Official publication of The Chartered Institute of Payroll Professionals
in Payroll, Pensions & Reward
Issue 45 November 2018
Leadership – nature or nurture
Workie bares his teeth Keeping an eye on pensions
It’s open season You’re being trolled
Interviewing a werewolf Revealing behavioural traits
CIPP update | Policy hub | Career development
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“No man will make a great leader who wants to do it all himself or get all the credit for doing it.” Andrew Carnegie (1835–1919) (http://bit.ly/1UD5BJh)
Editor’s comment
Searching online I found many quotes that revealed the numerous facets and traits of leadership. Some are from recognisable leaders such as Alexander the Great, Steve Jobs. You can view them here: https://bit. ly/2kkPOT5.
have achieved. I think the articles on leadership from page 38 are informative and inspirational and essential reading. Another article I suggest you must read is about universal credit (see page 18). The unfolding of a disaster is increasingly evident, with data employers supplying via real time information adversely affecting many claimants. Though the article outlines a possible solution, it seems unlikely to be widely adopted; indeed, some in the payroll industry will think the government must act and lead.
As I’m nearing the end of my appointment as chair of the CIPP I have started to reflect on the overall experience of the past couple of years and the wonderful opportunities that have presented themselves to me, as well as the lasting friendships and payroll professional colleagues that I have met worldwide. I have especially liked to see the wonderful response to my on-going requests to empower our membership to volunteer themselves as future board directors of the CIPP. Last year, for the first time since I’ve been associated with the Institute, we had fourteen initial applications with nine who ultimately stood for election, resulting in four new board members. This year I’m overwhelmed that nineteen members have decided to work with the existing board to shape the strategy into the future. Every one of those who applied has something great to offer. Whether it be innovation skills, strong financial expertise, IT experience; whether they are digital strategists, have small-to- I chose the above quote as it conveys that we all need people around us, people we rely on, people who can inspire and motivate; indeed, without people there can be no leaders. Leadership is so important in our work and indeed our lives. We give and receive leadership, often without recognising or knowing it; and sometimes it’s good, sometimes it’s poor. You’ll find great examples of leaders throughout this issue and in the accompanying supplement. Indeed, you need look no further than the two pieces below to discover leaders and the change they Chair’s message
Mike Nicholas MCIPP AMBCS Editor
medium-size employer involvement or whether their experience is more generalist in payroll management and industry capability – all of that is valuable to the future of the CIPP. I’m delighted that so many have felt encouraged to put themselves forward. The last thing for this month is now to encourage the membership to review the applications and vote for those they think would have the skills necessary, and the personality to take the Institute forward and continue the remarkable success we’ve seen over the last few years. We are moving from strength to strength, but we’d be nothing without our members – so we rely on you not only to support by voting, but continuing to support our surveys, events and consultations.
Eira Hammond ChFCIPPdip Chair, CIPP
Well, sadly, we are now heading into winter – where has the year gone? After CEO’s message
membership for members who meet the necessary criteria. Since then we have received a number of applications, and as befitting to our industry the criteria in selecting Chartered members are both vigorous and thorough. Therefore, I salute our first Chartered members. At the time of writing, we have nineteen such members, which is a real credit to our industry. Have a look at what it takes to become a Chartered member, visit https://bit.ly/2ylCVzE and maybe one day you’ll also be there. November is a further time for celebration as we hold our graduation ceremony for those who have successfully completed our university qualifications. Congratulations to all those graduating.
once again a very successful Annual Conference and Exhibition and Annual Excellence Awards. A supplement from the
Annual Conference and Exhibition and the Annual Excellence Awards is provided as an insert with this month’s magazine. We enjoyed detailed, legislative and current topics in all the workshops and, hopefully, for those who attended, you took away some key information; that ‘nugget’ to further help in your career and job role. The plenary sessions introduced our global visitors, a further reminder of the all-reaching effect the payroll family has. Excellence was once again recognised at the awards ceremony and the CIPP congratulate all the worthy winners and wish to share in celebrating their success! I am reminded that at the 2017 Annual Conference and Exhibition, our chair, Eira Hammond, announced Chartered
Ken Pullar FCIPP Chief executive officer, CIPP
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| Professional in Payroll, Pensions and Reward |
Issue 45 | November 2018
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
Contents
November 2018
43
The secret to leadership success
Julie Lock divulges
Features
13
11
18
21 Scarcity of talent Charles Hipps discusses
Interviewing a werewolf Amir Qureshi conducts
Working around UC Steven Tucker suggests a solution
26
20
Pensions tax relief Jill Smith explains
Tempus fugit Neil Tonks on government delays
It’s open season Robin Woodhouse casts
| Professional in Payroll, Pensions and Reward | November 2018 | Issue 45 2
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Fantasy pensions? Henry Tapper discusses game-changer 29
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
Workie bares his teeth Helen Hargreaves reviews enforcement
32
34
Pension data accuracy Mike Nicholas reports
Gender pay gap – next steps? Samantha Mann reviews developments
Chief executive officer Ken Pullar FCIPP CIPP board of directors
38
01 Editor’s comment, Chair’s and CEO’s message 04 Membership insight On your behalf, Advisory, Five minutes with 09 CIPP update 10 Career development Diary of a student Evidence, flaws, ‘notice’ Nicola Mullineux outlines decisions 36 Leadership – nature or nurture? Jerome Smail discusses 40
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
Parental bereavement leave Danny Done provides an outline
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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
The evolution of AI Professor Steven van Belleghem reveals
Regulars
18 Payroll insight 25 Pension news 26 Pension insight 34 Reward insight 40 Feature articles Leadership 45 Charity news 52 Confessions of a payroll manager Additional online content 10 Creative thinking 22 HMRC hints at addressing PAYE failings 44 Leadership tips
Events, news and developments
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.
14 Events Horizon 16 Industry news 17 Payroll news
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| Professional in Payroll, Pensions and Reward |
Issue 45 | November 2018
MEMBERSHIP INSIGHT
On your behalf Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update
Parental bereavement In September 2018, the Parental Bereavement (Leave and Pay) Bill
consultation (https://bit.ly/2uuaZKE) in April 2018 to gather views and opinions on the delivery of parental bereavement pay and leave. The consultation focused on several key areas of detail including: ● the definition of a ‘bereaved parent’ ● how and when to take parental bereavement leave and pay ● notice periods for parental bereavement leave and pay ● evidence of an employee’s right to take parental bereavement leave and pay ...vital that this statutory right is supported by clear, comprehensive and timely guidance At the time of writing the responses to this consultation were still being analysed by government, but as we stressed in our response to BEIS it is vital that this statutory right is supported by clear, comprehensive and timely guidance. The CIPP’s policy team will continue to work with BEIS and will look forward to reviewing draft guidance when it becomes available. The CIPP surveyed members and the wider profession to help inform our response to the consultation, full details of which can be found on our website under My CIPP/policy hub. If members have any questions or concerns regarding the implementation of parental bereavement leave and pay which was not raised
within our survey results and associated response, please email us at policy@cipp. org.uk and we shall continue to feed in your comments to the Statutory Payment Consultation Group. The CIPP frequently mention the high number of regulations that govern payroll and the associated processes. It may be of interest to know that no less than fifteen Acts of Parliament will be amended due to the introduction of the Parental Bereavement (Leave and Pay) Act 2018: ● Commissioners for Revenue and Customs Act 2005 ● Employment Rights Act 1996 ● Employment Act 2002 ● Finance Act 1989 ● Finance Act 1999 ● Finance Act 2000 ● Finance Act 2013 ● Income Tax (Earnings and Pensions) Act 2003 ● Income Tax Act 2007 ● Pensions Act 2008 ● Proceeds of Crime Act 2002 ● Social Security Contributions and Benefits Act 1992 ● Social Security Administration Act 1992 ● Social Security Contributions (Transfer Gender pay gap reporting The Treasury Committee has said that the impact of gender pay gap reporting will be reviewed in five years, indicating that it will not be extending reporting requirements to equity partners and company subsidiaries with fewer than 250 of Functions, etc.) Act 1999 ● Social Security Act 1989.
received Royal Assent and became the Parental Bereavement (Leave and Pay) Act 2018. The Bill was first introduced as a private member’s bill in 2016 with cross-party government backing so it was never really in doubt that the bill would be approved. The Act creates a statutory right to time off work for employed parents, with pay where eligibility requirements are met, following the loss of a child. Under the Act all employed parents will be given a day-one statutory right to two weeks’ leave if they lose a child under the age of 18 or suffer a stillbirth from 24 weeks of pregnancy. Parents will be entitled to this leave irrespective of their length of service with their employer and the entitlement will apply in respect of each child. Only employees with at least 26 weeks of continuous service will be entitled to statutory parental bereavement pay, as long their normal weekly earnings for the period of eight weeks ending with the relevant week are not less than the current lower earnings limit for National Insurance contributions. This is the first law of its kind in the UK which will support those affected by the tragedy of childhood mortality. The statutory right is expected to come into force in 2020 and the measures apply to Great Britain only. The Labour Market Directorate within the Department for Business, Energy and Industrial Strategy (BEIS) published a
| Professional in Payroll, Pensions and Reward | November 2018 | Issue 45 4
Policy hub
Closure of childcare vouchers Despite the lobbying to keep childcare voucher schemes open to new entrants, there has been no further extension from government. So, from 4 October 2018, new entrants can no longer join a scheme and receive the associated tax and NICs reliefs.
employees before the review takes place. In August 2018, the Business, Energy
contribution of £500 every three months equating to £2,000 per child per year, or £4,000 for disabled children. Parents can use this to pay for regulated childcare. Further information and a calculator, to help parents understand what government help they might be entitled to, can be found on the Childcare Choices website. Toolkits including email templates and leaflets are also available on the Childcare Choices website to help you communicate information about tax-free childcare to your employees. ● Employers can pay into their employees’ account – Employers can pay directly into an employee’s childcare account(s), either as a one-off bank transfer or by setting up a regular payment. To pay into a parent’s account, the employer will need: m the account sort code of 60 89 71 (applies to all accounts) m the account number of 10027165 (applies to all accounts) m the parent’s unique thirteen-digit childcare account number as the payment reference, which the employee will be able to provide. The employer must make all payments individually. They cannot send HM Revenue and Customs (HMRC) a bulk payment with a list of parent childcare account numbers and then ask HMRC to distribute that money appropriately. Employers paying into their employee’s account must deduct income tax and NICs and pay employer NICs on any money they pay in. If the employer pays money into their employee’s childcare account by mistake, the employee can choose how to repay this if he or she has agreed to do this. Any payment back from the employee must not offset the employee’s income tax and NICs, or offset your employer NICs. n Guidance etc HMRC has produced detailed guidance and support materials for employers to share with employees around any questions and issues that may arise; all of which have been published through our news pages – just do a ‘childcare’ search and you will easily find them. If you would like any further information about the closure of vouchers or tax-free childcare, you can email HMRC at tax-free.childcare@ hmrc.gsi.gov.uk.
and Industrial Strategy Committee published its thirteenth report on
closing the gender pay gap (https://bit. ly/2LR2D7p), calling for a widening of the present reporting requirements including extending reporting requirements to equity partners and company subsidiaries with fewer than 250 employees. The Treasury Committee’s response to this report (by John Glen, economic secretary to the Treasury, and Victoria Atkins, minister for women) states that it is important to recognise that the regulations are still in their infancy, with organisations having only just completed the first year of reporting. The response said that the legislation itself is ground-breaking, with no other country asking for this level of transparency, but they will review it in five years. The government believes that this is an adequate timeframe after which they will be able to properly evaluate the regulations and their impact. disappointing it is that the government has rejected their calls to widen the requirements as recommended in their report. She commented: “Addressing the gender pay gap is in the interests of ensuring a more equal society, so we will continue to put pressure on companies to comply with the spirit as well as the letter of the law to ensure that the reported data is meaningful and properly highlights the low number of women in high paid jobs.” The thirteenth report also included recommendations for the gender pay gap reporting regulations to be amended to require more detailed statistics such as changing the salary quartiles to deciles. Also recommended was that organisations should be required to provide some narrative with an action plan setting out how gender pay gaps are being and will be addressed (with objectives and targets). The response included no mention of these areas so unless we hear otherwise we can assume that reporting will continue with the same requirements and methods for year two as it did in year one. Any change to regulations should require consultation so we will keep the payroll profession informed accordingly of any possible changes in the future. Rachel Reeves MP, chair of the Committee spoke out about how
...must deduct income tax and NICs and pay
● What you will need to do as an employer – As long as you continue to offer your voucher scheme, employees who joined with the relevant changes made to their wage before 4 October 2018 will still be able to use it and receive the associated income tax and NICs reliefs. You will continue to receive employer NICs relief for those employees. If you continue to offer your voucher scheme and employees join after 4 October, you will need to deduct income tax and NICs on any vouchers given and pay employer NICs. However, if these employees meet the tax-free childcare eligibility criteria, they will also be able to open an online tax-free childcare account. You must stop giving childcare vouchers with income tax and NICs relief to employees who join before the 4 October if they wish to leave the scheme and start using tax-free childcare. If this means stopping or changing a salary sacrifice arrangement, you must also update your employee’s contract and your payroll software. ● Tax-free childcare – Tax-free childcare was introduced in 2017 to help working parents (including those who are self- employed) with the cost of childcare. To be eligible, parents (and their partner if they have one) must earn at least the equivalent of sixteen hours per week at the national minimum wage, have an eligible child (under twelve or seventeen if disabled) and earn under £100,000 each per year. Eligible parents are able to apply and open a childcare account online. For every £8 families pay in, the government will pay in £2, up to a maximum government employer NICs on any money they pay in
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| Professional in Payroll, Pensions and Reward |
Issue 45 | November 2018
MEMBERSHIP INSIGHT
Time Regulations 1998 (being the first twenty days of holiday an employee takes). An employer could choose to calculate and pay average holiday pay on all of the statutory leave (5.6 weeks) or all of the leave they are entitled to (i.e. 33 days in your question) if they wish but the minimum is the first twenty days. To clarify, all types of overtime including voluntary must be included when calculating a worker’s statutory holiday pay entitlement. It only excludes overtime worked on a genuinely occasional and infrequent basis. Commission should also be factored into statutory holiday calculation including work-related travel. Please see the ACAS guide found here: https://bit. ly/1KB413N. Q: Are we ok to re-issue a P60 certificate with just a covering letter as the first P60 that was issued was incorrect? The only change is the company name and address, not the actual figures. A: If you are changing a P60 the amended P60 must state ‘REPLACEMENT’ regardless of the reason for the replacement. In your situation, though it is the company name and address that are incorrect the new P60 certificate will still need to read ‘REPLACEMENT’. You can also issue a covering letter with the replacement P60, but the key is the certificate must have the wording ‘REPLACEMENT’ on it. Q: I have a question regarding eye tests and payments towards glasses for the use of visual display unit (VDU) equipment. Is there a set fee for employers for reimbursement of eye tests? The company policy is that all team members receive £45.00 towards the cost of glasses when they are required for using a VDU. Do you know if this is a set amount that HMRC would allow tax and NICs free? A: There will be no chargeable benefit for the cost of an eye test where the employee uses a VDU to carry out the duties of their employment and if the glasses are only for using the VDU the cost of providing them will be exempt as well. If the glasses have a prescription for VDU use and general use the cost for the VDU prescription would be exempt; but not the general use cost. The exemption does not specify a particular value just that the employee must work with a VDU.
Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m. to 4.30p.m. on Fridays * . Call 0121 712 1099 , email advisory.service@cipp.org.uk or visit cipp.org.uk to live chat.
Advisory
*please see summary at cippmembership.org.uk for details.
Q: One of our employees will not qualify for statutory maternity pay (SMP), because she has been accidentally underpaid (payroll error) in one of the months we are using to calculate her average weekly earnings (AWE). Can you offer any further advice, or do I just issue form SMP1? A: The HM Revenue & Customs (HMRC) guidance states the following in regard to under- and overpayments: “If there are over- or underpaid earnings affecting the AWE which disadvantages either you or the employee, check if there’s documentary evidence agreeing to the amount that should have been paid. If there is use the agreed earnings to calculate the AWE. If there isn’t use the actual earnings.” This extract is taken from the following link: https://bit.ly/2IlojEA. So as long as you have the right documentary evidence to prove this situation was detrimental to the employee then you can use the earnings liable to class 1 National Insurance contributions (NICs) as they should have been. Q: We have an employee who is going to be in a temporary role for approximately eight months and in a different location. It is going to be extremely expensive for the employee to stay in hotels therefore we are looking into a short-term property rental. Please can you advise the tax implications for this? A: HMRC’s Employment Income Manual states that it is allowable for an employer to provide an employee on secondment at a temporary workplace with furnished
living accommodation. The guidance explains what limits ought to be placed on the relief under section 338 of the Income Tax (Earnings and Pensions) Act 2003 for the cost of living accommodation. Please visit https://bit.ly/2wqwppH for the full guidance. Q: We currently have an employee who is on a fixed contract until 30 November 2018 and is pregnant. Will she qualify for SMP? A: To qualify for SMP she will have to meet the earnings rule and the continuous employment rule. She must have been employed by the employer for a continuous period of at least 26 weeks into the qualifying week (which is the fifteenth week before the week in which the baby is due). This period must include at least one day’s employment in the qualifying week. You will have to check her dates very carefully using either the SMP calculator or the SMP tables and if she doesn’t qualify you will need to issue form SMP1. Please see these useful links: ● SMP calculator: https://bit.ly/1Bo1mUR ● SMP tables: https://bit.ly/2zwqvGj. Q: Can you confirm I must pay ‘average holiday pay’ on all of the holidays an employee is entitled to (i.e. 25 plus 8 bank holidays), and, if so, does this have to include overtime the employee has worked? A: The guidance states that to calculate the average holiday pay including ‘regular overtime’ you use the previous twelve weeks’ pay and this is for the any of the leave under regulation 13 of the Working
| Professional in Payroll, Pensions and Reward | November 2018 | Issue 45 6
Policy hub
You may find this direct link to GOV.UK useful: https://bit.ly/2DyGaJi. Please refer to the content titled Section 320A ITEPA 2003, as this explains what is exempt. Q: We have a temp provided by an agency and was an employee of the agency. She has been working for us since March and has today become our employee. My human resources (HR) team have advised that the employee is pregnant, and the baby is due in September. (The HR team were aware of this before she became our employee.) What rights are there to SMP and leave? A: An employee has the right to statutory maternity leave from day one as there is no employment service test to satisfy. However, the employee must have an employment contract with the employer regardless of the length of service and the employee must also have given the company the correct notice i.e. she should have told the employer at least fifteen weeks before the baby is expected, the date the baby is due, and when she wants to start her maternity leave. If she was employed by the agency in the qualifying week, then SMP would be their responsibility. If she was employed by your company in the qualifying week, she would need to satisfy the employment test for SMP to be entitled. If she failed this test the employer would issue form SMP1, and she may be entitled to maternity allowance instead. Q: I am currently processing this month’s payroll and making payments to employees for dividends in relation to their company shares. Some of our employees are set up on the system to have a student loan deduction from their pay. Are the payments made in relation to the dividends to be included in the calculation for the student loan deduction? A: HMRC’s Collection of Student Loan Manual (https://bit.ly/2N2U7P9) gives full details of what is deemed to be classed as earnings when calculating a student loan deduction. The guide advises that any dividends that are paid in respect of company shares are not classified as earnings for a student loan repayment; therefore, any amounts paid in respect of
dividends will need to be excluded when calculating the student loan deduction. Check with your software provider to ensure that the element in your software for this payment has been set up correctly and carry out manual calculations to ensure that the figure isn’t included. Q: The company I work for run a payroll for pensioners and each month we get a lot of leavers due to death. Can you please advise how we would process the final payment of pension? A: The processing of a final payment for an employee who has passed away, whether they are paid on a pensioners payroll or workers payroll, is the same. Within their payroll record, you would enter the date of leaving as the date that they passed away ready for the full payment submission and tax the employee using the tax code that was previously used. No NICs are to be deducted from the employee on a workers payroll and a form P45 should not be issued. Q: Is it possible for an employee who is registered as disabled to use a company car for home to office journeys without it being a reportable benefit? A: Where the employer provides a company car to a disabled employee that they can only use for business journeys, between their home and workplace, and attending work related training, the provision will be exempt from tax or NICs. This is covered by section 247 of ITEPA. There are three conditions that must be met for the exemption to apply: ● The car would be expected to be either adapted for the employee’s special needs or that it is an automatic as due to the disability of the employee they cannot use a manual transmission. ● The employee can only use the car for business journeys and transport of any two journeys which are normal commuting i.e. home to work or travelling to work-related training. ● The above must apply to the whole of the tax year. n
Payroll Assurance Scheme Don’t wait until it’s too late
With penalties for non- compliance of up to £10,000 per day * , can your business afford not to be CIPP Payroll Assurance Scheme accredited.
For more information: Visit: cipp.org.uk/PAS Email compliance@cipp.org.uk Call: 0121 712 1000 Live chat with us
cipp.org.uk @CIPP_UK
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Issue 45 | November 2018
| Professional in Payroll, Pensions and Reward |
*correct at time of publication
MEMBERSHIP INSIGHT
5 minutes with…
Elaine Gibson MSc, ChFCIPPdip, MCMI, FHEA Education director, CIPP
would not be able to make the difference I believe it makes. What does the future hold for payroll, pensions and reward? Payroll professionals have the most up-to-date and accurate data at their fingertips which is powerful as the data can be analysed to permit major business decision-making in such areas as, for example, implementing rewards, changing pension provider, provision of the financial data to support a redundancy situation, TUPE, systems benchmarking and implementation. I see payroll becoming more than paying people. Those in the profession are extremely knowledgeable and should be involved in any strategic decision- making related to the workforce, as such consideration can prevent significant financial impacts later. I think the time is close where payroll will be able to demonstrate added organisational value and raise its profile further – and so it should! What do you do in your available time to unwind? I like to spend time with my family and walk my two dogs. I enjoy socialising and good retail therapy sessions with my girlfriends. I also like to try and get away from it all, even if it is a weekend away. And as I write this I’m looking forward to a holiday in a cottage in the Scottish Borders with my husband and two dogs. n
Tell us about your career and background I’d intended to do ‘A’ levels but instead left school at age sixteen as a recession in the 1980s was in full swing – and jobs were like gold dust. My mathematics teacher recommended me for my first job with a firm of opticians – so far removed from payroll. Fast forward seven years and I was working for an accountants’ practice dealing with sole traders, small partnerships and limited company accounts. I was asked to cover the practice’s bureau payroll for ten clients which when I left had grown to over 100; I was well and truly hooked, and my payroll career was born. I then held a few payroll roles, with my last as payroll specialist for Carlsberg Tetley. When did you first become involved with the CIPP? Whilst running the clients’ payroll, I requested the practice sponsor me to undertake the Diploma in Payroll Management, now the Foundation Degree in Payroll Management. I was refused and
so moved on to an employer that would sponsor me, and I became a member of the Institute and a tutor. Obtaining the Diploma opened doors for me. I joined the CIPP as a trainer in 2003, becoming a senior policy and research officer in 2005 and undertook the MSc in Business and Reward Management. In 2011, the education I’d achieved enabled me to step into the role of associate director of professional education at which point, to complement this, I became a qualified lecturer in work- based learning. In 2016, I progressed to education director, responsible for implementing CIPP strategy across all business areas. What does your role mean to you? I’m passionate about payroll and playing my part in supporting and upskilling payroll professionals nationally. My current role allows me to make a difference. I have many opportunities to network and meet the individuals who make the CIPP what it is, as without our members, students, third party colleagues and tutors, the CIPP
| Professional in Payroll, Pensions and Reward | November 2018 | Issue 45 8
CIPP update
CIPP update
Accolade at Association Excellence Awards
Online introduction to PAYE THE CIPP is delighted to have extended its online learning portfolio to include an introduction to pay as you earn (PAYE). This excellent addition to the Institute’s online learning programme means that new entrants to payroll can develop their skills and knowledge quickly and effectively online. The course covers: ● terminology associated with PAYE ● how to accurately calculate taxable pay ● how to accurately calculate PAYE. Following completion of the online study, which can be done at a pace that suits your learning needs, you will be confident in calculating PAYE and understanding the associated terminology. New entrants to the payroll industry may wish to continue to the CIPP Introduction to PAYE and NICs face-to-face training course, or the Payroll Technician Certificate to enhance their knowledge and further develop their skills. To book this online course, visit cipp.org.uk or email info@cipp. org.uk for more information.
THE CIPP has been awarded bronze in the overall best UK association category at the Association Excellence Awards. This award recognises recent advancement of the payroll profession and CIPP members through the Privy Council approving individual Chartered membership in 2017, acknowledging the important role payroll plays in improving the UK economy through the collection of nearly half of all taxes via PAYE income tax and National Insurance contributions. The CIPP is now a double winner having previously been named the overall best UK association the last time we entered in 2016. The judges stated were particularly impressed with: ● membership benefits, such as the annual benchmarking exercise providing participating members with a free report ● investment and development of apps – such as the CIPP payroll factapp and the annual conference app – as well as the responsive design of the CIPP website, enabling use on ● the number of Chartered Members who have joined/upgraded since the initial launch in 2017. Ken Pullar, CIPP chief executive officer, said: “This is a fantastic achievement for the CIPP and something that the team are incredibly proud of. This award recognises the hard work we are doing to ensure that the profile of payroll as a profession is raised within UK plc and within the government. “As members, you have had a part to play in this, you raise the profile of payroll within your organisations through the role you play and the value you bring, and for that I thank you.” Founded in 2014, the Awards are the acknowledged accolade to recognise and reward the hard-won achievements of UK trade bodies, professionals’ membership organisations and associations. Bringing together an outstanding panel of judges, representing associations from every sector, the awards recognise individuals, teams and initiatives and highlight excellence in how trade bodies operate and serve their members. Information on the CIPP’s success at the awards, and the other winners and short-listed organisations, can be found at http://associationexcellenceawards.co.uk/. Junelle Salmon, Hayley Dugmore, Luke Butters with the award smart phones in the same way you would access an app ● hosting live events for our members through YouTube
Elaine Gibson, CIPP education director, joins IAB Council THE INSTITUTE is delighted to announce that Elaine Gibson MSc, ChFCIPPdip, MCMI, FHEA, has been co-opted onto the Council of the International Association of Book-keepers (IAB). Elaine has worked with the CIPP for more than fourteen years: as a tutor, payroll trainer for IPP Education, senior policy and research officer for the policy team, and as associate director policy and professional education before moving to her current role. As one of the first CIPP members to achieve Chartered membership of the CIPP in 2017 she is now an assessor for those aspiring to become full, fellow and Chartered Members of the Institute. Responsible for the commercial arm of the CIPP, IPP Education Ltd, Elaine also has responsibility for: policy, membership, sales and marketing, qualifications, training and online development. As the CIPP programme leader for all professional courses, Elaine is a qualified lecturer in work-based learning and also a fellow member of the Higher Education Academy supporting her role as both program lead and MSc tutor. The varied role means Elaine is a public speaker and has written numerous articles for professional trade magazines. Elaine commented: “The CIPP and the IAB have worked together for a number of years, and I am delighted to be joining the IAB council. We recognise that many bookkeepers provide payroll services and that is why we have forged a close working relationship with the IAB to support them in providing expert payroll advice and knowledge to their members. “I am looking forward to bringing my experience in payroll education to the IAB council.”
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Issue 45 | November 2018
| Professional in Payroll, Pensions and Reward |
CAREER DEVELOPMENT INSIGHT
Creative thinking
Natalie Turner, author (www.yesyoucaninnovate.com), explains how to create ideas and novel solutions to everyday work
W e often think being creative is just for people who work in high-tech industries, scientific research or the arts, but it’s something we all need to do to stay relevant in a world that continues to change at fast pace. And, as is witnessed by the changing regulatory environment and social trends that are affecting the world of payroll and pensions, this profession is no exception. Here are seven top tips on how to have a more creative approach and mindset towards the work that you do everyday. ● Broaden the concept of what it means to be creative – If we have a narrow definition of what it means to be creative and think it is always for other people who come up with fanciful ideas, then we limit our thinking before we even start. Creating a novel solution is not just about getting an idea; it is about making an idea work. This is a highly practical endeavour that combines both creativity and discipline. ● Think beyond the product – When we think of creative solutions we often think of tangible products that have been invented, like the iphone or new drug discoveries, but creative solutions exist in all areas of work, increasingly in process improvement and productivity enhancement. What I call, ‘everyday innovation’. What processes are you working on that could be done differently or more efficiently that would create value for yourselves, organisations and customers? ● Challenge your assumptions – It is a known fact that our brains are highly efficient mechanisms that can sort
information into categories helping us speed-up processing and make quick decisions. The downside is that we literally start to think the same way because it worked for us in the past. We get stuck ... circumstances may require dismissal and re- engagement on new contracts... in a rut. One way to create new neural pathways is to challenge our assumptions about what we believe to be right or true. Try holding an opposing opinion and see from a different perspective. How does it feel? ● Broaden your interests – If we are to be creative we need to have different stimuli. If we always read the same news and magazines, hang out with the same people, and go to the same places, we end up in a monochrome world that lacks diversity. Do something you have never done before. Meet new people, read or expose yourself to ideas outside your industry, broaden the inputs coming into your mind and notice if it affects the quality of your thinking. ● Revive a childhood hobby – Research has shown that children are more creative than adults, and creativity declines with age. This is for all manner of reasons including socialisation, upbringing, and the need to conform to cultural norms and expectations that are placed on us, as we become adults. Think back to when you
were a child: what were your hobbies, or what activities did you like to do that made you feel alive? Blow the dust off your old guitar, get out your dancing shoes, go on a photography course and notice fresh thinking that starts to emerge within your work, not to mention new sources of energy. ● Talk to customers – Often we become so internally focused on our work place that we forget the broader purpose of what we are doing and why. Make the effort to meet one or two customers a week and ask questions about what is challenging them right now. Try to understand their needs, from their position, without jumping straight into solution mode. Stand in their shoes. What can you see from their perspective? ● Insert the pause button – In our busy meeting and task driven work cultures it is tempting to race through activities that need to be done without stopping for breath. The problem is, the to-do list will never end as new things are always being added to the pile. Take a break. Get outside of the building. Go for a walk and just look at what is around you. Slow down your thinking, and walking, and see what you notice. This is often where new solutions will emerge. The increase in the pace of change and our ability to work with complexity is on the rise. Regulations change, customer requirements change, social environments change; our ability to adapt, to think laterally and to create new solutions – to innovate – is the survival skill that we need to cultivate in the work that we do everyday. Our mindset is the place to start. n
| Professional in Payroll, Pensions and Reward | November 2018 | Issue 45 10
Career development insight
Interviewing a werewolf
Amir Qureshi, chief executive officer at Thomas International, reveals how to ensure you recruit the right people
I t’s a widely acknowledged fact that we make judgements about new people within just a few seconds of meeting them. The flip side is that, by presenting yourself in a certain way, you have the potential to influence those judgements – and in an interview situation that could result in a recruiter making an expensive mistake. Someone who seemed perfect when you first met them, said all the right things and looked like they’d fit right in, joins the business and turns out to be a wolf in sheep’s clothing; you quickly realise you’ve hired the wrong person. If that sounds familiar, then you could have fallen victim to the interview werewolf. To some extent, we’ve all been there: it’s only natural to try and give the answers that you think your interviewer wants to hear, perhaps by bending the truth just a little or talking up your positives while brushing over any negatives. Equally, as an interviewer, it’s very hard to ignore any unconscious bias you may have towards or against certain candidates. It is human nature to be drawn to people who we perceive to be similar to ourselves and we tend to be more attracted to those who share our views or have a common interest. In general, it takes far more effort to critically evaluate our own points of view, so we can be prone to avoiding someone who disagrees with or challenges us. As a result, there’s a risk that an interviewer will be drawn to the candidate that they most like, rather than the person who will actually be best for the job. So, what is the best way to get around this? How can you, as a recruiter, ensure that you choose the best candidate every time? One answer might be to remove the human element from the selection process altogether, but I don’t think this is
the strongest route. It is people who know what is required of a role and identify what positions the business needs to fill so they have a vital role to play. However, technology is increasingly being used by businesses to successfully identify the best candidates – reducing unconscious bias and ensuring personal preference and assumption don’t override logic. ...risk that an interviewer will be drawn to the candidate that they most like... At Thomas, we empower businesses to make the right people-based decisions through the use of psychometric assessments. This ensures decisions are free of bias, allowing recruiters to make appointments based purely on job demands and the candidates with the behaviour traits best suited to them. Psychometric assessments bring rigour and objectivity to recruitment processes with real success. Assessing candidates’ psychological characteristics ahead of interviews gives recruiters invaluable insights into their suitability for a role or how they will interact with others. Understanding someone’s behavioural profile before they meet them prevents interviewers from having a misinformed view of their suitability based on any preconceived biases – they have the reality on paper there in front of them. The information provided by psychometric assessments can also provide insights into personality characteristics that predict workplace
outcomes, such as attrition and leadership potential. This information can help businesses take a longer-term view of recruitment and likely career development, as well as delivering huge benefits in terms of engagement and productivity. For anyone still sceptical about the efficacy of psychometrics, I can reassure them that there is real evidence of their success. In 2015, reports showed that psychometric assessments were being used by over 75% of The Sunday Times top 100 companies in the UK and more than 80% of the Fortune 500 companies in the USA. A further example is a project we recently completed with global recruitment agency Harvey Nash. Using personal profile analysis (PPA) assessments, – which provided insights into candidates’ strengths, limitations, communication style, motivators and potential value to the business – Harvey Nash’s recruiters were able to objectively assess candidates during their interviews. The result was that an audit following the progress of 330 of Harvey Nash’s candidates through its recruitment cycle showed that not one candidate was exposed to discrimination of any kind. To sum up, employers need to be constantly mindful of bias when making important people-related decisions. As humans, we are susceptible to being influenced by our biases, which in turn can impact on the accuracy of our people- based decisions. However, with the use of impartial assessments, such as PPA, which provide insights into a person’s strengths and limitations, the presence of bias can certainly be reduced – greatly increasing the chances of you appointing the right person to the role each time. n
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Issue 45 | November 2018
| Professional in Payroll, Pensions and Reward |
CAREER DEVELOPMENT INSIGHT
Diary of a student…
Michelle King-Bennett MCIPPdip Global payroll & benefits manager, SmartStream Technologies Ltd
departments, countries and levels of management. How did you cope with the work-life balance and your study? At times, it was difficult balancing work and life commitments while studying for my degree. I had some challenging life events along the way, but my tutor, Kelvin, was supportive and understanding. It took a lot of dedication, long hours and some tears! But, being stubborn helped. My husband and son were supportive and understanding. My husband spent a lot of time in his garage on Saturdays and Sundays when my assignments were due. There were a few times I wanted to throw in the towel, but I knew I could not give up with the end in sight. My tutor and tutor group were amazing, and we supported each other. It helped walking into a room of friendly faces when having to meet on a Saturday after a long week. We had a tutor group reunion after graduation and will be making it an annual event. Did the fact that the CIPP is Chartered or recognised within the industry influence your decision to enrol with the CIPP? And were there any modules which were of interest prior to enrolling? Absolutely, I chose the CIPP based on its reputation and Chartered status. I thought that if I am going to do this, I want the best qualification to excel in my career. Having a degree that is industry recognised increases my chances for career advancement. I was very interested in modules on effective communication and leading the team. It helped me to deal with some difficult situations and enabled me to become a more effective communicator within my business and personal relationships. n
Can you give us a brief background into your life? I’m originally from Canada and lived
Canadian credentials were not recognised. Also, payroll and legislation here in the UK are completely different to Canada so I returned to finance. I was working for a company that had a payroll gap in the business and the finance manager asked me to take it up. I agreed reluctantly, as I knew nothing about UK payroll. After liaising with our payroll provider for a few months, I missed working in payroll and realised this is the career I really wanted. I knew that if I wanted to excel and evolve in my payroll career I needed to become qualified in the UK. I put forward a business case to my manager and asked for sponsorship to obtain my UK payroll credentials. After a lot of research, I chose the CIPP, based on their professionalism and that the qualification was highly regarded by UK employers. How important is this degree in relation to your career? Gaining the Foundation Degree gave me the confidence and knowledge to pursue my career at the level I am currently working. When looking for career advancement, most employers now require you to have the Foundation Degree through the CIPP. This was a definite with my current position – it was one of the mandatory requirements to obtain an interview. It has given me the skills to deal with many different
there with my British husband until 2010, when we moved to the UK – as he’d had enough of cold Canadian winters. I am now a dual citizen and proudly call two amazing countries ‘home’. My son moved back to Canada two years ago when he completed his ‘A’ levels. I have two lovely grown-up stepdaughters and a cheeky Jack Russell named Bear. I love to travel and am seriously working on my bucket list of European countries to visit. Can you give us an insight into your career and qualifications background? I started my payroll career by ‘accident’ almost twenty years ago, working as an accounts assistant for a John Deer dealership in Canada. There was a gap in the business and I was asked to take it on. From there, I moved onto another company and again asked to take over payroll. I decided then it seemed to be my future career path, so I went with it. I took courses in Canada with the Canadian Payroll Association and moved further into my payroll career. Why did you choose to study the Foundation Degree? On moving to the UK I realised I could not continue with my payroll career as my
| Professional in Payroll, Pensions and Reward | November 2018 | Issue 45 12
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