Professional July/August 2017

Official publication of The Chartered Institute of Payroll Professionals

in Payroll, Pensions & Reward

Issue 32 July/August 2017

Thirty glorious years of payroll giving

Not just for geeks Complementary coding

A measure of success Payroll data and benchmarking

Internal coaching Be the one

CIPP update | Policy hub | Professional development

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Payroll & HR Solutions

Democracy substitutes election by the incompetent many for appointment by the corrupt few. George Bernard Shaw (1856–1950)

Editor’s comment

Well, I (and obviously many others) didn’t foresee the general election result. Would anyone bet against another general election this year or in early 2018? The Labour party’s election manifesto commitment on new and existing student loans

passage into law? Some of those affecting income tax and payroll processing were to have effect from 6 April 2017. Will there be an emergency Budget before the autumn? A degree of uncertainty can also arise in context of payroll data and benchmarking, which happens to be the feature topic this issue (see pages 47–48). Benchmarking provides a measure of success, so it’s worthy of investigation and application. I’m pleased that one of the feature topic articles is by freelance author Kavitha Sivasubramaniam who used to be editor of Pay&Benefits magazine.

may have influenced the voting of youngsters and even their parents. I wonder whether this policy might be adopted in due course by the Conservative party, too. If so, this would surely mean in this new age of revived two-party politics that at some not-too- distant date payroll deductions for student loan repayments cease. The election and result have brought uncertainty across several issues. What happens now to key clauses of the original enormous 2017 Finance Bill that were jettisoned to ensure the Bill’s rapid

Mike Nicholas MCIPP AMBCS Editor

Chair’s message

I’m now into week four of my six-week trip to the USA and Canada; just two days left in Kansas, home to the BBQ and the tornado (thankfully I haven’t experienced a tornado but may have seen a BBQ or two…) and then I’m off to the Canadian Payroll Conference in Niagara before heading home. I’ve spent a bit of time looking at US payroll legislation since arriving here, and although we know our UK payroll rules are complex, imagine running a payroll for a company with employees in fifty states, each one with their own payroll rules? For those companies that have employees who work in a variety of states (such as the local Kansas City Royals (baseball) and other sporting teams), calculations are required to be performed on a daily basis for every state in which the individual works (or plays). Whichever country we run payroll for, we know that it’s critical in order to keep our payrolls compliant that we have to keep learning. CIPP events such as the National Forums and the Annual I know you haven’t had your summer holidays yet, but detailing planning and organising continues within the CIPP offices for a busy and productive summer and autumn. Bookings for our premier annual event the Annual Conference and Exhibition at Celtic Manor on the 4 and 5 October 2017 are still open. To ensure the CIPP continues to provide for your education and professional development we have an outstanding programme full of influential industry speakers including keynote speaker Sir Brendan Barber, Chair, ACAS. The series of plenary sessions and workshops cover topical subjects such as devolution and Brexit (highly relevant), global terrorism (sadly) and its impact on our working environment, gender pay gap reporting (how are you doing?), money laundering regulations – the risk to payroll, employment law update and the always very popular HMRC and CEO’s message

Conference and Exhibition provide the perfect opportunity to do that. In the US, the rules for retaining CPP accreditation (Certified Payroll Professional) are a bit like our CPD (continuing professional development), where continuous learning is critical to maintain our professional standing in the industry. In this edition of the magazine (see page 9) you’ll notice it’s time for the annual benchmarking survey. If you would like to be involved, register your interest by email to info@cipp.org.uk . If you’re passionate about our industry and want to go that step further in leading how the CIPP moves forward in the coming years, we are still seeking nominations for new members to join our Board. If you’re interested, please don’t hesitate to contact me directly at eira. hammond@cipp.org.uk and I’ll be pleased to discuss it with you.

Eira Hammond FCIPPdip Chair, CIPP

CIPP legislation updates. As well as enhancing your skills and updating your knowledge, the conference will ensure that your employer benefits from your attendance through the enhanced quality and delivery of your payroll, pensions or reward solution – see www.cipp.org.uk for full details. We are still taking nominations for our 14th Annual Excellence Awards that are being held on 5 October so make sure you submit you or your company for an award before the deadline of 11 August. We’re pleased to confirm our speaker for the evening will be Sir Trevor McDonald.

Ken Pullar FCIPP Chief executive officer, CIPP

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| Professional in Payroll, Pensions and Reward |

Issue 32 | July/August 2017

in Payroll, Pensions & Reward PROFESSI NAL

Also available online at payrollpensionsandreward.org.uk

Contents

July/August 2017

34

Disability and whistleblowing

Nicola Mullineux reviews decisions in three cases

Features

18

10

12

Not just for geeks Rob Percival explains how coding can complement professional expertise

Sleep-ins and the NMW Emma Burrows sets out latest developments and their impact

Internal coaching Sue Smith reveals its success

31

19

20

Assistance with childcare costs John Harling discusses the new options available

Workers’ services provided to public sector through intermediaries Roundtable with industry luminaries

Discrimination during pregnancy Daxa Shah shares top tips

| Professional in Payroll, Pensions and Reward | July/August 2017 | Issue 32 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

We’re all going on a summer holiday Neil Tonks sets out the benefits of a holiday management system

Office dress codes Lynn Morrison discusses switching to a more casual dress code

36

44

Chief executive Ken Pullar FCIPP CIPP board of directors

When a job applicant lies Danny Done reveals how to deal with this situation

Pension scheme health check Alan Morahan says it’s time for a medical

Gordon Cresswell FCIPP Jason Davenport ACIPP Eira Hammond FCIPPdip Ros Hendren MSc FCIPP, Mgr, FCMIdip, FHEA Paul Rains MCIPP Karen Thomson MSc FCIPP, FHEA Cliff Vidgeon FCIPP Ian Walters Msc, FCIPP, FHEA Ian Whyteside MCIPP, FMAAT, ATT

A tale of payroll data, benchmarking and gin Lisa Gillespie provides advice 47

48

A measure of success Kavitha Sivasubramaniam outlines how payroll data benchmarking can help

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

Regulars

01 Editor’s comment, and Chair’s and CEO’s message 04 Membership insight On your behalf, Advisory, Five minutes with Benchmarking survey, CIPP support charities 10 Professional development Diary of a student, CPD 16 We’ve got mail Events, news and developments 09 CIPP update

30 Industry news 31 Reward insight 42 Pensions news 43 Pensions insight 47 Feature articles

The Pensions Regulator

info@cipp.org.uk 0121 712 1000

cipp.org.uk @cipp_uk

Payroll data and benchmarking 50 30 glorious years of payroll giving 56 Confessions of a payroll manager

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 2017. 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.

17 Payroll news 18 Payroll insight 28 Events Horizon

Additional content online: 14 End of an era 38 All about credit unions 40 Finding balance at work 43 Politics! I give up

Includes roundtable on off- payroll working

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| Professional in Payroll, Pensions and Reward |

Issue 32 | July/August 2017

MEMBERSHIP INSIGHT

On your behalf

Policy team update

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

O n your behalf always contains updates from the CIPP’s policy team’s consultation work; however, one of the effects of the ‘snap’ election is the dissolution of government. The pre- election period (purdah) is a time where only essential government business is meant to take place, so not only are most consultation meetings postponed but expected publications are delayed. At the time of writing the general election on 8 June is about to take place; and ahead of the big vote, party manifestos are being dissected, disseminated and debated by businesses and media alike. Once a new government has been elected we will begin to know which clauses and issues will be resumed in the Finance Bill and have an idea of future consultation work. I say ‘start to be’ in a position as the Brexit negotiations will no doubt take precedence but certainly our routine consultation forums will recommence. In the meantime, here are some newsworthy items, we would like to bring to your attention Holiday pay How up-to-date is your knowledge on salaried hours contracts? Holiday pay calculations such as these continue to come under scrutiny and serve as an opportunity, if one were needed, to highlight the importance of remaining up to date with the latest guidance from BEIS (Department for Business, Energy and Industrial Strategy). Employers often make use of salaried hours contracts to provide their employees with a steady and consistent income stream

throughout the year where their working hours or weeks may vary either due to seasonal demands or term-time working. ...so have taken a ‘do nothing’ approach, especially when existing government guidance is vague The latest guidance on calculating the minimum wage (http://bit.ly/2rrZ5f6) – which has taken on even greater importance since the increase in hourly rates brought in through the national living wage – was last updated in April 2017. Have you looked recently? Here is an extract: “To be a salaried-hours contract, the contract between you and the worker should set out: ● a basic number of hours for which the worker is to be paid (for example 2,000 hours) ● that the worker is entitled to an annual salary. “You do not have to show the total basic hours for a complete year but it is better to do so. However, it must be possible to precisely calculate what the total basic annual number of hours is in relation to the full year.” One of the reasons why employers get so confused about how they should

be calculating holiday pay and leave, notwithstanding the circumstances of individual businesses, is that no-one is quite sure what the law says, and even less how it should be applied. And this is understandable because there have been numerous court cases challenging the calculation of holiday pay. Although in most instances the judgement only applies to that specific case, there can often be widespread implications. With so many cases still ongoing it’s no surprise to hear that some employers are unclear what they should be doing so have taken a ‘do nothing’ approach, especially when existing government guidance is vague. For some time now the CIPP policy team has been engaging with BEIS and we have, to date, held three Policy Think Tanks to discuss the problems faced by employers when calculating holiday pay and leave; the end objective being to produce clearer guidance. These are just some of the key points to come out of the Think Tank discussions: ● What exactly is guaranteed, non- guaranteed and voluntary overtime and equally importantly, what is not? What is a bonus and what is commission? ● What does regular mean? ● Can there be scenarios and worked examples covering both entitlement and actual calculations? ● Can there be a broader range of definitions and examples to give employers more scope to be able to apply the principles to their particular circumstance? It was heartening to hear the BEIS representative state that, although we are

| Professional in Payroll, Pensions and Reward | July/August 2017 | Issue 32 4

Policy hub

unlikely due to Brexit to see regulatory change in the near future, this does not mean that the guidance cannot be improved now. Both the BEIS and ACAS (Advisory, Conciliation and Arbitration Service) representatives agreed that it should be possible to extend the level of detail in the guidance. Delegates were especially pleased when the offer was made to include volunteer attendees in the review of draft guidance before publication, when possible. So, ACAS has now begun the difficult task of drafting the new guidance. We will of course keep the industry informed of its progress through our news pages. The CIPP runs a practical half-day course which includes an overview of the legal framework that governs holiday pay and entitlement, as well as worked exercises to explore the calculations thoroughly. This course will always include the most up to date information to account for ongoing case law. Visit the training area of our website (http://bit.ly/2ryrHFs) for full details. Employer-provided pensions and legal advice A number of clauses were removed from the Finance Bill including the new income tax exemption to cover the first £500 worth of relevant pensions advice provided to an employee. For general information and for those employers who may have already included the exemption in their benefits packages, we received an update from HMRC: “The changes for employer provided pensions advice and legal advice (clauses 12 and 13 in the Finance Bill 2017 published on 20 March) were due to be legislated in the Finance (No.2) Bill 2016– 17. Due to the general election, the financial secretary to the Treasury announced that, as is usual at this stage before an election, the Finance Bill would proceed on the basis of consensus and the government would not be proceeding with a number of clauses in the Bill, including these changes. “The Financial Secretary also said there has been no policy change and the government would legislate for the provisions at the earliest opportunity in the next Parliament. It will be for the incoming government to decide what to recommend to Parliament. In the interim please continue to apply the guidance published

...it would be beneficial to make your employees aware ... ideal, the fact HMRC says to continue to apply the guidance at EIM21802 and EIM30509 suggests employers are safe to make this assumption. Do you remember to log your CPD? One of our quick polls through May asked if you always remember to log your continuing professional development (CPD)? Or is it just sometimes, or never at all, or maybe it just isn’t required within your role? We received 428 results in total, with: ● 9% always logging their CPD ● 9% saying they don’t need to for their role ● 53% sometimes log their CPD, and ● 29% saying that they never do. As with any of our poll results, we must bear in mind that it is only a snapshot in time, from a certain number of people, from unknown industries as the poll is in an unrestricted area of our website. However, the results are certainly an indication that recording CPD is not a routine discipline for most. CPD is any form of learning or development that benefits you in your professional environment. You can read more about the importance of logging your CPD on the CIPP website at http://bit. ly/2qHI3s3 (and on page 12). at HMRC guidance - EIM21802 [http:// bit.ly/2n7azWE] and HMRC guidance - EIM30509 [http://bit.ly/2o5Avra].” The policy team was asked for more clarity on this situation which we have sought from HMRC; however, purdah is preventing them from providing any extra detail. Given that HMRC’s original statement says that there has been no policy change and they expect the required legislation to go through at the earliest opportunity, it would not be unreasonable to assume that HMRC would not look askance at a situation where the employer had worked on the assumption that the legislation would be passed early in the next Parliament and therefore the new guidance applied. Though this situation is far from

All published information on our polls and surveys can be found in the CIPP’s Policy News Journal (http://bit. ly/2oxTlh8), a benefit reserved exclusively for CIPP members. Our latest quick poll asks how confident you are about your calculations, processes and record keeping to ensure your compliance in paying the minimum wage. Please do take a moment to participate. Gender pay gap viewing service Under the new gender pay gap regulations thousands of employers are now required to publish their gender pay gap figures for the first time. The new facility where employers must upload their gender pay gap information is now available for public observation can be found here: https:// goo.gl/YMYM6R. So far (as at 2 June), only ten companies have published their data but employers do have until March/April 2018 – depending on whether they are public, private or voluntary sector – to do this, so the number will continue to grow. There is some interesting reading in the written statements on the viewing service already; it’s worth a read if you are curious about how other companies are explaining their figures in the required written statements. The latest webcast from the Policy team highlights considerations for employers in the first year of gender pay gap reporting. You can find it here: http:// bit.ly/2rsky7u. Childcare Choices The introduction of the government’s tax-free childcare scheme began on 28 April this year for parents of the youngest children and is being gradually rolled out over 2017. Another online service – Childcare Choice (https://goo.gl/ Y8oRO2) – has been launched where millions of parents can pre-register for the new childcare offers -. The website includes a Childcare Calculator for parents to compare all the government’s childcare offers and check what works best for their families. Parents can also pre-register for email alerts that will notify them when they can apply, as well as providing details of existing government childcare offers. n

If you haven’t already, it would be beneficial to make your employees aware of the website.

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| Professional in Payroll, Pensions and Reward |

Issue 32 | July/August 2017

MEMBERSHIP INSIGHT

Where the employee is taking statutory shared parental leave and pay (SShPL and SShPP) and becomes sick and unable to care for the child, and they form a PIW, SSP takes precedence. Q: We are a bureau and our client, a sole trader, is incorporating on 1 July 2017 which means that the current pay as you earn (PAYE) scheme will be closed as at 30 June 2017 and a new scheme opened on 1 July 2017 for the new limited company. All the existing employees will then be transferred to the new PAYE scheme for the July payroll. Can the new company claim the full employment allowance under the new PAYE scheme? A: If, for example, company A is your sole trader and company B is the new incorporated company, then company B cannot claim the employment allowance for the employees that it gained from company A for the rest of this current tax year. This is because you cannot split the employment allowance and it also cannot be apportioned from one company to another. You must leave the employment allowance to be claimed in full for this tax year with company A, and company B will be able to claim in their own right from the following April. Q: We currently run a four-weekly payroll and are planning to change this to a monthly payroll cycle. Currently hours worked from 6 March 2017 to 2 April 2017 are paid on 7 April 2017 which is tax period four of tax year 2017–18 on our four-weekly payroll. We also change to a monthly pay cycle in April 2017, so hours worked between 3 April 2017 and 17 April 2017 will be paid on 26 April 2017 which is tax period month 1. How are the National Insurance contributions (NICs) for these two payments to be calculated? A: The employer should add the earnings together for both payment periods and decide how much NICs are due for the new monthly pay period for both these two amounts, then reduce the amount by the NICs that have already been paid in the four-weekly payroll cycle (7 April 2017). Guidance can be found in HM Revenue & Customs National Insurance Manual – see https://goo.gl/G98H2.

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: We have a situation where an employee is entitled to a company car and to use it for private commuting. Currently he does not need the use of this car for two months and so has now loaned it, with our permission, to another employee to use. Do we need to report the company car in the P11D return for both employees? A: Yes, if the business has provided a vehicle which the employee can use for private commuting this must always be declared in the P11D return as a taxable benefit. However, because this employee is giving up the use of the vehicle for two months the employer can reduce the amount of time the car is available from 365 days to the actual amount of time for which the employees had the car. For the second employee, this is reported as normal but the employer reduces the amount of time available to use the car in the P11D from 365 days to the actual duration that the employee is allowed to use the company car. Q: Could you please offer some advice as to which statutory payment would take precedence if an employee became sick during: statutory maternity leave (SML), statutory paternity leave (SPL), or statutory adoption leave (SAL)? A: When an employee is taking SML and falls sick during the maternity pay period (MPP) and also forms period of incapacity to work (PIW), the employer would not pay statutory sick pay (SSP). This is because the 39-week-MPP is the disqualification period for SSP. If the employee continues to be sick during and after the MPP period no SSP or statutory

maternity pay (SMP) would be due. If she recovers and then becomes sick again within eight weeks of the previous PIW this would be counted as a linked absence and would mean she would still be disqualified from SSP. Where the employee’s first instance of falling sick and forming a PIW is after the end of the MPP, then the employer would need to consider whether SSP should be paid, e.g. see if their average weekly earnings were high enough at £113 per week. If an employee were to fall sick during a week of SPL then the employer would not pay statutory paternity pay (SPP), as SSP takes precedence. The employer needs to bear in mind that if an employee is sick they have to form a PIW and SSP would have to be due in that particular week. For example, if the employee was sick at the end of a SPP week for three days, then SSP would not be payable in that week so SPP would take precedence. The legislation which governs this is Regulation 18 (a) of the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 2002 (https://goo. gl/GTBDdv). When an employee who is taking SAL and statutory adoption pay (SAP) becomes sick and a PIW is formed, SSP becomes due as it takes precedence. If the employee recovers during the adoption pay period (APP) then they would be entitled to SAP for the duration of the APP. This is covered by Regulation 27(1)(a) of the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 2002, and by Regulation 27(1)(a) of the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations (Northern Ireland) 2002

| Professional in Payroll, Pensions and Reward | July/August 2017 | Issue 32 6

Policy hub

Foundation Degree in Payroll Management Join over 15,000 qualified payroll professionals in the UK

Q: We have five connected companies, the largest of which has a pay bill greater than £3 million per annum. I understand that we only have one apprenticeship allowance of £15,000 because we are connected companies, but do we aggregate all five companies when calculating the levy or treat each company separately? A: As all the companies are connected this will mean that all the companies are liable to pay the levy and it will need to be calculated on all payrolls. You can decide to split the levy allowance exactly how you wish over the five PAYE schemes, but remember that even though the small companies when taken in isolation have a pay bill of under £3 million, they will still pay the levy as they are connected payroll. In other words the levy should be calculated on each payroll individually and then depending on how the levy allowance has been split will affect how much each connected company has to pay. Q: My question is about optional remuneration. If an employee has the choice of cash allowance or a company car and decides to take the cash allowance of £200.00 per month which is subject to PAYE/NICs via the payroll, what would be reported in the P11D return? Also, what happens if the employee doesn’t take the cash allowance but chooses the car instead as the benefit in kind? A: Where the employee has the choice between a company car or a cash allowance, three things need to be considered: firstly, what is chosen; secondly, is the car cash equivalent benefit in kind (BiK) value higher or lower than the car allowance; and, thirdly, if the car allowance is higher than the company car BiK, is the employee allowed to receive the difference as a cash allowance which is paid through the payroll. If the company car is chosen and the car allowance and company car cash equivalent are the same then the value to report in the P11D is the same as normal for the company car. Where the car cash equivalent BiK is less than the cash allowance, but the employee is not entitled to receive the residue, then you report the higher value. However, if the employee is allowed to receive the residue in the form of a cash allowance

and it is paid through the payroll that has been subjected to PAYE and NICs you would only report the normal car cash equivalent BiK. Q: An employee who is taking part in our cycle to work scheme has been loaned a bicycle that cost the company £475.00 inclusive of VAT plus accessories of £29.99. This employee has asked to purchase the bicycle at the end of the agreement period. On what should the calculation for the second-hand value be based? A: The calculation of the original price of the bicycle would not include the safety equipment. At the end of the agreement if the employer decides to allow the employee to keep the bicycle the employer must decide what needs to be reported as a benefit in kind, using the second- hand value of the bicycle excluding the accessories. For easement, HMRC allows employers to use a simplified valuation approach. It all depends on the original price of the bicycle, and how old the bicycle is at the date it is transferred to the employee. In your scenario, the original price of the bicycle is under £500.00 – and estimating the age of the bicycle as being one-year old – an acceptable second- hand value would be 18% of this value; i.e. £85.50. If the employee paid this amount or more to the employer then the employer would not be required to report anything in the P11D return. Where the employee pays less than the second hand-value for the bicycle (£85.50), the difference would have to be reported in the P11D. Finally, if the employee is given the bicycle but does not pay the second- hand value, this whole second-hand amount is reported in the P11D. HMRC’s Employment Income Manual provides guidance at https://goo.gl/JBx6Se. n

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Issue 32 | July/August 2017

| Professional in Payroll, Pensions and Reward |

MEMBERSHIP INSIGHT

5 minutes with… Angela Adams MCIPPdip, Policy and advisory officer, Advisory Service

THEONLYUKPAYROLLAWARDS

Recognise someone who has demonstrated commitment to excellence in their profession by submitting a nomination.

Submit your nominations by 11 August 2017

Tell us about your collective experience as a team and background in payroll I joined the Institute’s Advisory Service in November 2013, which was when I gained my Foundation Degree in Payroll Management. I’d worked in payroll within local government for 24 years. Susan Richardson joined the CIPP in August 2005, having worked in payroll for approximately 31 years. Sue gained her Diploma in Payroll Management in 1997. Beverley Smith joined the CIPP in August 2015 and has over twenty years’ experience in both industry and practice. Beverley is currently studying for her Foundation Degree in Payroll Management. What does the Advisory Service do for CIPP members and how can members benefit from the service? The Advisory Service is one of the most popular membership benefits and offers members both verbal and written advice and support in all aspects of payroll pensions and reward. Members can access the service by calling our helpline, by email or through social media or #payrollhour . To benefit from the service, you will need to be a paid member of the Institute: a trial student member who is studying with us, an associate member who is connected to the profession, a full member who is

qualified to level five or a fellow member which is our highest level of membership. What was the most interesting advisory query you have received? We receive so many interesting questions; some are similar in nature and some need in-depth research which can be interesting. Getting a question regarding someone who was a ‘runner’ for the film industry was one that sticks in my memory – but that’s because I have a passion for films. What does the future hold for the future of payroll, pensions and reward? The future for payroll and pensions is that it will become even more complex as legislation seems to be changing and evolving every year. I feel it is more important than ever for us ‘payrollers’ to keep our knowledge base as up to date as possible with frequent reading and research. What do you do in your available time to unwind? I am a real film buff. I love going to the cinema to watch new films as well as older ones with my favourite being Dirty dancing . I go to the cinema at least once a week with both family and friends. I also have a passion for – or some would say an addiction to – pilates, and I go at least four times a week. And I also do yoga weekly. n

Don’t miss out on seeing Sir Trevor McDonald as our keynote speaker at the awards

#CIPPAWARDS

For the full criteria for each award and useful hints and tips, visit cipp.org.uk or email events@cipp.org.uk for more information

cipp.org.uk @CIPP_UK

| Professional in Payroll, Pensions and Reward | July/August 2017 | Issue 32 8

Get involved with National Payroll Week 2017 and help put the

CIPP update

CIPP update

spotlight on payroll

CIPP charity walk IN MAY, CIPP members of staff and their children put their best foot forward in a sponsored walk round Earlswood Lakes to raise money for local children’s charity Acorns and national charity Cancer Research UK. 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. Following completion, participants are provided with a copy of the benchmarking report. Non-members have the option to purchase the results of the report. To register your interest or take part in the CIPP’s benchmarking survey visit My CIPP within www.cipp.org.uk email info@cipp.org.uk or call 0121 712 1000. CIPP’s benchmarking survey BENCHMARKING IS a common practice and sensible exercise to establish baselines, define best practices, identify improvement opportunities and create a competitive environment within the organisation. Benchmarking helps companies gain an independent perspective about how well they perform compared to other companies. As the need for efficiency increases, benchmarking enables an organisation to learn from the outside, and to develop relevant measures and implement company specific solutions. Benefits benchmarking can bring to a business include: ● best practices are defined ● performance deficits are identified ● alternative solutions are evaluated ● promote an understanding of the business processes ● strengthen the competitive position ● initiate a process of continuous improvement. But did you know that you can benchmark the way you operate your payroll? The CIPP’s benchmarking survey runs from July – September and is part of our membership benefits package to full and fellow members as well as organisations that have been accredited with the CIPP’s Payroll Assurance Scheme and the Payroll Quality Partnership. This 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 HR / payroll process resulting in every company that takes part in the survey

nationalpayrollweek.co.uk #Spotlightonpayroll #NPW17

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Email npw@cipp.org.uk to request your pack or visit cipp.org.uk for more information.

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Issue 32 | July/August 2017

| Professional in Payroll, Pensions and Reward |

#NPW17

PROFESSIONAL DEVELOPMENT INSIGHT

Not just for geeks

Rob Percival, author, explains how coding can complement your professional expertise

I n June 2016, Fast Company published an article about why coding is still the most important job skill of the future. The research firm, Burning Glass, found that jobs requiring coding skills pay, on average, $22,000 more, and that half of all jobs with salaries over $58,000 require some coding skills. Moreover, half of all programming opportunities were in industries outside of technology, including finance, manufacturing and healthcare. Why is it that this one skill, often seen as the exclusive preserve of a select few, is so valuable to employers? As a professional, you probably spend most of your time working on a computer. You likely have to do a range of similar tasks each day, including working with email, creating and managing documents, and searching the web. Almost all of these tasks can be made more efficient with a strong knowledge of how the software and operating system you are using works. A little knowledge of coding allows you to automate away much of the repetitive chores most jobs require, freeing you up to do what you do best. Regardless of your current fluency with technology, it is likely that fairly regularly you need to communicate with technical people about things that you don’t entirely understand. Whether it is trying to get some content added to the company website, getting some software installed on your computer or getting the stats you need to analyse the success of your latest campaign, greater technical knowledge can make every aspect of those conversations

much more straightforward. Our current primary computing device, the smartphone, has only been around in its current form for ten years. Who knows what devices we will be using five, ten or twenty years from now? Understanding the fundamentals of how computers work will allow you to make the most of new devices and software before your colleagues, giving you an edge and enabling you to do your job better. ...proliferation of online courses and coding bootcamps has made the acquisition of coding skills highly feasible... Eighty per cent of employers google job applicants before inviting them for interview. Take a moment to search your own name and see what comes up. Is it what you would want a potential employer to see? Creating a blog, portfolio site, or a simple site for a project you’ve undertaken or e-book you have written enables you to control what your future boss sees, and helps you stand out as an applicant. Learning to code gives you the ability to, for example, build an app that makes tracking campaigns or targeting your audience more effective. You could create a webpage that helps your colleagues

collect leads or give feedback to clients. Or you could simply take responsibility for your area of the company website, making sure it is up to date and perhaps introducing tools and features that become popular with your customers or clients. Imagine your boss’s reaction if you came in on Monday morning with the solution to your department’s problems in the form of a slick website or mobile app! Just a few decades ago, starting a business usually required a huge investment, and reaching customers on the other side of the world simply wasn’t an option. With a little knowledge of programming, you can reach three billion people with your app or website instantly. Have an idea for a product or service that will change the world? Learning to code gives you the ability to create it and get it out there single-handedly. Acquiring specialist skills that could boost salaries and advance careers used to require at least a degree, if not years of study as part of a PhD or MBA. But today the proliferation of online courses and coding bootcamps has made the acquisition of coding skills highly feasible for anyone with a computer and internet connection. What is stopping you from boosting your career by acquiring some coding skills today? n Rob Percival is author of Confident coding: master the fundamentals of code and supercharge your career

| Professional in Payroll, Pensions and Reward | July/August 2017 | Issue 32 10

Professional development insight

Diary of a student… Angela Hensley BA (Hons) FCIPP Monthly payroll team leader, Laing O’Rourke

Tony’s West Ham season ticket which took him out of the house every other Saturday. The tutorials for each module were a great help and after a gap of six years between completing the Foundation Degree and starting the BA degree there had been huge changes to methods of studying and writing assignments. Harvard referencing being one of them. 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 particular modules which were of interest prior to enrolling? Knowing the CIPP were a chartered body definitely influenced my decision to study a corporate qualification with them at Derby University. Having a degree recognised by a national institution makes me incredibly proud. The modules were all useful and unique in their own right but I was particularly interested in the enhanced leadership module to help me evolve into a more rounded confident manager with good communication skills. The module has given me the inspiration to try and empower and motivate my team and to encourage them to develop their own careers. For someone who is thinking about studying for a CIPP qualification what would your advice be to them? I would definitely encourage anyone to consider a CIPP qualification. Not only do you receive a nationally recognised qualification but you also get the continued support of the CIPP. I have more confidence in my skills and ability not only in payroll but in people management and also an understanding of how corporate businesses operate. In addition to this you meet like-minded people at the tutorials who are a support and inspiration to study with. The whole experience, whilst being one of the hardest things to do, is also one of the most rewarding achievements of my life. n

Can you give us a brief background into your life?

administrators not only needs an in- depth knowledge of payroll but requires an up-to-date understanding of modern management. Theories constantly change in management and the CIPP course offered the perfect solution to be the best manager I can be and to help support and develop the team. Learning about people management, project planning, finance within business and bringing it all together with a work-based assignment also enabled me to network across the company and understand many aspects of the business which were once alien to me. How important is this degree in relation to your future career? It seems more apparent in a modern workplace that gaining relevant qualifications is more important than ever. My years of experience has culminated in a formal qualification. The degree has opened my mind to modern management skills. The knowledge I have gained is transferable across many areas and has helped me when communicating with other departments especially reward, finance and legal. How do you cope with the work- life balance and include your study? Trying to manage a full-time job, family life and studying for a degree is not easy. Sitting at the laptop, surrounded by reference books, staring at an assignment to complete, the first thing my mind turned to was chocolate. Weekends were when I completed most of my assignments and I studied best when everyone was out of the house and I could take time to concentrate completely. Thank goodness for my partner

I started working with my current company when my eldest daughter was a year old and 22 years later I am still here, initially working as a secretary in the buying office, transferring into the legal department and then finding myself working in payroll. I have seen huge changes within my job, the company and the construction industry whilst watching my two daughters grow up, leave school and flourish at university. In my spare time I love good food and red wine. I also spend many hours walking Draco, my German shepherd dog, across the Essex countryside. Can you give us an insight to your career and qualification background? I started my career as a legal personal assistant in the City of London before starting a family and then returning to work at O’Rourke’s, a construction company. My colleague in the office next door was rushed off her feet needing some help running the payroll. After a buyout O’Rourke’s became Laing O’Rourke and I started working full- time in payroll. Growing from a department of two into a team of five, after six years I was asked to head up the monthly payroll team of five paying nearly 4,000 employees. I studied then for the CIPP Foundation Degree. Seeing both my girls in university inspired me to take my knowledge further and undertake the BA (Hons) in Business and Management with the CIPP. Why did you choose to study the BA (Hons) in Business and Reward Management? Managing a team of five payroll

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| Professional in Payroll, Pensions and Reward |

Issue 32 | July/August 2017

PROFESSIONAL DEVELOPMENT INSIGHT

Internal coaching

Sue Smith, senior lecturer in coaching and management, Derby Management School, College of Business, Law and Social Sciences, reveals the success of internal coaching

B eing accountable for developing and releasing management talent is a responsible position of authority that should be respectfully recognised as a powerful point of influence. Coaching is a well-used human resources (HR) development practice which supports this change, and is fundamentally a problem-solving approach which has been used successfully within a wide variety of organisations. It enables individuals to take ownership of their development by resolving issues and liberating themselves from constraints and impediments to manage successfully situations that need to change. Coaching has evolved from the sporting arena (e.g. tennis, golf) into mainstream business practice; initially as a remedial corrective tool, and latterly as a progressive and proactive development intervention. The recession that hit the United Kingdom in 2008 brought challenges for businesses that had festered beneath the surface, affecting both performance and productivity. With morale amongst workforces declining, motivation wavering due to increasing redundancies, and an atmosphere of insecurity and uncertainty, organisations looked to develop and reward committed managers to better- place their organisations in the turbulent marketplace. Coaching has a proven track record of success in business. It develops self-awareness and increases personal knowledge, as well as the additional therapeutic benefit of helping coachees to feel better by reducing stress through constructive dialogue with their coach. Coaching provides tailored development

for individuals and is a natural development tool for those managers who have the knowledge and skills, but seldom apply these in practice. It has the advantage of slotting efficiently into a busy work routine, and the pace of the development can be easily tailored to individual circumstances of the manager being coached.

Recent research of internal coaching with over 100 managers in a large national multi-media organisation, conducted over a period of two years, found that the coachees had successfully achieved their objectives set in the coaching sessions, and that the manager’s performance had changed in a positive manner. It was also evident that coachees benefitted from the attention and focus on their personal development; reporting increased motivation, recognition and reward for their loyalty to the organisation. The internal coaching within the organisation was regarded as very effective and successful, and remains in place today. Based on the above research, a framework for internal coaching has been developed, which focuses on the three key components for effective internal coaching: ● the role of the coach ● coach characteristics, and ● setting conditions conducive for coaching. Internal coaching has been shown to re-engage both the coach and the coachee and provides equal results to that obtained by external coaching. The framework provides the coach with a consistent and optimal coaching interaction with the coachee, which underpins the effective engagement in the coaching process of both parties, so achieving improved results. Coaching has for many years been part of HR development practices, and this framework provides an innovative approach to add value to HR practices with internal coaching. n

...remedial corrective tool, and latterly as a progressive and proactive development intervention

Coaching can be conducted by either an external coach or someone internally employed, and both have distinct advantages and disadvantages. The main advantage of external coaching is that the coach is not an employee and can provide a new perspective to the coaching sessions. Internal coaches: ● have the advantage of being equally well-trained and well-practised in coaching ● have better internal knowledge of the culture and operations of the organisation, and ● have existing business credibility with their coachees. They also provide a strong framework for deepening connections within an organisation and improving performance; and their knowledge is retained within the organisation.

CIPP members can utilise our Advisory Service on 0121 712 1099.

| Professional in Payroll, Pensions and Reward | July/August 2017 | Issue 32 12

Professional development insight

Whatever level of membership, you have access to the continuing professional development (CPD) area of cipp.org.uk

Log your CPD now Whatever level of membership, you have access to the continuing professional development (CPD) area of cipp.org.uk . In accordance with the CIPP code of conduct all associate, full and fellow members need to evidence CPD to be able to renew their membership. The CIPP continuously spot-check CPD activity so make sure you take the time to log any form of learning or development on your record to ensure your membership level is maintained. Why is CPD important? CPD is a combination of approaches, ideas and techniques that will help you manage your own learning and development. It is about where you want to be and how you plan to get there, an investment that you make in yourself. CPD can

● Reading News On Line, Professional in Payroll, Pensions and Reward magazine or another publication ● Attending training courses and/or events How do I log CPD? 1. Log into the ‘My CIPP’ members’ area at cipp.org.uk 2. Find ‘My CPD’ in the drop down options 3. Click on the blue box ‘add a new record’ 4. Complete the form, record your activity and click ‘submit’. Contact us If you require any help with your CPD please email membership@cipp.org.uk or call 0121 712 1073. If you would like to discuss your CPD further, the CIPP also offer face to face appointments at all of our events. ❏

help you keep your skills up to date and prepare you for greater responsibilities. It can boost your confidence, strengthen your professional credibility and help you become more creative in tackling new challenges. CPD makes your working life more interesting and can significantly increase your job satisfaction. It can accelerate your career development and is an important part of CIPP membership. What can I log as CPD? Any form of learning or development that benefits you in your professional

environment. If you have learned something new, then this is CPD. Examples include:

● Using the CIPP’s Advisory Service ● Taking part in on-the-job learning ● Networking with new or existing contacts

This focused course represents the single best opportunity to be briefed and updated on changes One day Payroll and HR legislation update

This course covers: l Income tax and National Insurance l Real time information l Statutory payments and leave l Expenses and benefits l Pensions reform l Changes to employment rights l Plus much more

Book online at cipp.org.uk or email info@cipp.org.uk for more information.

cipp.org.uk CIPP_UK cip .org.uk @CI P_UK

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| Professional in Payroll, Pensions and Reward |

Issue 32 | July/August 2017

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