions and reward stakeholders informing methods of development. With so many generations being involved in the profession at any given time, I believe we can learn from each other and increase our capacity to learn better than ever before. What do you do in your available time to unwind? I play a lot of squash. I’m an England International Masters player; having received ‘caps’ for representing England on a number competing in tournaments and plan to travel to Barbados and the USA later in the year. I’ve played in Hong Kong, Spain, Germany, Sweden, Australia and The Netherlands. I also have an adorable Brittany spaniel called Buddy, who is my constant training partner in the outdoors. n of occasions in the last five years. I love to travel around the world

Tell us about your career and background I started my career as a primary school teacher. I’ve been in development pretty much since then, although I prefer to focus on the development of people; which seems to reflect the holistic nature of helping an individual grow rather than teaching or educating them. I have worked for some well-known household brands such as Accenture, Little Chef, Tarmac, and Punch Retail before starting my own development company in 2004. I’ve held commercial roles, learning and development roles and academic roles, and worked in many different sectors and industries – so feel I have a wide range of skills, knowledge and experience to offer; but I still like to consider myself a pragmatist. When did you first become involved with the CIPP? My first encounter with the CIPP was in 2008 when I was invited to speak about managing difficult people at the Annual Conference in Brighton. I had been introduced to Liz Lay (now a board director) by a colleague at a meeting and during the discussion she asked if I would

like to present at the conference. Then in 2012, I was working at the University of Derby as an associate lecturer and was asked to manage the CIPP portfolio, which included the MSc in Business and Reward Management and the BA (Hons) in Applied Business and Management. I managed and taught on both programmes. In the early summer of 2017 I replied to an advert for the associate director of professional education and started working with the CIPP in August. What does your role mean to you? My passion has always been about developing people and helping them to be the best version of themselves that they can be. Having started my career in teaching and having held a number of development positions (as well as spending almost a decade in researching coaching) this role epitomises all the various aspects that strategic development, training, teaching and learning can be. I work with an experienced team of great people and I believe this makes a huge (positive) difference to my contribution at work.

| Professional in Payroll, Pensions and Reward | July - August 2018 | Issue 42 8

Membership insight

CLOSES 31 AUGUST

The CIPP benchmarking survey is now open until 31 August 2018. To get a better indication of true performance we need as many responses from members as possible, so take part and complete the survey today * CIPP benchmarking survey

M ore and more frequently payroll departments are finding that they are at risk of being outsourced or need to be able to justify their efficiency and cost-effectiveness. Being asked to prove to your employer how valuable the payroll department is, is an increasingly common position for members to find themselves in and here at the CIPP we are often asked if we can help members compare themselves against other similar organisations. A key benefit of full, fellow or Chartered membership of the CIPP is the opportunity to take part in the benchmarking survey which will give you the answers you need if ever you are placed in this difficult position. Another benefit of taking part in the benchmarking survey is the opportunity to help shape the future of your profession, whilst enhancing your knowledge and better understanding of your market position. The benchmarking survey is designed to measure the four key strands of providing a payroll service. These are: ● accuracy, timeliness and completeness and the evaluation of the effectiveness of your end to end human resources/payroll process resulting in every company that takes part in the survey being awarded a Sigma level for their payroll service ● compliance with statutory filing/payment deadlines ● data security/confidentiality ● an average cost per payslip which will help demonstrate efficiency and value for money.

What is benchmarking? A benchmark is a standard against which something can be measured. Benchmarking comprises management finding the best performing companies within their industry, or in others that involve similar processes. Thereafter, comparing the processes and results of similar organisations to their own company processes and results. This enables participants to identify how well these organisations perform and how they get their results. Additionally, this enables participants to identify opportunities and uncover strengths and weaknesses within the organisation. Benchmarking enables you to set and monitor realistic yet aggressive objectives, giving your team the power to be the best they can be within your industry. Another advantage is it provides you with a blueprint for gaining a competitive advantage, as you and your team strive for continuous improvement. Six Sigma Six Sigma has traditionally been used in the manufacturing sector to detect defective parts etc before they reach the customer. More recently the same methodology has been applied in the service sector to measure the effectiveness of transactional processes such as accounts payable and payroll. Our aim at the CIPP in offering this benchmarking survey is to measure/

benchmark your payroll process with a Sigma level. A Sigma level of six being totally flawless (which is not normally seen in the service sector) whilst anything less than a Sigma level of three would suggest there is plenty of opportunity for improvement. The CIPP benchmarking survey Benchmarking is only beneficial if the information provided is accurate and honest; therefore, you should be as honest as possible when answering questions so that you can gain a true understanding of your organisation’s payroll and how it compares with others in the market. The survey should take no more than twenty minutes to complete. You should have to hand, information about your HMRC transactions and payslip figures, along with the latest budget costs for your payroll for the current financial year. Following completion, you will be provided with a copy of the benchmarking report. Thank you in advance for participating. n To take part in the survey, please use the following link, or log into the members area of our website: https://www.cipp. org.uk/my-cipp/benchmarking.html If you are an affiliate or associate member and would like details of upgrading to full membership, please email us: membership@cipp.org.uk .

* Only eligible for full, fellow and Chartered members

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Issue 42 | July - August 2018

| Professional in Payroll, Pensions and Reward |

Full details of events and training courses can be found at cipp.org.uk or you can email info@cipp.org.uk for more information. Events Horizon

National forum webinar date announced Join us on the 19 July for the CIPP national forum webinar. This is a convenient way to get an essential update from the CIPP policy team, as well as other key speakers, on developments in payroll, pension and reward legislation. National forums are available to associate member and above. If you are an affiliate, trial, web user or student member and you’re interested in attending the webinar please login to ‘My CIPP’ at cipp.org.uk where you can upgrade your membership; or email membership@cipp.org.uk for more information on how to upgrade.

The CIPP’s

Scoish National Conference and Exhibition 2018

Thursday 6 September 2018

Thursday 11 October 2018 Hilton Birmingham Metropole

This is your chance to attend the only payroll conference in Scotland. Learn about forthcoming legislative changes, collaborate with fellow payroll and HR professionals and celebrate your profession with colleagues.

It’s not too late to nominate. You have until 10 August to make your nominations for the CIPP’s Annual Excellence Awards. Don’t miss out on the opportunity to recognise a colleague for their contribution. Let someone know they have made a difference. Categories include: ● Newcomer of the year ● Manager of the year ● Well-being and employee engagement award ● Project of the year ● My biggest influencer award.

New speaker announced: We are delighted to announce that Linda Scott, director and chief executive of the West Lothian Chamber of Commerce, will be our keynote speaker. With a strong background in building her own businesses, Linda now sits on several boards and committees

with responsibility for employment, education, enterprise and commerce across West Lothian and is an active director on the board of the Scottish Chamber of Commerce.

For a full list of categories, or to nominate someone you think deserves to be recognised, please visit www.cipp.org.uk/awards

Accommodation and networking dinner is provided on Wednesday 05 September.

For more information please call 0121 712 1013 , or to book your place please visit payrollevents.org.uk or email events@cipp.org.uk

| Professional in Payroll, Pensions and Reward | July - August 2018 | Issue 42 10

Training courses

Date *

Location

Course

Date *

Location Course

London

London

6 August 9 August 10 August 16 August 17 August

10 August 15 August 31 August

Manchester

Manchester

Bristol

Solihull Solihull

Devolution issues for payroll and HR

Solihull

6 September

Newcastle

Manchester

18 September 24 September

Payroll and HR legislation update

Solihull London

London London

3 September 6 September 7 September 14 September 28 September

14 August 16 August 20 August

Edinburgh

Manchester

Holiday pay and leave

Leeds

Solihull London

17 September

Cardiff

Dates are subject to change. More dates are available at www.cipp.org.uk/payroll-training-listing

Can’t find a date or location for your needs? Let us know by visiting cipp.org.uk/trainingreg . New dates and locations may be added if there is enough interest.

Have you considered in-house delivery of training courses?

The full list of CIPP training courses can be found at cipp.org.uk/training

AGM18 Notice of Annual General Meeting Notice is hereby given that the Annual General Meeting (AGM) of the Chartered Institute of Payroll Professionals will be held on Tuesday 4 December at 11.00 , at the CIPP, Arne Street, Covent Garden, London, WC2E 9RA . Ordinary business To consider and, if thought fit, to pass the following resolutions which will be proposed as ordinary resolutions: l Approval of minutes from AGM 2017 l To elect directors to the board l Approval of accounts for the year ended 30 June 2018 This is the Institute’s twenty-first AGM.

Notes The deadline for submitting further agenda items is 31 August 2018 .

Any member wishing to stand as a board director should send a completed nomination form and accompanying documentation, to be received by the Institute secretary no later than 31 August 2018 .

l Election of auditors l Any other business By order of the board

Cliff Vidgeon FCIPP, Institute secretary Chartered Institute of Payroll Professionals Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, B90 4ZL

Attendance at the AGM is free for CIPP members. Should you wish to attend, please book via our website at cipp.org.uk

cipp.org.uk @CIPP_UK

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Issue 42 | July – August 2018

| Professional in Payroll, Pensions and Reward |

CIPP update

Heather Post 3 November 1953–June 2018

FROM THE early days of the first ever payroll qualification, the Diploma in Payroll Management, Heather was active within the payroll movement’s educational thrusts. She was among the first proud cohort of students to qualify in the MSc in Payroll Management, and was always keen to foster the recognition of payroll as a profession. Heather had a natural bent towards educational matters. She became one of the first tutors, managing and mentoring hundreds of students over the years. Not only was she a popular tutor, the number of her students passing was always amongst the highest when looking at the league table of tutors. One of her major enjoyments was the annual student weekend revision school held at universities

throughout the country. She taught sessions that were academically challenging, receiving top scores on the student critiques. It’s fair to say Heather not only worked hard, she also enjoyed playing hard too, and would sit up into the early hours with her students putting the payroll world to rights whilst enjoying a glass or two of white wine. Her input to the study material was always appreciated and she was a member of the moderation panel which received accolades from BTEC (Business and Technology Education Council) for their fairness and thoroughness. In addition to her role as tutor, Heather was voted to the CIPP board in November 2007 and served on the board until she decided to stand down in November 2010 due to work commitments. She was a valued member of the board and contributed significantly to the strategies outlined and set for the Institute at that time.

CIPP supports Pancreatic Cancer Action ON 24 May, the CIPP invited Ali Stunt from the charity Pancreatic Cancer Action to deliver a workshop raising awareness of pancreatic cancer. This forms part of the CIPP’s employee wellbeing programme and was organised by the CIPP’s charity committee as the CIPP supports Cancer Research as one of our corporate charities. The mission of Pancreatic Cancer Action is to improve the early diagnosis of pancreatic cancer and improve the quality of life for those affected. The charity is working tirelessly towards the day when more people survive pancreatic cancer and patients have the best treatment available. The charity wants a better understanding of the risk factors, symptoms and treatment options. Pancreatic cancer was, and remains, the tenth most common and fifth most deadly cancer. Its vague symptoms often result in late diagnosis followed by death within months – but sometimes, sadly all too often, within weeks or days. Pancreatic Cancer Action raise awareness of the signs and symptoms of pancreatic cancer and provides patients and healthcare professionals with information they can trust. The charity develops and promotes medical educational resources to improve awareness of pancreatic cancer among healthcare professionals and funds research into developing an early detection method to improve early diagnosis of pancreatic cancer. For more information about pancreatic cancer, and the symptoms and the work Pancreatic Cancer Action does, please visit www. pancreaticcanceraction.org.uk . Chartered members announced We are delighted to announce a further two recently approved Chartered members:

● Ian Hodson ChMCIPPdip ● Karen Beckett ChFCIPP

Chartered membership recognises the highest level of professionalism within the payroll industry and demonstrates an individual’s commitment to compliance, best practice and excellence in payroll, pensions or reward. To upgrade to Chartered membership, visit cippmembership.org.uk or email membership@cipp.org.uk for more information.

| Professional in Payroll, Pensions and Reward | July - August 2018 | Issue 42 12

Professional development insight

A week in the life of a Chartered Member...

John Stonestreet ChMCIPPdip Head of payroll and pensions for Essex and Kent police forces M y current role with the police is varied and interesting. The joint department I head was I then travel to Essex headquarters to work on the details of the police staff pay award that was due in September 2017, but which was finalised and agreed in May 2018. Tuesday

Thursday Northfleet, Kent – Including myself, the payroll and pensions team comprises nine staff members. I use my time here to catch up with the team and attack the paperwork that arrives daily, despite the near constant email traffic. I have succession planning meetings with my deputy and senior payroll officer to ensure our function would continue to run smoothly and seamlessly in the event of an individual leaving. This is a very important piece of strategic planning applicable to all levels of the organisation which allows input from staff on areas they would like to receive training or development. Friday Westminster, London – Attending the NPCC National Reward Framework Working Party, which is an initiative aiming to deliver proposals for a new police officer reward framework. Stakeholders include national human resources colleagues, representatives from police staff associations and the Home Office. I’m grateful for this opportunity as it enables me to not only have strategic insight and input into the proposals, but to add a technical angle where they may not be workable or require specific clarification before implementation. Being involved allows me to flag up issues before they come into legislation and then require amendment, thus sparing the taxpayer time and delays to implementing new payments. n John has over twenty years’ experience in payroll in both the private and public sector and has been involved in implementing new payroll systems and upgrades throughout his career. He obtained the then IPPM Diploma in Payroll and Pensions Management in 2003; and in January 2018 was one of the first CIPP members to obtain Individual Chartered Status.

formed in 2014 and is responsible for the payment of salaries and pensions to over 18,000 police officers, staff and retired officers across seven payrolls. Essex Police and Kent Police have been collaboration partners for over ten years and constantly seek to improve processes and procedures in order to deliver the savings required during a challenging time for public sector finances. I am a member of both forces’ finance senior management teams and an active member of the CIPP. I’m also involved nationally with the National Police Chief’s Council (NPCC) tax forum, the National Police Payroll Managers Group and NPCC National Reward Framework Working Party. The peripatetic nature of my role means I move around Essex and Kent frequently. So, IT solutions, such as video and telephone conferencing, are increasingly utilised in order to cut down travelling time and the associated costs. Monday Great Dunmow and Chelmsford, Essex – My week always starts with a morning briefing with Essex command team colleagues. We update one another about activities that occurred the previous week and what is currently planned for the coming week. There are always variations of what actually happens with what is planned due to the reactive nature of a lot of payroll work and other external activities. After the call, I check in with my team. After catching up with the team and emails including the invaluable CIPP News On Line email, I deliver some training on our BACS software to a colleague within our business services team who has been added as a BACS contact.

Chelmsford, Essex – I am lucky to work for an organisation that has an effective and well-utilised flexible working policy: after dropping my children to nursery and school I return to headquarters to continue working on the pay award. The backdated nature of this means all staff retirements since September require a fresh set of pensionable pay figures to be sent to pension administrators at County Hall which involves planning to address. I have a daily update call with my deputy based in Northfleet to keep in touch with the day to day operation of the department, and spend the afternoon updating the VAT tables after the new advisory fuel rates are released for the forces to be able to reclaim the tax on the fuel element of business mileage. Wednesday Maidstone, Kent – I’m a regular user of one of the UK’s largest car parks – the M25 – but eventually arrive at Kent headquarters for our monthly senior management team meeting. Topics discussed include the internal development programme – Develop You – and how to ensure our staff are taking the opportunities available to them including wellbeing courses, confidence workshops, Myers-Briggs type indicator sessions and leadership training. Both forces have a refreshing continuous improvement strategy aimed at all levels and recognise that continual development of our staff and officers is key as the foundation to all our successes is our people.

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Issue 42 | July - August 2018

| Professional in Payroll, Pensions and Reward |

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