In a significant move, ASOS - the online fashion giant - has decided to alter its executive bonus criteria, shifting the focus away from diversity targets and placing a stronger emphasis on profits.

ASOS executives will no longer be required to meet diversity targets to receive their annual bonuses. Instead, the criteria will be centred around driving profits, improving share prices and enhancing profit margins.

This change reflects a broader industry trend where companies face increasing pressure to prioritise financial performance and signals a departure from the environmental, social and governance (ESG) movement that has gained momentum in recent years.

The decision to remove diversity targets from annual bonuses aligns with ASOS's commitment to a turnaround strategy, with management emphasising profitability in the year ahead. The company's executives will now have to steer the online retailer toward achieving specific financial milestones to secure their annual payouts.

This shift in ASOS's bonus structure comes at a time when various companies are facing investor demands to deprioritise ESG targets and refocus on profitability. Last year, ASOS did not meet its diversity targets, resulting in executives not receiving their annual bonuses. The company has clarified that its wider diversity initiatives remain intact, with a goal of achieving 50% female and 15% ethnic minority representation at every leadership level by 2030.

The change in bonus criteria is evident in the adjustments made to the structure for the current financial year. Previously, ASOS's annual bonus was allocated based on revenue, adjusted pre-tax profit, adjusted free cash flow and strategic and ESG measures. The strategic and ESG component included diversity, equity and inclusion measures, emphasising female and ethnic minority leadership targets.

For the current financial year, ASOS has recalibrated its bonus allocation, with 75% now based on adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), and the remaining 25% tied to targets for closing stock, adjusted gross margin and cost to serve. This adjustment highlights the company's renewed focus on financial metrics.

ASOS, which experienced a near-£300 million full-year loss in its last financial year, is positioning itself for a return to growth in 2025. The company has underlined its commitment to longer-term diversity goals by instead incorporating a diversity measure into its incentive scheme.

While this move by ASOS mirrors broader industry trends, it also raises questions about the balance between financial performance and ESG considerations. Companies are increasingly grappling with the need to navigate this delicate balance, ensuring they address both shareholder expectations for profits and societal demands for responsible business practices.

In a significant move to alleviate financial burdens on workers, the UK government has fast-tracked a new bill that will lead to a reduction in National Insurance (NI) contributions for millions of employees. The National Insurance Contributions (Reduction in Rates) Bill, which was swiftly passed through the House of Commons on 30th November, is set to see NI contributions drop to 10% starting from 6th January 2024.

Chancellor Jeremy Hunt initially announced the proposed reduction in his Autumn Statement and MPs wasted no time in pushing the bill through the legislative process. The bill is now poised for further scrutiny in the House of Lords before it receives Royal Assent and officially becomes law.

For employees classified as basic rate taxpayers, this reduction means a decrease in their NI contributions from 12% to 10%. This move is expected to save the average employee around £450 annually, according to estimates from the Treasury. The implementation of this change is imminent, taking effect on 6th January 2024.

The adjustment will result in a combined taxation rate reduction for employees paying the basic rate of tax, dropping from 32% to 30%, marking the lowest combined rate since the 1980s. This substantial tax cut aims to provide financial relief to employees and stimulate economic growth.

However, the impact of these changes is not uniform across the workforce. Self-employed individuals will experience tax reductions from 6th April 2024. Class 4 National Insurance Contributions (NICs) for the self-employed will decrease from 9% to 8%, and there will no longer be a requirement for self-employed persons to pay Class 2 NICs.

The government's motivation for these changes is aligned with its long-term plan to bolster the economy. By cutting main NI rates for both employees and the self-employed and streamlining the tax system by abolishing Class 2 NICs, the government aims to provide a tax cut equivalent to £9 billion per year for 29 million working people.

The Treasury emphasized that this tax cut, effective in 2024-25, would translate to a £450 reduction for the average employee earning £35,400, resulting in a more than 15% decrease in NICs payments. The changes would position the UK favourably compared to other G7 countries, with personal taxes being lower for those on average salaries.

While the reduction in NI rates has been celebrated as a positive step toward financial relief, it also prompts discussions about the intricacies of the national insurance system. National insurance, akin to income tax, is essential for acquiring entitlement to various state benefits. It is levied on earned income, excluding interest on shares or money from pensions and contributes to benefits such as the basic state pension, employment and support allowance, maternity allowance and bereavement support payment.

As the government aims to bring about financial relief and stimulate economic growth through these changes, the impact on individual workers and businesses remains a focal point for ongoing discussions and analyses. The reduction in National Insurance rates is poised to have widespread implications, with both employees and the self-employed set to benefit from the impending adjustments in 2024.

In a leaked internal communication, Amazon has revealed its stringent policy regarding employee attendance in the office, stating that promotion eligibility will be contingent upon returning to the office at least three times a week. This move has raised eyebrows and ignited a debate on the balance between remote work flexibility and traditional office expectations.

Leaked documents obtained by Business Insider unveil Amazon's announcement that employees eligible for promotions must adhere to a strict attendance requirement. This includes being physically present in the office for a minimum of three days per week. Moreover, managers have been granted the authority to terminate employees who fail to comply with this policy.

Employees who do not conform to the three-day office attendance rule will now need approval from a vice-president to be considered for promotions. This marks a significant departure from the growing trend of remote work acceptance seen in numerous companies worldwide.

Amazon emphasizes that managers play a crucial role in the promotion process. In a message to employees, the company states:

"Managers own the promotion process, which means it is their responsibility to support your growth through regular conversations and stretch assignments, and to complete all required inputs for a promotion."

However, the enforcement of this policy has not been without its challenges. In February of this year, Amazon issued an internal announcement mandating employees to return to the office at least three days a week, effective from May. This decision faced backlash, with approximately 30,000 workers signing a petition requesting CEO Andy Jassy to rescind the directive for most employees to work on-site.

In response to the controversy, an Amazon spokesperson defended the policy, stating:

"Promotions are one of the many ways we support employees’ growth and development. Like any company, we expect employees who are being considered for promotion to be in compliance with company guidelines and policies."

This move by Amazon reflects a broader debate in the corporate world regarding the future of work post-pandemic. While some companies have embraced flexible work arrangements, Amazon's insistence on in-office presence raises questions about the extent to which remote work will be tolerated in the long run and highlights the challenges faced by both employees and employers in finding the right balance between traditional office expectations and the desire for flexible work arrangements.

In a highly anticipated move, Chancellor Jeremy Hunt announced in his Autumn Statement that the state pension "triple lock" will remain unchanged, bringing relief to retirees across the United Kingdom. The triple lock, introduced in 2016, is a crucial government commitment to elevate the value of the state pension every tax year, choosing the highest among inflation, average wage growth, or 2.5 percent. The statutory requirement to uprate the basic state pension and the new state pension each year ensures that pensioners receive a fair share of the economic growth.

There had been speculation that the Chancellor was considering using a lower metric to calculate next year's state pension, potentially resulting in pensioners losing out on approximately £75 per year. However, facing a significant backlash from Conservative MPs and concerns about upsetting loyal elderly voters, Mr Hunt has opted to maintain the status quo.

The decision is to use the average earnings rate of 8.5 percent to determine the rate of pensions, as it surpasses the inflation rate.

The inflation rate for September - the crucial month used to calculate the triple lock - remained at 6.7 percent. In contrast, the average earnings increase for May to July was a robust 8.5 percent. In adherence to the triple lock policy, this means the 8.5 percent figure will be applied to increase the state pension from April 2024.

The Chancellor's commitment to uphold the triple lock guarantee and increase the state pension in line with the unaltered average earnings increase figure of 8.5 percent is a significant boon for retirees. For those on the new UK state pension introduced in 2016, the weekly pension will rise to £221.20 from April 2024, up from the current level of £203.85. This represents an annual increase of around £900 compared to the current year and is £75 more per year (£1.45 each week) than would have been granted had the Chancellor chosen to alter the metrics. Basic state pensioners will also witness a boost, with their weekly amount increasing from £156.20 to £169.50. This announcement is a welcome relief for pensioners, providing them with greater financial security and a well-deserved boost to their income in the coming years.

The UK government has announced a substantial 9.8% increase in the national minimum wage, raising it to £11.44 per hour from April 2024. This move positions the UK's minimum wage as one of the highest among advanced economies, as a share of average earnings. The announcement was made by Chancellor Jeremy Hunt ahead of the Autumn Statement, signalling a commitment to addressing income inequality and improving the livelihoods of millions of workers.

This increase is set to directly benefit approximately 2.7 million workers, marking a significant step in the government's efforts to uplift low-paid workers. Jeremy Hunt

told the Conservative Party at last month’s annual conference of his intentions to increase the minimum wage to at least £11 pounds an hour, which is part of a goal to raise it to two thirds of average earnings. He noted that the National Living Wage has played a crucial role in reducing the number of people on low pay since 2010.

One noteworthy aspect of this wage hike is the inclusion of workers aged 21 and 22, who will now be entitled to the full minimum wage for the first time. This policy shift is a positive step toward ensuring fair compensation for younger workers, acknowledging the financial challenges they face.

As of now, the National Living Wage in the UK stands at £10.42 per hour for workers aged 23 and over and the minimum wage for 21 and 22-year-olds is set at £10.18. With the proposed increase, a full-time employee aged 23 can expect an annual pay rise of £1,800, while a 21-year-old will see a substantial £2,300 increase per year, representing an approximate 30% boost in their income.

The confirmed raises translate to a 9.8% increase for those aged 23 and over compared to the previous year, showcasing the government's dedication to ensuring that wage growth keeps pace with the cost of living. Workers aged 22 and 21 will experience an even more remarkable 12.4% jump in their minimum wages, reflecting a commitment to improving the financial well-being of younger members of the workforce.

Workers aged 18 to 20 and apprentices will also witness an increase in their minimum wages. Apprentices will experience a significant rise in their hourly rates, jumping from £5.28 to £6.40.

In addition to benefiting individual workers, this policy shift is expected to have positive implications for the broader economy. By addressing income inequality and boosting the purchasing power of low-paid workers, the government aims to contribute to economic stability and growth. However, the decision comes at a time when the Bank of England has expressed concerns about the rapid pace of wage growth - which reached around 8% earlier in the year - posing challenges to returning inflation to its 2% target.

In a landmark victory, Emma Bond - the first female commander of Derry City and Strabane - has been awarded over £31,000 in a sex discrimination case against the Police Service of Northern Ireland (PSNI). The tribunal found her claims to be "well founded," shedding light on an incident during the early days of the pandemic.

Emma Bond, a former PSNI Chief Superintendent and recipient of an MBE for service to policing in 2019, found herself at the centre of controversy when she raised concerns about officers working from home during the first lockdown while still receiving their salaries. The officers claimed they were on stand-by from home but Bond confronted them, leading to a series of complaints against her.

Four officers filed complaints against Bond, alleging her behaviour was "humiliating, intimidating, and degrading." One complaint even resulted in a notice for potential misconduct, although it was later withdrawn.

Following this, Bond informed Chief Constable Simon Byrne about derogatory remarks made about her involvement with the Women in Policing Association - which she co-founded in 2007 and chaired until 2021 - and the tribunal was given evidence of misogynistic WhatsApp messages from junior staff.

Despite her commendable 23-year career in the PSNI, Bond was later transferred to a role in the police training college against her wishes. The justification given was concern over her two-hour commute, yet her male replacement faced no such relocation, raising questions about the fairness of the decision.

Following a protracted tribunal process that began in January, the Belfast tribunal concluded that Bond's claim of sex discrimination was "well founded." The ruling also acknowledged that she had been subjected to detriment for making protected disclosures and the tribunal noted that Bond was treated less favourably than a hypothetical male comparator, emphasizing the existence of gender bias within the organisation.

Bond is now an assistant Chief Constable with Police Scotland.

The festive season is almost upon us and with it comes the age-old tradition of Secret Santa in workplaces across the UK. A recent survey conducted by UK Money Bloggers - a network of over 400 personal finance bloggers and influencers - has shed light on the mixed sentiments surrounding this annual ritual.

While 33% of employees are gearing up for the exchange of surprise gifts, a significant 30% would rather opt out. The findings also reveal a staggering £60 million+ in wasted presents, as 36% of participants anticipate giving away the gifts they receive.

Of the 1,167 employees surveyed, 29% admitted to dreading the task of buying gifts for specific colleagues. Similarly, an equal percentage expressed discomfort at the prospect of opening their presents in front of their coworkers. An additional challenge revealed by the survey is the 24% of respondents who have had to buy a gift for a colleague they've never even spoken to.

The pitfalls of Secret Santa don't end there; a whopping 36% of workers have received what they consider to be a 'bad' Secret Santa gift. From used candles to household items like laundry baskets and washing-up gloves, the list of less-than-ideal presents is extensive. Groceries also made their way into the mix, with mouldy Turkish Delight, an apple, mayonnaise, a cabbage, a jar of Bovril and an already-open bag of sweets topping the list of disappointing gifts!

Amidst the rising cost of living, 72% of employees are calling for changes to the traditional workplace Secret Santa. A third (31%) advocate for smaller donation limits, considering the average budget per person was £15.50. Remarkably, 22% expressed a preference for donating that money to charity instead, potentially redirecting an estimated £37 million towards UK charities.

In response to the survey findings and as a compassionate alternative to traditional Secret Santa, Smart Money People and the UK Money Bloggers community have partnered with the children's charity KidsOut. The goal is to shift the focus from mere 'gifting' to impactful 'giving.'

KidsOut is a children's charity dedicated to supporting disadvantaged children across the UK. Many of these children have escaped domestic violence or live in poverty, often leaving their homes in haste and abandoning all their possessions. By encouraging employees to contribute to KidsOut instead of participating in traditional Secret Santa exchanges, the initiative aims to make a meaningful difference in the lives of those who need it most.

To find out how to donate here.

In a recent survey conducted by Isio in collaboration with YouGov, a comprehensive analysis of 7,674 UK private sector employees has shed light on the pivotal role of employee benefits packages in reducing turnover. The UK - grappling with one of the highest voluntary employee turnover rates in Europe - has seen 27% of employees opting to leave their jobs between 2020 and 2021.

The survey uncovered a compelling correlation between financial confidence and expected employee turnover. Those who exhibited financial confidence in decision-making were 69% more likely to stay with their current employer, compared to 64% in the wider population. Conversely, individuals with less financial confidence were 32% more likely to seek alternative employment, compared to 26% in the broader workforce.

Beyond financial education and support, the findings prompt a closer examination of what additional measures can be implemented to address turnover within a workforce.

To gauge the impact of benefits packages on employee satisfaction, the survey asked over 7,500 employees - excluding pay and bonus considerations, whether their current benefits package met their requirements. Alarmingly, over a quarter expressed significant discontent, while an additional 8% admitted to being unaware of their benefits. This dissatisfaction varied considerably across industry sectors.

Employees dissatisfied with their benefits were found to be more inclined to change jobs, with 16% planning to do so, compared to 10% in the wider population. Conversely, those content with their benefits package were less likely to consider moving, with 58% having no plans to change jobs, compared to 40% in the broader workforce.

The survey highlighted significant differences in satisfaction levels across industries. Financial services led the way, with 33% of employees feeling that their benefits met all their needs. However, in hospitality and leisure, this figure dropped to a mere 18%, with an additional 15% uncertain about their benefits.

Several factors contribute to this variance, including the perceived generosity of benefits packages in the financial services sector compared to retail and hospitality. Additionally, the retail and hospitality industries, characterised by a more diverse workforce, often grapple with less inclusive benefit packages.

In light of these findings, there is untapped potential for employers to enhance employee satisfaction with benefits packages and boost financial confidence across the workforce. By ensuring benefits packages meet the diverse needs of employees and fostering an inclusive approach, employers can significantly reduce the risk of turnover.

In June 2023, Ciphr - a UK-based provider of integrated HR, payroll, learning and recruitment solutions - conducted an online survey of 1,000 employed UK adults. The survey aimed to understand the perceptions of what constitutes a meaningful and rewarding career among the workforce. The results provide fascinating insights into the types of professions that people in the UK find most fulfilling and valuable.

Surprisingly, the survey revealed a diverse range of responses, with nearly 220 different job titles cited as meaningful and rewarding. However, some professions consistently stood out as the most highly regarded across the board, suggesting that certain careers hold a special place in the hearts of the UK workforce.

Unsurprisingly, the top three positions on the list of most meaningful and rewarding careers in the UK were occupied by healthcare and education professionals. According to the survey, being a nurse, doctor, or teacher ranked highest, with 86% of the respondents providing qualitative explanations for their choices. These three vocations have long been revered for their contribution to society and their ability to make a positive impact on the lives of others.

Nurses, often referred to as the "backbone of the health service," were commended for their unwavering support and comforting presence during challenging times. Respondents expressed gratitude for the invaluable care and comfort that nurses provide, acknowledging that their work goes beyond monetary compensation.

Doctors, known for their "life-changing skills," were praised for their capacity to improve lives daily. The survey participants recognised the significant impact of doctors in enhancing the well-being of individuals, highlighting the profession's altruistic aspect.

Teachers, too, received widespread acclaim for their dedication to shaping the lives of the next generation. Respondents commended educators for helping young people reach their full potential, emphasising the importance of their role in society.

Interestingly, it's noteworthy that very few respondents mentioned the wages of these caring professions, instead focusing on the non-monetary rewards of the work itself. This indicates that financial incentives aren't the primary motivators for individuals drawn to professions that revolve around helping others.

Furthermore, the survey highlighted that careers associated with caring - such as care workers and midwives - ranked highly on the list, despite not being renowned for high salaries. This reaffirms the idea that people in the UK value the intrinsic rewards and personal satisfaction that come with helping others.

The survey also unveiled the significance of roles in the IT sector, with IT professionals ranking seventh on the list. Given the growing reliance on technology in both personal and professional aspects of life, it's unsurprising that respondents consider this role as meaningful and rewarding. IT professionals play a crucial role in shaping the digital landscape, and their work has a direct impact on society, making their inclusion in the top ten entirely justified.

The top 20 jobs considered the most meaningful and rewarding in the UK, according to the Ciphr survey, are as follows:

• Nurse
• Doctor
• Teacher
• Medical professional
• Care worker
• Midwife
• IT professional
• Charity worker
• Support worker
• Social worker
• Police officer
• Working for the NHS
• Lawyer
• Vet
• Animal care worker
• Manager
• Working with animals
• Customer service manager
• Firefighter
• Education professional
• Paramedic
• Professional footballer

It's also interesting to observe the gender-based differences in the list. The survey revealed that certain professions ranked higher among women - such as midwife, support worker, social worker, charity worker and animal care worker. On the other hand, some roles - including IT professional, manager, police officer, working for the NHS and professional footballer - featured predominantly in the men's top 10. These differences in perception reflect the varied values and preferences of individuals in the workforce.

The Ciphr survey sheds light on the most meaningful and rewarding professions in the UK, with healthcare and education-related roles dominating the top spots. These results highlight the importance of intrinsic rewards and the desire to make a positive impact on society as key factors in people's career choices. It's evident that, for many in the UK, the true value of a profession lies not solely in monetary compensation but in the sense of fulfilment and contribution it offers to others and society as a whole.

The Annual Survey of Hours and Earnings (ASHE) is conducted in the UK each April. It serves as the most comprehensive source of information about the structure and distribution of earnings across the country. This survey delves into the depths of the UK workforce, providing invaluable insights into the levels, distribution and composition of earnings, as well as paid hours worked. ASHE captures data across various industries, occupations and demographics, offering an in depth understanding of the UK's labour market.

The ASHE data, derived from a 1% sample of employee jobs and employing HM Revenue and Customs Pay As You Earn (PAYE) records, is a crucial tool for policymakers and economists to understand and address the nuances of the labour market.

In the most recent analysis of the ASHE data by the Office for National Statistics (ONS), the median weekly earnings for full-time employees in April 2023 demonstrated a significant surge, reaching £682, marking a notable 6.2% increase compared to the figure reported in April 2022 (£642). This spike in earnings growth represents the highest recorded rate since the commencement of comparable records in 1997, pointing to a promising trajectory for the UK's workforce.

However, a deeper dive into the ASHE findings reveals a different narrative. While nominal median weekly earnings witnessed a significant boost, the real terms data -  adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH) - presented a contrasting picture. The report disclosed a 1.5% decline in the real terms median weekly earnings for full-time employees in April 2023 compared to the previous year, indicating a potential discrepancy between nominal earnings growth and the impact of inflation on employees' purchasing power. Both full-time and part-time employees experienced a decrease in real earnings over the year, underscoring the challenges posed by inflation on the UK workforce.

Moreover, the report highlighted distinct patterns in earnings growth across different occupational groups. The data showed a substantial uptick in earnings for lower-paying occupations, with caring, leisure and other service occupations experiencing a 9.4% surge and sales and customer service occupations witnessing a 9.2% rise compared to the previous year. Conversely, the associate professional and technical occupations group displayed the smallest increase at 3.2%, indicating a potential need for targeted interventions to address wage disparities across occupational categories.

Furthermore, the ASHE analysis brought attention to the divergence between the private and public sectors in terms of earnings growth. While the private sector exhibited a robust 7.7% annual percentage growth in median weekly earnings for full-time employees, the public sector recorded a comparatively modest 3.7% growth.

Notably, the gender pay gap, a longstanding concern in the UK labour market, demonstrated a gradual but persistent decline over the years. The ASHE report disclosed a 9.1% increase in median weekly earnings for women, outpacing the 6.8% growth observed among men. Despite these gains, the gender pay gap still persists, with women earning £491 per week compared to men's £666, representing a gender pay gap of 7.7% in April 2023. Notably, the analysis pointed to a significant discrepancy in the gender pay gap across different age groups, indicating the need for targeted policies to address this disparity among employees aged 40 years and over versus those aged under 40 years.

The findings from the ASHE report provide critical insights into the complex dynamics of earnings growth and gender pay disparities within the UK labour market. While the record-breaking increase in median weekly earnings offers a promising outlook, the persistence of the gender pay gap and the challenges posed by inflation emphasise the need for continued efforts to promote equitable remuneration and ensure the financial well-being of all employees across various occupational groups and sectors.