Reward Strategy - Latest news

Payroll’s perception problem: Why a strategic function is facing a future talent crisis

Lukas Montgomery — Tue, 21 Apr 2026 06:26:00 GMT

New research from Cezanne HR highlights a growing disconnect: only 3% of young workers see payroll as a strategic business function.

For a discipline that underpins organisational trust, compliance and financial wellbeing, this signals more than a branding issue. It points to a structural risk in the making.

The invisible backbone of the employee experience

Payroll’s paradox is well understood within the profession: when it works, it is invisible; when it fails, it is existential. Accurate and timely pay is the most tangible expression of the employer-employee contract. It shapes trust, engagement and retention in ways few other functions can.

And yet, among workers aged 18-24, payroll is still overwhelmingly perceived through a narrow operational lens. The research shows that 59% associate payroll primarily with accuracy and compliance. Missing is recognition of payroll’s expanding role in data, workforce insight and employee experience.

This misperception is not benign. It is actively shaping the pipeline of future talent.

A career path falling out of favour

When presented with equally compensated graduate roles, just 13% of respondents said they would choose payroll. By contrast, technology (27%), social media (26%) and marketing (20%) roles dominate early-career aspirations.

The implications are clear: payroll is losing the war for attention at the very moment its strategic importance is increasing.

Lisa Hopper, Payroll and Services Director at Cezanne HR, captures the challenge succinctly: payroll is “only truly noticed when something goes wrong,” yet its success underpins workforce trust and financial wellbeing at scale.

For C-suite leaders, this raises a critical question: what happens when the next generation simply doesn’t show up?

A perception gap, not yet a talent shortage

Encouragingly, the data suggests this is not yet a closed door. 41% of young workers expressed interest in learning more about payroll careers, while a further 24% remain neutral.

This is not rejection, it is a lack of awareness.

Today’s early-career workforce is motivated by:

Impact (61%)
Creativity (59%)
Stability (49%)

Payroll, in reality, delivers on all three. It directly affects employees’ financial lives, is increasingly shaped by digital transformation and automation, and offers long-term career resilience. The issue is not alignment, it is articulation.

The strategic reframing payroll needs

Modern payroll sits at the intersection of multiple board-level priorities:

Technology: Automation, AI and integrated platforms are redefining payroll delivery
Data: Payroll is a data rich, underutilised source of workforce insight
Employee Experience: Pay accuracy and transparency are core to engagement

Despite this evolution, external perception remains anchored in legacy views of administrative processing.

For Heads of Reward and Payroll leaders, this creates a dual challenge: transforming the function while simultaneously repositioning it.

From operational necessity to strategic narrative

The risk is not immediate but it is compounding. As organisations continue to digitise HR and payroll processes, the need for skilled professionals who can operate at the intersection of systems, compliance and people strategy will only grow.

Without intervention, the industry faces a widening skills gap that could ultimately impact organisational resilience.

Addressing this requires coordinated action across three fronts:

1. Employer positioning
Organisations must actively reposition payroll roles as strategic, technology-enabled and people-centric. This includes how roles are described, marketed and integrated into broader HR and finance career pathways.

2. Career path visibility

Clear progression routes from entry-level roles to leadership positions must be articulated. Payroll cannot remain a “hidden” career.

3. Education and early exposure
Partnerships with educators and early-career programmes are essential to introduce payroll as a viable and impactful profession before career perceptions are fixed.

A board-level risk hiding in plain sight

Payroll is one of the few functions that touches every employee, every month, without exception. Its failure is immediate, visible and reputationally damaging.

Yet its future talent pipeline is anything but secure.

As Hopper notes, the question is no longer theoretical: if fewer young people pursue payroll careers, “who will ensure the future workforce gets paid?”

For C-suite leaders, this is not simply a talent issue: it is a continuity risk. The organisations that act now to reframe, elevate and invest in payroll careers will be the ones best positioned to safeguard both operational integrity and employee trust in the years ahead.

Reframing payroll is the key to getting it recognised at board-level. We’ve built a custom session at this years Reward and Payroll Summit specifically to address the issue- Click here to find out more

PRIS Takeaways: Beyond the Bike

Lukas Montgomery — Mon, 20 Apr 2026 09:13:50 GMT

For many reward leaders, cycle-to-work schemes sit in a familiar category: widely available, well-intentioned, but persistently underutilised.

However, as Jamie Milroy, CEO of DASH Rides, made clear in a recent PRIS discussion with Vickie Graham, Managing Director of Reward Strategy, the issue is not the scheme itself; it is how it is being delivered.

The distinction matters. Because once understood, it reframes not only cycle-to-work, but how organisations should think about benefit design more broadly.

The Core Problem: Delivery, Not Design

Jamie challenged one of the most entrenched assumptions in the market: that cycle-to-work schemes are inherently limited by legislation or structure.

In his view, this is a “misconception behind the misconceptions.”

The reality is that most of the criticisms levelled at the scheme are not about the scheme at all, but about outdated delivery models that have gone largely unquestioned. As he put it, the industry has defaulted to a single way of operating for decades, leading many to assume “that must be because that’s how it has to be done.”

It isn’t.

This distinction is critical for reward leaders. It highlights how easily legacy delivery models can become mistaken for structural constraints and how that assumption suppresses innovation.

Friction Is the Real Barrier to Engagement

Jamie’s most compelling insight was that low engagement is not necessarily a behavioural problem, it could be a design problem.

Employees are not rejecting the value of cycle-to-work schemes. They are encountering friction at every stage of the experience.

He pointed to a number of common practices that organisations continue to accept as standard:

Employees being required to use inflexible voucher systems
Restrictions forcing spend with a single retailer, often in one transaction
Unspent value effectively being lost
Long waiting periods between application and fulfilment
Annual sign-up windows that limit when employees can access the scheme

None of these, he emphasised, are inherent to the scheme itself. They are product and process choices.

From an employee perspective, however, they manifest as a single experience: unnecessary complexity.

The Behavioural Mismatch

Perhaps the most striking example Jamie gave was how traditional schemes force employees into unnatural purchasing behaviour.

Rather than enabling gradual, considered decisions, employees are often required to make “an entire year’s worth of purchase decisions at a time they probably naturally wouldn’t choose to.”

This creates a fundamental mismatch between how benefits are structured and how people actually behave.

Employees may not yet know what they want, what is available, or what they can afford. Faced with this uncertainty and the pressure to commit in a single moment, they disengage.

This can be seen as a broader lesson in behavioural design. When benefits require employees to adapt to the system, rather than the system adapting to employees, engagement will always be limited.

Removing Friction Changes Everything

Jamie’s argument is straightforward: when you remove these constraints, engagement follows.

If employees can access benefits when they need them, spend flexibly, and navigate a simple, intuitive process, the scheme becomes materially more relevant.

What is currently perceived as a niche benefit begins to operate more like an everyday financial and lifestyle tool.

This is where the strategic value emerges. Higher engagement does not just improve utilisation; it amplifies the broader outcomes organisations care about: wellbeing, productivity, and sustainability.

A Wider Lesson for Reward Strategy

While the discussion centred on cycle-to-work, the implications extend far beyond a single benefit.

Jamie’s examples illustrate a recurring issue across reward programmes: organisations often accept low engagement as inevitable, rather than interrogating the underlying experience.

In reality, many of the barriers are self-imposed.

Legacy processes, administrative convenience, and historic provider models continue to shape employee experience in ways that no longer align with expectations. The result is a persistent gap between the theoretical value of benefits and their real-world impact.

Rethinking What “Good” Looks Like

The PRIS discussion ultimately points to a need for a more critical approach to benefit design.

Reward leaders should be asking:

Are we solving for employee behaviour, or forcing behaviour into our processes?
Which elements of our offering are genuinely constrained—and which are simply legacy decisions?
Where are we introducing friction that suppresses engagement?

These are not operational questions; they are strategic ones.

Because, as Jamie’s insights demonstrate, improving engagement is often less about adding new benefits and more about removing the barriers within existing ones.

Final Thought

Cycle-to-work schemes have long been viewed as a modest, sometimes underperforming component of the reward mix.

But as this discussion highlights, their limitations are not inherent, they are designed.

The opportunity is clear, by challenging legacy delivery models and focusing on employee experience, organisations can unlock significantly greater value, not just from cycle-to-work, but across their entire benefits strategy.

The question is no longer whether employees value these benefits.

It is whether organisations are making them easy enough to use.

Interested in learning more? DASH Rides have are the focus of our recent Best Practice Case Study- Click here to find out more.

The link between ethics hotlines and employee retention in high-turnover industries

Reward Strategy — Thu, 16 Apr 2026 08:50:00 GMT

Businesses are installing ethics hotlines to boost trust and cut churn, because when staff feel safe and heard they’re more likely to stay.

An ethics hotline gives employees a quiet, safe way to flag problems, and that feeling of being heard has a surprisingly tangible effect on loyalty. According to industry reporting, workers in high‑pressure roles, call centres, hospitals, shop floors, often leave because they feel unsupported, not just overworked. So offering a confidential channel reduces the emotional labour of deciding whether to speak up and shows the organisation cares. For employers, that’s less about legal cover and more about keeping experienced people in post.

The psychology behind speaking up: safety, shame and staying put

When staff believe a report will be handled, they experience psychological safety and are less likely to plan an exit. Research and practitioner commentary suggest hotlines help normalise reporting and lower the social cost of whistleblowing. But it’s fragile: anonymity and clear anti‑retaliation guarantees are essential. Train teams on what the hotline does and how concerns are resolved so speaking up feels straightforward rather than risky.

Small problems become big turnover drivers, catch them early

Often what starts as a minor safety shortcut or inconsistent policy enforcement turns into steady erosion of morale. Hotlines act as an early warning system so managers can fix issues before they spread. Case studies show that organisations seeing more early reports also see fewer sudden mass departures, because leadership can address culture problems while they’re still manageable.

The hotline isn’t magic, leadership response seals the deal

Employees notice whether complaints vanish into a black box or lead to tangible outcomes. The hotline’s credibility hinges on prompt investigations, transparent (but confidential) closure messages and visible corrective action. Companies that pair hotlines with clear accountability and timely follow‑up tend to win back trust; those that don’t risk undermining the very retention they hoped to protect.

Making a hotline actually work: training, communication and measurement

Set expectations early. Simple steps raise usage and effectiveness: run onboarding sessions, publicise success stories without naming people, and train managers to respond constructively. Track meaningful metrics , resolution time, repeat complaints, anonymous sentiment trends , and share what you learn. When employees see issues handled well, the hotline becomes part of a culture that says “we’ve got your back.”

What size and style of hotline suits your business?

There’s no one‑size solution: anonymous third‑party services can reassure staff in decentralised operations, while internal lines may suit smaller teams that prioritise speed. Consider accessibility , multilingual options, 24/7 availability and mobile reporting , especially for shift workers and frontline roles. Choose the format that matches your workforce’s rhythms so raising concerns is as easy as clocking in.

It’s a small change that can make every workday feel safer and fairer.

Employers may lose up to 4% of labour spend to poor payroll management

Reward Strategy — Thu, 16 Apr 2026 07:00:00 GMT

Company leaders and HR teams are strengthening payroll controls as leakage erodes profits. Large employers can lose 2–4% of labor spend yearly, and fixing it can unlock millions for growth, pay, and operations.

Payroll isn’t just a cost line, it’s a living, breathing expense that touches every part of a business; when it’s leaky, the effect is visible and subtle at the same time. According to research from UKG and KPMG, large employers can lose between 2% and 4% of labour spend to payroll leakage , amounts that translate into millions or even tens of millions for big firms. That’s the sort of hit that won’t show up as one dramatic event but will quietly erode margins and morale.

This problem has roots in simple things: manual entry mistakes, stale processes, system silos and the odd fraudulent claim. The upshot is that payroll teams, despite being close to the money, often don’t have the tools or influence to fix the leaks. For leaders, that means lost opportunity and a conversation worth having at the exec table.

Why metrics and visibility change the game

You can’t fix what you don’t measure. The report shows many organisations use automated comparison tools and track accuracy, yet only a minority measure first-time-right payroll or cost per payslip. Those two metrics are especially revealing: they show how often payroll is processed correctly first time and how much each payment actually costs to produce.

Start by tracking first-time-right rates and true processing cost, and put those numbers in dashboards accessible to finance and HR leaders. That gives you a fast view of where errors cluster , a particular country, a payroll run, or a type of pay element , and allows targeted fixes rather than sweeping, expensive overhauls.

People, process and the resourcing mismatch

Payroll teams are frequently small relative to their impact. The survey found many organisations run payroll with surprisingly lean teams; some have just a few dozen full-time payroll staff despite tens of thousands of employees globally. That mismatch creates backlogs, over-reliance on manual workarounds and inconsistent governance.

Fixes aren’t just about headcount. Clarify executive ownership so payroll sits alongside finance and talent in board-level thinking. Invest in training, standard operating procedures and internal audits to reduce ad-hoc fixes. And when you do add people, align their work to data-driven pain points instead of repeating tasks that automation can manage.

Automation and AI: promise, but cautious adoption

Leaders are bullish about AI’s potential to improve payroll accuracy and compliance, yet less than half currently use it for payroll functions. Concerns include data accuracy, integration gaps and lack of standardisation, valid worries when you’re dealing with people’s pay.

A pragmatic path is to start small: automate reconciliation tasks and exception handling first, then build toward AI that flags anomalies or predicts likely errors. Keep humans in the loop for sensitive decisions and communicate transparently with staff, since surveys show many workers are wary of AI handling payroll inquiries.

Preventing fraud and process breakdowns with today’s tools

Fraud and expense abuse are part of the leakage story, but modern controls can blunt both. Expense-management tools, role-based approvals and continuous auditing reduce opportunities for fraudulent payments while keeping legitimate claims flowing. Integrations between timekeeping, HR, and payroll systems are especially valuable; they cut reconciliation time and reduce mismatched data that breeds errors.

Operationally, run regular root-cause reviews after payroll cycles, automate comparison reports and set tolerance thresholds to trigger investigations. Those steps mean you catch small slips before they compound into multi-million-dollar trends.

What this means for CFOs and HR leaders

Treat payroll like a strategic asset. Reclaiming even a single percentage point of labour spend can free substantial funds for investments, bonuses or cost savings. Make payroll metrics visible at the executive level, invest in integration and automation pragmatically, and shore up governance so the team closest to pay has both the voice and tools to protect it.

It’s a small operational shift that can deliver real financial breathing room, and improve employee trust at the same time.

It’s a small change that can make every pay run safer and savings add up.

Legislation Changes: How To Remain Compliant

Will Jackson — Wed, 15 Apr 2026 09:37:00 GMT

The new tax year has arrived, bringing many legislation changes with it, and remaining compliant is critical to your organisational success and team morale. It’s equally as important to provide reassurance to employees and keep them as informed as possible.

Keeping up with changes in UK payroll legislation can often feel like navigating a constantly shifting landscape. With new rules and regulations introduced regularly, staying compliant is essential, not only to avoid costly fines but also to maintain the trust and respect of your employees.

Payroll compliance is a vital part of running a responsible business, ensuring staff are paid accurately and on time while meeting all legal obligations.

Payroll is no longer just a back-office function: employers must recognise its critical role within an organisation. It impacts employee satisfaction, financial accuracy, and overall business reputation. Whether you run a small business or manage a large organisation, understanding and implementing payroll updates is crucial.

By staying informed and proactive, you can avoid penalties, reduce risks, and foster a transparent, fair workplace culture.

Why Payroll Compliance Is Essential

Payroll is central to employee relations. Ensuring staff are paid correctly and on time builds trust and supports morale. Non-compliance can also lead to costly fines from HMRC (HM Revenue & Customs), damage your organisation’s reputation and cause operational disruptions through audits or investigations.

Beyond legal obligations, payroll compliance demonstrates respect for your workforce and helps maintain a positive workplace culture. In today’s environment, payroll must be managed proactively and strategically.

The Legislation Changes April Brought

From April 2026, UK payroll sees key changes including an increase in SSP (Statutory Sick Pay) to £123.25 per week with the removal of the earnings threshold and waiting days, expanded eligibility, and higher statutory maternity and adoption pay capped at £194.32 weekly after six weeks.

Employers must retain holiday pay and leave records for six years, double the previous period, while new “day one” rights for SSP (Statutory Sick Pay) and paternity leave come into effect.

The launch of the Fair Work Agency will strengthen enforcement of pay rights, and organisations will be legally required to implement menopause and gender pay gap action plans, reflecting a stronger focus on employee rights, transparency, and wellbeing.

Key Changes in UK Payroll Legislation

Recent UK payroll compliance changes include mandatory Real Time Information (RTI) submissions to HMRC (HM Revenue & Customs) every payday since 2013, making timely reporting crucial.

Employers must regularly update National Insurance thresholds and rates in payroll systems to stay accurate. Since 2021, IR35 (off-payroll working) rules require medium and large businesses to assess contractors’ employment status for correct tax and NI (National Insurance) deductions.

Employers also need to manage auto-enrolment pensions with changing contribution rates and apply updated statutory payment rules for Sick Pay, Maternity Pay, and Holiday Pay, ensuring precise records for compliance.

Practical Steps to Ensure Ongoing Compliance

Maintaining payroll compliance in the UK involves using reliable, HMRC (HM Revenue & Customs) -recognised payroll software that updates tax codes, National Insurance, and statutory payments automatically, integrated with HR (Human Resources) and accounting systems.

Staying informed through HMRC (HM Revenue & Customs) updates, and training is vital, alongside regular payroll audits to catch errors early. Ongoing staff training, clear payroll policies, and accurate digital record-keeping for at least three years support compliance and data security.

For complex matters like IR35 (off-payroll working) or multi-jurisdiction payrolls, seeking professional advice or outsourcing to accredited providers can reduce risk and ease administration.

Managing Payroll Risks and Internal Controls

Effective payroll compliance requires a robust system of internal controls to prevent errors and fraud. Segregation of duties, regular reconciliation of payroll reports, and strict access controls to payroll data help safeguard sensitive information and ensure accuracy.

Conducting periodic internal audits and encouraging whistleblowing can identify and address risks before they escalate.

Payroll as a Strategic Business Function

Payroll compliance goes beyond legal necessity; it reflects your organisation’s values of integrity and fairness. When managed well, payroll boosts employee morale by ensuring accurate and timely pay, enhances operational efficiency by automating routine tasks, supports financial planning through clear data, and reduces risk by minimising exposure to penalties and reputational harm.

Recognising payroll as a strategic priority transforms it from a routine task into a competitive advantage, helping attract and retain talent while supporting sustainable business growth.

The Role of Technology in Payroll Compliance

Advancements in payroll technology have transformed how organisations manage compliance. Cloud-based payroll systems offer real-time updates, automatic calculations, and seamless integration with other business functions.

These solutions reduce human error and free up valuable time for your payroll team to focus on strategic tasks. Choosing software that complies with HMRC (HM Revenue & Customs) standards and supports digital record-keeping is increasingly important as regulatory demands grow.

The Importance of Employee Communication

Transparent communication about payroll processes and changes helps build trust with your workforce. Regularly informing employees about updates to tax codes, pension contributions, or statutory payments reassures them that their pay is handled accurately and fairly.

Clear, accessible payslips and open channels for payroll queries foster a positive employee experience and reduce misunderstandings or disputes.

Environmental and Social Governance (ESG) and Payroll

Payroll compliance is increasingly linked to broader ESG (Environmental, Social and Governance) goals. Fair and transparent pay practices contribute to social responsibility by promoting equity and inclusion within the workforce.

Additionally, transitioning to paperless payroll systems supports environmental sustainability by reducing waste. Integrating payroll compliance into your ESG (Environmental, Social and Governance) strategy demonstrates your organisation’s commitment to ethical and sustainable business practices.

Preparing for Future Payroll Legislation Changes

We may have only just pushed through the recent changes; however, the UK government continues to adapt payroll legislation in response to economic, social, and technological changes.

Employers should prepare for further digitalisation, such as the expansion of HMRC’s (HM Revenue & Customs) Making Tax Digital initiative to payroll functions. Employment status rules, including IR35 (off-payroll working) and gig economy regulations, are likely to evolve further.

Data protection requirements around payroll information will strengthen, and there may be increased emphasis on pay transparency and equal pay reporting.

Remaining agile and informed will be key to navigating these future developments successfully.

Conclusion

Remaining compliant with UK payroll legislation is an ongoing journey that requires diligence, knowledge, and the right tools. By understanding recent changes, investing in reliable payroll systems, training your team, and maintaining accurate records, you can ensure your payroll processes meet legal requirements and reflect your organisation’s values.

Payroll compliance is more than a legal obligation; it is a commitment to your employees and your business’s long-term success. Embracing payroll as a strategic function builds a foundation of trust, integrity, and resilience that benefits everyone.

Looking for more on Compliance? We’ve custom curated multiple sessions for this years Reward and Payroll Summit to ensure you are up to date- Click here for more information

In conversation with... Gary Henderson

Lukas Montgomery — Wed, 15 Apr 2026 08:21:24 GMT

In conversation with Gary Henderson: reflecting on 25 years of global growth, leadership, and the balance of people, technology and trust.

Looking Back: 25 Years of Growth

Activpayroll has grown from a 40 person team in 2001 to a global organisation with over 400 employees today. What would you say were the defining moments that shaped the company’s journey over the past 25 years?

When you look back, the defining theme has really been how we’ve built and scaled the business internationally.
For a long time now, the focus has been on supporting clients across multiple countries, and that’s shaped how we operate day to day. Delivering global payroll is about being able to navigate very different regulatory and cultural environments consistently and reliably.
A key part of that has been building strong in-country expertise. That comes through a combination of our own teams and carefully selected partners, giving us both local knowledge and global coordination.

Over time, we’ve continued to strengthen that, both by expanding our own presence in key regions and by adding specialist capability through acquisitions.

So when you step back, it’s really that combination of global scale and local expertise that has defined the business and continues to underpin how we grow.

Innovation and Technology

activpayroll launched its activ8 platform in 2006 and has continued to invest in tech-driven solutions. How central has technology been to the company’s expansion and service evolution?

Technology has always played an important role, but we’ve never seen it as the main driver of the business.

For us, it’s always been an enabler, something that supports the service rather than replaces it.

The real value sits with our people, their experience, their judgement, and the relationships they build with clients. That’s how we’ve consistently delivered high-quality outcomes over time.

Technology allows us to do that more efficiently and at greater scale, reducing manual effort, improving consistency, and giving both our teams and our clients better visibility.

That’s been our approach for a long time. We invest in technology where it strengthens the service, but it’s always in support of the people behind it.

And looking ahead, that becomes even more relevant.

AI has the potential to take some of the repetitive, lower-value activity out of the process. But rather than changing what we do, it improves how we do it, giving our teams more time to focus on the areas where they already add the most value.

So the role of technology will continue to grow, but the principle stays the same, it’s there to enhance the service, not define it.

Integration with systems like Workday, UKG, HiBob and Sage is a major differentiator.

How do you view the role of connected HR and payroll ecosystems in the next decade?

I see this now as a fundamental for any global payroll player.

Clients want their systems to work together without friction, HR, payroll, time, payments, all connected in a way that reduces duplication and risk.

Our approach has always been to partner with the best at what they do and stay focused on what we do best.

We’ve never tried to be a single system that does everything. In reality, that tends to lead to compromise. Instead, we work with leading platforms like Workday, UKG, HiBob and others, and focus on integrating well with them so clients get the best of each.

That model has worked well for us over time, and it’s becoming even more relevant now. The market is moving towards more connected ecosystems, not all-in-one solutions.

So for us, it’s about being a strong, reliable part of that ecosystem and making sure everything fits together in a way that works for the client.

Vision, Values and Organisational Culture

You recently refreshed the company’s vision and values around Partnership, Excellence, Accountability, Expertise and Commitment. Why was now the right time to redefine these principles, and how do they guide your future strategy?

The refresh of our values was really about recognising what was already there.

When you look across the business, those qualities — partnership, accountability, expertise — I see them every day in how our people work with each other and with clients. It’s been part of the culture for a long time.

As we’ve grown, it’s become as important to be clear about that. Not to change it, but to make sure we remain consistent as we bring more people into the business and continue to expand.

So it was less about redefining, and more about putting values around what already makes the business work, and making sure we don’t lose sight of that as we scale.

The Client Perspective

With a client base spanning FTSE 500 organisations and multinational brands, how has the nature of client expectations changed over 25 years?

At a fundamental level, what clients want hasn’t really changed.

They’re looking for a long-term partner they can trust, someone they can rely on to deliver one of the most important services in their business, for their most important asset, their people.

That expectation has always been there, and if anything, it’s become even more important as businesses have become more complex and more global.

What has changed is everything around that.

Clients expect more visibility, quicker responses, and systems that fit into the wider way they operate. They want things to feel connected and straightforward, even when the underlying complexity is anything but.

So while the core expectations of trust, reliability, partnership have stayed the same, the way you deliver against that has moved on quite significantly.

The Global Payroll & Mobility Market Today

How do you view the increasing trend of global expansion for mid sized companies, and what pressures does that put on payroll solutions?

What’s really changed is the pace. Companies are moving into new markets much faster than they used to, and they’re more willing to try things, learn quickly, and adjust as they go. That creates opportunity, but it also brings a different kind of pressure.

Payroll doesn’t really allow for trial and error. Every country has its own rules, and there are always things that can catch you out if you’ve not been there before.

I think that is where experience really matters. Clients are looking for a trusted pair of hands, someone who’s been through it before and can help them move quickly, but without running into the issues that tend to surface later.

And a big part of that is having strong in-country expertise. You can’t manage global payroll effectively without understanding the local detail, the regulations, the nuances, the practical realities on the ground.

So it’s really about combining that local knowledge with a consistent global approach, and making the whole process feel as smooth as possible for the client.

Leadership, Strategy & The Next 25 Years

As CEO, what has influenced your leadership approach during this period of growth and global transformation?

In a business like this, operating across multiple countries and clients, you’re constantly making decisions in areas where there isn’t always a clear answer. So you have to be comfortable with that.

What matters is having the right people around you, people who take ownership, use their judgement, and are prepared to make decisions.

We’ve always tried to create an environment where people can take that responsibility, and where it’s okay for things not to go perfectly every time, as long as you learn from it and move forward quickly.

At the same time, there’s a clear expectation around standards. You’re dealing with something critical for clients, so accountability and consistency matter just as much as flexibility.

There’s also an expectation to be ambitious. Not in a way that’s disconnected from reality, but in how we think about improving, moving forward, and building on what we’ve already achieved.

Over time, that balance becomes clearer, giving people the space to operate, being clear on what good looks like, and setting the expectation that we continue to raise the bar.

And ultimately, the biggest lesson is that the business is only ever as strong as the people in it. Getting that right makes everything else easier.
Looking ahead, what areas will activpayroll be prioritising to support its “next phase” of growth?

Looking ahead, the focus is on how we build on what we have today and scale it in a deliberate way.

A big part of that is continuing to strengthen our partner ecosystem. The market is moving towards more connected solutions, and working closely with the right partners gives us the ability to access more opportunities and deliver more complete outcomes for clients.

Technology will continue to play a key role, particularly where it improves efficiency, consistency, and the overall client experience. The focus isn’t on technology for its own sake, but on where it makes a tangible difference.

Alongside that, we’ll keep investing in our in-country capability, making sure we have the depth of expertise needed to support clients as they grow and expand into new markets.

But the most important thing is how we scale without losing what’s made the business successful, and why customers continue to join us and trust us year after year.

Maintaining the quality of service, the strength of relationships, and the trust clients place in us is critical. That’s the standard we’ve built over time, and it has to carry through into the next phase.

Celebrating the Milestone

What does reaching 25 years mean to you and to the wider team?

Reaching 25 years means a lot, particularly when you take a step back and think about the people who’ve been part of that journey.

There are individuals in the business today who have been here for a long time, and what we’ve built is really down to their graft, their dedication, and the way they’ve stuck with it through everything that comes with growing a business.

It hasn’t all been straightforward. There have been challenging periods along the way, as well as some great highs and it’s that mix that really shapes a business over time.

There’s also a real sense of pride in what the business has become, a Scottish-headquartered company supporting well-known organisations across the world. That’s something that doesn’t always get said, but it matters.

So more than anything, this milestone is a chance to recognise that effort and say a genuine thank you to everyone who’s contributed, both past and present.

How will activpayroll be marking this milestone with employees, clients or communities globally?

We’re keeping it simple and focused on our people, partners and clients.

There’ll be opportunities for teams to come together and mark it in their own way, across different locations, and take a bit of time to reflect on what’s been achieved as well as an opportunity to spend time with clients where they have built genuine friendships with some customers still with us from the very beginning.

Just as importantly, it’s a chance to recognise those clients and partners. Without their trust and belief in what we do, we wouldn’t be here. A lot of those relationships go back many years, and they’ve played a huge part in the journey.

Final Reflection

If you could send one message to the founders, early employees and customers who supported the company’s first chapter, what would it be?

A genuine thank you. They set the tone for how a lot of our business operates today.

Those early years take a huge amount of belief and resilience, from the founders, the early team, and the customers who chose to work with the business when it was far from what it is today.

Taking that step, whether it’s joining a small company or trusting it with something as critical as payroll, isn’t a given. It requires confidence in the people and what they’re trying to build.

What we have today is built on that belief, and it’s something that hasn’t been forgotten.

And what message would you share with the next generation of activpayroll talent who will shape the future?

The opportunity in front of us is unbelievably exciting.

We’ve built a strong foundation over the last 25 years, but in many ways it still feels like we’re only part way through the journey. The market is evolving, the level of demand is growing, and there’s a real chance to take what we have today and build something even more impactful.

For the next generation coming through, that’s what I’d focus on. There’s the opportunity to shape the next phase of the business, and for it to be just as exciting and as dynamic as the early days of this business.

At the same time, it’s about holding onto what’s made it successful so far in the quality of the work, the strength of the relationships, and the way people support each other.

Above all, making sure you enjoy being part of it. It’s a phenomenal business to be in, and there’s a lot still to come.

Make sure you are up to date on the best and latest insights from industry leaders- Click here for more information.

Best Practice Case Studies: DASHRides

Lukas Montgomery — Mon, 13 Apr 2026 07:16:00 GMT

Cycle to Work is evolving: ditching outdated vouchers for a seamless marketplace boosts uptake, cuts admin, and unlocks real value for employers.

Cycle to Work has long had the potential to be a high-impact, low-cost benefit, yet its operational delivery has consistently underperformed. Despite clear benefits spanning improved employee wellbeing, reduced sickness absence, and lower Scope 3 emissions, national participation has remained stuck at around 4%. For reward and payroll teams, the challenge has not been value, but the limitations of the systems and tools available to them.

Traditional voucher-based Cycle to Work schemes create friction at every step for both employees and employers. Employees face a confusing, multi-step purchase journey that limits them to certain retailers, one purchase per year, and excludes flexible options like subscriptions and bike share. Employers, in turn, are left managing unnecessary admin, constant employee queries, and the financing requirements of funding the scheme upfront. The result is a benefit that looks strong on paper but struggles to live up to its potential.

A scheme under pressure from modern expectations

In recent years, employers have been dealing with a growing mismatch between workforce expectations and scheme capability. While a voucher scheme may have been acceptable in the 1990s, employees now expect the same ease as consumer e-commerce, with plenty of choice, speed, and flexibility .

For HR and payroll teams, there is constant pressure to deliver a comprehensive, high-engagement benefits package, often in the face of tightening budgets. The additional admin of running a voucher scheme adds to this pressure, with common pressure points including:

Fragmented invoicing across all employee orders
Payroll reconciliation across different legal entities within group structures
High volumes of employee queries linked to voucher limits and delays
Limited ability to support non-traditional cycling options such as subscriptions or bike share

For organisations running complex payroll environments, these issues created disproportionate effort relative to the benefit’s uptake.

A shift from vouchers to real-time marketplace delivery

With DASH, Cycle to Work moves beyond vouchers to a modern online marketplace. Employees can access every eligible product in one place, shop across different retailers, and make purchases as often as they like, with no added admin for their employer.

From a payroll perspective, DASH streamlines and simplifies scheme administration. Instead of processing individual transactions, employers receive a single consolidated monthly invoice and one payroll report covering all participating employees. The system also automatically allocates costs to the correct legal entity, addressing a long-standing challenge for multi-entity organisations.

Other key delivery changes include:

The introduction of e-bike subscriptions and bike share broadens the appeal of the scheme to more employees. Consolidated reporting aligned with payroll cycles reduces manual reconciliation.
The elimination of employer funding and financing requirements frees working capital and enables the scheme to be cost-neutral.
These changes reduced dependency on manual oversight and enabled payroll teams to process activity in minutes rather than hours.

Measurable change in workload and participation

The operational impact has been immediate and observable. Employers switching to DASH from a voucher scheme report administrative reductions of up to 80%, alongside an 83% drop in employee queries.

Participation also shifts dramatically. DASH typically sees uptake that is three to seven times higher when compared to a company’s previous scheme. This doesn’t just translate into a healthier and more productive workforce but also offers the opportunity to fund other benefits off the back of the dramatically higher employer NIC savings.

In practice, payroll teams report fewer exception cases, while employees experience faster access to equipment and more flexible options, including e-bike subscriptions starting at low monthly costs. The shift from annual ordering windows to year-round access also smooths demand, reducing peak processing periods.

What this means for reward and payroll design

The DASH example highlights a broader lesson for reward professionals: low engagement can be a symptom of an outdated benefit and not evidence that the benefit lacks employee demand. When benefits rely on outdated delivery mechanisms, payroll teams absorb the complexity, and employees disengage.

Two practical takeaways emerge:

Build a high-quality employee experience.
Make access simple, intuitive and consumer-grade, reducing friction and limiting the need for HR or payroll support.

Put HR and payroll operations at the centre of the design.
Align transaction flows to payroll cycles and build reporting and governance around consolidated, auditable data.

For organisations reviewing salary sacrifice schemes, the focus is shifting from policy design to delivery architecture. The evidence suggests that when operational friction is removed, participation, and the associated health, cost and sustainability outcomes follow.

Join us for our next PRIS where DASH will run us through making the most of your reward schemes and how they managed to reinvent cycle to work- Click here for more information

Employers turn to sophisticated salary benchmarking

Reward Strategy — Thu, 09 Apr 2026 08:30:00 GMT

UK organisations are adopting ongoing salary benchmarking to stay competitive, attract and retain talent, and meet evolving legal requirements, driven by technology and greater pay transparency.

In the United Kingdom’s tight labour market, employers can no longer rely on intuition when setting pay. Salary benchmarking gives businesses a methodical way to compare internal pay with the external market so they can attract candidates, retain staff and reduce legal risk. According to DavidsonMorris, a structured benchmarking process also helps employers demonstrate fairness and alignment with employment law requirements.

Analysing internal pay data

Benchmarking begins with detailed analysis of what the organisation already pays. That means compiling base salaries, bonuses, allowances and material benefits into a central dataset so comparisons are meaningful and auditable. PeopleHR notes that a reliable internal database is the foundation for any robust benchmarking exercise.

Gathering external market data

Next comes gathering external data from multiple, reputable sources. Employers typically draw on established salary guides, industry surveys, real‑time vacancy analytics and recruitment partner insight to build a nuanced market view. Indeed warns that single data sets can be misleading; combining sources reduces bias and helps when matching uncommon or evolving roles.

Matching roles accurately

Careful job matching is critical: titles vary widely, so benchmarking should be driven by responsibilities, required skills and seniority rather than by job name alone. Guidance from Totaljobs and Pure Resourcing Solutions recommends mapping internal roles to market equivalents that share substantial overlap in duties, then using percentiles (25th, 50th, 75th) to locate where pay falls relative to peers.

Conducting comparative analysis

Comparative analysis should expose underpaid roles that risk flight, overpaid positions that may indicate structural inconsistencies, and instances of pay compression or outliers. NFP argues that growing pay‑transparency expectations mean organisations must be able to explain and justify ranges publicly, while DavidsonMorris highlights the compliance benefits of identifying gaps early.

Designing salary structures

Armed with that evidence, employers can design or refine salary bands and progression rules. Best practice is to define minimum, midpoint and maximum values for each grade, document progression criteria and apply regional differentials where needed. PeopleHR suggests maintaining consistent band spreads and clear exceptions to reduce perceived unfairness.

Maintaining regular reviews

Benchmarking is not a one‑off project. Regular reviews , at least annually and more frequently for fast‑moving or critical roles , keep pay competitive amid inflation and shifting demand for skills. Indeed and Totaljobs both emphasise ongoing monitoring and the value of combining market signals with internal promotion and hiring data to prioritise interventions.

Leveraging technology

Technology can accelerate and harden the process. Market‑facing HR platforms that centralise payroll and HR records enable live reporting, scenario modelling and documented audit trails, making it easier to run structured salary reviews and to publish ranges where required. NFP and Pure Resourcing Solutions point out that better tooling helps translate benchmarking into consistent decisions and clearer communications.

Embedding fairness and compliance

Beyond pay levels, organisations should embed benchmarking in a broader fairness agenda: analyse pay by gender and other protected characteristics, record the methodology used, and communicate principles clearly to employees. As DavidsonMorris explains, these practices reduce legal and reputational risk and prepare employers for evolving transparency obligations across Europe.

Strategic Pay Benchmarking is key to ensuring your reward package attracts and retains the best talent. The Reward and Payroll Summit has focused sessions to ensure you are at the forefront- Click here to find out more

Rethinking recruitment: building resilient teams for a disruptive future

Reward Strategy — Thu, 09 Apr 2026 06:01:00 GMT

As economic and technological change accelerates, organisations are moving from reactive hiring to strategic workforce planning—focusing on adaptability, digital skills, and retention to maintain long-term performance.

Companies that aim to weather rapid economic and technological change must stop treating hiring as a short-term fix and start building teams designed to endure disruption. According to KPMG, a large share of roles will require new capabilities by 2030, making continuous learning and flexible staffing core strategic priorities rather than optional extras.

Rising stakes in a volatile labour market

Recent labour-market volatility increases the stakes of recruitment choices. Growth concentrated in certain states and sectors has intensified competition for talent, meaning employers who recruit defensively or reactively risk falling behind more agile rivals, a point reinforced by industry analysis on evolving workforce needs.

Adaptability as a core workforce trait

Adaptability , the capacity for employees to take on shifting responsibilities and learn on the job , emerges as the single most valuable trait for resilient operations. Coverage of manufacturing and other sectors shows that digital tools and automation, combined with targeted reskilling, enable staff to absorb change without large-scale disruption.

The expanding importance of digital fluency

Digital fluency is no longer confined to IT teams. Research from Adobe and sectoral reports underscore a widening gap in AI and creative skills among jobseekers and incumbent workers, while TechRadar highlights how AI-driven learning platforms and knowledge-management systems can capture expertise and speed up reskilling. Employers that raise baseline digital competence reduce onboarding time and error rates when new systems are introduced.

Empowering decision-making and autonomy

Beyond technical aptitude, organisations benefit when staff demonstrate judgment and can resolve routine problems without constant oversight. Thoughtful workforce design that combines autonomy with clear decision frameworks preserves momentum during transitions and reduces managerial bottlenecks, an approach echoed by commentators who stress purpose and flexibility as retention levers.

Retention as a strategic priority

Retention matters as much as recruitment. Webinars and sector studies show replacement costs can be steep and that persistent vacancies amplify operational friction. Firms that treat upskilling and career-pathing as retention tools protect institutional knowledge and lower the total cost of workforce churn.

Practical steps to future-proof the workforce

Practical steps to future-proof a workforce include mapping critical skills, deploying managed learning platforms, and partnering with service providers to deliver just-in-time training. KPMG and cloud-skilling specialists recommend embedding continuous learning into daily workflows and using technology to streamline reskilling, while industry guides point to automation and AI as enablers rather than replacements for human contributors.

Sustaining performance through strategic alignment

Adopting a strategic blend of adaptable hiring, digital readiness and retention-focused development helps organisations sustain productivity as conditions shift. Employers that combine targeted upskilling programmes with flexible staffing arrangements and learning technologies are better placed to preserve continuity and performance over the long term.

Retaining the best talent requires a complete total reward package, ensure you’re making the most of your existing reward package by getting leading insights and advice- Click here to check out our upcoming PRIS on utilising existing reward packages to give your organisation the most value, with key cycle to work examples.

Redesigning work to harness the full potential of neurodivergent talent

Reward Strategy — Wed, 08 Apr 2026 09:03:00 GMT

Despite growing focus during Neurodiversity Week, autistic adult employment in the UK remains low due to systemic barriers. New initiatives aim to improve hiring, retention, and workplaces.

Despite growing public attention during Neurodiversity Week, employment for autistic adults in the UK remains strikingly low, pointing to systemic barriers rather than deficits in individuals. Government figures and advocacy groups highlight that fewer than a third of autistic people are in work, a disparity that the recently established independent expert panel led by Professor Amanda Kirby is explicitly trying to address as part of the Plan for Change.

Workplaces built for one model

Workplaces were largely constructed around one model of employee behaviour: predictable routines, informal social navigation and sensory environments that favour extroverted norms. That design rewards conformity and places a premium on presentation and small‑talk, disadvantaging people who think, communicate or attend to stimuli differently. Campaigners and charities argue the result is talent lost to avoidable recruitment and retention failures.

Rethinking recruitment

Practical adjustment, advocates say, begins long before onboarding. Recruitment processes that privilege charisma over capability filter out many neurodivergent applicants; simple steps such as clearer job descriptions, alternative interviewing techniques and objective task‑based assessments can open the door to skilled candidates who would otherwise be overlooked. Industry guidance from employers and consultancies stresses redesigning hiring to test for competence rather than social polish.

Supporting retention and progression

Retention and career progression also require attention. Employers who concentrate support on getting people through the door risk high turnover unless they extend support across the employee lifecycle. Training managers, normalising reasonable adjustments, and creating defined pathways for development are essential to convert initial hires into long‑term contributors, according to corporate and charity programmes working in this area.

Designing inclusive environments

Changes to the physical and organisational environment matter as much as procedural tweaks. Flexible working, protected time for focused tasks, and sensory‑aware workspaces reduce everyday friction for neurodivergent staff. Mental‑health organisations emphasise that these adjustments not only improve performance but also reduce risk factors linked to poor wellbeing, underscoring inclusion as an obligation as well as a business practice.

Evidence of impact

Some employers are already reframing recruitment and management with measurable results. Private‑sector pilots and long‑running charity partnerships show that neurodivergent hires bring strengths such as pattern recognition, sustained attention to detail and unconventional problem solving, benefits that can be amplified when roles are aligned to individual capabilities and managers measure output rather than manner.

Policy and practice

Policymakers and employers alike are increasingly treating neuroinclusion as a strategic priority tied to economic participation. The government’s expert panel aims to produce recommendations to narrow employment gaps, while charities and specialist recruiters offer implementation models that businesses can adopt now to broaden their talent pipelines and retain staff.

A shared imperative

For neurodivergent individuals the landscape is changing but not yet transformed: success is supported by knowing one’s strengths, seeking roles and workplaces that match those strengths, and negotiating adjustments that allow sustained contribution. For organisations, the imperative is clear, redesign work so that capability, not conformity, determines who thrives.

Neurodiversity is a resource, if you know how to use it. We sat down with Simon Bradbury, Global Payroll Project Expert & Founder at Global HR, to discuss how Neurodiversity exists in the Payroll industry, and how we can make the most of it- Click here to see the write up.

The UK Workplace Paradox: Productive, Positive and Ready to Leave

Lukas Montgomery — Wed, 08 Apr 2026 06:22:00 GMT

UK employees are productive and positive, yet 1 in 5 plan to leave. What’s driving the disconnect, and how should reward leaders respond?

The UK presents one of the most strategically complex labour market signals in the latest Global Workplace Happiness Report 2026. Through a 0-10 scaled survey, the report captures a wide variety of data.

On the surface, the picture is reassuring:

Happiness: 7.7 (above peer average)
Productivity: outperforming peers
ENPS (Employee Net Promoter Score): +8 (double peer benchmark)

Yet beneath this sits a critical fault line. 21.5% of employees are likely to leave: +12.7% above peers (referring to the US and Germany: “the three largest advanced Western economies with comparable corporate cultures, deep professional-services sectors, and globally benchmarked management practices.”)

This is not a marginal issue. It is a structural imbalance between experience and retention economics.

A split performance profile

The UK “edges ahead” of its peer group (US, Germany) on several core dimensions:

Happiness (+0.1)
Relationships (+0.1)
Clarity (+0.2)
Productivity (+0.2)

However, it lags slightly on the very dimensions most correlated with long-term commitment:

Engagement (−0.1)
Acknowledgement (−0.1)
Personal Growth (−0.1)
Enablement (−0.1)

This creates a clear narrative, that the UK is delivering a good day-to-day employee experience, but a weaker long-term value proposition.

The retention paradox

The most striking datapoint in the entire UK profile is retention risk:

Likely to leave: 21.5%
Peer average: 8.8%
Variance: +12.7%

This is not a normal fluctuation; it is the largest gap across any UK metric.

Why this matters at executive level

Replacement cost exposure increases materially (particularly in professional services and knowledge roles). Capability leakage becomes a systemic risk, not an episodic one. Transformation programmes lose continuity and institutional knowledge. Critically, this is occurring despite positive sentiment indicators (happiness, eNPS).

This is the paradox:

Employees are content, but not committed.

Reward is not the problem: perception of future value is

One of the most important implications for Reward leaders is what is not driving this issue. The UK is not significantly underperforming on:

Core satisfaction
Productivity
Advocacy (eNPS is strong at +8)

Instead, the weaker scores cluster around:

Acknowledgement (recognition)
Personal Growth (career trajectory)
Enablement (tools, support, progression pathways)

This aligns with a broader insight from the report, that employees judge fairness not just by pay, but by future opportunity and perceived trajectory.

Implications for industry leaders

1. Shift from “competitive pay” to “credible progression”

Traditional reward strategies over-index on:

Base pay benchmarking
Short-term incentives
Market competitiveness

The UK data suggests a different priority: Progression clarity is now a reward component. The actions we can already take:

Build transparent career architectures (not just frameworks)
Quantify time-to-progression expectations
Link reward increases to visible capability pathways, not tenure

2. Reposition recognition as a strategic lever

Acknowledgement is consistently one of the weakest UK dimensions. For senior leaders, this is not about “thank you culture”. It is about value signalling. But there are solutions present already:

Move from ad hoc recognition to systematised recognition models
Align recognition to strategic behaviours and outcomes
Ensure recognition is visible, equitable and frequent at senior levels

3. Address the “mid-tenure drift”

The report’s broader findings highlight a plateau in engagement and inspiration around years 5–10 of employment. In the UK context, this likely contributes to elevated attrition.

Actions you can take:

Introduce mid-career re-contracting moments (e.g. 3–5 year reviews)
Create internal mobility incentives equal to external hiring attractiveness
Offer non-linear progression routes (not just vertical promotion)

4. Close the gap between productivity and sustainability

UK employees report strong productivity (~7.3+) alongside high exit intent which suggests organisations may be extracting performance without fully reinvesting in employee conditions. The risk is short-term output and long-term erosion. Small adjustments can make the differece:

Track productivity vs retention risk as a paired metric
Invest in enablement (tools, autonomy, support)
Ensure performance expectations are matched with development investment

5. Treat eNPS with caution

The UK’s +8 eNPS (vs +4 peers) appears strong but in this case, it is misleading as a retention indicator. The implication being that employees may recommend the company while simultaneously planning to leave. Understanding how to read these values and apply them robustly requires a few simple steps:

Separate advocacy metrics from retention diagnostics
Introduce “intent vs advocacy” gap analysis
Use predictive attrition modelling, not just sentiment scores

Strategic takeaways

The UK workforce is not disengaged. It is selectively mobile. Employees still:

Feel capable
Feel productive
Feel reasonably positive

But they do not see:

Sufficient future upside
Enough recognition of contribution
A compelling reason to stay versus move

Final thoughts

The competitive battleground has shifted from “Are we a good place to work?” to “Are we worth staying with?” In the UK, many organisations are winning the first question but losing the second.

The organisations that close this gap will not just reduce attrition, they will unlock materially higher returns on their existing talent base.

So what can you do to engage your employees for more than just a high ENPS? We have a whole library of industry-led insights, from Insight Sessions to articles from thought leaders- Click here to find out more

UK Women’s Health Strategy prompts urgent workplace reforms

Reward Strategy — Tue, 07 Apr 2026 09:10:00 GMT

UK’s Women’s Health Strategy calls for better workplace support for endometriosis, menopause and menstrual health, urging policies to reduce absences and improve retention.

The Government’s Women’s Health Strategy for England set out a decade-long programme to close longstanding gaps in care and ensure health services respond more effectively to women and girls, placing fresh scrutiny on how employers support staff who face sex-specific conditions and life stages. According to the strategy, improved data collection, more research funding and new local hubs are intended to make services more responsive to women’s needs.

The scale of reproductive health challenges

Recent surveys and charity data underline why those system-level changes matter for workplaces. Reporting of reproductive conditions shows a substantial burden: a national survey cited by The Guardian found around one in four women in England live with a serious reproductive health problem, while Endometriosis UK estimates roughly 1.5 million people in the UK are affected by endometriosis. These conditions can be chronic, painful and disruptive to work life.

Menstrual health and workplace impact

Menstrual health also carries a clear workforce impact. Research from the Chartered Institute of Personnel and Development finds more than half of women have at some point been unable to attend work because of period symptoms, and nearly seven in ten report negative experiences at work linked to menstruation; separate charity polling shows many still feel uncomfortable discussing periods with managers. Campaigns highlighting period poverty have additionally flagged that a significant minority of women struggle to afford menstrual products.

Life-stage and long-term conditions

Other life-stage issues add complexity for employers. Menopausal symptoms can number in the dozens and, according to workplace analysis, a majority of women aged 40 to 60 who experience those symptoms report adverse effects on their work. Meanwhile cancer and other gynaecological conditions remain common causes of long-term absence and require timely diagnosis to maximise survival and treatment options, reinforcing the need for faster referral pathways and clearer workplace support.

Legal duties and employer responsibility

Legal protections require employers to act. The Women’s Health Strategy sits alongside existing equality and health-and-safety obligations that prohibit sex and disability discrimination and mandate risk assessments for pregnancy and other workplace hazards, creating a duty to consider reasonable adjustments and to mitigate risks for pregnant workers and those with disabling conditions. Employers who fail to adapt policies risk both legal exposure and the loss of valuable staff.

Practical workplace actions

Practical steps can reduce absence, safeguard productivity and improve retention. Industry guidance stresses the value of visible leadership, manager training in sensitive conversations, up-to-date absence and return-to-work procedures, and the inclusion of health considerations in job design and resource planning. Routine people-data such as staff surveys and absence patterns can help tailor interventions and demonstrate where investment in wellbeing will yield returns.

Access to care and employer support schemes

Many employers now pair policy changes with benefit schemes intended to speed access to diagnosis and specialist advice. According to the Women’s Health Strategy and workplace research, better referral pathways and quicker access to consultations can help shorten the time to diagnosis; firms that provide private or virtual clinical support aim to fill gaps where NHS waits or appointment access create delays. Organisations should be transparent about what such schemes cover and where they do not substitute for NHS care or cover long-term management of chronic conditions.

Ensure you’re up to date with the best and latest industry led insights- Click here to visit the Knowledge Hub and learn more

Closing the Gap: Why Communication Is the Missing Link in Reward Effectiveness

Lewis Roskilly — Tue, 07 Apr 2026 06:53:00 GMT

There’s a shift happening in reward right now, and it’s not just about pay transparency legislation or evolving compensation models.

It’s about communication. Because increasingly, I’m seeing organisations invest heavily in reward strategy, compensation frameworks, and benefits optimisation… only for it to fall flat with employees. Not because the strategy is wrong. But because it hasn’t been understood.

The Disconnect: Strong Strategy, Weak Engagement

Most reward leaders I speak to are doing the right things:

Benchmarking against the market
Building structured job architectures
Investing in competitive benefits
Improving pay equity and governance

On paper, it’s robust. Commercially sound. Well thought through. But when you ask employees what they value or even what they understand, there’s often a gap.

They don’t see the full picture. They don’t connect the dots. And in many cases, they underestimate what they’re actually receiving.

That’s the disconnect.

Why Communication Has Become a Strategic Priority

Three major forces are driving this:

1. Pay Transparency Is Raising Expectations

With the EU Pay Transparency Directive and broader global trends, employees are asking more questions:

Why am I paid this amount?
How does my role compare internally?
What do I need to do to progress?

If organisations can’t clearly answer these questions, trust erodes quickly.

2. Reward Is More Complex Than Ever

Modern reward isn’t just salary and bonus.
It’s:

Equity
Flexible benefits
Pensions
Wellbeing support
Location-based pay
Skills-based frameworks

Without clear communication, complexity turns into confusion.

3. Perception Is Reality

You can have a market-leading reward package, but if employees don’t understand it, they won’t value it. And if they don’t value it, it won’t retain them.

The Cost of Getting It Wrong

Poor communication doesn’t just create confusion, it creates risk. I’m seeing organisations struggle with:

Increased attrition, despite competitive packages
Pay dissatisfaction, even when salaries are benchmarked correctly
Mistrust in leadership decisions
Low engagement with benefits platforms

In some cases, businesses are investing millions into reward… and seeing minimal return in terms of retention or engagement. That’s not a strategy issue. That’s a communication issue.

What Effective Reward Communication Looks Like

The organisations getting this right are treating communication as a core part of their reward strategy and not an afterthought. A few things they do consistently well:

1. They simplify the message

They move away from technical language and focus on clarity. Instead of explaining how a compensation framework works, they focus on:

What it means for the employee
What they can expect
What they can influence

Clarity beats complexity every time.

2. They personalise the experience

A generic reward statement isn’t enough anymore. Leading organisations are using:

Total reward statements
Interactive dashboards
Personalised benefits summaries

When employees can see their full value in one place, perception shifts immediately.

3. They link reward to progression

One of the biggest missed opportunities is failing to show employees how they can grow. Clear communication should answer:

What does progression look like?
What skills or outcomes are required?
How does that translate into reward?

This is where job architecture and skills-based frameworks really come to life.

4. They train their managers

Managers are often the weakest link in reward communication. Yet they’re the ones employees turn to first. Organisations that invest in:

Manager toolkits
Conversation guides
Reward training

See a significant improvement in how reward is understood across the business.

5. They communicate consistently not just annually

Reward communication shouldn’t be limited to pay review cycles. It needs to be ongoing, embedded, and reinforced throughout the year. Because understanding doesn’t happen in a single conversation.

From Cost Centre to Strategic Lever

When communication is done well, something interesting happens.

Reward stops being seen purely as a cost and starts becoming a driver of engagement, retention, and performance. Employees feel more informed, more in control, and more valued, which has a direct impact on how they show up at work.

Final Thought

In today’s environment, it’s not just what you offer, it’s what your employees understand, believe, and value. And that all comes down to communication.

Lewis’ thoughts are based on JGA’s industry leading insights and advice. Check out The Reward and Payroll Summit where CEO Nick Day will be speaking- Click here for more information

Remote work and self-employment unlock new career pathways

Reward Strategy — Thu, 02 Apr 2026 08:13:36 GMT

Flexible, remote roles and self-employment are transforming employment prospects for people with disabilities, removing traditional barriers and expanding access to meaningful work.

For many professionals with disabilities the biggest obstacles to steady employment are not skills or motivation but the structural frictions of conventional workplaces: inflexible hours, commutes that exhaust limited energy, and ad hoc accommodation processes that leave workers negotiating access rather than getting on with results. Remote roles and self-employment reframe that dynamic by allowing work to be organised around outcomes and individual needs rather than physical presence. According to a Connecticut state guidance page, remote work removes recurring barriers such as commuting, sensory overload and inaccessible office layouts, creating a more level basis for hiring decisions

Flexibility improves productivity and access

Flexible schedules, remote tools and contract arrangements let disabled professionals shape when, where and how tasks are completed, widening the range of viable roles. Commentary from disability employment specialists and advocates highlights that working from a controlled environment can reduce the need for continual accommodations while improving concentration and productivity. Research and practitioner accounts show the same features also increase job satisfaction and retention when employers shift emphasis from time spent to deliverables.

Labour market trends support inclusive work models

The labour-market picture supports that shift. A study reported by HR Dive, based on Society for Human Resource Management analysis, found that the expansion of remote and flexible work models has been associated with historically higher participation of people with disabilities in the workforce, with a notable rise in engagement as employers adopted hybrid and fully remote roles. Employers who design positions around measurable outcomes can both broaden their talent pool and reduce recruitment friction.

Self-employment as an alternative pathway

Self-employment offers a complementary route for those whose needs are episodic or whose conditions make standard schedules impractical. Federal and advocacy guidance on encouraging self-employment notes that running a small business or freelancing allows greater control over hours, location and supports, enabling people to remain close to medical and social services while balancing work demands. Planning for benefits, insurance and tax implications is essential before shifting substantial income to contracting.

Practical steps for employers and candidates

Practical steps bridge intention and progress. Organisations and hiring managers should define role outcomes rather than presence requirements, audit hiring platforms for accessibility and provide standardised, accessible onboarding for contractors and employees alike. Disabled candidates benefit from preparing disclosure plans, documenting required accommodations for home setups and contractually specifying tools, file formats and communication norms to lock in accessibility. These measures reduce the need for repeated negotiations and create predictable expectations on both sides.

Formalising contracting and business structures

For those moving from employment to contracting, formalising a business can simplify invoicing, taxes and interactions with procurement teams, though the effort should match immediate needs. Accessible online formation services can cut the time spent on paperwork and lower administrative risk, while contract language can explicitly allocate responsibility for assistive technology or accommodations. Industry observers note that converting reliable contractors into employees where appropriate can preserve continuity while delivering workplace accommodations that have already been demonstrated effective.

Making accessibility the default

When employers treat flexibility as the standard rather than the exception, accessible careers become sustainable rather than exceptional. Evidence from policy guides, sector reporting and academic analysis indicates remote and flexible models are opening jobs that were previously out of reach, including for older workers and those with fluctuating conditions. Designing roles around results, embedding accessibility into recruitment and onboarding, and recognising self-employment as a legitimate pathway together expand opportunities for disabled professionals while helping employers access underused talent.

Want industry-led insights about a variety of topics, focused around what our audience asks for? Check out our PRIS sessions- Click here to see our write up for a conversation with Simon Bradbury, Global Payroll Project Expert & Founder at Global HR, as we discussed neurodiversity in Payroll.

New Appointments in Reward, Payroll and Benefits - March 2026

Lukas Montgomery — Wed, 15 Apr 2026 08:16:49 GMT

Movement across the reward, payroll and benefits space remains strong, with a number of high-profile appointments emerging across the industry.

Olivia Moynihan

Senior International Payroll Analyst

RenaissanceRe

Global insurer RenaissanceRe has strengthened its international payroll capability with the appointment of Olivia Moynihan as Senior International Payroll Analyst. She will support the delivery of payroll operations across multiple jurisdictions as the business continues to expand globally.

Sharmeen Ilyas

Strategic HR Business Partner for Heathrow Operations

British Airways

At British Airways, Sharmeen Ilyas has taken on the role of Strategic HR Business Partner for Heathrow Operations. She will partner with senior stakeholders to shape and deliver people strategy across the airline’s key operational hub.

Kiera O.

UK/ROI Payroll Specialist

Primark

Retailer Primark has bolstered its payroll team with the addition of Kiera O., who joins as UK/ROI Payroll Specialist. In the position, she will focus on ensuring payroll accuracy and efficiency across the region.

Carole Silvestri

Senior Director, Global Payroll

Confluent

Carole Silvestri has joined Confluent as Senior Director, Global Payroll, where she is tasked with leading the organisation’s global payroll strategy. Her remit includes driving consistency, compliance and scalability across international operations.

Issy Wilson

Reward Lead

Hotel Chocolat

Following an internal promotion, Issy Wilson has stepped into the role of Reward Lead at Hotel Chocolat. She will take responsibility for shaping the company’s reward approach, supporting wider talent and retention objectives.

Felicity White

International Payroll Director

Acrisure

Insurance broker Acrisure has appointed Felicity White as International Payroll Director. She will oversee payroll operations across multiple territories, with a focus on transformation and operational excellence.

Jennifer Brown

Payroll Director

Cooper Parry

At Cooper Parry, Jennifer Brown has been named Payroll Director. She will lead the firm’s payroll function, driving strategy and ensuring the delivery of high-quality services.

Vicky Reed

Head of People Shared Services

Costa Coffee

Vicky Reed has joined Costa Coffee as Head of People Shared Services. In her new role, she will oversee shared services operations, with an emphasis on improving efficiency and enhancing the employee experience.

Camilla Sundlöf
Global Head of Payroll
Sinch

Camilla Sundlöf has been appointed Global Head of Payroll at Sinch. She will lead the organisation’s global payroll function, driving strategy and ensuring the delivery of consistent, high-quality payroll operations across its international footprint.

The four pillars that make a Reward Value Proposition resonate

Becky Pugh — Tue, 31 Mar 2026 11:33:00 GMT

Most organisations already communicate reward. The problem is how. Pay tables. Benefits lists. Policy documents. All accurate. All necessary. And all strangely forgettable. That’s because lists inform, but they don’t persuade.

A Reward Value Proposition only works when it feels like a story people can recognise themselves in. A story that explains not just what you offer, but why it exists and how it fits together. When reward is framed as a narrative rather than a catalogue, it becomes easier to understand, easier to remember, and easier to believe.

The strongest RVPs are built on four core pillars. Not as a rigid formula, but as a structure that helps organisations tell their story with clarity and intent.

Pillar one: Pay philosophy

Explaining the why behind the number

Pay is often the most sensitive part of reward, and the most poorly explained. Many organisations publish pay ranges without explaining the thinking behind them. Others avoid the conversation altogether, hoping the numbers speak for themselves. In a world where people expect clarity and can easily compare offers, neither approach is enough.

Pay philosophy is about articulating intent. How you think about fairness. How progression works. How performance is recognised. What people can reasonably expect over time. When people understand the logic behind pay, transparency becomes meaningful rather than transactional. Decisions feel intentional rather than arbitrary. Trust grows not because everyone agrees with every outcome, but because the system makes sense. A strong RVP doesn’t just show the number. It explains the thinking behind it.

Pillar two: Benefits architecture

Turning offerings into an ecosystem

Most organisations offer more benefits than people realise. The issue is that those benefits often sit in isolation. Healthcare here. Flexibility there. Wellbeing somewhere else. Each valuable on its own but rarely presented as a connected whole. Benefits architecture is about showing how everything fits together. How different elements support different needs and life stages. How the offer evolves as people’s circumstances change.

This isn’t about adding more benefits. It’s about creating coherence. When people can see how the pieces connect, perceived value increases. Benefits stop feeling like background noise and start feeling like meaningful support.

An effective RVP turns a scattered set of offerings into a clear ecosystem people can actually navigate.

Pillar three: Culture and purpose

Why the experience matters

Culture and purpose are often described in broad, abstract terms. Friendly. Inclusive. Collaborative. Values-led. The problem is that without specificity, these words lose their power.

In an RVP, culture and purpose are not slogans. They’re lived experiences. They explain how work feels day to day. How decisions are made. How people are treated when things go well and when they don’t. Purpose answers a deeper question. Why does the work matter? What difference does it make? And how does an individual’s contribution fit into something bigger? When culture and purpose are clearly articulated, reward stops being purely transactional. Work becomes meaningful, not just compensated.

Pillar four: Growth and development

Rewarding the future, not just the present

Reward isn’t only about what people receive today. It’s also about what’s possible tomorrow. Growth and development are often talked about, but rarely made concrete. Vague promises of progression don’t build confidence. Clear pathways do.

An RVP should help people understand how they can grow, learn and stretch over time. What support exists. What progression looks like in reality. And how the organisation invests in people’s futures, not just their output. When growth is clearly communicated, reward feels dynamic. It signals commitment. And it reassures people that staying has long-term value.

How the pillars work together

Each pillar matters. But the real strength of an RVP comes from coherence. When pay philosophy supports growth. When benefits reinforce culture. When purpose aligns with progression. That’s when the story lands.

Different organisations naturally lead with different pillars. Some are defined by flexibility. Others by development. Others by stability or purpose. There’s no single right balance. What matters is authenticity. The strongest RVPs don’t copy competitors. They reveal what’s genuinely true and distinctive.

The four pillars don’t restrict creativity. They enable it. They provide a framework that helps organisations move beyond lists and into storytelling. Beyond policy and into experience. Beyond what’s offered and into why it matters. The strongest Reward Value Propositions don’t follow a template. They reveal what makes an organisation genuinely different.

And when that story is told clearly, reward stops being something people skim past and starts becoming something they believe.

Ensure your Reward Value Proposition is producing actionable results, and get the latest insights from industry leaders giving dedicated sessions at The Reward and Payroll Summit 2026- Click here for more information.

Insider threat vulnerabilities accelerating

Reward Strategy — Tue, 31 Mar 2026 12:42:05 GMT

Internal risks are now the most costly, driven by remote work, human error, and AI—pushing organisations toward behavioural analytics and holistic risk management.

Most organisations concentrate security budgets on external defences, yet recent analysis shows the gravest vulnerabilities often originate inside the business. According to IBM’s 2025 Cost of a Data Breach Report, breaches caused or enabled by insiders remain among the costliest, and incidents involving authorised users have exposed more than a billion records, underlining how internal access can translate rapidly into large-scale loss.

Human error as a primary risk factor

Employee behaviour , from lax password practices to unreported lost devices , is a leading contributor to these incidents. Industry reporting and vendor research repeatedly identify weak and reused credentials, delayed reporting of missing hardware, and the mixing of personal and work activities on corporate devices as frequent precursors to compromise. Such human-driven failures are not the sorts of problems that firewalls alone can solve.

Remote and hybrid work expanding exposure

The shift to remote and hybrid models has widened exposure. Work that once happened behind office walls now takes place across home networks, public WiFi and a patchwork of personal devices, increasing the number of potential entry points. Mimecast’s recent survey of IT decision-makers found year-on-year rises in both negligent and malicious insider incidents, with many organisations reporting multiple insider events each month.

AI: both a solution and a risk

Artificial intelligence is reshaping the threat picture for insiders as well as outsiders. IBM’s analysis credits AI-powered detection with helping to reduce average global breach costs, yet it also warns of major governance gaps: most firms lack robust AI access controls and oversight, creating fresh opportunities for misuse and the growth of "shadow AI". Criminals are likewise using generative tools to craft more convincing social-engineering attacks.

The need for a holistic insider risk strategy

Not all insider risk is deliberate. Microsoft emphasises that prevention requires a holistic approach encompassing employee relations, privacy safeguards and coherent programmes; firms that adopt integrated insider-risk strategies detect and remediate issues faster than those that remain fragmented. That combination of cultural and technical measures is vital to catch both accidental exposures and malicious behaviour.

Critical control points in HR and IT processes

Practical control points exist where HR and IT intersect. Onboarding, role changes and offboarding are high-leverage moments: automated, auditable workflows for provisioning and deprovisioning access dramatically reduce the window in which former or transitioning staff retain privileges. Case studies from regulated sectors show how documented, timestamped processes not only lower risk but also support compliance.

Moving beyond perimeter security

Detection tools must evolve beyond perimeter defences to behavioural analytics that surface anomalous activity by legitimate accounts. Reports from security vendors and analysts note that many organisations still lack mature user and entity behaviour monitoring, even as insider incidents rise and generative AI enables new theft techniques. Adaptive controls that flag unusual access patterns or data movements are increasingly recommended as part of a layered defence.

Balancing technology, process, and culture

Ultimately, the organisations that reduce insider-driven breaches combine clear, consistently enforced processes with regular training and the right automation. Human error will never be eliminated, but making secure behaviour easier and building rapid, auditable responses into HR and IT workflows materially lowers risk. As recent industry research shows, technology such as AI can both help and harm; governance and integrated policy must keep pace with capability if companies are to tilt the balance away from costly internal incidents.

Ensure you’re secure, compliant, and primed to grow. Visit the Knowledge Hub to find out the latest in Compliance and Risk issues and insights -Click here to find out more

Businesses turn to tech and pooled solutions to boost employee benefits

Reward Strategy — Fri, 27 Mar 2026 08:28:00 GMT

Small firms are using digital platforms and pooled solutions to offer competitive benefits, tackling cost and admin challenges while supporting employee wellbeing.

Employers that invest in well‑crafted benefits packages increasingly find those programmes are as important as pay when it comes to recruiting and keeping staff, particularly in a tight labour market where many workers are re‑assessing what they want from work. According to industry analysis, a clear employee value proposition and competitive benefits play a central role in attraction and retention.

Understanding group benefits

Group benefits are employer‑sponsored arrangements that give staff access to health cover and financial protection through a workplace plan rather than individual purchase. Typical offerings include medical, dental and vision insurance, life and disability policies, voluntary add‑ons and wellbeing or employee assistance services, each designed to spread risk and lower per‑person costs.

Wellbeing drives engagement and retention

Beyond basic protection, benefits are now a marker of an employer’s commitment to staff wellbeing. Research shows that when employers strengthen benefits and communications, employees report higher satisfaction and engagement, and firms report improved retention metrics. This dynamic has become more pronounced as workers weigh flexible and supportive workplaces alongside salary.

Structural barriers for small firms

Smaller firms face steep obstacles in delivering comparable packages to larger competitors. Studies identify gaps in access to health, retirement and life/disability benefits for micro and small employers, who frequently lack the purchasing scale, budgets and dedicated HR capacity that make broad coverage feasible.

Administrative and regulatory complexity

Administrative and regulatory burdens amplify those challenges. Small business leaders commonly juggle plan evaluation, renewals, enrolment logistics and evolving compliance requirements with day‑to‑day operations, creating a risk of costly errors and underinvestment in benefits administration. Rising premiums and shifting rules further strain limited HR resources.

Misconceptions around retirement plans

Retirement provision illustrates the trade‑offs vividly. Employers recognise retirement plans as powerful tools to attract staff, yet many cite cost and paperwork as barriers. Recent reporting suggests some small employers overestimate both the expense and complexity of offering retirement options, pointing to a marketplace where lower‑cost and simplified plan designs are available but underused.

Rise of pooled and advisory solutions

A growing response is to expand access to expertise and pooled solutions. Benefits advisers, aggregated purchasing arrangements and programmes tailored to firms under 100 employees aim to deliver strategic design, compliance support and employee education that mirror what larger employers receive. Such intermediated approaches can reduce administrative load while improving plan value.

Technology reshapes benefits delivery

Technology is reshaping delivery: digital benefits platforms simplify enrolment, centralise communications and give employees on‑demand access to plan information; telehealth, voluntary benefits and targeted wellbeing services broaden choices without necessarily inflating employer cost bases. Employers that combine tech platforms with clear employee education tend to extract more value from their spend.

Building sustainable benefits strategies

Designing benefits for the long term requires regular review, employee feedback and an eye to cost sustainability. Policymakers and market solutions that narrow the small‑business benefits gap can help; meanwhile employers who take a strategic, informed approach to plan design, communication and administration are better placed to build resilient, engaged teams.

Understanding how to create the best total reward package for your organisation is key to employee engagement and retention. Join us for the Reward and Payroll Summit for a multitude of reward based sessions to help you craft the best for your business - Click here for more information

AI progression stalls: Stronger data and identity controls needed

Reward Strategy — Thu, 26 Mar 2026 16:24:18 GMT

Enterprise AI efforts are faltering as organisations overestimate readiness, underscoring the need for better data quality and stronger identity controls to realise value and ensure safe deployment.

Enterprise technology leaders are waking up to a blunt reality: enthusiasm for artificial intelligence is outrunning the fundamentals that make it useful. According to a recent Precisely study, many data and analytics chiefs overestimate their readiness for AI; gaps in data quality, governance and infrastructure are forcing organisations to push pilots into production before the foundations are in place, turning ambitious projects into costly experiments rather than durable capabilities.

Data foundations under scrutiny

That disconnect helps explain why conversations about AI are shifting from model performance to the plumbing around data and control. Precisely’s findings underscore that without reliable, well-governed and connected datasets, AI initiatives struggle to deliver measurable business value, leaving firms exposed to waste, poor decisions and regulatory risk.

Identity as the control plane

Alongside data integrity, identity is emerging as the central control plane for the next phase of AI. Ping Identity has been urging organisations to rethink identity and access management for a world of agentic AI, arguing that agents must be authenticated, given tightly constrained privileges and tracked across their lifecycle to ensure actions remain accountable and auditable. The firm frames agentic identities into distinct categories, personal assistants, consumer-facing digital aides, workforce digital assistants and autonomous digital workers, each requiring different trust models and oversight.

Security tools evolve for AI agents

Security vendors are responding with tools designed to secure both people and non‑human actors. 1Password’s Unified Access platform, for example, is positioned as a way to manage credential use by AI agents as well as by employees, offering visibility and control across environments that traditional login methods cannot achieve. By treating agents as first‑class identities, such platforms aim to convert a source of risk into an operational asset.

Governance and identity as prerequisites

Some vendors are building more specialised identity offerings for agentic environments. Ping Identity’s Identity for AI initiative seeks to provide visibility, governance and privilege controls specifically tailored to autonomous agents, reflecting a broader industry recognition that governance and identity are prerequisites for scaling AI safely and effectively. Together with the data integrity challenges highlighted by Precisely, these identity solutions point to a simple operational truth: models alone are insufficient; organisations must pair robust data foundations with rigorous identity and access controls to realise dependable, scalable AI.

Understanding AI and Automation is a problem throughout the industry. Join us at the Reward and Payroll Summit for our curated session to help you get the most out of AI - Click here for more information

Fair Work Solutions: Founders Interview

Lukas Montgomery — Wed, 25 Mar 2026 09:30:00 GMT

We spoke with Fair Work Solutions’ founders about NMW compliance challenges and how their platform is transforming the industry.

In a payroll landscape defined by complexity, compliance risk and increasing scrutiny, few challenges loom larger than national minimum wage (NMW). Yet, as the discussion with Fair Work Solutions’ founders made clear, it’s not the headline rate that causes the greatest difficulty, it’s the calculation behind it.

We sat down with Fair Work Solutions co-founders Wendy Muirhead and Jeni Morris to explore why NMW compliance continues to challenge organisations, why the industry has remained underserved, and how their platform is changing that narrative.

“Frustration drove us here”

The origins of Fair Work Solutions lie in a shared but differently rooted frustration.

For Wendy Muirhead, whose career has been spent in payroll technology, the issue was persistent and visible across the market. Organisations were asking for solutions to increasingly complex compliance challenges, yet those needs were repeatedly deferred.

“Customers are asking for solutions, but it’s always on a roadmap that gets pushed and pushed. Nobody was really catering for the complexity of national minimum wage.”

Jeni Morris approached the problem from the regulatory side. Her experience within HMRC exposed a widespread lack of understanding, even among highly resourced organisations.

“I’d sit across from businesses and advisors, even from the Big Four, and they didn’t understand the legislation. That’s incredibly frustrating when you’re enforcing it.”

After leading EY’s national minimum wage team, Jeni became increasingly motivated to broaden her impact beyond a select client base.

“Before I retire, I want to have helped the entire payroll industry understand this strange world of NMW.”

Together, their expertise formed a natural partnership, combining deep legislative knowledge with practical payroll and technology experience.

The problem: It’s not pay, it’s the calculation

A central theme of the conversation is a misconception that continues to catch organisations off guard: that paying above minimum wage guarantees compliance.

In reality, NMW is not a simple rate, but a set of calculations that vary depending on how work is defined.

“NMW isn’t a rate, it’s a calculation. And there are four different calculations depending on the type of work.”

This creates unexpected areas of risk, particularly among salaried employees. Individuals earning £50,000 or more can still fall into non-compliance due to how their working hours accumulate across a year.

“You might work extra hours throughout the year. By month twelve, those hours are compressed into one period, and that’s where the risk appears.”

Even seemingly generous compensation structures do not eliminate that risk.

“You could be paid a £1 million bonus in month four and still be underpaid in month twelve because the bonus only counts in the period it’s paid plus a small percentage allowed to be carried back into the previous pay period.”

This disconnect between perception and reality is one of the defining challenges in NMW compliance.

A hidden operational burden

Beyond the technical complexity, the operational strain on payroll teams is significant.

Across their conversations with organisations, both founders observed a consistent pattern of manual processes, fragmented data sources and a heavy reliance on individual effort. Payroll professionals, driven by a strong sense of responsibility, often find themselves working extended hours to ensure accuracy.

“Payroll professionals genuinely care. They want to get it right every time. But they’re working tirelessly, often manually, to manage that risk.”

What stood out most was the universality of the issue.

“There wasn’t a single client we spoke to that didn’t have some area consuming huge amounts of time.”

The risk: Financial, reputational and personal

The consequences of non-compliance extend well beyond technical errors.

Public naming and shaming remains one of the most visible risks, with organisations exposed to reputational damage that can directly affect their ability to attract and retain talent.

“The fines are material, they can be really consequential to a business.”

However, enforcement is escalating. Repeat offences can lead to more serious outcomes, including prosecution.

“First offence: penalties and naming. Second: more serious. Third: you’re into prosecution territory.”

Importantly, this is not a challenge confined to specific sectors or business sizes.

“It affects every sector and even government departments have appeared on the list.”

Why hasn’t this been solved before?

Despite the scale and persistence of the problem, solutions have been limited. The founders attribute this to the niche nature of the expertise required.

“There are very few people in the UK who truly understand minimum wage legislation.”

Building an effective solution requires not only that expertise, but also a deep understanding of payroll processes and the technical capability to translate both into a usable platform.

“You need that base knowledge, plus someone who understands payroll, plus a tech team, and the will to do it.”

From compliance tool to strategic platform

While Fair Work Solutions was initially designed to address compliance, its potential extends far beyond that.

The platform enables organisations to model future scenarios, assess risk across their workforce and even support due diligence during acquisitions. What began as a compliance solution is increasingly becoming a strategic tool.

“It’s like giving businesses a crystal ball; they can see the impact of future changes at the touch of a button.”

Elevating payroll’s role

One of the more transformative aspects of the platform is its impact on how payroll functions within the business.

By providing clear, real-time visibility of risk, payroll professionals are better positioned to engage with senior stakeholders and contribute to strategic decision-making.

“This gives payroll a real opportunity to elevate the conversation, to show executives where risk sits and how to prevent it.”

The vision: Simplicity at scale

Looking ahead, both founders are aligned on a vision centred around accessibility and simplicity.

For Jeni, the goal is widespread adoption across the payroll profession.

“I want every payroller to be able to access this, without going through the pain of understanding it all themselves.”

Wendy echoes that ambition, focusing on efficiency and ease of use.

“Helping people do in minutes what currently takes weeks. That’s the plan.”

Ultimately, the aim is to normalise compliance across the UK workforce.

“Making sure the whole UK is doing it the right way and making it easy.”

Final thoughts

Fair Work Solutions enters a space where complexity has long been accepted as the norm. By translating intricate legislation into accessible, actionable insight, it offers something the industry has been missing with NMW: clarity.

Or, as Jeni and Wendy so succinctly put it:

Minimum wage. Maximum clarity.

Want to hear more? Jeni is speaking about Payroll and Employment Law updates at this year’s Reward and Payroll Summit - Click here for more information

UK trade union recognition laws to be simplified

Reward Strategy — Wed, 25 Mar 2026 08:00:00 GMT

From April 2026, proposed UK reforms aim to simplify union recognition, potentially accelerating union inclusion in non-union workplaces.

From 6 April 2026 the statutory route for trade union recognition in the United Kingdom will be materially altered, in ways likely to make it simpler for unions to secure formal bargaining status, the government has announced. The changes aim to reduce procedural barriers and speed up the timetable for recognition ballots.

Barriers in the existing system

Until now unions faced several administrative hurdles before the Central Arbitration Committee would determine whether to order recognition, including requirements about demonstrable membership and turnout thresholds that could defeat a ballot even where there was substantial support. Industry bodies and advisory services have long pointed to these rules as a brake on statutory recognition in mainly non-union workplaces.

Lower thresholds and wider eligibility

The reforms remove the obligation for unions to show a majority of the proposed bargaining unit will back recognition and abolish the 40% minimum-share requirement in ballot outcomes, meaning recognition can be achieved by a simple majority of votes cast. At the same time, the statutory threshold for an initial application, previously set at a minimum union membership percentage within the proposed unit , may be relaxed under secondary regulations, widening eligibility to bring claims.

Faster and more flexible procedures

Procedural changes extend beyond thresholds. Balloting methods are being modernised to include secure electronic and workplace voting, measures expected to shorten the time from application to result and to improve participation. The legislation also fixes the size of the bargaining unit at the point an application is submitted so employers can no longer expand the unit in response to an application, although normal attrition may reduce its size over time.

Implementation and regulatory guidance

Regulators and advisory organisations are engaging on implementation details, including updates to the Code of Practice on access and unfair practices. Consultations are exploring how new workplace access rights and related protections will operate in practice, and employers should expect further statutory guidance as those consultations conclude.

Preparing for increased activity

Employers can prepare now by clarifying internal ownership of recognition requests, identifying parts of the business vulnerable to organising activity, and specifying their approach to voluntary recognition proposals. Updating internal processes for recording and responding to campaigns, training key staff on the statutory framework and setting clear negotiating boundaries will help businesses respond promptly and lawfully as activity increases.

A more active industrial relations landscape

Taken together, the reforms are set to increase awareness of union rights, accelerate ballots and make statutory recognition a more accessible option for workers, particularly in private-sector and non-unionised workplaces. Employers should plan for a busier industrial relations environment and ensure readiness for faster timetables and more frequent requests for recognition and workplace access.

Ensure you’re compliant and up to date with the latest - Click here to visit the Knowledge Hub

HR technology accelerates year-round neurodiversity inclusion shifts

Reward Strategy — Tue, 24 Mar 2026 16:53:55 GMT

Organisations using Neurodiversity Celebration Week are advancing lasting workplace change by embedding neurodiversity support through AI and accessible technology.

Organisations marking Neurodiversity Celebration Week in mid-March are part of a broader shift: human resources technology is being repurposed to support neurodivergent employees throughout the year, not only during awareness events. According to Mates in Mind, the initiative seeks to change perceptions and build more equitable cultures, while Neurodiversity Celebration Week’s founders encourage schools and employers to use the period as a catalyst for lasting organisational change. These campaigns provide a framework for employers to embed improvements rather than treat inclusion as a one-off activity.

Rethinking recruitment through AI

One clear area of impact is recruitment, where algorithmic tools can reduce the chance that presentation or non-standard CV formats prevent a candidate from advancing. AI-driven screening often prioritises demonstrable skills and relevant keywords over layout, which can help ensure that applicants are assessed on capability rather than polish. At the same time, experts caution that automated systems require oversight to avoid losing context around unconventional career paths and to prevent new forms of exclusion.

Making interviews more accessible and structured

Beyond initial selection, AI features now generate condensed summaries and skill-based phrasing that hiring teams can use to design more focused interviews. Tools that suggest strength-based bullet points or translate experience into skill-first language can make applications more accessible for people who find traditional interviews difficult, while structured assessments reduce reliance on impression-based judgements. However, industry commentators emphasise that these benefits depend on careful tuning and transparency around how the systems operate.

Designing more inclusive workplaces

Workplace platforms are also lowering barriers once neurodivergent candidates join organisations. Digital adjustments such as user-selectable fonts, contrast settings and simplified interfaces reduce sensory friction, and integrations with Internet of Things devices can adapt lighting or sound to create more comfortable workspaces. Surveys and pulse tools that collect confidential feedback allow employers to surface systemic issues and prioritise changes that staff say matter most.

Flexibility as a foundation for inclusion

Flexible and remote working models introduced during the pandemic remain critical to inclusion. On-demand learning modules, personalised task-management aids and adaptive workflows enable employees to shape their environment and schedules, while AI-driven task breakdowns and coaching can make complex responsibilities more manageable. These capabilities not only support neurodivergent workers but also improve productivity and wellbeing across the workforce.

From accidental to intentional accessibility

Several HR-technology vendors point out that many accessibility features emerged from general product improvements rather than a deliberate focus on neurodiversity. That observation suggests considerable potential upside if designers adopt an intentional approach: purpose-built features and co-designed tools could amplify strengths such as pattern recognition, creativity and specialised expertise, turning accessibility into a strategic advantage.

Pairing technology with accountability

Realising those gains requires employers to combine technology with governance: regular audits of algorithms, ongoing employee consultation and clear disclosure about how data and automated decisions are used. According to resources provided for Neurodiversity Celebration Week, free materials and support are available to help organisations move from awareness to sustained practice, reinforcing that technology is a means to inclusion when paired with accountable human judgement.

Keep up to date with the latest in DEI changes and legislation by visiting the Knowledge Hub - Click here to find out more

Peer networks redefine organisational clarity amid remote work surge

Reward Strategy — Tue, 24 Mar 2026 16:53:21 GMT

Peer networks and local narratives are becoming central to aligning teams, demanding a new leadership approach in the evolving digital workspace.

For most organisations, the old assumption that clarity trickles downward from executives to employees no longer matches daily reality. Research and industry analysis show that, amid proliferating channels and hybrid schedules, staff increasingly turn to colleagues for interpretation of priorities and action, with peer networks shaping what strategy actually means on the ground. According to Microsoft’s Work Trend Index and related industry reporting, digital platforms and dispersed teams have altered how information is experienced within firms.

Information overload without context

Modern work produces a deluge of messages while offering little help to make sense of them. Microsoft’s analysis of workplace communication highlights dramatic rises in email and digital collaboration traffic, a volume that leaves many employees juggling fragmented inputs and hunting for the context needed to act. These patterns magnify the gap between information availability and usable clarity.

The cost of disengagement

The consequences show up in engagement and productivity metrics. Gallup’s surveys report falling engagement levels in the United States and worldwide over recent years, especially among younger workers, signalling that fewer people feel connected to purpose and expectations. Industry estimates of the cost of disengagement underscore the stakes: disengaged workforces represent trillions in unrealised economic value, making clarity not only an organisational necessity but an economic one.

Why peers become the interpreters

Psychological and managerial research helps explain why peers now act as primary translators. People interpret ambiguous signals by observing others; when formal guidance is diffuse or delayed, the reactions and routines of immediate colleagues become the default frame for action. Commentary in business outlets has begun to stress that leaders must move beyond mere transparency to supply "narrative clarity", interpretive stories that give staff a sense of why choices matter and how roles connect to outcomes.

From hierarchies to networks

This marks a structural shift from pyramid to network. Technology, collaborative workflows and the rise of cross-functional work mean authority no longer monopolises meaning-making. Microsoft’s accounts of the future of work emphasise that decisions and signals travel laterally as well as vertically, and that organisations that treat interpretation as distributed are better placed to align action across remote and hybrid teams.

Forces accelerating peer influence

Several accelerating forces make peer interpretation more potent. Work has grown more interdependent, strategic change has sped up, and hybrid arrangements increase the frequency of interactions with teammates relative to senior leaders. Global engagement data also points to manager and team-level declines, which further elevates the role of immediate colleagues in shaping day-to-day norms.

The leadership response: narrative clarity

For leaders, the implication is clear: influence still matters, but the vehicle for influence has shifted. Thoughtful, consistent narratives that translate strategy into team-level meaning, and a deliberate effort to equip mid-level networks to surface and reinforce those narratives, are emerging as core leadership skills. Industry writers argue that narrative clarity, supported by technology and local sense‑making practices, can restore alignment and lift engagement more effectively than top-down pronouncements alone.

Operating in dual systems

Organisations therefore operate with two overlapping systems: the formal hierarchy that sets direction and the informal peer network that interprets it. Those that acknowledge both and invest in enabling peer-to-peer interpretation, through clearer narrative framing, better tools for local coordination and stronger manager practices, stand to convert abundant information into genuine clarity and reclaim the value now lost to disengagement.

Ensure you’re up to date with the latest insights and updates by visiting the Knowledge Hub - Click here to find out more

PRIS Takeaways: Reward packages for your future workforce

Lukas Montgomery — Mon, 23 Mar 2026 08:59:00 GMT

The latest Payroll & Reward Insights Session brought a familiar challenge into sharp focus: reward strategies have not evolved at the same pace as the workforce they are designed to support.

While many organisations recognise that change is needed, the reality is that most are still operating within traditional frameworks. Vickie Graham, Managing Director at Reward Strategy, sat down with Dan Bailey, Head of Reward and Pensions at AXA UK, to explore how we can evolve our reward models to better relect a modern workforce.

The current models were built for a different era, one defined by stable careers, predictable needs, and long-term tenure. Today’s workforce looks very different, and expectations have shifted accordingly.

The reality: traditional reward still dominates

Participants were asked to describe their current reward approach. Most reported a one-size-fits-all model, with some flexibility emerging, but no fully personalised strategies, highlighting how early the shift still is.

The results confirm what many reward leaders already suspect: personalisation is still more ambition than reality. Despite years of discussion around flexibility, most organisations remain anchored in traditional models that were designed for a more uniform workforce.

What’s striking is not just the dominance of one-size-fits-all, but the complete absence of fully personalised approaches. It suggests that while the direction of travel is clear, execution remains a significant challenge whether due to cost, complexity, or uncertainty around where to start.

From generations to life stages

A key theme throughout the discussion was the shift away from generational thinking towards a more practical and actionable concept: life stages.

Rather than grouping employees by age or generation, organisations are beginning to consider what individuals actually need at different points in their lives. Someone at the start of their career is likely to prioritise financial flexibility, support with savings, and immediate value. In contrast, someone later in their career may place greater importance on pension contributions, healthcare, and long-term security.

This shift matters because it reflects how people experience work today. Careers are no longer linear, and employees are less likely to stay with a single employer over the long term. As a result, reward needs to deliver value in the present, not just in the future.

Why personas change the conversation

The use of workforce personas emerged as a particularly effective way to rethink reward design. By building detailed, forward-looking profiles of different employee types, organisations can better understand what people need, both now and in the coming years.

This approach revealed that many benefit packages are unintentionally designed around the dominant demographic within an organisation, often mid-career professionals. While this may make sense from a historical perspective, it leaves other groups underserved and reduces the overall impact of reward investment.

Personas also help organisations challenge assumptions. For example, they can highlight gaps in areas such as early-career financial support or demonstrate that certain benefits are less relevant than previously believed.

Data is already there but rarely connected

Another key takeaway was that most organisations already have access to valuable data, but few are using it effectively.

Absence data can reveal trends such as rising mental health challenges, while turnover data can highlight critical points where employees are most likely to leave, such as after their first year. Benefit utilisation data can indicate which offerings are valued, and engagement or recognition data can provide insight into what drives retention.

The real value comes from connecting these data points. When organisations start to link absence trends with benefit usage or turnover with employee feedback, they can build a much stronger, evidence-based case for change.

The communication gap

Even when organisations offer strong benefits, their impact is often limited by how they are communicated.

A recurring issue is that many employees, particularly those in frontline or non-desk role, do not engage with traditional communication channels such as email. In some cases, employees are unaware of even basic elements of their reward package.

The most effective approaches tend to be more direct and human. Face-to-face engagement, on-site sessions, and manager-led conversations all play a critical role in helping employees understand and value what is available to them. Reward, in this sense, needs to be actively promoted and explained, rather than simply provided.

Where investment really matters

The discussion also highlighted a common imbalance in how benefits are distributed. In many organisations, benefits become more generous at higher levels of seniority. However, this is not always where they have the greatest impact.

Employees in frontline or lower-paid roles are more likely to experience higher turnover, greater financial pressure, and increased absence. Improving reward in these areas can therefore have a disproportionate impact on organisational outcomes, including retention, engagement, and even customer experience.

What’s shaping reward strategy today

In another participant poll we asked what is shaping participant’s reward strategy. Engagement and retention led by a clear margin, with no votes for data or technology, pointing to a continued focus on outcomes over underlying drivers.

The dominance of engagement and retention as the primary driver shows that reward is still being positioned as a solution to immediate business pressures. Organisations are rightly focused on keeping people, but this can lead to short-term fixes rather than longer-term strategic redesign.

What stands out more is what’s missing. With no respondents selecting data or technology as key drivers, it suggests that while these capabilities exist, they are not yet shaping decision-making in a meaningful way. The risk is that organisations continue to respond to symptoms without fully addressing the underlying structural and workforce shifts driving them.

Looking ahead: what needs attention

In our final poll, participants were asked where reward will need the most focus. Flexible benefits and financial wellbeing came out on top, signalling where future pressure and investment are likely to sit.

The joint focus on flexibility and financial wellbeing reflects the reality of today’s workforce. Employees increasingly expect choice, but they also need practical support as financial pressures continue to shape day-to-day decision-making.

What’s particularly interesting is the relatively lower prioritisation of mental health. Rather than diminishing in importance, this may signal that organisations are starting to view it as part of a broader wellbeing ecosystem; one that is closely linked to financial stress, job security, and overall employee experience.

Where to start

For organisations looking to evolve their reward strategy, the first step is to listen more effectively. Understanding what employees actually value is essential, and this requires going beyond assumptions and gathering meaningful insight.

At the same time, organisations should begin to make better use of the data they already hold. By connecting different data sources and identifying patterns, it becomes possible to build a clearer picture of what is working and where change is needed.

Finally, there needs to be a shift towards flexibility. Rather than simply adding more benefits, organisations should focus on creating a reward framework that can adapt to different needs and evolve over time.

Final thoughts

Reward is no longer just about what is offered. It is about relevance, understanding, and impact.

As the workforce continues to change, organisations that succeed will be those that move away from static, one-size-fits-all models and towards more dynamic, insight-led approaches. In this environment, standing still is not a neutral choice, it is a risk.

Reward platforms are evolving with the digital expansion. Our next Payroll and Insight Series session focuses in on how digital-first platforms are transforming a traditionally complex, voucher-based process into a seamless and engaging employee experience - Click here to find out more!

Employers warn of growing pension contribution decline

Reward Strategy — Fri, 20 Mar 2026 08:46:00 GMT

Over 60% of employers worry financial pressures will cause employees to cut pension contributions, raising concerns about retirement security and engagement.

More than six in ten employers fear that mounting financial strains will push staff to opt out of workplace pensions, according to research from People’s Pension, which found 62% of employers expressing this concern and 61% expecting employees to lower their contribution levels. The survey highlights particular anxiety among small and medium-sized businesses, where 72% foresee reduced employee saving, at a time when inflation and living costs remain a key pressure on household budgets. According to the report by People’s Pension, sectors such as wholesale, retail and franchising, and construction report higher levels of strain on contributions.

Long-term impact and inequality risks

People’s Pension’s distribution director, Stuart Reid, framed the findings as part of a wider squeeze on both firms and households. "Employers are navigating a period where both businesses and households are under sustained financial pressure, and there is understandable concern about the impact this may have on long-term saving behaviour," he said. He warned that even temporary breaks or lower pension payments can have a disproportionately adverse effect over the long term and pointed to their role in widening the gender pension gap where career breaks for childbirth and caregiving reduce retirement outcomes.

Engagement and communication challenges

The research also points to an engagement and knowledge problem: 59% of employers believe staff do not fully grasp the importance of pensions within their overall remuneration, while 52% flagged employee disengagement. At the same time nearly half of employers admit they do not effectively promote or communicate their workplace pension internally, a gap that employers themselves identify as limiting take-up and consistent saving.

The role of education and support

Employers identified clearer communication and education about pensions as the single most useful step to boost engagement, with 45% selecting it, and 40% saying extra support for financial wellbeing and retirement planning would help. More than four in five SME employers (82%) said they felt responsible for employees’ overall financial wellbeing, yet 75% acknowledged that rising business costs constrained their ability to raise pay. According to People’s Pension, these competing pressures make non-pay interventions such as financial education particularly important.

Employer responsibility and strategic messaging

Reid underlined the employer role in explaining the value of employer contributions and suggested timing messages around pay reviews and major life events to keep saving on course. "What this research highlights is that affordability and understanding are closely linked. Even short breaks or reductions in pension contributions can have a disproportionate effect over time," he said. He added that "Workplace pensions remain one of the most effective ways to support long-term financial security, but engagement can’t be taken for granted. Employers can make a real difference by clearly explaining the value of employer contributions."

Maintaining contributions for future security

The paper notes that with the current auto-enrolment minimum widely seen as insufficient to deliver many savers’ expected retirement income, maintaining steady contributions is increasingly vital. Employers and advisers are being urged to combine clear communication with tailored financial wellbeing support to prevent short-term affordability problems translating into weaker retirement outcomes decades later. "Clear, consistent communication, particularly at key moments such as pay reviews or major life events, is crucial to keeping retirement saving on track," Reid said.

Total reward enables your employees to make the most of their connection to your organisation. Click here to see this year’s Reward and Payroll Summit agenda and check out the tailored sessions for making the most from your reward packages

The Reward Value Proposition

Becky Pugh — Wed, 18 Mar 2026 10:59:58 GMT

How leading organisations turn total reward into competitive advantage

For a long time, reward strategy has been treated as a numbers game. Who pays more. Who offers the biggest bonus. Who can stretch a little further when it matters. But in a world where everything can be compared, that approach is losing its power.

When salaries are visible and easily compared, the number itself becomes less distinctive. In many markets, pay bands are converging. Roles look similar on paper. Offers blur together. And suddenly, organisations find themselves competing harder for talent without any obvious way to stand out.

The organisations winning in this environment have realised something important: the strongest talent strategies don’t compete on price alone. They compete on proposition.

That’s where the Reward Value Proposition, or RVP, comes in.

What a Reward Value Proposition really is (and isn’t)

A Reward Value Proposition is often misunderstood. It’s not a longer benefits list. It’s not a glossy summary of perks. And it’s definitely not a rebrand of total reward.

An RVP is a clear, coherent story about what people receive in return for the contribution they make. Financially, professionally and personally. It brings together pay, benefits, culture, growth and experience into a single narrative that answers one fundamental question: why is this a good place for me to work? Where many organisations fall short is treating these elements in isolation. Pay sits with one team. Benefits with another. Culture lives somewhere else entirely. Employees, meanwhile, experience all of it as one joined-up reality.

A strong RVP reflects that reality. It connects the dots. It shows how the different elements reinforce each other. And it makes value easier to understand, explain and believe.

From transactional reward to meaningful value

Traditional reward communication is transactional by nature. Here’s your salary. Here’s your bonus. Here’s a list of benefits. It tells people what they get, but not what it means.

An effective RVP changes the conversation. It moves reward out of the transactional space and into something more human. It shows how reward supports people’s lives today and their ambitions for tomorrow. That shift matters more than ever. Candidates are no longer just comparing numbers. They’re looking for context. They want to understand how a role fits into their life, how they’ll grow, and what kind of experience they’re signing up for. Employees are asking similar questions as they decide whether to stay, stretch or move on.

A strong RVP helps answer those questions clearly and confidently. It provides language people can use. It gives managers a framework for better conversations. And it reduces the gap between expectation and reality. This isn’t about overselling. It’s about clarity.

Why RVPs create advantage in competitive markets

In highly competitive talent markets, differentiation is everything. When organisations articulate reward clearly, several things start to happen. Candidates make more informed choices. They self-select more effectively. That improves quality of hire and reduces early attrition. Employees understand their value better, which strengthens engagement and trust. Employer brand becomes sharper because the story is consistent across touchpoints.

Perhaps most importantly, organisations stop relying on salary as the only lever they can pull. A well-defined RVP allows you to compete on strengths you already have. Flexibility. Progression. Stability. Purpose. Culture. Autonomy. These are powerful differentiators when they’re explained properly. And unlike pay, they’re much harder for competitors to copy.

Beyond attraction: where an RVP really earns its keep

One of the biggest mistakes organisations make is treating the RVP as a recruitment tool. Yes, it plays a crucial role in attraction. But its real value is unlocked when it’s lived across the employee experience.

A strong RVP should show up in onboarding, helping new joiners understand what to expect and what’s expected of them. It should inform promotion and progression conversations, giving clarity on what growth really looks like. It should be reinforced through recognition, performance discussions and everyday manager interactions.

When the RVP is consistently activated, reward stops being something that’s “explained once a year” and starts becoming part of how the organisation operates. That consistency is what builds credibility. And credibility is what turns a good story into a believable one.

Organisations that invest in a Reward Value Proposition signal something important about how they view people. They understand that reward is about more than compensation. They recognise that clarity builds trust. And they care enough about experience to explain it properly.

In a transparent market, this matters. When the number is visible, people look for meaning. When options look similar, they choose based on understanding.

The future of talent attraction doesn’t belong to organisations with the biggest budgets. It belongs to those who can tell the fullest, most honest story about what working there really means.

That’s the real competitive advantage.

Ensure you’re providing the most with your RVP! Its you’re last chance to sign up for our PRIS on Thursday the 19th. Click here to check out Reward packages for your future workforce

Transforming employee retention strategies for the modern workforce

Reward Strategy — Wed, 18 Mar 2026 08:24:00 GMT

Organisations are adopting data-driven retention strategies focused on career development, feedback, flexibility, and recognition to keep employees engaged.

If your employee retention approach was built several years ago, it is likely due a comprehensive refresh to reflect how work and worker expectations have changed. Recent guidance from HR practitioners and industry commentators stresses that pay and occasional remote days no longer suffice; organisations need transparent reward practices, continuous feedback, visible career pathways and genuine attention to employee wellbeing to hold on to talent. According to sector commentary, investing in learning, internal mobility and recognition are central to that shift.

Personalised Career Development

One of the clearest signals from contemporary workforce analysis is that career development must be personalised. Employers are urged to prioritise skills-based development, tailored learning journeys and reskilling pathways so employees can see a bespoke route to progression rather than generic training menus. Designers of retention programmes should favour flexible learning budgets and role-agnostic upskilling to retain people as their skills evolve.

Mentoring and Peer Learning

Mentoring and structured peer learning remain powerful levers when they are deliberately organised rather than left to chance. Platforms and programmes that pair colleagues for mentorship, knowledge exchange and informal coaching create repeatable pathways for development and embed organisational values through relationships, not just top-down comms. Practitioners report that systematic matching and facilitated touchpoints increase engagement and the likelihood that employees will stay.

Continuous and Forward-Looking Performance Reviews

Traditional annual performance appraisals are proving inadequate; experts recommend reworking reviews into more frequent, forward-looking conversations that combine self-reflection, multi-rater input and actionable next steps. A forward-focused review cycle helps reduce recency bias, surfaces development needs earlier and ties appraisal outcomes to clear career steps, improving both fairness and retention. Continuous feedback cultures, supported by structured check-ins, have been associated with lower turnover.

Internal Mobility and Visible Career Pathways

To convert development into retention, employers must make internal progression visible and credible. Encouraging internal mobility, articulating stepping-stone roles and investing in leadership development for existing staff give employees realistic paths to promotion within the organisation rather than outside it. HR guidance highlights that clear promotion frameworks and training for managers on career conversations are essential to keep high performers.

Flexible Work and Employee Wellbeing

Workplace flexibility and wellbeing remain non-negotiable components of a contemporary retention strategy. Offering hybrid options, flexible hours and benefits that can be tailored to individual circumstances increases job satisfaction, while proactive wellbeing support , from mental-health resources to manager-led protections around time off , reduces burnout and the drift toward quiet disengagement. Surveys show that flexibility is a primary reason many employees choose to remain in their roles.

Purpose and Recognition

Purpose and recognition provide the emotional glue that links day-to-day tasks to longer-term commitment. Younger cohorts, in particular, prioritise meaningful work and want to feel their contributions matter; formal recognition programmes and team-level goals that tie tasks to a broader mission significantly lower voluntary turnover. Employers are encouraged to embed recognition into workflows so appreciation becomes routine rather than episodic.

Data, Transparency and People Analytics

Data and transparency bolster the other efforts. Using people analytics to flag flight risks, monitor tenure patterns and evaluate the equity of pay decisions allows early interventions. Likewise, clearer disclosure about pay structures and promotion criteria builds trust and reduces speculation that can undermine retention. Integrating real-time feedback tools helps managers correct course quickly and supports timely interventions before dissatisfaction escalates.

The Role of HR Technology

Technology vendors are positioning integrated performance and people-analytics suites as turnkey enablers of these practices, offering functionality for continuous feedback, 360-degree reviews, mentoring matching and turnover prediction. Companies should treat vendor claims with editorial distance, assessing whether a platform’s features genuinely map to their cultural needs and budget. When chosen and configured thoughtfully, such tools can make a previously reactive retention approach proactive and measurable.

Make the most of your reward strategies and ensure they are future proof by learning from though leaders! Click here to check out this week’s PRIS: Reward packages for your future workforce.

UK employment law overhaul in 2026

Reward Strategy — Tue, 17 Mar 2026 12:21:01 GMT

UK employers should update policies and train managers ahead of the Employment Rights Act 2025, bringing new rules on dismissal, flexible work, harassment and sick pay.

Employers face a fast-moving employment landscape in 2026 and cannot afford to treat the year as a pause before new rules take effect. According to Acas, the Employment Rights Act 2025 received Royal Assent and its provisions will be rolled out in stages through 2026 and 2027, creating a sequence of duties and timelines that firms need to assimilate now.

Broad Workplace Impact

The legal overhaul will touch wide areas of workplace practice: changes include earlier protection from unfair dismissal, reforms to flexible working, extensions to tribunal time limits and heightened duties on harassment prevention, among other measures that will alter employers’ responsibilities. Acas has signalled it will publish guidance and codes to support implementation.

The Risk of Waiting

For many organisations, the practical gap between announcement and enforcement is where risk grows. Employers who wait for commencement dates rather than updating day-to-day processes risk inconsistent decision-making by line managers and reactive, last-minute fixes when statutory changes bite. Acas has emphasised both the scale of the reforms and the need for employers and workers to prepare collaboratively.

Key Changes Coming in October 2026

Some of the Act’s most consequential provisions will start in October 2026, including an extended six-month window for most tribunal claims and a strengthened duty requiring employers to take “all reasonable steps” to prevent sexual harassment, plus potential liability for harassment by third parties. Legal advisers warn these duties will be onerous and likely to require substantive policy, training and process updates.

Stronger Expectations Around Flexible Working

Flexible working is another area where statutory expectations are shifting. Employers will need to treat requests with greater formality, consult with employees and reach timely, reasoned decisions; Acas guidance already sets out operational standards that go beyond informal practice, signalling that casual or inconsistent handling will be risky.

Absence Management as a Strategic Issue

Absence has moved from administrative record-keeping to a strategic people issue. Survey and sector data show sickness absence has risen in recent years, and both employers and workers view changes to statutory sick pay as among the most impactful measures in the new Act; Acas polling highlights sick pay and unfair dismissal protections as top concerns. Employers should therefore treat absence management as an early-warning system for workload, wellbeing and managerial issues.

The Role of Manager Training

Improving manager capability is central to reducing legal and cultural risk. Policies alone will not prevent disputed outcomes if managers lack training to hold fair, consistent conversations about performance, absence, flexible working and conduct. Legal commentary notes that the extended obligations under the Act increase the expectation that employers demonstrate meaningful, documented steps were taken.

Preparing Ahead of Implementation

There is a clear advantage to acting ahead of statutory commencement. Organisations that refresh policies, embed clear processes, invest in manager training and build harassment-prevention systems now will be better placed to meet the tougher statutory tests and avoid rushed compliance exercises.

“This is a once-in-a-generation change to employment law in Britain and an opportunity for employers and workers to work together to bring all workplace relations up to the standard of current best practice, and help businesses thrive and improve working lives.”

Acas Chief Executive.

Employment law changes can rapidly and leave you out of compliance. This years Reward and Payroll Summit makes sure you’re informed! Click here to check out Jeni Morris’ session on What’s Changed & What’s Coming.

How a shift to skills-first recruitment is shaping the future of hiring

Reward Strategy — Tue, 17 Mar 2026 12:20:41 GMT

Organisations are reshaping hiring by focusing on skills, using AI responsibly, and promoting collaboration to attract and retain diverse talent in a changing labour market.

Hiring practices are undergoing a structural shift as organisations recalibrate how they find, evaluate and retain talent, moving away from credential-focused methods toward approaches that prioritise demonstrable ability, inclusivity and cross-functional decision-making. According to Brookings Institution analysis, a skills-first strategy combined with selective technology adoption can deliver more precise matches between candidates and roles while widening access to diverse pools of applicants.

Competency-Based Assessment

Employers increasingly favour competency-based assessment over traditional academic pedigree, using practical tasks, portfolios and simulations to evaluate technical and interpersonal capabilities. Industry commentary suggests this not only improves fit for specific roles but also reduces time spent on administrative credential checks, opening opportunities for candidates from non‑traditional backgrounds.

AI’s Growing Role in Recruitment

Artificial intelligence is reshaping early-stage recruitment by accelerating resume screening, personalising outreach and automating routine assessments. Analysts note that AI can scale candidate triage and tailor experiences at volume, though experts warn firms must guard against opaque algorithms and ensure tools are audited to avoid reproducing bias. According to recruitment-technology reporting, the most effective implementations pair AI with human oversight to preserve judgement on cultural fit and complex role requirements.

Remote Work and Changing Skill Priorities

The normalisation of remote and hybrid working has redefined the skillset employers prize, elevating digital collaboration, virtual communication and self-management alongside domain expertise. Observers argue that distributed hiring widens geographic reach and supports inclusion, while also requiring investments in cloud‑based interviewing, onboarding and performance tools to integrate new hires effectively.

Internal Mobility and Reskilling

Firms are also ramping up internal mobility and reskilling programmes to retain institutional knowledge and reduce turnover costs. Reporting from talent-acquisition specialists shows companies with clear pathways for lateral and upward moves tend to record higher engagement and longer tenure, particularly when such programmes are paired with ongoing training and transparent promotion criteria.

Embedding Diversity and Pay Transparency

Diversity, equity and inclusion practices are being woven through recruitment workflows, with blind screening, structured interview rubrics and metric-driven accountability used to surface and correct disparities. At the same time, pay transparency is becoming mainstream: industry coverage notes a growing number of vacancies now publish salary ranges, influenced by regulatory developments and candidate expectations, which helps set clearer negotiating baselines and can reduce wage gaps.

Collaborative Hiring Models

Collaborative recruitment, bringing hiring managers, future teammates and HR into a unified process, aims to balance technical assessment, cultural fit and operational needs. Practical steps commonly recommended include forming multi-stakeholder hiring panels, standardising evaluation rubrics, training participants in bias reduction and adopting shared digital platforms for feedback. Recruitment specialists emphasise that technology should support collaboration rather than replace the collective judgment that determines long‑term success.

Competing for Talent in a Changing Market

Organisations that integrate skills-based evaluation, accountable AI use, flexible work models, proactive internal mobility and transparent pay practices while embedding cross-departmental collaboration are positioned to compete more effectively in talent markets. According to forecasts of recruiting trends for 2026, the employers that combine these elements with clear governance and candidate-centred processes will be best placed to attract and retain a diverse, productive workforce.

DEI concerns your entire organisation, and keeping up with the latest changes and updates is key to success. Click here to visit the knowledge Hub and ensure you are current.

From Silence to Strategy: The Business Case for Menopause Support

Liz Lay — Tue, 17 Mar 2026 12:22:14 GMT

In smaller organisations, the absence of even one experienced employee can significantly affect productivity and morale.

Smaller employers often have advantages of closer relationships, faster decision-making, and greater agility in tailoring support.

Proactive menopause support can:

Reduce sickness absence
Improve retention
Preserve institutional knowledge
Strengthen employer brand
Support recruitment

Creating a menopause-positive workplace fosters loyalty and reduces the risk of losing highly skilled, experienced employees at the peak of their contribution.

The Business Case for Proactive Support

Research consistently shows that approximately 1 in 10 women leave their jobs due to menopause symptoms and 8 out of 10 women say their employer hasn’t put in place a menopause absence policy, trained staff, or shared information where policies are in place.

When employers provide structured support, benefits include:

Higher engagement
Reduced absenteeism
Improved performance
Lower recruitment and training costs
Reduced risk of tribunal claims

A recent case involving Lucie Walker and Swann Engineering Group highlighted how encouraging open conversations alone is insufficient without proper managerial training and empathetic implementation.

Organisations that foster inclusive cultures attract broader talent pools and build stronger reputations. When employees can bring their whole selves to work, performance and commitment follow.

NHS Well Woman Health Check: A Step Toward Early Recognition

The introduction of menopause-related questions into the NHS Well Woman Health Check represents an important step toward earlier recognition of menopause and related conversation.

In theory, this allows practitioners to connect symptoms to life stage rather than treating them in isolation. In practice, effectiveness will depend heavily on training and clinical confidence, as without sufficient menopause education, questions risk becoming procedural rather than meaningful.

Ther are some GP practices already offering menopause awareness sessions to patients, which is encouraging.
Some symptoms experienced by women can often be treated in isolation when in fact they may be related to menopause. Heavy bleeding being one example. This creates an important consideration for employers offering private health insurance, as it will be prudent to understand whether symptoms that later receive a menopause related diagnosis could be excluded because of being deemed pre-existing. Without a menopause informed approach women may face gaps in access to timely treatment with employer’s unintentionally undermining the very support their benefits are intended to provide.

Female-Specific Testosterone: A UK First

For the first time, last year the Medicines and Healthcare products Regulatory Agency (MHRA) approved a female-specific testosterone formulation developed for use in the UK.

Women currently are being prescribed male-formulated products with adjusted dosage. A task that can be difficult, imprecise, and anxiety-inducing, leading to difficulty in being prescribed testosterone at all.

NHS prescribing is typically limited to women reporting a complete loss of libido. However, many women report additional benefits, including improvements in energy, cognitive clarity, and overall wellbeing as part of holistic hormone treatment. There is however a current lack of research to support this observation.

A licenced version of the new formulation is expected to be available this year and accessible via private clinics. NHS availability will be dependent on a National Institute for Health and Care Excellent (NICE) appraisal. If approval is given, its real-world impact will depend on access, prescribing confidence, and consistency across primary care.

It would again be prudent for employer’s offering private health care to understand if the scheme provided covers this type of menopause support.

From Policy to Practice: Avoiding the Tick-Box Trap

Legislation doesn’t automatically translate into lived experience.

Policies can exist without being embedded. Questions can be asked without being explored. Treatments can be developed without being accessible.

By taking proactive steps now, regardless of organisational size, employers can enhance wellbeing, reduce absence, and build a more resilient, inclusive workforce. The time to act is now, ensuring that menopause is no longer a silent struggle but a shared journey towards better workplace health and equality.

The gap between intention and implementation is where many women will continue to fall through the cracks.

Meaningful change requires:

Leadership buy-in
Ongoing education
Accountability
Cultural shift
Curiosity about lived experiences

Menopause support needs to be integrated into wellbeing strategy, not treated as a one-off initiative.

Conclusion: Early Action Creates Lasting Impact

The Employment Rights Act 2025 represents structural change. While menopause action plans will become mandatory for larger organisations, every employer has an opportunity and a responsibility to lead.

By acting now, organisations can benefit from:

Enhanced wellbeing
Reduced absence
Retaining experienced talent
Strengthening of equality outcomes
Building resilient, inclusive workplaces

Menopause doesn’t need more boxes ticked. It needs to be understood.

Senior leadership development strategic priority for organisational success

Reward Strategy — Sun, 15 Mar 2026 14:43:00 GMT

Experts say organisations must invest in ongoing senior-team development, aligned with strategy and supported by emotional intelligence.

Organisations aiming to raise their leadership capability must treat senior-team development as an ongoing strategic priority rather than a one-off intervention. According to the Center for Creative Leadership, tightly aligned executive groups can sharpen strategy execution and improve culture and performance, but many firms struggle with misalignment and siloed decision-making that undermine those benefits. Industry analyses also show that targeted leadership investment drives measurable gains in productivity and innovation, making continuous development a business imperative.

Executive teams missing out on development

Despite that, it is common for boards and chief executives to look outward for development for middle managers while neglecting the executive team itself. Senior programmes are frequently sidelined because of heavy workloads and immediate operational pressures, yet executive-level education and coaching accelerate readiness for complex, system-wide choices. Practical senior leadership initiatives also broaden networks and expose leaders to the perspectives and skills required at the top of organisations.

Emotional intelligence in leadership

Meaningful senior development emphasises self-awareness and emotional regulation as much as technical competence. Recent research into emotional intelligence finds strong links between leaders’ social and emotional skills and their ability to build trust, resolve conflict and galvanise teams. Complementary guidance on leadership development highlights resilience, psychological safety and stress management as core components of programmes that produce sustained improvements in team dynamics.

Effective succession pathways

Succession planning must be more than a list of names; it needs clear pathways at every level so ambition can translate into capability. Effective approaches map learning journeys from aspiring contributors through to director and executive ranks, ensuring each phase prepares people for the next. Organisations that create linked curricula and mentorship ladders reduce disruption when roles change and cultivate a shared language and purpose across layers of the business.

The right development partners

Choosing external partners is a strategic decision: the best providers combine coaching, mentoring and formal learning into coherent, long-term offers that are aligned with organisational priorities. Data compiled by leadership researchers indicates that firms which prioritise structured development record better financial outcomes and higher retention, while specialist senior programmes can fast-track strategic thinking and board-level readiness. Embedding ongoing support rather than one-off workshops preserves momentum and helps leaders apply new behaviours under pressure.

Leading by example

“We cannot expect our leadership teams to engage in something we are not willing to do ourselves.” That admonition, offered by Yvonne Thompson, MA FCHRP MCIPD, founder and managing director for UK/EMEA, underlines a central truth: senior leaders must model the learning they demand of others if organisations are to build cohesive, resilient teams and a pipeline of capable successors.

Click here to take a look across our Reward and Payroll Summit sessions dedicated to helping you engage with your employees.

PRIS Takeaways: Cross-Border Payroll Grey Areas: Residency, Responsibility & Risk

Lukas Montgomery — Fri, 13 Mar 2026 16:16:10 GMT

Cross-border payroll is rising up the agenda as global hiring, remote work and mobile workforces increase the countries, compliance demands and stakeholders payroll must manage.

A recent Payroll and Reward Insights Series session explored where organisations are struggling today and what practitioners are seeing across the market. The conversation highlighted that while payroll itself is highly accurate, the real complexity sits in the systems, processes and organisational structures surrounding it.

Vickie Graham, Managing Director of Reward Strategy, sat down with Michael MacHale, Payments Solution Architect at UKG, and Neil McAllister, Global Payroll Sales Specialist at UKG, to pick apart the intricacies of cross-border payroll. The discussion revealed several themes around data quality, governance, technology adoption and payment innovation that are shaping the future of cross-border payroll.

Cross-border payroll challenges rarely exist in isolation

Participants were asked which area of cross-border payroll currently creates the most uncertainty in their organisations. The results reflected how interconnected these challenges are.

The spread of responses reflects the reality that cross-border payroll rarely presents a single problem. Instead, organisations often face a combination of tax, compliance, payment and operational challenges at the same time.

Payroll accuracy does not equal payroll efficiency. Payroll is frequently judged by accuracy metrics. Most providers and organisations report payroll accuracy rates of around 99%.

However, this statistic can be misleading.

Accuracy simply means employees are ultimately paid correctly. It does not reflect how much manual effort, data chasing or recalculation was required to reach that point.

A more meaningful measure of payroll performance is first-time-right (FTR), the proportion of payroll calculations completed without corrections or reprocessing. In some shared service environments, FTR rates can be significantly lower than expected. When this happens, payroll teams can spend days chasing data, correcting inputs and rerunning calculations before payroll is finalised.

This highlights a key insight: many payroll teams achieve high accuracy only through intensive manual effort.

Vendor consolidation is not the same as transformation

Another common misconception is that reducing the number of payroll vendors automatically improves efficiency.

While consolidating vendors can simplify procurement and contract management, it does not necessarily change how payroll operates day-to-day. Organisations may still be running multiple local payroll engines, each with different processes, reporting formats and data requirements.

Without standardised data structures and integrated systems, vendor consolidation can simply mask underlying complexity rather than removing it. True payroll transformation requires improvements across the entire process, from HR data capture to reporting and compliance.

Data quality remains the biggest operational risk

Throughout the discussion, one point consistently emerged: payroll can only perform as well as the data it receives.

Many inefficiencies originate outside the payroll function itself. HR systems may not contain the fields needed to support local payroll requirements, onboarding processes may bypass central systems, and time and attendance data may arrive in inconsistent formats.

Large HRIS implementations often prioritise the biggest countries and entities, while smaller markets are left operating local systems that sit outside central governance.

This fragmented approach creates data integrity risks and increases the manual work required within payroll teams.

Remote working is reshaping compliance risk

The growth of remote and mobile working has introduced new challenges for payroll compliance.

One of the most difficult issues is the disconnect between where employees are employed and where they actually perform their work. In practice, employees may live in one country, hold an employment contract in another and temporarily work from a third.

These scenarios can trigger a range of risks, including double taxation, social security liabilities and permanent establishment exposure. Managing these situations requires coordination across payroll, HR, global mobility and tax teams. Without clear governance, payroll teams may only discover the issue after it has already created compliance implications.

Confidence in cross-border compliance remains limited

Participants were also asked how confident they were that their organisation’s approach to mobile and remote workers was fully compliant.

The results suggest that many organisations recognise the risks but may not yet have a fully structured approach to managing them.

Cross-border worker compliance is complex and often sits across multiple departments, which can make ownership and accountability difficult to define.

Ownership gaps create operational failures

When cross-border payroll issues occur, the root cause is often unclear ownership.

Decisions about international assignments or remote working arrangements may happen within HR, line management or mobility teams without full visibility for payroll. Payroll then becomes responsible for implementing changes that have already been agreed elsewhere in the business.

This can result in late payroll registrations, incorrect withholding, misaligned social security contributions and retrospective payroll corrections. Effective governance requires clearer collaboration between payroll, HR, finance, tax and global mobility functions.

Technology still requires human oversight

The conversation also addressed the growing interest in automation and artificial intelligence within payroll.

While technology has advanced significantly in recent years, there remains a misconception that it can solve payroll challenges independently.

Automation can improve efficiency by identifying anomalies, reducing manual calculations and improving reporting capabilities. However, payroll remains a compliance-driven function where human judgement and oversight remain critical.

Technology can support payroll professionals, but it cannot replace the need for strong processes, reliable data and experienced practitioners.

Payment innovation is evolving

The discussion also explored how emerging payment technologies may influence cross-border payroll in the future.

Employees increasingly expect fast, flexible and digital payment options. Innovations such as instant payments, digital wallets and cryptocurrency-based payments are beginning to appear in payroll discussions. However, adoption remains uneven. Regulatory frameworks differ widely between countries and the tax treatment of digital assets is still evolving.

For many employees, the most important factor remains consistency. As long as salary arrives reliably on the agreed date, the underlying payment method is often less important.

Payment challenges remain operational rather than technical

Participants were also asked about the biggest challenges when paying workers across borders.

The results suggest that operational complexity within organisations is often a bigger barrier than the payment technology itself. Internal approval chains, treasury processes and fragmented payment responsibilities can create delays and operational risk.

Start with internal clarity

One of the most practical conclusions from the session was the importance of understanding current processes before introducing new solutions. Organisations often look to technology or outsourcing to solve payroll challenges. However, without a clear view of how payroll currently operates, new solutions can introduce additional complexity.

The most effective approach begins with an honest assessment of current processes, pain points and responsibilities. Local teams should be involved early in discussions about any new payroll or payment solutions to ensure that proposed changes are practical and sustainable.

In many cases, the best approach is not a single global model but a combination of solutions tailored to different countries and organisational needs.

Ensure you don’t miss our next PRIS session. Click here to check out our PRIS dedicated to Reward packages for your future workforce

AI-driven workforce forecasting disrupts traditional talent planning

Reward Strategy — Fri, 13 Mar 2026 16:18:08 GMT

AI-powered predictive analytics are helping organisations anticipate shifting skill demands and automation impacts, enabling real-time workforce decisions and greater agility.

Most organisations struggle to answer the simple question of what their workforce will look like in five years because the assumptions that underpinned traditional planning are breaking down. According to UCtoday, shifting skill requirements, the uncertain impact of automation and the uneven adoption of AI tools mean leaders can no longer treat headcount as a reliable proxy for capability.

Legacy forecasting falls short

The limits of legacy forecasting are practical as well as conceptual. Historically driven models assume smooth demand curves and fast organisational responses; in reality, data is fragmented across HRIS, ATS, scheduling and finance systems, plans refresh too slowly and parallel “shadow” tools create competing versions of the truth. Industry analysis shows that without a unified sensing layer these problems produce stale assumptions and hidden skills bottlenecks.

Changing the cycle

AI and predictive HR analytics do not promise certainty, but they reshape the cycle of sensing, modelling and action so organisations can make decisions before capacity breaks. Vendors and case studies demonstrate that advanced algorithms can ingest large volumes of operational and market data to deliver near‑real‑time adjustments, reducing wage waste and overtime by aligning staffing to demand. According to HRStacks, this is where cost optimisation and operational agility are most evident.

The sensing layer

A practical workforce forecasting system starts with a disciplined sensing layer that watches the right signals: business demand (pipeline, backlog, seasonality), workforce supply (vacancy days, internal mobility, skills inventories) and human friction (overtime, manager load, experience signals). Healthcare and other sectors provide concrete examples: Houston Methodist and Mayo Clinic have used predictive scheduling to reduce last‑minute changes and better match staffing to patient volumes. These implementations underline the value of combining operational and employee‑experience data.

Signals into workforce scenarios

Modelling must then translate those signals into usable scenarios segmented by role family, location and channel. Rather than asking for “40 more people,” organisations should quantify capability needs in skill clusters, ramp times and proficiency levels, then run base, upside and downside scenarios with pre‑agreed trigger actions. Analysts emphasise that models perform best when they forecast tight slices of work rather than an undifferentiated workforce.

Forecasts and operational playbooks

The output of modelling must tie directly to operational playbooks. Effective systems convert forecasts into ownership, actions and workflows, redeploy internal talent first, reskill to remove bottlenecks, optimise schedules and route work before hiring, and use contingent labour for short spikes. Firms that have linked forecasts to execution report measurable savings and faster response times; vendors such as Workday and specialist WFM providers offer scenario simulation and operational integration to support these moves.

Governance, data quality and transparency

Governance and explainability are critical safeguards. Predictive tools must surface data integrity issues, provide human‑readable explanations for forecast shifts and create sanctioned channels for experimentation to prevent “secret models” from fragmenting decision‑making. The AIHR Institute and HRStacks both highlight data quality, integration and transparency as leading adoption barriers that governance can address.

Continuous loop learning

Finally, a learning loop keeps forecasting honest: measure forecast error by role and location, track time‑to‑detect shifts, monitor vacancy days, overtime and internal fill rates, and audit override and workaround volumes to surface trust issues. When organisations shorten review cadences and focus on a small set of action‑linked metrics, predictive models become decision support rather than confidence machines. Practitioners and vendor guides agree that the real gain from AI is not perfect prediction but faster detection, clearer triggers and disciplined execution.

Ai is evolving our organisations. Click here to keep up to date with the latest in technological changes by visiting our Knowledge Hub

Britain’s largest companies show modest progress in ethnic diversity on boards

Reward Strategy — Wed, 11 Mar 2026 15:13:06 GMT

Ethnic representation in UK corporate leadership is improving slowly, but campaigners say deeper change still requires stronger action and accountability.

The Parker Review’s latest assessment finds that Britain’s largest companies have made measurable gains in ethnic diversity at board level, but that those improvements fall short of the systemic change campaigners and policymakers say is required. Business Secretary Peter Kyle welcomed the findings, saying: "I welcome the progress shown in this report , but progress is not the finish line. There is more to do to ensure our boardrooms truly reflect the talent and diversity of modern Britain, and I look forward to the Parker Review continuing to drive fairer representation into the future." According to The Independent, the review reports that ethnic minorities now occupy roughly one in five seats on FTSE 100 boards, a notable increase from earlier years.

Goals of the review

The Parker Review traces its origins to a 2016 examination of boardroom composition that warned the leadership of Britain’s biggest companies was overwhelmingly white and urged firms to appoint at least one non-white director to every FTSE 100 board by 2021 and to FTSE 250 boards by 2024. Government materials at launch emphasised that greater ethnic representation was intended to strengthen governance and ensure boards reflect the country they serve. The long-term target framework established by that review remains the yardstick against which recent progress is judged.

Uneven representation

Beneath the headline figures, the review exposes more complex dynamics. Industry reporting highlights a fall in Black representation at both board and senior management levels even as overall ethnic-minority numbers rise, a pattern that has prompted calls for targeted action rather than blanket metrics. The Independent notes concern that while headline percentages improve, particular communities remain underrepresented and vulnerable to backsliding.

Changing corporate approaches

The report also arrives in a context where companies are recalibrating how openly they set and promote diversity targets. The Evening Standard has reported that some UK firms have been less vocal about public targets amid external pressure, notably from investors in the United States who have pushed back against certain types of mandates. Despite quieter signalling, the review recorded increases in senior ethnic-minority appointments, including a small rise in the number of FTSE 100 chief executives from minority backgrounds by the end of 2024.

Lessons from gender diversity

Gender diversity work offers a useful comparator: government-backed monitoring of women in leadership shows steady gains on boards, with women holding a significantly larger share of FTSE 350 board positions, yet female representation at the very top remains scarce. Reporting from the Evening Standard underlines that progress on composition can mask persistent gaps in executive roles, a lesson the Parker Review applies to ethnic diversity as well , board presence does not automatically translate into broader senior management inclusion.

The next phase

Campaigners and some corporate leaders say the next phase should prioritise clearer accountability, specialist development pipelines and transparent measurement of progress across executive ranks if the UK is to meet its medium-term aims. The Parker Review’s authors and government officials alike stress that the recent gains are encouraging but incomplete, signalling that policy, board-level commitment and sustained recruiting and retention strategies will be essential to convert current momentum into enduring change.

Ensure you are up to date and at the forefront of DEI. Click here to visit our Knowledge Hub

Spring Statement 2026: Subdued growth and rising tax burden amidst fiscal stabilisation

Reward Strategy — Wed, 11 Mar 2026 15:12:48 GMT

The Spring Statement 2026 offered few immediate tax surprises but painted a clearer picture of where the public finances and the wider economy are heading over the coming years, with implications that matter more in aggregate than as single-policy changes.

The Office for Budget Responsibility now expects UK output to expand only modestly next year, with growth of about 1.1% in 2026 and a gradual pickup to roughly 1.5–1.6% later in the forecast period, signalling a steady but subdued expansion rather than a rapid recovery. According to the government’s Spring Forecast, the Chancellor framed these figures as part of a plan to reduce the cost of living and lower national debt amid global uncertainty.

Inflation and price pressures

Inflation is projected to ease further, averaging around 2.3% in 2026 and returning to the Bank of England’s 2% target from 2027, a path that should relieve some pressure on household budgets even as prices remain above pre‑pandemic levels. Analysts have emphasised that lower inflation means slower price rises rather than price falls.

Public borrowing

Public borrowing is forecast to fall over the coming years, with the Spring Forecast showing an improvement versus earlier projections and an increase in fiscal headroom, yet public sector net debt is expected to remain elevated and sensitive to shifts in interest rates and growth. The government points to a near‑term reduction in borrowing of around £18 billion compared with the previous outlook.

Fiscal drag

The overall tax take is expected to rise materially through the decade, driven largely by frozen thresholds and fiscal drag; the OBR’s numbers imply the tax burden will approach historic highs by 2030/31. That combination means many households and small businesses will see a greater share of income absorbed by tax unless thresholds are re‑indexed.

Labour market outlook

Labour market indicators point to some softening: unemployment is now forecast to peak at about 5.3% in 2026 before easing, reflecting weaker hiring demand and particular difficulties for new entrants to the workforce. The CBI has warned that subdued hiring will constrain wage pressures and investment decisions in the near term.

Implications for households

For households the message is one of relative stability rather than immediate relief: borrowing costs may ease from recent peaks, wage growth is expected to remain positive in real terms but modest, and the combined effect of inflation falling and tax thresholds frozen will limit the boost to take‑home pay from nominal pay rises. Financial planners recommend checking mortgage exposure and stress‑testing budgets for higher rates or slower income growth.

Implications for businesses

Businesses face a similar set of constraints. With growth modest and borrowing costs higher than in the previous decade, resilience will come from rigorous cashflow management, cautious capital allocation and robust financial controls. Industry briefing from the CBI highlights that firms should prepare for a softer labour market and a policy environment where tax receipts help underpin the public finances.

Policy direction

Taken together the Spring Statement underlines a policy trajectory focused on stabilising the public finances while navigating geopolitical and economic uncertainty; it is less a package of immediate reforms than a set of forecasts that should prompt households and companies to review plans and assumptions sooner rather than later.

To keep up to date with the latest changes and updates in legislation and compliance, click here to visit our Knowledge Hub

How Organisations Can Lead the Way in Supporting Employees Experiencing Menopause

Liz Lay — Thu, 12 Mar 2026 09:21:20 GMT

By 2030, an estimated 1.2 billion women worldwide will be experiencing menopause with many at the height of their careers accounting for 11% of the G7 workforce constituting the fastest growing group in the workforce.

Menopause most commonly occurs between the ages of 44 and 55, with the average age in the UK being 51. Early menopause occurs between 40 and 44, while Premature Ovarian Insufficiency (POI) refers to menopause before the age of 40. Additionally, perimenopause can happen on average 3 to 8 years before the final menstrual period, but symptoms can be experienced for between 2 to 15 years, meaning some women may experience symptoms in their mid-to-late 30s.

Menopause may also occur surgically following procedures such as cancer, or hysterectomy with removal of the ovaries. Surgical menopause often results in a more sudden onset of symptoms due to the abrupt hormonal change.

Despite the scale of impact, menopause has historically been treated as a private matter rather than a workplace issue, with many women keeping symptoms to themselves for fear of repercussions within the workplace. For many organisations, this has led to limited awareness, inconsistent support, and a lack of open dialogue. As much as women do keep symptoms to themselves, menopause doesn’t affect them in isolation, it impacts their families, friends, colleagues, teams, and managers.

With the recent legislative changes, notably the Employment Rights Act 2025, a turning point is coming about in how employers will be expected to address menopause at work, as for the first time, menopause is being formally acknowledged as a workplace issue, not a personal inconvenience to be managed quietly.

Legislative Change: The Employment Rights Act 2025

A landmark development, the Employment Rights Bill, received Royal Assent on 18 December 2025, becoming the Employment Rights Act 2025, with menopause being formally recognised within workplace equality legislation as a structural workplace issue, included under:

Part 2 ‘Duties of employer’s relating to equality’

Section 33 ‘Equality action plans’

78A – Equality Action plans

(4) Accordingly, matters related to gender equality include—

(b) supporting employees going through the menopause.

This formal recognition signals that menopause support is no longer optional best practice, it’s part of advancing equality of opportunity between male and female employees.

Mandatory Menopause Action Plans: Large Organisations

This means that for organisations with 250 or more employees’ implementation of a menopause action plan will be required by April 2027, although a plan can be introduced voluntarily from April 2026 for those organisations who don’t already have a menopause action plan in place.

Employers will be required to publish prescribed information relating to the plan showing the steps that are being taken in relation to employees about gender equality and advancing equality of opportunity between male and female employees. This requirement is intended to ensure that larger employers actively recognise and address the challenges faced by menopausal employees, setting a new standard for workplace wellbeing.

The Bill’s passage into law signals a broader cultural shift, as by mandating action from larger organisations employers of all sizes are being encouraged to review their current practices.

When developing or reviewing an action plan it will be important to recognise that every menopause experience is different, with some experiences differing significantly. Influencing factors include culture, ethnicity, lifestyle, nutrition, stress levels, relationships, and existing health conditions. Action plans will therefore need to be flexible, personalised, and regularly reviewed.

Practical Steps for Employers

1. Assessment

Review any existing policies, workplace culture, absence data, and employee feedback to identify gaps.

2. Policy Development

Introduce or update menopause-specific guidance, including:

Flexible working options
Workplace adjustments, e.g. temperature and uniform
Access to private rest spaces
Adjustments to workload or performance expectations where appropriate

3. Training & Awareness

Equip managers, leaders, and HR teams with the knowledge and confidence to have empathetic, informed conversations. Consider safe learning environments, including optional men-only or women-only sessions where appropriate.

4. Communication

Encourage open dialogue without stigma. Language matters as normalising menopause reduces isolation.

5. Monitoring & Review

Set measurable outcomes and revisit plans at least annually to ensure relevance and impact.

Failure to engage meaningfully may expose organisations to reputational damage, grievances, and potential legal claims.

Ensure your organisation is up to date with the latest in DEI. Click here to visit our Knowledge Hub.

The State of Total Reward in 2026: Strategy, Stagnation and the New Frontier of Value

Lewis Roskilly — Mon, 09 Mar 2026 10:51:00 GMT

Total Reward is sitting at a fascinating and frankly uncomfortable inflexion point.

On the surface, many organisations report that pay strategies feel “stable”. Median pay increases are modest, budgets are constrained, and economic chatter leans toward stagnation. But like anything that feels stable, what we’re really witnessing is the accumulation of hidden pressures. These pressures are reshaping how employers design and communicate reward, how workers perceive value, and ultimately how organisations retain and motivate their people.

In this piece, I want to explore the real strategic battlegrounds in play, not the textbook definitions, but the lived tensions Reward professionals are wrestling with today and where the frontier actually lies.

From Pay-Centric to Value-Centric Reward

Historically, Reward has been anchored around pay increases. We are currently in an environment where median increases sit around the low single digits, yet employee expectations remain high, and what’s emerging is a fundamental shift:

Total Reward is no longer defined by how much we pay but by how clearly, we demonstrate value.

This mirrors broader shifts in workforce psychology. Employees aren’t just comparing salaries, they’re comparing experiences, outcomes and meaning. They’re asking:

“Is my reward package fair and transparent?”
"Does it recognise what I value at this stage of my life?”
“Does it show a clear connection to performance and opportunity?”

Reward now needs to satisfy both head (equity, fairness, clarity) and heart (meaning, relevance, personal value).

Why Traditional Pay Structures Are Losing Pull

In conversations with Reward leaders, two patterns have become apparent:

Base pay still opens the door. It’s the entry ticket.
The retention hinge is in the totality of value.

Modest pay uplift cycles, especially when budgets are absorbed by National Insurance and minimum wage increases, have made it impossible for pay alone to act as the retention it once was. This is why we’re seeing a more sophisticated mix of reward controls:

Recognition and performance differentiation replacing across-the-board increases as the core driver of engagement.
Equity and share-linked reward (especially in growth or listed companies) to align individual and organisational success.
Flexible benefits boutique models that allow personalisation without fracturing governance.
Financial wellbeing support being elevated to a foundational part of the compensation conversation.

This becomes reward innovation that’s responding to rising expectations and economic constraints.

Personalisation: The Strategic Imperative

One of the clearest trends accelerating is the move toward choice and control within reward frameworks. This doesn’t mean creating chaos; it means building structured choice. A value proposition with optionality layered on top.

Examples of this in practice include:

Flexible benefit “credit banks” employees can allocate to what matters most to them (health care, family support, learning, wellbeing).
Multiple reward pathways that recognise both individual achievement and collective contribution.
Career reward modelling that links skills progression to pay, rather than just tenure.

Communication behind these models has become as critical as the design itself. Without clear narratives explaining “why this matters to you,” personalised offerings are just bells and whistles.

Reward Governance: From Reactive to Generative

Too many organisations still operate Reward functions as response teams. Fixing one-off issues, reacting to press reports, or shifting structures when employee complaints surface. That model increases longer-term risk:

Pay compression hidden by annual cycles
Internal inequality exposed by transparency mandates
Unintended signals sent by ad hoc retention bonuses

With frameworks like the EU Pay Transparency Directive looming globally, the cost of reactive reward governance is poised to rise sharply and not just in legal risk, but in employer brand damage and disengagement.

The organisations I admire most right now are building reward governance that anticipates outcomes, not just compliance. They are:

Conducting more frequent salary benchmarking than once-a-year cycles.
Embedding equity checks into promotion matrices.
Creating communication plans that explain reward decisions before employees feel them.
Partnering Reward with Finance and Legal so governance isn’t an afterthought.

Reward leaders who achieve this, earn something far more valuable than compliance, they earn trust.

The Changing Executive Reward Playbook

Another shift is visible at the senior level. Exec Reward is no longer just about competitive positioning, it’s about strategic alignment.

Boards today are asking:

Does our executive comp align with our business trajectory for the next 3–5 years?
Are we attracting leaders with the skills to deliver that strategy?
Does our reward structure incentivise long-term performance rather than short-term optics?

This shift reflects a broader truth that executive reward is now a core element of organisational strategy, not a package that gets approved in isolation. And that change is rippling down the organisation.

When executive reward decisions are aligned with future capability needs and communicated in that context, it builds both internal and external confidence. When they’re not, they become lightning rods for disengagement.

Wellbeing and Financial Security: The Rising Pillars of Retention

We often talk about wellbeing as a softer territory (gym & yoga classes, mindfulness apps, physical health support but the market is telling a different story.

Financial wellbeing support is now a core reward value driver.

Employees are stressed about personal finances to a degree unseen in many markets. Reward teams that embed:

Money coaching
Budgeting support
Income protection
Clarity of pay progression

Now see measurable improvements in engagement and retention.

This isn’t fringe benefit thinking. It’s acknowledging that financial anxiety directly impacts performance, focus and loyalty.

Pay Transparency: The Next Inflexion Point

One theme that keeps surfacing and will define reward strategy for years to come is pay transparency.

Whether driven by regulation or talent expectation, transparency is forcing organisations to:

Question how pay decisions are made
Document pay criteria and outcomes
Prepare for employee access rights to pay information
Be ready to explain and defend equity outcomes

This isn’t just a compliance challenge. It’s a governance and culture challenge.

Reward strategies that build legitimacy through clear frameworks, consistent processes, and transparent communications will outpace those that treat transparency as a box-ticking exercise.

Final Thought: Reward That Works is Reward That Makes Sense

In 2026, Reward is not about bigger pay packets. It’s about making reward meaningful, predictable, fair and linked to future capability.

The organisations moving forward are those that understand:

Reward needs structure and flexibility
Governance must be proactive, not reactive
Communication must be explained before employees feel
Future leadership capability must shape reward design
Total Reward is more than compensation, it’s a trust framework

If Reward is to have the impact it deserves, we need to stop thinking in annual cycles and start thinking in human experience and strategic consequence.

That’s where the future of Reward lives, and that’s where next year’s success will be won.

Ensure your total reward package is set for the future. Click here to check out the Reward and Payroll Summit agenda to get the most out of what you already have.

PRIS Takeaways: How apprenticeships are shaping the future of Payroll & Reward

Lukas Montgomery — Fri, 06 Mar 2026 16:19:50 GMT

Recruiting and retaining payroll talent is harder due to entry- and mid-level skill shortages, while evolving technology and automation are changing the capabilities payroll teams need.

In our most recent Payroll and Reward Insights Series session, hosted by Vickie Graham, Managing Director of Reward Strategy, with Mark Bremner, CEO of MBKB, the discussion explored how apprenticeships can support payroll and reward teams to build sustainable talent pipelines and develop future capability.

Apprenticeships can provide a strategic solution to skills shortages

One of the central themes of the discussion was the role apprenticeships can play in addressing talent shortages within payroll teams. Rather than relying solely on external recruitment, apprenticeships enable organisations to develop talent internally, creating a pipeline of future payroll professionals who understand both the technical aspects of payroll and the organisation’s specific processes and systems.

Because apprenticeship programmes can be tailored to an employer’s environment, apprentices are not just learning payroll theory, they are developing skills within the context of the organisation itself. This makes them more effective contributors and supports longer-term retention.

Apprenticeships are not just for early career professionals

A common misconception is that apprenticeships are primarily designed for school leavers. However, many programmes are used to support the development of experienced employees.

During the discussion, it was highlighted that the majority of apprenticeship participants are over the age of 23, demonstrating that the model is widely used for upskilling existing employees and supporting career progression.

This makes apprenticeships particularly valuable for organisations looking to:

develop internal talent
support career transitions into payroll
prepare employees for more senior or specialist roles

Flexibility is a key strength of apprenticeship programmes

The flexibility that modern apprenticeships provide was another key aspect Mark highlighted. Training programmes can be adapted to reflect the needs of both the individual and the organisation. This may include tailoring modules to focus on specific knowledge gaps or adjusting the sequence of training to address immediate organisational priorities.

For example, if a payroll team is facing a skills gap in pensions expertise, apprenticeship modules can be prioritised to support knowledge transfer and capability building in that area.

This ability to tailor development means apprenticeships can support both immediate operational needs and longer-term workforce planning.

Off-the-job training is often misunderstood

A barrier frequently cited by employers is the perceived burden of “off-the-job training”. However, this does not necessarily mean releasing employees for full days of classroom training. In many cases, off-the-job learning can include activities such as:

work shadowing
project participation
research into new legislation or payroll processes
structured learning tasks within the role

Much of the required learning therefore occurs alongside day-to-day work, meaning the impact on productivity may be lower than employers initially expect.

AI will change payroll roles, but not replace them

Technology and AI were also discussed as part of the broader workforce conversation. While AI tools can support payroll teams through functions such as reporting, data analysis and anomaly detection, the consensus was that payroll will remain a people-centred profession.

Payroll professionals are responsible for managing highly sensitive employee data and ensuring accurate pay. Because payroll is closely linked to employee trust and wellbeing, organisations will continue to rely on skilled professionals to oversee processes and handle complex situations.

As a result, the future payroll professional will likely need strong technical, analytical and interpersonal skills, all of which can be developed through structured apprenticeship programmes.

Engagement and retention depend on how apprentices are treated

Another key message from the session was that apprenticeships deliver the most value when apprentices are treated as integral members of the team. Employers were encouraged to:

offer competitive salaries rather than the minimum apprenticeship wage
involve apprentices in team discussions and projects
maintain regular engagement with training providers
provide opportunities for feedback and development

Importantly, the apprenticeship should be viewed as a development pathway rather than a job title. The individual remains an employee, the apprenticeship simply describes the learning route they are undertaking.

Apprenticeships can help expand the payroll talent pool

Another challenge for the profession is awareness. Many potential candidates simply do not realise payroll is a career option. By promoting payroll apprenticeships through careers events, education partnerships and broader job advertisements, organisations can introduce the profession to individuals who may initially be considering roles in administration, finance or HR.

Demonstrating clear career pathways, including progression to senior leadership roles, can also help attract new talent into the profession.

The final PRIS takeaways

As payroll and reward teams navigate evolving technology and persistent skills shortages, apprenticeships provide a flexible and strategic way to build capability. By embedding apprenticeships into workforce planning and career development frameworks, organisations can develop the skills they need while strengthening engagement and retention across their payroll teams.

Encouragingly, by the end of the session all attendees indicated they would consider using apprenticeships within their teams, highlighting the growing recognition of their value within the payroll profession.

Make sure you’re up to date with the latest insights from industry leaders. Click here to see our next PRIS session on Cross-Border Payroll Grey Areas: Residency, Responsibility & Risk

Surge in employment tribunal claims worsens delays and exposes systemic flaws

Reward Strategy — Thu, 05 Mar 2026 13:08:45 GMT

The rise of AI-assisted claims is increasing access to justice but also prolonging hearing times and stressing an already strained tribunal system, raising concerns over fairness and capacity.

A surge in employment tribunal filings assisted by artificial intelligence is altering how workplace disputes are presented and is compounding delays in an already overstretched system, according to a senior south-west employment lawyer and recent industry figures. Government and tribunal statistics point to a sharp rise in open cases through 2025, and practitioners warn that AI-enabled preparation, while widening access, is lengthening resolution times and increasing pressure on judicial resources.

Improved access

Roy Magara, Solicitor Advocate and founder of Magara Law, said his practice is seeing more litigants in person arrive with claims drafted or significantly shaped by AI tools. He said: "AI is undeniably changing access to justice in the employment tribunal system." Magara added that people who would once have felt unable to pursue a claim are now more likely to bring proceedings and to challenge early decisions.

Rising backlogs, longer waits

That greater accessibility has not translated into speedier hearings. Ministry of Justice and tribunal data show average waits for a standard unfair dismissal claim have stretched beyond a year, compared with roughly 30 weeks a decade earlier, and open caseloads have climbed markedly over recent reporting periods. Industry trackers report single-claim filings jumped sharply in 2025 and the backlog rose by between 23% and 26% year-on-year in the latest counts.

Strains on resources

Tribunal judges and case officers are spending more time delimiting the real issues in disputes, practitioners say, which pushes hearings out and increases the time judges must devote to case management. Magara warned that the system’s structural weaknesses, notably under-resourcing and shortages of judicial capacity, are being exposed by the influx of claims and the changing nature of pleadings. "A process can be legally fair on paper, but if it is consistently slow, justice becomes less effective in practice," he said.

Commercial costs of delay

Delays carry real costs for both employers and employees. Employers face extended management commitments, disclosure burdens and reputational exposure, while claimants endure prolonged uncertainty, financial strain and the risk that evidence or witness availability will deteriorate over time. Legal commentators have highlighted similar concerns about longer time limits for bringing claims, noting that extending filing windows could increase filings and aggravate witness attrition unless tribunal capacity is expanded.

Over-reliance on AI

There are emerging risks around over-reliance on AI in case preparation, firms say. Magara cautioned that automated drafting can be helpful but is not a substitute for professional legal judgment and that unchecked dependence on AI may harm a claim’s prospects. He added that as AI becomes a routine feature of preparation, its outputs are likely to face more scrutiny with questions raised over accuracy, confidentiality and evidential reliability.

Legislative reforms: Will they intensify the pressure?

Pressure on the system looks set to intensify should legislative reforms proceed. Government economic analysis tied to the Employment Rights Bill estimates the proposed changes could boost tribunal activity further, with projections varying but indicating several thousand additional claims and a notable uplift in cases requiring full judicial time. Lawyers and industry groups have urged a combination of assertive case management, proportionality in pleadings and substantial investment in tribunal capacity to prevent further erosion of timely access to justice.

Keep up to date with the latest legislative reforms. Click here to visit the Knowledge Hub.

Employers leverage perks and flexibility to stem early-year staff departures

Reward Strategy — Thu, 05 Mar 2026 13:07:33 GMT

As first-quarter departures rise, employers are using targeted perks like flexible food benefits and transit support to strengthen retention amid evolving expectations around total compensation.

Whether firms call it a seasonal spike or a post-holiday rethink, the first quarter habitually produces a rise in staff departures as employees reassess priorities and explore new opportunities. According to analysis summarising recent reporting, that pattern is amplified by short days, depleted energy and the psychological nudge that a new year provides. Industry research highlights how employers face a concentrated period of retention risk at this time of year.

Redefining compensation

While pay and flexible working remain the twin levers most likely to influence job decisions, surveys show a widening definition of what counts as meaningful compensation. According to a major workforce study, a large share of workers now treat flexibility over hours and location as part of core compensation, and many would accept lower pay in exchange for remote or hybrid arrangements. That shift has forced employers to weigh non-salary benefits more carefully when they cannot materially alter base pay.

Targeted perks to boost retention

Against that backdrop, targeted perks are emerging as practical tools for slowing the “spring exodus”. Research commissioned by a mobility-focused provider found that around a quarter of employees place extra value on enhanced perks, such as subsidised meals, personal meal vouchers and staff discounts, when weighing job choices. Separate reporting also indicates that a significant minority of workers would be influenced by workplace-provided food or on-site services when deciding whether to stay.

Benefits that resonate

Food-related offerings are particularly effective because they address a simple daily friction point. Survey data shows most offices outsource catering, yet many employees would prefer greater choice over where their food comes from. Employers can therefore combine generosity with flexibility by issuing meal vouchers usable at multiple vendors, or by subsidising a range of on-site and off-site options to suit diverse tastes. Evidence from broader coverage suggests that free or subsidised meals, snacks and beverages can materially increase the appeal of in-person attendance.

The friction of commutes

Commuting costs and the practical headache of late finishes also shape return-to-office sentiment. The mobility study found that help with travel, ranging from homeward rides after late shifts to contributions for transit, would encourage a notable share of staff to come into the workplace more often. Corporate tactics documented elsewhere include covering transit expenses, arranging ride-home services and tying office attendance to tangible, day-to-day conveniences rather than abstract mandates.

Blended retention strategies

For employers unable to overhaul pay structures, the evidence points to a blended approach: preserve core flexibility where possible and deploy carefully chosen benefits to reduce friction and enhance everyday employee experience. Recruiters and human resources leaders are already positioning remote options, commute support and hospitality-style perks as part of total reward packages, recognising that many candidates now trade modest salary concessions for improved work-life balance and convenience. Organisations that combine pragmatic flexibility with targeted, well-communicated perks are likely to see the greatest success in stemming early-year turnover.

Make your reward packages work for you! Click here to see this years Reward and Payroll Summit agenda with multiple sessions dedicated to helping your organisation get the most out of your reward packages.

AI-driven productivity gains risk, fueling workload and employee fatigue

Reward Strategy — Wed, 04 Mar 2026 10:30:00 GMT

Although generative AI aims to boost efficiency, evidence suggests it can increase workload, stress, and poorer decisions without strong governance and upskilling.

Generative artificial intelligence promised to return hours to knowledge workers by speeding drafting, summarising and routine problem-solving. Early pilots and academic surveys suggested significant time savings, but companies deploying these tools are now confronting a more complex outcome: faster throughput often feeds a rising tide of additional work rather than a sustained reduction in workload. According to CEO Today, what begins as acceleration can quickly harden into a new baseline of expectation for speed and responsiveness.

Expanding workloads

Evidence from multiple studies shows the phenomenon is widespread. A London School of Economics global survey found employees using AI save an average of 7.5 hours a week, yet observational research at a US technology firm recorded workers using AI taking on a broader mix of tasks, extending work hours and shifting the rhythm of when tasks were advanced. That pattern , where lower friction encourages more frequent task initiation and fewer natural pauses , helps explain why many employees report heavier workloads despite tools that make individual tasks faster. According to Forbes, 77% of employees using AI said their workload increased even as executives remained optimistic about productivity gains.

Expectations vs reality

The mismatch between executive expectation and employee experience is corroborated by industry analysts. Gartner advises CFOs to reset assumptions about how quickly AI investments will convert into broad productivity gains and headcount reductions, noting that only a minority of teams report large productivity uplifts. That suggests firms should be cautious about treating AI speed improvements as automatic capacity release.

The growth of "workslop"

Practical harms from accelerating output without safeguards are already visible. Studies highlighted by ITPro and Axios describe widespread “workslop” , time lost correcting low-quality AI outputs , and associate it with customer complaints, rejections and reputational friction. ITPro estimates US enterprise users spend roughly 4.5 hours weekly fixing AI-generated errors, while Axios-derived research places a measurable monthly cost per worker for repairing substandard AI work. These correction burdens can erode the headline time savings and contribute to fatigue.

Market implications

Broader labour-market analysis paints a nuanced picture of AI’s economic effects. Goldman Sachs projects only a modest net impact on overall employment if current AI use cases expand, while PwC’s 2025 barometer finds AI-skilled workers commanding much higher wages and faster job growth in AI-exposed roles. Together these reports indicate AI can raise individual productivity and pay for some workers even as it reshapes task mixes and concentrates risk in particular occupations.

Rethinking the operating model

For senior leaders the strategic question is shifting from cost removal to operating-model design. The evidence indicates organisations that merely funnel faster outputs into higher throughput risk entrenching cognitive strain and poorer decision quality. CEOs should consider policies that distinguish where speed creates genuine value from where it merely increases churn, and introduce deliberate pauses into high-stakes processes to protect judgement and recovery time.

The upskilling solution

Training and governance are key to converting access into sustainable benefit. The LSE survey noted a large share of employees received no recent AI training, and multiple industry reports stress that poor tooling, inadequate oversight and thin guidance accelerate “workslop” and employee stress. Firms that invest in upskilling, quality-control processes and clear norms around after-hours and cross-functional workload are likeliest to preserve the productivity dividend.

The decisive variable

AI remains a powerful lever, but its net effect depends on how organisations choose to absorb it. Used with disciplined governance, training and a focus on decision quality rather than raw responsiveness, the technology can shift teams toward higher-value work. Left unmanaged, however, generative tools risk becoming an invisible ratchet that expands human load and undermines the very performance they were meant to improve.

Understanding technology is the key to advancing your organisations efficiencies. Click here to visit the Knowledge Hub and keep up to date with the latest news and insights.

Survey released on the impact of UK Supreme Court’s sex ruling after a year of legal upheaval

Reward Strategy — Wed, 04 Mar 2026 09:05:00 GMT

PinkNews has launched an anonymous survey to document how the UK Supreme Court’s biological “sex” ruling has impacted trans and gender-diverse people a year on.

LGBTQ+ news outlet PinkNews has opened an anonymous online survey to record how the UK Supreme Court’s ruling on the legal meaning of “sex” has affected people’s daily lives, seeking demographic information and accounts of experiences in single-sex spaces as the judgment approaches its first anniversary. The survey, which will run throughout March 2026, aims to capture impacts on physical, mental and emotional wellbeing and is open to people of all genders, according to reporting by the publisher. Industry and parliamentary briefings underline the wider legal significance of the case for equalities law.

The Supreme Court ruling

The court’s decision, handed down on 16 April 2025, resolved a long-running legal dispute brought by gender-critical campaign group For Women Scotland against Scottish Ministers. The judgment concluded that terms such as “man”, “woman” and “sex” in the Equality Act 2010 should be read as referring to biological sex rather than gender identity, a shift that legal analysts say has far-reaching implications for how sex-based rights are interpreted across the UK.

Policy and operational implications

The Supreme Court’s articulation of the law has already prompted public bodies and service providers to revisit policies for single-sex facilities and services. According to government and parliamentary analysis, the ruling forces institutions to reconsider the legal basis for accommodating trans people in spaces traditionally organised by sex, a move that legal advisers caution could require widespread operational change.

Key judicial statement

Speaking in the judgment, Supreme Court judge Lord Hodge said: “The unanimous decision of this court is that the terms woman and sex in the Equality Act 2010 refer to a biological woman and biological sex.” That language lies at the heart of subsequent regulatory and policy debates, with authorities and organisations grappling with how to apply the court’s reasoning in settings ranging from workplaces and schools to healthcare and voluntary bodies.

Regulatory sector responses

In the immediate aftermath the Equality and Human Rights Commission produced interim guidance on single-sex spaces that suggested, in some circumstances, excluding trans people from toilets, changing rooms and gender-specific organisations; the commission later said its regulatory work had identified organisations that misdescribed legal rights and had moved to remove problematic policies. Healthcare providers including the NHS have reviewed their own guidance in light of the ruling, and officials say operational changes are being considered to ensure compliance with the court’s interpretation.

Concerns from civil societies

Civil society groups, human rights organisations and some parliamentarians have warned that measures taken in response to the judgment risk entrenching exclusion and increasing harms to trans, intersex and gender-diverse people. Existing research and testimonies collected by advocacy researchers describe encounters ranging from intrusive questioning and filming to verbal and physical abuse, evidence supporters say underscores the need for robust data on day-to-day impacts as policy shifts are implemented.

Aims of the survey

PinkNews says the anonymous survey is intended to fill gaps in official data by documenting lived experience a year on from the decision; the publisher presents the exercise as a means to inform public understanding and policymaking about the practical consequences of the Supreme Court’s conclusion. The material gathered will add to existing analyses tracking how organisations and regulatory bodies respond as the legal and social aftershocks of the judgment continue to unfold.

Keep up to date with the latest in DEI changes and developments. Click here to visit our Knowledge Hub.

The Hidden Hours Problem: What Every HR and Payroll Professional Needs to Know About the SWEAT Calculation

Jeni Morris — Tue, 03 Mar 2026 10:17:56 GMT

HMRC has sharpened its focus on salaried worker excess annual time (SWEAT) calculations and the digital footprints left by flexible working habits are giving investigators more evidence than ever. Here’s what’s at stake, and what good practice looks like.

For HR and payroll teams, National Minimum Wage compliance has long been viewed through a fairly narrow lens, check the pay rate, check the hours, ensure the numbers add up. But a growing body of HMRC enforcement activity is revealing a more complex picture, one in which salaried employees across all sectors and pay grades are quietly accumulating unpaid working hours that employers have neither tracked nor compensated.

This isn’t a fringe issue, it is, according to HMRC, one of the most common causes of NMW underpayments and the regulator has recently signalled its intent to focus enforcement efforts specifically on the Salaried Work Excess Annual Time (SWEAT) calculation. If that acronym isn’t already on your compliance radar, it needs to be.

The Post-Pandemic Overhang: How ’Always-On’ Culture Creates Compliance Risk

The shift to flexible and hybrid working has fundamentally changed how employees relate to their working hours. For many, the commute disappeared and the kitchen table became the office, but so did the sofa at 9pm, and the phone call on a Sunday morning. Inbox checks turned into email trails, a quick task before bed stretched into an hour of unpaid effort.

These behaviours have become deeply embedded. Retail workers complete health and safety training modules from home in the evenings. Managers review rotas and respond to colleague messages during weekends. Senior professionals spend additional time preparing for client meetings that falls entirely outside their contracted hours. None of it feels like ’overtime’ in the traditional sense but under NMW legislation, it all counts as working time.

For HR professionals, the challenge is that much of this activity is invisible. It doesn’t appear on timesheets. It isn’t logged in scheduling systems. It has simply become the way things are done, a cultural norm rather than a documented pattern. And that invisibility, from a compliance perspective, is precisely the problem.

Understanding the SWEAT Calculation

The Salaried Work Excess Annual Time (SWEAT) calculation is the mechanism by which employers must assess whether salaried employees have worked beyond their annual contracted hours and if so, whether those excess hours have been adequately remunerated.

The principle is straightforward, but the implications are easily missed. If a salaried worker completes their full annual contracted hours before the end of their contractual year, say, during Month 11, then every hour worked in Month 12 is classified as an excess hours. The employee’s regular monthly salary must then cover not only their standard contracted hours for that month, but also every excess hour worked. All of those excess hours must be paid at least, the applicable NMW or NLW rate.

It is a requirement that applies regardless of how well-paid the employee is in headline terms. A salaried manager earning comfortably above minimum wage can still generate a SWEAT liability if their actual total annual hours, when properly accounted for, exceed their contractual entitlement and the resulting effective hourly rate falls below the NMW threshold.

HMRC has recognised the widespread difficulty businesses face in performing this calculation accurately and consistently. It has recently launched a dedicated series of webinars focused solely on the salaried work excess annual time calculation, a clear signal that compliance in this area is under the spotlight. Specialist tools such as those offered by Fair Work Solutions are now helping payroll teams run these calculations with the rigour and audit trail that HMRC expects, removing the manual complexity that has historically made the process error-prone.

What HMRC Looks for in an Investigation

HR professionals should be clear-eyed about how an HMRC NMW investigation actually works in practice. The process goes well beyond a review of payroll records.

If a business cannot produce evidence of the actual hours worked by its employees, HMRC will construct that evidence itself. Investigators interview current and former employees to build a detailed account of real working patterns. They can request system data, including laptop login and logout times, to identify out-of-hours activity. Calendar records, communication logs and project management data can all be scrutinised.

The digital habits of working leave extensive digital footprints. Routine late-evening logins, regular weekend system access, patterns of activity outside contracted hours, these all become evidence in an investigation. For businesses that have allowed informal overtime to become culturally normalised, that evidence can be both extensive and damaging.

The most effective defence against this risk is not retrospective damage limitation, it is proactive record-keeping and a robust annual excess hours review process. Platforms such as Fair Work Solutions are specifically designed to provide exactly this, a structured, defensible audit trail that demonstrates ongoing compliance governance.

It’s Not Just a Low-Wage Sector Issue

One of the most important mindset shifts for HR and payroll professionals is to stop treating NMW compliance as a concern only for businesses operating close to the minimum wage floor. HMRC’s enforcement data increasingly shows that salaried employees in higher-earning roles are generating NMW exposure for their employers, precisely because nobody thought to check.

The arithmetic is worth understanding clearly. An employee on a £65,000 annual salary with salary sacrifice pension and EV (again via salary sacrifice) working an average of 45 hours per week against a 40 hour contracted week will see their effective hourly rate fall considerably below their headline figure when excess hours are factored in. Depending on their age and the applicable NMW rate, this could constitute an underpayment, not because the employer set out to underpay, but because the hours were never tracked and the calculation was never run.

The ’hidden hours’ problem does not discriminate by sector, seniority or pay grade. Any business with salaried employees in an always-on culture is exposed.

What Good Practice Looks Like

For HR and payroll professionals looking to strengthen their position on NMW compliance for salaried workers, the following represent the pillars of a defensible approach:

• Run the SWEAT calculation for each salaried worker, without exception. This is a legal requirement for salaried workers, not a discretionary audit exercise. Every contractual year should be closed with a formal excess hours review.

• Record actual hours, not just contracted hours. Payroll records showing contracted hours are insufficient for NMW purposes. Systems must capture time actually worked and be capable of producing that data in a format HMRC can interrogate.

• Address the cultural dimension. Compliance is not just a payroll function, it is also an HR and management challenge. If out-of-hours working has become an unspoken expectation, that needs to be addressed as a matter of policy, not just process.

• Use purpose-built tools for complex calculations. The SWEAT calculation, alongside Time and Unmeasured work calculations, involves a level of complexity that makes manual processing both time-consuming and error-prone. Specialist platforms built specifically for NMW compliance, such as Fair Work Solutions, provide the calculation accuracy, governance transparency and documentation that modern compliance requires.

• Ensure payroll and HR teams are aligned. NMW compliance for salaried workers sits at the intersection of HR policy and payroll calculation. Both teams must understand the rules, share the relevant data, and take joint ownership of the annual review process.

The Bottom Line

The normalisation of hidden overwork has created a genuine and growing NMW compliance risk for UK employers and HMRC’s renewed focus on the salaried work calculation suggests that scrutiny is only going to intensify.

For HR and payroll professionals, the message is clear, contracted hours and actual hours are not the same thing, and compliance depends on knowing the difference. The businesses best placed to demonstrate that they do are those that have invested in robust time-recording, annual excess hours reviews, and the kind of calculation governance that holds up under scrutiny.

The hidden hours problem is solvable, but only for those who acknowledge it exists.

Jeni Morris will be speaking live at the Reward and Payroll Summit! Don’t miss the chance to hear her insights in person, ask questions, and connect with fellow attendees. Click here to secure your spot.

The hidden value already in your organisation: Why most companies are sitting on untapped reward gold

Becky Pugh — Mon, 02 Mar 2026 17:00:09 GMT

Here’s a truth that surprises many organisations: you’re probably offering far more value than your people realise.

When we talk to leaders about reward, the instinctive response is often defensive. We can’t compete on pay. Our benefits aren’t market-leading. Others can afford to do more than us. But when we look closer, a different picture usually emerges.

Strong flexibility. Meaningful development. Supportive managers. Stability in uncertain markets. Clear progression paths. Cultural strengths that competitors struggle to replicate.

The value is there. It’s just not being seen. And in today’s comparison economy, what people can’t see may as well not exist.

The perception gap that quietly undermines impact

There is often a wide gap between actual value and perceived value. Organisations invest heavily in reward and experience, but employees only recognise a fraction of it. Benefits are buried in portals. Policies are written in legal language. Development opportunities exist, but no one explains how to access them or why they matter.

Ask HR what’s available and you’ll hear a long list. Ask employees the same question and the list is much shorter.

This isn’t a failure of generosity. It’s a failure of communication. Perceived value drives behaviour. It shapes engagement, retention, and attraction. When people don’t understand what they’re getting, they undervalue it. And when value feels unclear, decisions get made elsewhere.

When organisations discover strengths they didn’t know they had

We’ve worked with organisations convinced their reward offer was weak, only to discover it was quietly exceptional. In one case, flexibility was deeply embedded in how work happened, but never described. In another, internal progression was common but rarely celebrated. In others, cultural strengths like trust, autonomy, and support were felt internally but never articulated externally.

Once these organisations took the time to surface and connect these elements into a clear story, something shifted. Candidate conversations improved. Employee confidence increased. Engagement rose. Not because anything changed materially. But because people could finally see the full picture.

Why communication multiplies value

There’s a simple principle at work here. If people don’t understand it, they can’t value it.

Good reward communication doesn’t add cost. It adds clarity. It helps people understand not just what they receive, but why it matters and how it fits into their lives.

That clarity changes how reward feels. Benefits stop being background noise and start becoming meaningful support. Culture stops being abstract and starts feeling intentional. In a transparent market, clarity isn’t optional. It’s the difference between value that’s recognised and value that’s ignored.

Greater visibility hasn’t created this challenge. It’s simply exposed it. When salaries are visible, everything else comes under scrutiny. And that’s where opportunity lives. The organisations that thrive are those who surface what already exists, connect the dots, and tell a clear, honest story about the value they offer.

The best reward stories don’t start with more budget. They start with better understanding. Sometimes the gold is already in the room. You just need to turn on the lights.

Employee engagement is the marker of a successful benefits program. Click here to see how our dedicated Reward and Payroll Summit sessions can help you maximise your programme and engage your employees.

New Appointments in Reward, Payroll and Benefits - February 2026

Lukas Montgomery — Fri, 27 Feb 2026 14:32:00 GMT

The reward, payroll, and benefits profession continues to see exciting career moves across the industry

Kieran Greatholder-Allen

Global Payroll Lead, Associate Director

Astellas Pharma

Stepping into the role with extensive experience in global payroll strategy, transformation and governance, and will be responsible for leading the organisation’s global payroll operations. In his new position, Greatholder-Allen will oversee payroll standardisation, compliance and vendor management across multiple territories, supporting Astellas Pharma’s continued global growth.

Michael McAllister

Partner, Head of Payroll & Employment Tax

AMS Group

McAllister brings significant expertise in payroll leadership and employment tax strategy. In his new role, he will lead the firm’s payroll and employment tax offering, advising clients on compliance, risk management and operational excellence while strengthening AMS Group’s advisory capabilities in this area.

Justyna Ciesielska

Payroll Implementation Manager

Deel

Ciesielska will be supporting clients through complex payroll implementations, ensuring smooth transitions and compliance across international markets. She joins Deel’s growing implementation team, helping organisations streamline global payroll processes through technology-led solutions.

Monique Gillis

Global Payroll Director

AppLovin

In her new role, Gillis will lead the company’s global payroll strategy, focusing on operational efficiency, compliance and scalable processes. She will work closely with finance and HR teams to support AppLovin’s expanding international workforce.

Tara Flynn

Chief People Officer

Aer Lingus

Flynn will oversee the airline’s people strategy, including talent, culture, employee engagement and organisational development. She joins the executive leadership team to support Aer Lingus’ long-term growth and workforce strategy.

Emma Hardaker-Jones

Chief People Officer

National Grid

Hardaker-Jones will be responsible for leading the organisation’s global people function, driving workforce transformation and embedding a people-first culture across the business. She will play a key role in shaping National Grid’s strategic workforce priorities.

Nicola Marr

Head of People Services

JD Sports Fashion

Marr will lead the retailer’s people services function, focusing on operational excellence, employee experience and scalable HR service delivery. Her appointment supports JD Sports Fashion’s continued expansion and investment in its people infrastructure.

Tom Smith

Pensions and Benefits Manager

Marks & Spencer

Marks & Spencer has appointed Tom Smith as its new Pensions and Benefits Manager. In his new role, Smith will be responsible for overseeing the retailer’s pensions strategy and employee benefits provision, supporting the wider people agenda and enhancing the overall reward offering across the organisation.

Lynne Bird

Deputy Head of Payroll Services

MFT NHS

MFT NHS has named Lynne Bird as its new Deputy Head of Payroll Services. Bird steps into the role with responsibility for supporting payroll operations, ensuring service excellence and compliance, and strengthening payroll delivery across the trust.

Janette Guerrero-Keller

Head of Global Payroll (Mobility)

S&P Global Mobility

Janette Guerrero-Keller has accepted the position of Head of Global Payroll (Mobility) at S&P Global Mobility. She will lead the organisation’s global payroll mobility strategy, focusing on streamlining international payroll processes and enhancing governance across jurisdictions.

Andrew Blake

EMEA Payroll Manager

Evercore

Andrew Blake has returned to the financial services sector, taking up the role of EMEA Payroll Manager at Evercore. In his new position, Blake will oversee payroll operations across the region, supporting the firm’s continued growth and ensuring robust payroll management across its EMEA footprint.

UK employment tribunals see rise in age discrimination claims as policymakers urge cultural change

Reward Strategy — Thu, 26 Feb 2026 11:52:39 GMT

Rising age bias in UK workplaces is fueling more tribunal claims and demands for stricter anti-discrimination enforcement and cultural change.

Age plays a distinctive role in UK employment law, touching applicants and staff at every career stage and frequently prompting tribunal claims when decisions appear influenced by age-related assumptions. According to ACAS, the Equality Act 2010 treats age as a protected characteristic and bars direct and indirect discrimination, harassment and victimisation across recruitment, employment and training.

Direct vs indirect discrimination

Under the Act, someone is disadvantaged either by direct treatment because of their actual or perceived age or by neutral rules that disproportionately affect a particular age group. ACAS explains that, unlike most protected characteristics, direct age discrimination can in limited circumstances be lawfully justified if it is a proportionate means of achieving a legitimate aim.

Bringing a claim

Claims can be brought by job applicants as well as employees because there is no two-year service threshold for discrimination complaints. Tribunals will weigh contemporaneous records, comparator evidence and the decision-making trail; industry guidance stresses that awards for discrimination are uncapped and that documentation often proves decisive in outcomes.

Recruitment risks

In practice, many disputes stem from everyday choices rather than explicit policies. Recruitment wording that suggests a preference for “youthful energy” or job specifications that refer to an age range can deter applicants and later form part of a claimant’s case. ACAS and the Equal Opportunities Commission both warn that application forms, visible age data and opaque shortlisting rationales increase litigation risk.

Stereotypes in the workplace

Within employment, problems typically arise where assumptions replace objective assessment. Denying training on the basis that someone is “close to retirement”, assuming older workers cannot learn new technology or passing over younger staff for promotion because they lack “gravitas” are common scenarios identified by advisers. Both ACAS and sector bodies emphasise that stereotyped reasoning often features in successful claims.

Dismissal and restructuring

Dismissal and restructuring decisions are especially vulnerable to challenge. Selection methods such as sole reliance on “last in, first out”, or using vague measures like “cultural fit” and “future potential” without transparent scoring, may produce indirect discrimination against particular age groups. Guidance recommends balanced matrices, documented scoring and evidence of consideration of less discriminatory alternatives.

Lawful age-based distinctions

While some statutory schemes lawfully differentiate by age, such as age-banded national minimum wage rates and the statutory redundancy formula, employers must still show that discretionary age-based arrangements are justified. ACAS and the EOC note that occupational requirements and safety-critical roles may justify age limits in narrowly defined circumstances, but the employer carries the burden of proof and must demonstrate proportionality.

Prevention and best practice

Preventing age discrimination requires more than policy statements; it demands cultural change and routine, auditable processes. Practical steps promoted by ACAS and workplace equality advisers include competency-focused job specifications, segregation of monitoring data from selection decisions, structured scoring at shortlisting and interview, mandatory manager training on age bias and swift handling of complaints to avoid claims of victimisation.

Seeking specialist guidance

Employers facing complex age-related issues or considering policies that differentiate by age are advised to seek specialist legal guidance early. Charity and union guidance, including material from Equity and university HR teams, reinforce that early intervention, clear record-keeping and evidence-based workforce planning are the strongest defences when disputes reach tribunal.

Ensure your compliance is up to date and current. Click here to visit our Knowledge Hub.

Agentic AI accelerates recruitment automation

Reward Strategy — Wed, 25 Feb 2026 15:56:31 GMT

Recruitment firms are leveraging autonomous agentic AI to transform hiring workflows, reducing cycle times and addressing regulatory, ethical, and operational challenges for faster, smarter talent sourcing.

Recruitment automation has become a strategic necessity for staffing firms in 2026, shifting firms away from administrative bottlenecks and toward relationship-driven talent work. According to the RecruitBPM guide, modern platforms now shoulder resume screening, interview scheduling and candidate communications, freeing recruiters to focus on client strategy and candidate engagement.

Efficiency gains

At scale, automation reduces the hours recruiters spend on repetitive tasks and compresses time-to-hire substantially. Industry analyses and vendor benchmarks report typical reductions in hiring cycle times of 30–70% depending on volume and use case, with automation delivering faster sourcing, screening and scheduling while analytics reveal the strongest channels and bottlenecks. These gains translate into lower cost-per-hire and faster client fulfilment for agencies that implement end-to-end workflows.

Suites vs point solutions

Platforms fall into two design patterns: comprehensive suites that centralise applicant tracking, CRM and workflow automation, and point solutions that target a single pain point such as onboarding, interview intelligence or vendor management. Firms often mix both approaches to avoid unnecessary feature bloat while addressing the highest-value bottlenecks first. Practical implementation advice stresses piloting narrow automations, proving ROI, then expanding functionality.

Agentic AI in recruitment

A defining evolution for 2026 is the rise of agentic AI, autonomous software agents that execute multi-step recruitment tasks without human prompting. Businesses from enterprise software vendors to payments firms are formalising standards and use cases for these agents, and talent leaders are planning significant deployments. Agentic systems can initiate outreach, post roles across channels, schedule and reschedule interviews, and trigger background checks, but they also require new oversight models and governance to balance autonomy with human control.

Tightening oversights

Regulatory and ethical oversight has tightened as automation matures. The European Union’s AI Act treats recruitment tools as high-risk, demanding traceability, bias assessments and human-in-the-loop safeguards; New York City mandates independent bias audits and public disclosure for automated hiring tools used in local roles; GDPR and CCPA continue to govern candidate data, consent and subject access rights. These frameworks force agencies to bake compliance into system design rather than retrofitting controls after deployment.

Transparency and bias auditing

Independent bias auditing and ongoing monitoring are becoming standard practice. External reviews compare selection rates across demographic groups, examine training data and surface statistical disparities; auditors recommend remediation through algorithm adjustment, data diversification or workflow changes. Agencies that publish audit outcomes and maintain transparent decision logs not only reduce legal risk but also strengthen candidate trust and employer brand.

High-impact priorities

Practical automation priorities that deliver rapid returns include programmatic job distribution, resume parsing and screening, automated scheduling and interview intelligence, background-check orchestration, and scalable pre-employment assessments. These functions cut manual hours dramatically: automated scheduling alone saves recruiters several hours per week, while advanced parsing and interview summarisation accelerate screening by orders of magnitude. Integrations that surface assessment and interview data directly in ATS dashboards ensure recruiters act on richer signals.

Avoiding over-automation

Despite clear efficiency gains, agencies must guard against over-automation and manage change carefully. Candidates still expect human interaction at key moments, and AI systems are imperfect at judging cultural fit, creativity and soft skills. Successful firms combine automated screening for objective criteria with human-led interviews and negotiation, invest in training to build recruiters’ data literacy, and deploy champions to drive adoption. Financially, many vendors offer scalable pricing and phased pilots to reduce upfront implementation risk.

Predictive analytics and skills-based hiring

Looking ahead, predictive analytics and skills-based hiring reshape how agencies source and retain talent. Predictive models forecast who will succeed in roles and when internal turnover may occur, enabling proactive pipeline building. Skills-first assessments and portfolio evaluations widen candidate pools by prioritising demonstrated ability over credentials, improving diversity and internal mobility for clients. Recruiters’ roles evolve into strategic advisors who interpret AI signals, manage complex relationships and craft compelling employer narratives.

Apprenticeships outperforming degrees in earnings

Reward Strategy — Wed, 25 Feb 2026 09:06:51 GMT

Industry advocates call for a cultural shift to value technical training alongside academic study, highlighting higher earnings and addressing skills shortages through increased investment in work-based pathways.

Apprenticeships and technical routes are being championed as a path to stronger growth and higher pay for many young people, with industry groups urging a cultural shift so vocational excellence is prized alongside academic study. According to Logistics UK, better alignment between training and labour market needs could unlock talent and help fill persistent skills gaps across the economy. Industry analysis from Barclays and other commentators has already shown that in some fields apprentices can out-earn graduates over their careers, strengthening the case for greater investment in work-based learning.

Untapped youth talent and skills shortages

Bethany Windsor, head of skills policy at Logistics UK, told National Apprenticeship Week audiences that the country is failing to match a large pool of young people with available work, citing almost one million 16-to-24-year-olds not in education, employment or training alongside some 213,000 vacancies attributed to skills shortages. She argued this gap reflects an education system that has historically prioritised academic achievement over technical pathways and called for parity of esteem between the two. Industry campaigners and think-tanks have made similar points about the mismatch between qualifications and labour-market demand.

Higher apprenticeships and earnings progression

Logistics UK highlights both immediate and longer-term earnings gains from higher-level apprenticeships, noting that five years after qualifying, higher apprentices earn on average around £37,300 compared with about £32,100 for the average university graduate. Wider research, including analysis from Sutton Trust, supports the notion that at advanced levels lifetime earnings can exceed those of many graduates, with top apprentices often out-earning graduates from lower-tier universities and in some sectors earning substantially more across a career.

"The apprenticeship sector has spent many years gaining the kudos to rival traditional higher level academic routes, and now provides an important pipeline of talent, built to address each sectors and companies individual needs, whilst providing skills to carry out the role in Realtime as opposed to a just a desk-based knowledge of ‘how to’. This shift has been welcomed by employers and with UCAS now assigning points to apprenticeships, the parity is welcomed. This isn’t degrees versus apprenticeships. It’s about building a genuinely dual system where technical and academic excellence carry equal weight, status and expectation".

Mark Bremner, Director at MBKB.

Debt, fees and lifetime returns

The economics of apprenticeships can be stark when tuition fees and student debt are taken into account. Reports drawing on data from Barclays and the Centre for Economics and Business Research show that in certain sectors such as arts, media and publishing apprentices have, in some cases, earned nearly three times as much as comparable graduates over their working lives, reinforcing calls to broaden viable routes into good jobs beyond the university path.

Reforming the levy to boost flexibility

Logistics UK is backing proposed changes to the Apprenticeship Levy, welcoming government plans to replace it with a Growth and Skills Levy that would allow employers more flexibility to spend funds on non-apprenticeship, sector-relevant training. The organisation argues Skills England should move quickly to approve a wider set of courses for levy support and to sustain careers-awareness campaigns such as Generation Logistics to attract new entrants into essential roles. Similar proposals have been advocated by policy groups urging a rebalancing of public funding towards technical education to tackle skills shortages.

"The growth skills levy should bring more flexibility, though there is some concern too, Gov.UK recently defunded Levels 7s for most apprentices and are currently reviewing funding of higher level programmes, most notably leadership and management, we would strongly urge the government to take alternative options to address budget restraints as defunding any more apprenticeships will be counterproductive and remove a core talent pipeline for current and future business growth. Flexibility is welcome, but dilution would be a mistake. Any new Growth and Skills Levy must protect quality, progression and employer co-investment in real capability, not short courses across limited sectors”.

Mark Bremner, Director at MBKB.

A two-track model for economic success

As a sector specialist and approved apprenticeship provider, Logistics UK points to its own programmes, spanning Level 2 Traffic Coordinator apprenticeships to Level 5 Operations Manager pathways, as examples of employer-informed training designed to build practical capability and strategic leadership within the logistics workforce. While universities remain central to the UK’s economic success, business groups and research bodies argue that a two-track approach, combining world-class universities with strengthened technical training and clearer progression routes, will be essential to address labour shortages and improve social mobility.

Total reward is not just about salary, its about equipping your employees to be the best versions of themselves. Click here to visit the Knowledge Hub to discover more insights into bringing the best out of your employees.

Why cybersecurity is becoming a core HR responsibility

Lukas Montgomery — Tue, 24 Feb 2026 17:02:35 GMT

For HR professionals, cybersecurity is no longer a background concern or an issue owned solely by IT. HR has become one of the most critical stewards of sensitive organisational data.

In 2026, strengthening cybersecurity efforts is not just about protecting systems-it is about protecting people, trust and the long-term health of the business

Analysis from Lab1 examining 141 million leaked documents found that 82% contained HR, payroll or CV data, highlighting just how frequently workforce information is exposed, and often targeted, during breaches. At the same time, Mimecast’s 2025 State of Human Risk Report shows that 95% of data breaches now involve human error, driven by insider threats, credential misuse and user-driven mistakes. Together, these findings underscore a hard truth: cybersecurity risk is deeply human, and HR sits at the centre of it.

The threat landscape is human-centred

Cybercriminals are increasingly exploiting people rather than technology. Generative AI has made phishing and social engineering attacks more convincing and easier to scale, while simpler tactics continue to bypass traditional defences by targeting employee behaviour. With workforce systems holding high-value data, HR teams are directly exposed to these risks.

This challenge is compounded by a persistent shortage of cybersecurity professionals. Many organisations lack the in-house expertise needed to manage complex and evolving threats, forcing a shift toward shared responsibility across departments. In response, cybersecurity is becoming more embedded in business operations, and HR’s role is expanding as a result.

Forrester research indicates that 40% of security organisations will add a dedicated workforce risk role, signalling a growing recognition that managing human risk is just as important as managing technical controls. This shift creates a meaningful opportunity for HR professionals to demonstrate strategic value by helping organisations understand, mitigate and reduce workforce-related risk.

Why HR must be at the table

HR systems contain some of the most sensitive data an organisation holds-personal identifiers, banking details, health information and access credentials. It is no surprise that many HR leaders are increasingly concerned about data breaches and are re-evaluating technology providers, internal processes and training practices as a result.

But HR’s influence extends beyond data stewardship. HR teams shape who joins the organisation, how they are onboarded and how expectations are set from day one. From access provisioning and role-based permissions to policy education and ongoing training, HR is often the first line of defence in preventing security gaps before they appear.

As Microsoft researchers note, “In this environment, organisational leaders must treat cybersecurity as a core strategic priority-not just an IT issue-and build resilience into their technology and operations from the ground up”. HR plays a vital role in that foundation by embedding security into workforce processes rather than layering it on after the fact.

Balancing security and employee experience

One of the biggest challenges for HR leaders is balancing cybersecurity requirements with the need to maintain employee morale and engagement. Overly restrictive policies or heavy-handed controls can create frustration, reduce productivity and erode trust. On the other hand, insufficient guidance or training increases risk exposure.

This is where HR’s perspective is essential. HR teams are uniquely positioned to design security practices that are clear, reasonable and aligned with how employees actually work. By partnering closely with IT and compliance, HR can help ensure that security controls protect the organisation without undermining the employee experience.

So, what are the practical, HR-led solutions?

Ongoing security awareness

Make cybersecurity training continuous, not one-and-done. Regular, role-specific education helps employees recognise evolving threats like phishing and credential misuse, especially in roles handling sensitive HR and payroll data.

Role-based access management

Use onboarding, role changes and offboarding as checkpoints to review access permissions. Aligning system access with job responsibilities reduces unnecessary exposure to sensitive data.

HR-IT collaboration

Work closely with IT to stay informed on vulnerabilities, response plans and emerging threats. This partnership ensures HR policies and workforce processes support broader security efforts.

Vendor security oversight

Evaluate HR and payroll vendors through a security lens, including encryption and data protection standards. Vendor diligence is critical to safeguarding employee data across systems.

Clear security communication

Explain why security policies exist and how they protect employees and the organisation. Clear, consistent messaging builds trust and encourages shared responsibility.

Cybersecurity as a trust exercise

At its core, cybersecurity is a trust exercise. Technology alone cannot prevent breaches; it depends on the people who use it and the culture that supports them. HR is uniquely positioned to shape that culture from day one-setting expectations, reinforcing accountability and ensuring employees understand their role in protecting organisational data.

When security is framed not as a compliance burden but as a shared responsibility, employees are more likely to engage, ask questions and act responsibly. In this way, HR becomes not just a risk mitigator, but a trust builder.

In 2026, HR professionals who embrace cybersecurity as part of their strategic mandate will help their organisations build resilience, protect employee data and maintain confidence in an increasingly digital workplace-while reinforcing the human foundations that security depends on most.

Understanding and technology is at the heart of adapting you compliance and risk plans. Make sure you are up to date with the latest changes. Click here to visit our Knowledge Hub

Building leadership through equitable justice

Reward Strategy — Thu, 26 Feb 2026 11:53:17 GMT

A deep dive into how leaders can cultivate justice as a habit by embracing equitable decision-making, moving beyond formal equality to fairer, context-responsive outcomes.

Treating people identically is often presented as the surest route to fairness, yet equal treatment from the starting line does not guarantee equitable outcomes. The Declaration of Independence’s claim that “all men are created equal” captures an origin-point equality; making remedy and outcome fair requires adjustment for differing circumstances. This is the space where equity operates and where justice is applied in concrete terms.

Limitations of formal equality

Laws that proclaim equal treatment can still produce unequal effects when they ignore context. One wry historical observation notes that statutes may ban sleeping under bridges both for the rich and the poor, but the consequences of enforcement fall very differently across social strata. That gap between formal equality and lived fairness is what leaders must recognise and correct.

Leadership beyond precedent

For a leader, the habit of justice means favouring decisions grounded in equity over rigid adherence to precedent or an abstract notion of sameness. Administrators who refuse exceptions solely because “it would set a precedent” mistake predictability for fairness; a truly just response assesses each case on its particulars and treats like cases alike while adapting to differing needs. Aristotle’s emphasis on habituated virtue supports this disposition toward considered, consistent action.

Asymmetric action

Applied justice in organisations often looks like asymmetric treatment designed to level playing fields: granting a bereaved employee extra leave, providing structured onboarding for newcomers, or drawing out quieter voices in a meeting. These measures are unequal in form but intended to produce fairer participation and outcomes, and research and practice both show such measures accelerate integration and improve decision quality.

Performativity to facilitation

Leaders who confuse openness with fairness, by, for instance, inviting input only to allow the loudest to dominate, reproduce the very power imbalances justice seeks to remedy. By deliberately encouraging contributions from those less inclined to speak, effective leaders expand the range of information and perspectives available and thereby increase the likelihood of sound, legitimate decisions. The contrast between performative inclusivity and equity-minded facilitation underscores why justice is a leadership competence.

Justice as a leadership habit does not imply softness or indiscriminate mercy. It requires discernment, firmness and a willingness to make unpopular calls when equity demands them. Aristotle’s insight that virtues are developed through repeated action implies that leaders cultivate judgement by practising fair decisions over time, learning from errors while remaining committed to impartial aims.

Leadership and justice

Viewed this way, leadership and justice are inseparable: leadership is the routine application of equitable judgement to complex human circumstances. Those who aspire to lead should therefore prioritise building systems and personal habits that translate equality of standing into fairness of outcome, remembering that justice is achieved not by treating everyone the same but by treating everyone appropriately.

UK pay settlements edge up in early 2026

Reward Strategy — Tue, 24 Feb 2026 11:16:29 GMT

UK pay awards edge up slightly in early 2026 as employers cautiously rebalance amid modest growth and inflation pressures, despite healthcare-specific exceptions.

Brightmine’s latest figures indicate a modest uptick in UK pay settlements at the start of 2026, with the median basic pay award rising to 3.2% for the three months to the end of January. According to Brightmine’s February 2026 report, this marks a small recovery from a year in which pay increases largely hovered around 3%.

A year of restrained growth in 2025

That relative improvement follows a longer period of restrained pay growth across 2025, when Brightmine’s monitoring returned the median basic award to 3% and found most settlements clustered between roughly 2% and 4.2%. Industry analysis last year repeatedly showed pay awards were frequently lower than those given to the same employee groups in 2024, underlining the tight control organisations exercised over payroll budgets.

Brightmine’s trend data also shows signs that a growing share of deals are slightly more generous than a year earlier; roughly two-fifths of the most recent awards exceed the prior-year level, a shift that suggests employers are beginning to relax the strictures that dominated 2025.

Economic headwinds temper confidence

The emerging pay momentum comes amid a mixed macroeconomic picture. Brightmine points to subdued output growth, with GDP expanding only marginally in the final quarter of 2025, and a labour market that has shown higher-than-expected unemployment. These factors are likely to temper employer confidence and constrain the pace of wider pay rises.

“January’s awards point to a shift towards slightly higher settlements after a prolonged period of stability. However, downgraded growth forecasts and rising unemployment projections underline wider economic challenges.

Therefore, employers are likely to maintain a cautious approach, carefully weighing affordability against the need to attract and retain talent. Affordability is front of mind with the upcoming increases to the National Living Wage in April, which will require higher rises for the lowest-paid workers. These will absorb a larger share of pay budgets and leave less headroom for pay progression elsewhere,” said Sheila Attwood, senior content manager, data and HR insights at Brightmine, in commentary accompanying the report.

Sector exceptions: healthcare stands out

Sector-level exceptions continue to appear. Publicly announced settlements for healthcare staff delivered above-average uplifts last year, with NHS Employers confirming consolidated increases for Agenda for Change staff and for doctors and dentists that exceed the median private-sector deals, reflecting ongoing recruitment and retention pressures in the sector.

2026 outlook: cautious recalibration

For employers and pay negotiators, the picture for 2026 is therefore one of cautious recalibration: modestly higher settlements in early rounds, but constrained by affordability pressures, statutory wage changes and a fragile growth outlook that will make widespread pay acceleration unlikely in the near term.

Click here to keep on top of the changes in pay by using our Knowledge Hub.

Leadership choices redefine employee retention beyond perks

Reward Strategy — Tue, 24 Feb 2026 11:15:46 GMT

Strong leadership and intentional talent practices drive retention, with perks secondary to a clear, consistently lived culture.

Employee retention is less a matter of flashy benefits and more a reflection of leadership choices: who an organisation hires, how it brings them into the fold, and whether it builds a workplace that people see as worth staying for. According to the founding piece, retention emerges from intentional hiring, thoughtful development and a day-to-day environment that fosters belonging and purpose.

Getting hiring decisions right from the start

Recruitment is the first line of defence against churn. A selection process that screens for skills, attitude and cultural alignment reduces the likelihood of mismatches that ripple through teams and damage morale. According to Entrepreneur, setting clear expectations, probing candidates’ long-term goals and treating applicants with personalised communication all strengthen the likelihood that new hires will remain engaged over time. QuickBooks adds that employer branding which highlights development opportunities and work–life balance helps attract people seeking a sustainable fit.

Creating connection through effective onboarding

How organisations bring people on board matters as much as whom they hire. Building connection and clarity before day one, and combining practical system training with opportunities for colleagues to form relationships, accelerates integration. Industry guidance emphasises preboarding and a phased onboarding that addresses both technical competence and social bonds so new starters feel prepared and connected rather than isolated.

Sustaining engagement through continuous development

Retention requires ongoing investment well beyond the initial months. Development should be continuous: corrective conversations for underperformance must be prompt and respectful, average performers need coaching, and top talent requires deliberate stretching and growth pathways. Evidence on the financial and cultural benefits of retention underlines the payoff of this work; Talkspace notes that keeping experienced people reduces recruitment and training costs while supporting higher engagement and productivity.

Supporting culture with meaningful benefits

Perks can support retention but do not replace coherent leadership and culture. Flexible working, recognition programmes and wellbeing support, highlighted by Salary Guide and ACS Pro Staffing, improve satisfaction and reduce burnout, while QuickBooks points to the role of trust, respect and clear values in making those benefits stick. In short, rewards are amplifiers rather than substitutes for deliberate people practices.

Diagnosing turnover with better data

Leaders who want to reduce turnover should begin with data: analyse exit patterns to see whether losses are concentrated among underperformers, mid-level contributors or top performers. If poor hires are driving exits, revisit sourcing and selection; if high performers are leaving, assess whether your organisation offers the challenge, recognition and advancement they seek. Employee retention becomes far more achievable when decisions about hiring, development and daily management are aligned and consistently executed.

Building organisations people do not want to leave

Retention is not a single policy to be toggled on; it is an outcome earned every day through recruitment that screens for fit, onboarding that builds connection, development that respects ambition and leadership that demonstrates care. Organisations that treat those elements as interlinked priorities are more likely to become places staff find hard to imagine leaving.

Engaging your employees is the best way to understand their wants and needs, increasing retention and improving the culture at your organisation. Click here to visit the Knowledge Hub and gain key industry-leading insights into employee engagement.

PRIS Takeaways: Neurodiversity in Payroll

Lukas Montgomery — Wed, 25 Feb 2026 09:29:33 GMT

Payroll has long been seen as a profession that values structure, deadlines and precision. But what happens when the people behind the process think and work differently?

In our most recent Payroll & Reward Insight session, industry consultant Simon Bradbury, Global Payroll Project Expert & Founder at Global HR, and host Vickie Graham, Managing Director at Reward Strategy, led an open and honest discussion about neurodiversity in payroll teams -sharing lived experiences, practical adjustments, and what inclusive leadership really looks like in practice.

Understanding Neurodivergence in the Payroll Profession

Simon was formally diagnosed with ADHD in September 2024 and autism shortly afterwards. He described the experience as “a double-edged sword” with relief at understanding himself better, but also the reality of learning how to live and work authentically after years of masking.

One powerful reminder from the session was that ADHD is not simply a deficit of attention. It is more accurately a dysregulation of attention, often including intense periods of hyperfocus.

For many in payroll, this resonates strongly. Traits such as heightened focus, a strong responsiveness to urgency, comfort with structured cycles, and an interest in complex problem-solving can align closely with the demands of payroll work. However, these strengths can coexist with challenges that are frequently misunderstood.

The Power of Accommodations (Not Allowances)

A key theme throughout the discussion was the importance of accommodations rather than “allowances.” Neurodivergent individuals may take language very literally, struggle when plans change suddenly, experience physical discomfort when faced with particularly boring tasks, find traditional time structures difficult to manage, or experience hyperfocus and feel disrupted when interrupted. None of these traits represent a lack of capability; they simply reflect different ways of processing information and managing energy.

One practical example shared during the session was the idea of a personal “one-pager”. This is an instruction manual explaining how someone prefers to receive feedback, what triggers stress or overwhelm, their communication preferences, and how colleagues can best support them. This simple tool can remove guesswork and create clarity for both managers and teams, reducing friction and increasing mutual understanding.

Time Management: Rethinking “On Time”

Traditional workplace norms often treat punctuality as a performance measure. However, several participants shared how fixed start times had historically been misinterpreted as poor performance or laziness. In reality, some people with ADHD struggle with time perception and transitioning between tasks. Flexible start windows, such as allowing employees to begin work between 8am and 10am, can dramatically improve consistency without negatively affecting performance. In many cases, output quality remains strong and can even improve.

Simon emphasised the importance of shifting the leadership mindset. If someone is completing their work to a high standard and meeting deadlines, the focus should be on the quality and timeliness of the output rather than on exactly how or when the work was completed. Moving from optics to outcomes can make a significant difference.

Hyperfocus and Productivity Patterns

Some neurodivergent professionals may feel overwhelmed in the morning yet complete a full day’s work in a concentrated few hours later in the day. Others may work better in the evenings rather than early mornings or require multiple/ specific reminders to manage commitments effectively. From the outside, this variability can appear inconsistent. In practice, it can result in exceptional productivity and problem-solving ability.

Understanding and accepting these patterns reduces unfair performance judgments and helps organisations retain high-performing talent.

The Emotional Cost of Masking

Several participants shared experiences of exhaustion after office days, conferences, or high-social environments. Masking, the effort to appear neurotypical, can lead to headaches, emotional fatigue, sleep disruption, and increased anxiety.

Hybrid working models have helped many individuals manage this better by reducing constant social exposure. This is a factor we take seriously at Reward Strategy and caused the introduction of sensory rooms at some of our events, to allow attendees space to decompress when needed.

These adjustments may appear small, but their impact on wellbeing and performance can be significant.

Performance Management: Moving Beyond One-Size-Fits-All

Instead of focusing solely on measures such as time spent at a desk, punctuality, or linear productivity throughout the day, Simon suggested linking performance more closely to company values, innovation, accountability, and quality of output. For example, someone who struggles with punctuality may be exceptionally innovative or highly effective in problem-solving. Measuring performance strictly against rigid behavioural norms risks overlooking genuine contribution and value.

Embedding company values into performance conversations can create a fairer and more inclusive framework for both neurodivergent and neurotypical employees.

Leadership Confidence and the Biggest Barrier

A live poll during the session revealed that the biggest barrier to neurodiversity inclusion is lack of leadership awareness, with stigma and fear of disclosure following closely behind.

This highlights a critical point: creating a safe environment for disclosure cannot sit solely with payroll or HR teams. It requires visible leadership buy-in at senior levels. Education, whether through podcasts, social content, formal learning modules or lived experience panels, was repeatedly cited as the most important starting point.

As awareness increases, confidence in supporting neurodivergent colleagues naturally improves.

Creating Psychological Safety

Many employees hesitate to disclose neurodivergence, despite legal protections under equality legislation. To build trust, organisations need to provide clear education on neurodivergence, encourage open conversations, visibly signal allyship, and reassure employees that disclosure will not result in adverse consequences.

Sometimes, simply asking how someone prefers to receive feedback can open the door to meaningful dialogue and tailored support.

Psychological safety does not emerge automatically; it is built through consistent, inclusive behaviours.

Practical Takeaways for Payroll Leaders

The session closed with a strong consensus on the final poll: inclusion does not require radical overhaul, but it does require intentional change.

Payroll and reward leaders can prioritise leadership education on neurodiversity, focus performance reviews on outputs and values rather than rigid behavioural norms, introduce flexible start times where possible, encourage the use of personal communication guides or one-pagers, create safe and stigma-free channels for disclosure, and recognise that consistency may look different for different brains.

These steps are both practical and achievable and they can significantly improve engagement and retention.

Final Reflection

Perhaps the most powerful message from the session came from Simon’s description of diagnosis: “I realised I’m not broken”.

Neurodivergence is not a flaw to be managed out of the system. In many payroll environments, it is already contributing to precision, innovation, and resilience.

The challenge now is ensuring that organisational structures, leadership styles and evaluation methods allow those strengths to thrive.

Looking to improve your organisations DE&I? Click here to visit the Knowledge Hub and see the latest industry insights and evolutions

Governance and cost analysis are transforming employee benefit strategies

Reward Strategy — Fri, 20 Feb 2026 08:45:00 GMT

Employers are strengthening governance, cost controls and audits to optimise benefits, cut compliance risk and stay competitive in a changing labour market.

Employee benefit plan governance has become an essential management discipline for employers seeking to balance fiscal responsibility with employee wellbeing. According to the piece on Legal Desire, Legacy Professionals LLP illustrates how rigorous governance paired with targeted cost-allocation strategies and cost–benefit analysis helps organisations align benefit design with strategic aims while meeting fiduciary and regulatory duties.

Clear rules and oversight

At its core, governance sets the rules and routines that steer decisions about health, retirement and other workplace benefits. Industry guidance stresses that clear policies, formal oversight and documented decision-making are critical to acting prudently on behalf of plan participants and to defending choices during audits or regulatory review. According to Thomson Reuters, maintaining internal controls and explicit governance processes reduces the risk of costly compliance failures and reputational harm.

Funding structures and perception

How employers divide benefit expenses has a direct effect on both budgets and employee perceptions. Cost-allocation approaches range from flat-percentage employer contributions to tiered models that vary by plan choice or family status. Consultants and providers note that transparent, equitable contribution structures tend to encourage participation in voluntary programmes and make the total reward package easier for staff to value, while opaque or shifting subsidy policies can depress take-up and erode trust.

Evaluating return and impact

Decisions about which benefits to offer are best informed by methodical cost–benefit analysis that considers utilisation patterns, workforce feedback and projected financial outcomes. As Marsh and benefits advisers observe, low-cost solutions that fail to meet employee needs may undermine retention and productivity, whereas higher-cost initiatives that demonstrably reduce absenteeism or turnover can deliver net savings and strategic advantage over time.

Integrating finance and workforce outcomes

Bringing allocation and value appraisal together produces a fuller picture for trustees and HR committees. When committees model how a change, such as greater employer support for mental health services, will be funded and then estimate likely returns in reduced presenteeism or improved retention, they create defensible business cases that can be presented to senior leadership. BWCI Group and other governance specialists emphasise that this integrated lens helps align financial

stewardship with workforce outcomes.

Audit and review mechanisms

Practical governance is sustained by tools and routines: regular audits, vendor scorecards, utilisation dashboards and periodic employee surveys. Professional bodies and accounting firms recommend annual independent audits of employee benefit plans to confirm financial integrity, identify improvement opportunities and satisfy legal obligations under frameworks such as ERISA, where applicable. Such reviews not only support compliance but also surface savings and service gaps.

Competitive advantage

Stronger oversight also provides competitive value. Analysis from consultancy sources indicates that organisations with disciplined governance and routine claims or service reviews are better positioned to control costs, improve the employee experience and respond quickly to regulatory or market shifts. For employers operating in tight labour markets, effective benefits governance can be as important as pay in recruiting and retaining talent.

From cost centre to strategic asset

Ultimately, embedding cost-allocation thinking and rigorous cost–benefit evaluation within a documented governance framework transforms benefits from a ledger item into a strategic asset. Employers that combine transparent funding policies, regular measurement and independent review stand a better chance of delivering sustainable, trusted benefit programmes that serve both organisational objectives and employee needs.

Looking to maximise reward impact and drive engagement and retention? Click here to see our Reward and Payroll Summit agenda.

Strategic compensation to secure growth and talent in 2026

Reward Strategy — Thu, 19 Feb 2026 15:30:03 GMT

As firms confront tighter margins and rising competition, leaders are redesigning pay to drive growth, retention and stability, with equity sharing and transparent incentives gaining ground.

As advisory firms head into 2026 facing squeezed margins, elevated client demands and fierce competition for talent, leaders are being urged to treat pay not as an administrative cost but as a deliberate strategic instrument for growth and stability. According to WealthManagement, reframing compensation conversations around incentives for recruitment, retention and firm expansion can turn payroll into an investment that supports long-term objectives.

Aligning rewards with contribution

Rather than narrowing discussions to base salary or routine bonus adjustments, successful firms design pay programmes to reward contribution to collective goals. According to FP Transitions, benchmarking data and cohort-specific pay tools allow leaders to model compensation that aligns individual career trajectories with firm-level targets, while Charles Schwab’s industry report emphasises that a compelling employee value proposition and robust benefits are critical to attracting and keeping advisors.

Ownership and long-term commitment

Equity and ownership frameworks are increasingly part of that toolkit. FP Transitions’ 2025 compensation insights show firms that share ownership with key staff tend to outperform peers on profitability metrics, producing materially higher EBITDA in comparable cohorts. Embedding pathways to equity and leadership turns retention into an ownership narrative rather than a sequence of annual negotiations.

Hiring with discipline

Timing and structure of hires matter as much as compensation levels. FP Transitions’ benchmarking on firm size and staffing mixes indicates common staffing configurations by revenue tier, and cautions that hiring too soon strains cashflow while hiring too late risks burnout and lost growth. When headcount and role design mirror successful peers, salary dollars tend to yield stronger capacity, collaboration and client continuity.

Transparent performance links

Clarity around performance and predictable reward mechanics build trust. The FP Insights Advisor Compensation Study highlights how transparent KPIs, such as revenue per advisor, assets acquired and year-over-year growth, link day-to-day effort with bonus pools and equity eligibility. Consistent bonus formulas, rather than volatile year-to-year pay-outs, signal fairness and let team members see the connection between behaviour and income.

Evidence-led decisions

Data-driven calibration should underpin all compensation choices. Using peer-group benchmarks, annual growth rates and sector research helps leaders justify pay variances and demonstrate why certain roles or individuals receive differential treatment. Research from executive pay specialists also suggests executives and senior leaders are increasingly evaluated against broader corporate metrics including succession, DE&I and ESG outcomes as part of total reward design.

Leadership ownership of pay

Ultimately, making compensation conversations leadership-led rather than HR-centric shifts them into strategic planning sessions that bind individual advancement to firm ambitions. Industry reports and compensation studies recommend combining competitive base pay, transparent incentive programmes and meaningful benefits, parental leave, health coverage and equity pathways, to recruit, develop and retain the talent needed to sustain organic growth, pursue acquisitions and scale operations through 2026 and beyond.

Strategic pay benchmarking is your key to hiring and retention and we have built you custom sessions to help advance your organisation. Click here to see our dedicated sessions in this years Reward and Payroll Summit.

Strategic organisational shift as hybrid working evolves

Reward Strategy — Thu, 19 Feb 2026 15:13:24 GMT

As hybrid work becomes the UK norm, organisations see gains in wellbeing and productivity—but must invest in leadership upskilling and intentional cultural redesign to realise its full potential.

Hybrid working in the UK has settled into a new normal, shifting from stopgap measure to a foundational element of how companies recruit, organise and judge performance. According to Grant Thornton UK, the majority of mid-sized firms have adopted hybrid or remote patterns, and business leaders increasingly treat flexible working as a strategic differentiator rather than an occasional perk.

Wellbeing and productivity gains

That transition has delivered measurable wellbeing and productivity benefits for many employees. A 2024 study highlighted by The Guardian found hybrid workers reporting lower stress, better sleep and healthier daily routines, evidence that flexible arrangements can improve both personal health and job satisfaction.

Leadership capability gaps

Yet the shift has exposed gaps in leadership capability. Commentators and analysts argue that managing distributed teams requires a different skill set from traditional office stewardship; without that recalibration, companies risk disengagement and fragmented decision-making. Adult Development UK warns that many leaders remain ill-prepared for the ambiguities of hybrid work and must learn to balance autonomy with alignment.

Hybrid as cultural redesign

Organisations that succeed are treating hybrid as a cultural redesign, not merely a rota of office and home days. Industry data from Onrec shows that while a substantial minority of firms report productivity gains from hybrid models, far fewer believe company culture has strengthened, underlining the need for deliberate cultural practices to bind dispersed teams.

Shifting to outcomes

A practical corollary of this cultural redesign is a shift from measuring presenteeism to defining outcomes. Employers benefiting from hybrid arrangements are moving to clear deliverables, timelines and impact-focused performance conversations; this approach both clarifies expectations and reduces the impulse to micromanage. Grant Thornton’s findings support this, with many businesses citing improved productivity when remote-working practices are well managed.

Communication as infrastructure

Communication protocols are the scaffolding for hybrid success. Where informal office exchanges once carried context, remote-first processes rely on deliberate documentation, predictable meeting norms and transparent decision records. The University of Warwick Science Park advises embedding values and mission into every touchpoint so that remote employees remain connected to organisational purpose.

Clear and adaptable policies

Policies on home working must also be specific and adaptable. Guidance on equipment, data security, health and safety and clear financial arrangements reduces uncertainty, while regular policy reviews keep frameworks aligned with evolving practice. The British Safety Council emphasises that a supportive culture and attention to wellbeing are central to making flexible working sustainable.

Technology with purpose

Technology is an enabler but not a substitute for clarity. Firms that consolidate collaboration, documentation and project tracking onto a limited set of well-supported platforms avoid fragmentation and reduce the training burden; conversely, tool sprawl undermines coordination and increases cyber risk. Grant Thornton’s report and safety guidance both stress the importance of integration and user adoption.

The road ahead

Looking forward, hybrid arrangements are likely to remain predominant across knowledge sectors, with offices evolving into collaboration hubs and recruitment widening geographically. The competitive advantage will accrue to organisations that design systems and leadership practices around autonomy plus accountability rather than attempting to recreate past office dynamics. Evidence from business surveys and wellbeing studies suggests that when clarity, communication and leadership adapt in concert, hybrid working enhances both performance and employee wellbeing.

Technology is constantly evolving our workplaces. Click here to visit the Knowledge Hub and learn how you can adapt and thrive in through the technological revolution.

Beyond good intentions: Building structural gender equity at work

Reward Strategy — Wed, 18 Feb 2026 10:33:44 GMT

As employers work to close gender gaps, research shows that inclusive hiring, flexible work, and pay transparency are reshaping how organisations support women.

Employers seeking to close gender gaps must move beyond goodwill to concrete policies that reshape hiring, progression and daily working life for women.

"Good intentions don’t close gender gaps. Governance does. The organisations making real progress aren’t talking about equity, they’re putting it into hiring, pay and promotion decisions."

Lewis Roskilly

Head of Global Reward at JGA Recruitment

Targeted recruitment and promotion practices can widen the candidate pool and reduce bias. According to Pacific Prime, measures such as blind resume screening, diverse interview panels and outreach programmes help create fairer selection processes and measurable diversity targets build accountability.

Flexibility without penalty

Flexible working arrangements are central to retaining female talent. Deloitte research shows that inflexible hours are a leading reason women leave jobs and that many fear flexible requests will harm promotion prospects, underlining the need for policies that protect career progression while offering adaptable schedules.

Rethinking role design

Post-pandemic evidence indicates demand for remote and hybrid roles is higher among women, and language used in job adverts can influence application rates. The World Economic Forum notes women are substantially more likely to apply for remote roles and that wording such as "aggressive" can deter female applicants, suggesting employers should rethink both role design and recruitment copy.

As Lewis notes, "language and structure matter more than most employers realise, if job adverts unconsciously reward dominance over collaboration, or office presence over output, you’re filtering talent before the interview even starts."

Support for caregiving and parental needs must be practical and visible. Analyses by WomenTech and McKinsey recommend paid parental leave, childcare assistance, phased returns and workload reviews, alongside managers modelling individualised solutions, so caregiving responsibilities do not become a career penalty for women.

"Organisations that build practical parental support and phased returns into their reward strategy will retain talent longer and protect leadership pipelines" Lewis discusses, confirming that "caregiving isn’t just a woman’s issue, it’s ultimately a workforce design issue".

Sponsorship and leadership pipelines

Career development and sponsorship are vital to dismantle promotion barriers. Pacific Prime highlights mentorship, leadership training and sponsorship programmes as ways to raise visibility for women; independent reporting and academic studies echo that structured sponsorship increases the likelihood of women reaching senior roles.

Closing gaps through transparency

Pay transparency and routine audits help reveal and close compensation gaps. Pacific Prime advocates for pay reviews and open salary processes to foster trust; industry research shows publishing equity metrics and clear promotion criteria strengthens retention and morale; a factor JGA confirm, "when employees understand how pay is set and how progression works, retention improves, even when pay increases are lower".

Creating a safe, inclusive culture requires both manager training and enforceable safeguards. Pacific Prime recommends zero-tolerance policies on harassment, clear reporting channels and employee resource groups to provide peer support; these structures, combined with leadership accountability, underpin sustained change.

Tracking progress, refining strategy

Measuring outcomes and adapting is essential. Employers should track representation, promotion rates and pay equity, publish results and adjust strategies based on data. The World Economic Forum and McKinsey both stress that transparent metrics and iterative policy design are key to turning commitments into measurable progress.

"Gender equity isn’t achieved through one policy or one initiative, it’s built when reward, recruitment, leadership behaviour and performance frameworks all pull in the same direction."

Lewis Roskilly

Head of Global Reward at JGA Recruitment

Looking for more ways to raise inclusion within your organisation? Click here to check out our next PRIS session focusing on Neurodiversity in payroll

The Comparison Economy: How greater visibility is creating space for better stories

Becky Pugh — Wed, 18 Feb 2026 09:19:00 GMT

Not long ago, salary lived in the shadows. Numbers were whispered. Negotiations were private. And for many organisations, pay was something to manage quietly rather than talk about openly.

That world is disappearing fast.

Greater visibility around pay and reward has moved from fringe idea to mainstream expectation. Salaries are now visible, searchable, and increasingly published upfront. For some employers, that shift feels uncomfortable. Even threatening. But look closer, and something more interesting is happening. This isn’t a problem to solve. It’s an opportunity to unlock better conversations.

What changes when the number is visible

When salary stops being a black box, suspicion fades. Candidates no longer have to guess whether they’re being underpaid. Employees no longer have to wonder how decisions are made. And when uncertainty disappears, trust has room to grow.

Transparency changes the tone of the relationship. It removes the “what aren’t they telling me?” feeling and replaces it with openness. And that shift matters more than many organisations realise. Because once trust is established, the conversation can move on.

From negotiation to understanding

One of the most powerful changes we’re seeing is that candidates are no longer asking “How much can I negotiate?”. They’re asking “What’s the full picture here?”

That’s a fundamental shift. Greater visibility reframes salary as a baseline, not a bargaining chip. The focus moves away from extracting more money and towards understanding the role, the experience, and the opportunity as a whole.

People want to know:

• How will this job fit into my life?
• What will I learn here?
• What does progression really look like?
• What kind of culture am I stepping into?

These are richer questions. More human ones. And they open the door to better storytelling.

Why salary alone no longer wins

Here’s the reality. In many markets, salaries are converging. Competitors are offering similar numbers. Pay bands are tightening. And transparency makes that sameness impossible to hide.

When everyone can see the number, the number stops being the differentiator. That’s why organisations relying on pay alone are finding it harder to stand out. And why those with stronger stories are pulling ahead, even without spending more. Because people don’t choose jobs based on salary in isolation. They choose based on value.

The opportunity hiding in plain sight

This new level of comparison forces organisations to articulate value they’ve often taken for granted. Flexibility that “everyone knows about”. Development opportunities that exist but aren’t explained. Culture that’s felt internally but never clearly expressed.

Stability, purpose, autonomy, trust.

These things have always mattered. Transparency simply brings them into focus. And when salary is visible, these elements stop being “nice extras” and start doing real work. They give context. They create meaning. They help people decide whether this role is right for them. In other words, transparency doesn’t weaken your offer. It asks you to explain it properly.

How transparency shifts power in a positive way

There’s a common fear that this level of visibility puts all the power in the candidate’s hands. In practice, the opposite often happens. When expectations are clear upfront, both sides make better decisions. Candidates self-select more effectively. Employers attract people aligned to what they actually offer, not what’s been imagined.

That reduces mis-hires. Improves retention. And builds more honest relationships from day one. Transparency doesn’t create entitlement. It creates alignment.

The organisations winning this moment

The employers succeeding in a transparent market aren’t the ones shouting loudest about pay. They’re the ones confidently saying “Here’s what we offer. Here’s how it works. And here’s why it matters.” They tell a joined-up story about reward, experience, culture and growth. They don’t hide behind generic benefits lists or vague promises. They explain their philosophy. They show how everything connects.

And crucially, they don’t wait for candidates to ask the right questions. They answer them upfront.

Why this is about opportunity, not threat

This era of comparison is often framed as something organisations have to survive. That’s the wrong lens. Transparency rewards clarity. It rewards honesty. And it rewards organisations who know who they are. When the number is visible, the narrative becomes valuable. The focus shifts from “what do we pay?” to “why would someone choose us?” That’s a far more interesting question. And a far more powerful place to compete from.

Salary will always matter. But it was never the whole story. Transparency hasn’t changed that. It’s simply made the gap between numbers and meaning impossible to ignore. And that’s a good thing. Because in a transparent world, the organisations that win aren’t the ones with the biggest budgets. They’re the ones with the clearest stories.

Transparency isn’t the headline. Your story is.

Click here to check out The Reward and Payroll Summit, with focused sessions on Total Reward, Pay Transparency and many more.

Payroll compliance standards are about to tighten: The FWA and R-day

Lukas Montgomery — Tue, 17 Feb 2026 15:27:53 GMT

From April 2026, “R-day” and the new FWA tighten holiday pay compliance. Employers must retain clear, reconstruct-able records proving how every calculation was made.

From 6 April 2026, employers are expected to meet enhanced record-keeping expectations around holiday and leave pay; a development widely referred to as “R-day” or records day. At the same time, the Fair Work Agency (FWA) is expected to begin operating as a consolidated labour market enforcement body within the department for business and trade.

Viewed separately, each change is important. Viewed together, they represent a clear shift in compliance standards for payroll. Record-keeping requirements are becoming more explicit, and enforcement structures are becoming more coordinated. This combination increases both the evidential burden and the likelihood of scrutiny.

Payroll output to payroll evidence

From April 2026, employers are expected to retain accurate, centralised records relating to holiday entitlement, holiday pay calculations and annual leave processed through payroll. Crucially, those records must be preserved for six years and be capable of being produced if requested.

Many payroll teams already retain payslips and payroll reports for extended periods. However, R-day moves the focus beyond what was paid to how it was calculated. In practice, this means organisations may need to demonstrate not only the final holiday pay figure but also the entitlement rules applied, the reference period used, the pay elements included or excluded and the treatment of any variable remuneration such as overtime or commission.

A subtle shift

This represents a subtle but important compliance shift. Payroll accuracy has always mattered, but the new emphasis is on reconstruct-ability. If an inspector were to review a case several years after payment, the organisation would need to show clearly and coherently how the figure was derived. Reliance on informal practice, staff recollection or undocumented spreadsheet adjustments will create risk.

Business commentary surrounding R-day has highlighted the potential for significant penalties where record-keeping is inadequate. Regardless of how frequently enforcement action is taken, the direction of travel is clear: holiday pay must be demonstrably compliant, and the evidence must be durable.

A new enforcement landscape

The establishment of the Fair Work Agency signals a broader change in enforcement posture. Operating as an executive agency within the Department for Business and Trade, the FWA is intended to consolidate a number of existing labour market enforcement functions.

Its anticipated remit includes enforcement in relation to national minimum wage compliance, employment agency standards, unpaid tribunal awards, holiday pay and statutory sick pay, with further responsibilities expected in future years. Government materials indicate that enforcement officers may be empowered to inspect workplaces, require production of documents, issue civil penalties and pursue formal enforcement undertakings where non-compliance is identified.

The practical implication is not simply that another regulator exists. It is that enforcement may become more coordinated, more proactive and less dependent on individual employee complaints. Where record-keeping standards are unclear or inconsistent, the risk of scrutiny increases.

Why holiday pay is likely to attract attention

Holiday pay has long been one of the most technically complex aspects of payroll compliance. The interaction between statutory entitlement, contractual enhancements and fluctuating remuneration patterns creates room for error, particularly in organisations with diverse working arrangements.

Where overtime patterns vary, commission forms part of remuneration or employees work irregular hours, holiday pay calculations often rely on nuanced reference periods and system configuration decisions. Over time, different divisions or payroll cycles may adopt slightly different practices. Without clear documentation and consistent application, these differences have become potential vulnerabilities.

R-day effectively formalises the expectation that holiday pay methodology must be recorded, retained and capable of being scrutinised. The creation of the FWA reinforces that expectation by strengthening the enforcement framework around it.

The structural risk of fragmented systems

One of the most common compliance weaknesses lies not in deliberate underpayment but in fragmented data ownership. In many organisations, HR teams manage leave booking and entitlement rules, payroll teams manage calculation engines and finance teams oversee reporting and reconciliations. IT, meanwhile, controls data retention and system architecture.

Operationally, this division of responsibilities can function smoothly. From a compliance perspective, however, it creates potential blind spots. If entitlement records are held in one system, calculation logic in another and audit logs in a third, assembling a coherent evidential trail under inspection can become complex and time-consuming.

An enforcement officer is unlikely to accept that key information “sits elsewhere”. They will likely expect a clear narrative that links entitlement, leave taken, calculation methodology, payment output and retention controls into a single, traceable chain. Where that chain is incomplete, inconsistent or dependent on manual intervention, compliance risk increases.

Preparing for April 2026

Preparation should begin with understanding the full lifecycle of holiday pay within your organisation. This means mapping how entitlement is determined, how leave is recorded, how calculation rules are configured within payroll systems, how payments are processed and how records are archived.

It is equally important to test whether historic calculations can be reconstructed. Selecting a past case and attempting to rebuild the calculation from raw inputs can reveal gaps in retention, documentation or system accessibility. If reconstruction depends on individual memory or archived systems that are no longer readily accessible, remedial action may be required.

Clarity, accuracy, transparency

Clear documentation of calculation methodology is also essential. Policies should accurately reflect system configuration, including the treatment of variable pay and the handling of leaver payments. Where manual overrides occur, there should be transparent justification and an audit trail.

Retention controls deserve particular attention. The six-year expectation associated with R-day requires confidence that data will remain accessible, secure and unaltered throughout that period. Payroll professionals should confirm that audit logs are maintained, version control prevents silent amendment and archived payroll platforms remain retrievable if required.

Finally, governance should be explicit. Assigning named accountability for holiday pay compliance evidence and clarifying the boundaries between HR, payroll, finance and IT reduces the risk of gaps emerging between functions.

A compliance inflection point

The key question is no longer simply whether calculations are broadly correct. It is whether the organisation can demonstrate, clearly and confidently, how those calculations were reached and how the records have been preserved.

April 2026 should therefore be treated as a compliance go-live date. Strengthening documentation, retention architecture and cross-functional governance now will reduce risk later.

Payroll has always been central to employment compliance. In the new environment taking shape, it may also be one of the first areas regulators examine.

Closing the recognition gap: Technology that's boosting retention and safety

Reward Strategy — Tue, 17 Feb 2026 15:31:22 GMT

Research highlights recognition gaps for frontline workers- and shows that targeted, mobile-first programmes boost retention, productivity, and safety.

Maria finished a 12‑hour shift at a distribution hub having averted a costly delay, trained colleagues and flagged a safety risk; her reward was a late text from a supervisor. Meanwhile, an office colleague who drove a campaign received public praise, a bonus and promotion consideration. This kind of disparity is widespread and, according to research cited by Beekeeper and Kudoboard, contributes directly to disengagement and costly turnover among frontline staff.

Frontline recognition

The term "frontline recognition" describes deliberate programmes that acknowledge employees who work in retail, manufacturing, healthcare, logistics and other non‑office settings. Industry studies and vendor reports show frontline employees make up the majority of the global workforce yet frequently miss out on the routine appreciation that office workers take for granted, undermining morale and productivity.

Data compiled across HR research and vendor case studies links robust recognition systems to measurable business gains. Organisations that deploy targeted recognition report lower voluntary turnover and higher productivity, with several analyses estimating turnover reductions around 30% and productivity uplifts in the low double digits when programmes are properly implemented. These outcomes translate into substantial savings on hiring, training and lost output.

Why traditional tools fall short

The practical gap stems from design assumptions: many recognition tools presume regular computer access, shared schedules and visible managerial oversight. Frontline contexts require mobile‑first, offline‑capable interfaces, shift‑aware timing and peer‑driven mechanisms so praise can be given and received outside office hours. Vendors addressing these constraints say SMS alerts, smartphone apps and simple micro‑interactions increase participation among dispersed teams.

Core elements of modern programmes

Modern approaches combine peer nominations, automated milestone triggers and flexible, points‑based rewards. Peer recognition amplifies authenticity because colleagues understand context; automated milestone features ensure anniversaries and safety achievements are not missed; and points systems provide redeemable value tailored to local needs. Reports from Bucketlist and Beekeeper highlight high adoption and strong participation when platforms mix those elements.

Recognition in safety-critical environments

For regulated or safety‑critical environments, tying recognition to compliance and safety behaviours produces measurable reductions in incidents. Vendor case studies and HR consultancy findings indicate that programmes which reward protocol adherence and recognise safety milestones help embed safer practices and create auditable trails useful for regulators.

Practical implementation and ROI

Implementation need not be onerous: published roadmaps and supplier guidance recommend a phased pilot across high‑impact locations, manager training, deployment of automated milestones and rapid rollout of peer‑to‑peer features. When firms start small and measure results, analytics on recognition frequency, redemption patterns and correlation with turnover and safety can validate ROI and guide scale‑up. Vendors report rapid engagement gains within weeks and clearer retention benefits within months.

Bridging the gap

Closing the recognition divide requires investing in technology and redesigning reward strategies so appreciation reaches staff where they work. According to industry providers and HR research, firms that act quickly gain durable advantages in retention, customer experience and safety; organisations that delay risk higher churn and lost productivity. Gail Gust, Director of Marketing and Business Development, captured the effect succinctly: "The platform connects associates to each other in a way that doesn’t happen through email".

Keep up with the evolving technologies and their applications for you organisation by clicking here to visit our Knowledge Hub

Building Human Workplaces report: Stabilising workplaces amid rising stress

Reward Strategy — Tue, 17 Feb 2026 16:02:10 GMT

New research shows that clear communication, manager training, and built-in recognition are key to reducing burnout and improving workforce stability in a changing job market.

The Building Human Workplaces report paints a worrying picture of workforce stability, noting a substantial portion of managers and staff are considering leaving their employers within the next year and reporting rising levels of stress and burnout. According to research from The Conference Board and SHRM (Society for Human Resource Management), the way organisations communicate and promote wellbeing strongly shapes employees’ engagement and intent to stay, with clear, regular messaging linked to improved wellbeing and trust.

Building trust through transparency

Leaders who make information available and run frequent feedback loops reduce the space for speculation and mistrust, a point underscored by SHRM’s findings that transparent leadership materially increases engagement. Industry guidance therefore recommends structured check-ins and digital channels that keep teams informed and invite dialogue, helping align staff around shared goals.

Anchoring teams through management

Manager capability is a decisive retention lever. The Building Human Workplaces report highlights gaps in formal management development and signals many managers feel overburdened. Independent studies show management coaching and training deliver measurable uplifts in manager effectiveness and team outcomes, making targeted investment in coaching and leadership skills a cost-effective way to stabilise teams.

Recognition as part of the operating system

Recognition sits at the centre of day-to-day motivation. Large-scale analyses by Workhuman and Gallup demonstrate that regular, high-quality acknowledgement from peers and leaders correlates with lower burnout, stronger purpose and better emotional wellbeing. Embedding recognition into routine workflow, whether through informal praise or technology-enabled programmes, appears to reduce turnover risk and bolster discretionary effort.

From policy to practice

Wellbeing initiatives must be both substantive and well communicated to be effective. The Conference Board’s research finds that employees who say their wellbeing improved frequently attribute that change to clear organisational messaging about available support, while many workplaces still lack programmes that match employee priorities such as emotional health. Conspicuous, consistent promotion of benefits and accessible support pathways increases the likelihood employees will use and value those resources.

Interventions that reinforce each other

Practical steps for employers therefore include strengthening transparent two-way communication, expanding manager training and coaching, and formalising recognition practices that affirm contribution and reduce burnout. Evidence from multiple large studies suggests these interventions work together: better communication increases awareness of wellbeing offers; skilled managers translate strategy into humane day-to-day leadership; and regular recognition sustains engagement and purpose.

Long-term workforce resilience

Taken together, the research implies a simple strategic pivot: move beyond episodic initiatives and design an integrated employee experience that normalises open information flows, equips managers to lead supportively, and makes recognition routine. Organisations that implement these measures can expect to strengthen retention, reduce burnout and build a more resilient workforce prepared for the challenges ahead.

Improving employee engagement is a long-term commitment. Click here to see this years Reward and Payroll Summit agenda, with sessions dedicated to engaging your employees and ensuring they get the most from your reward programs

Labour market faces mounting recruitment and retention pressures amid slower pay growth

Reward Strategy — Wed, 11 Feb 2026 10:44:37 GMT

CMD Recruitment’s latest South West Salary Guide shows rising hiring challenges, longer recruitment cycles, and shifting employee priorities, signalling growing labour market strain in the region despite broader UK stability.

CMD Recruitment’s new South West Salary Guide paints a region under growing hiring pressure even as headline indicators for the UK suggest modest stability. According to the guide, employers in the South West face slower pay growth, longer recruitment cycles and rising retention risks; Dan Barfoot, Operations Manager at CMD Recruitment, said: “The data shows a labour market that is still highly pressured, particularly in the South West where pay trails national averages. Employers are facing longer hiring times, shifting candidate expectations and upcoming policy changes that will affect reward structures. Having access to clear, region-specific salary data is becoming essential for making informed workforce decisions.”

Regional and national labour market context

The report sets the South West’s average earnings at £37,195 and records local unemployment at 3.3%, while noting a 12% fall in UK vacancies and an average time-to-hire stretched to eight weeks. Those regional figures sit alongside broader official estimates and independent analysis that point to a softer labour market nationally: organisations such as the Resolution Foundation and the House of Commons Library have reported rising unemployment and weaker job growth in recent periods.

Changing worker expectations

CMD’s data highlights shifting employee priorities that are reshaping market dynamics. The guide finds 80% of workers want more paid leave, 84% regard bonuses as essential to total pay and 67% rank healthcare as the top benefit; it also reports that almost half of office employees are contemplating a career change in 2026 and that nearly one in five have already decided to move. Those changing expectations are amplifying recruitment and retention challenges for skilled roles.

Pressure on pay and benefits

The analysis flags impending changes to reward structures that could further complicate employers’ offer packages. CMD warns that a 2029 cap on National Insurance relief for salary sacrifice pension contributions , limited to £2,000 a year in the guide , may erode the value of existing pension arrangements that previously boosted take-home value for many South West workers. Against a backdrop of rising unemployment and a tighter jobs market, the firm argues employers will need to review benefit design to preserve competitiveness.

Impact of employment reforms

Proposed employment reforms are also factored into CMD’s outlook. The guide examines the rollout of Day One Statutory Sick Pay from 2026 and suggests that higher short-term absence costs could increase administrative burdens and labour expenses for permanent staff, pushing firms in sectors such as logistics, care and manufacturing towards greater use of temporary and contract labour. That trend dovetails with macro forecasts that anticipate a weaker labour market even as GDP growth is pencilled in by some forecasters.

AI adoption in recruitment

Technology is presented as both a solution and a governance challenge. CMD reports that 84% of HR teams intend to expand AI use in 2026, with routine recruitment tasks potentially automated by up to 30%. Employers already deploying AI tools say time-to-hire has fallen by between 25% and 50%, though the guide stresses increasing investment in ethical oversight and compliance to manage risks.

What employers should do next

For regional employers the message is clear: adaptation is required. “All these signs suggest the job market is slowing down and getting tougher, especially for those highly skilled roles. Employers may find that securing and retaining talent requires more flexible work and smarter plans for pay and staffing in 2026,” Dan Barfoot added. CMD concludes that businesses that act early on pay structures, benefit offerings and flexible workforce models will be better placed to retain staff and maintain resilience as labour market conditions evolve.

See how you can improve your strategic pay analysis. Click here to visit the Knowledge Hub

Shaping leisure time can boost workplace creativity and engagement, study finds

Reward Strategy — Tue, 10 Feb 2026 16:57:53 GMT

New research highlights how deliberately designing leisure activities, such as goal-setting in hobbies, can enhance creativity and fulfilment at work without organisational overhaul, especially benefiting older employees.

New research adds weight to the idea that deliberately shaping leisure time can boost creativity and meaning at work rather than merely serving as downtime. According to coverage of a study by University of East Anglia and Erasmus University Rotterdam, the practice labelled "leisure crafting" , setting goals around learning, control and social connection in hobbies , produced measurable increases in workplace engagement and creative behaviour among participants. Psychological Science and other recent studies similarly link creative pastimes with improved job performance and helpfulness to colleagues, suggesting the effect is not isolated to a single dataset.

Study design and intervention approach

The investigation used a brief, low-cost intervention in which roughly 200 working adults were guided to rethink how they approached their free time and then reported weekly for five weeks on their hobby engagement and workplace behaviour. This experimental, week-by-week design echoes other research showing that leisure activities and job-crafting interventions can reduce disengagement and lift productivity when applied consistently. The pattern of results emerged without employers changing work structures or adding substantial time demands.

Hobbies as more than relaxation

Lead authors framed the findings as evidence that hobbies can be more than relaxation. “It’s already known that hobbies are good for your well-being,” said lead author Dr Paraskevas Petrou, of Erasmus School of Social & Behavioural Sciences. “But our study shows that hobbies don’t just make you happier, they can also help you feel more fulfilled and creative at work. This goes beyond just relaxing or having fun , like binge-watching Netflix , and turns the hobby into something that helps people grow.” The commentary reinforces a growing literature that creative pastimes transfer restorative and generative resources back into the workplace.

The benefits were especially marked among older participants, a finding that resonates with broader evidence linking creative leisure to preserved cognitive function and slower brain ageing. For some older workers the structured pursuit of skills or social connection in leisure appears to amplify positive emotions and sustain engagement in later career stages. “We were surprised to see that leisure crafting had a stronger effect at work than in people’s personal lives. We had expected equal benefits in both areas,” said co-author Prof George Michaelides, of UEA’s Norwich Business School.

Implications for employers

Co-authors emphasised the intervention’s simplicity. “What makes this study different is that we didn’t just ask people how they feel,” said co-author Prof Laura Den Dulk, also of Erasmus University Rotterdam. “We asked them to take a small, specific action , to approach their hobby in a new way , and then we saw how it actually affected their lives week by week.” Employers seeking cost‑effective routes to better engagement and retention could therefore consider recognising hobbies as legitimate avenues for development, offering modest personal-development funding or optional workshops to help staff reflect on leisure choices. Other studies have found substantial performance uplifts among professionals who sustain creative hobbies, including improv and arts activities.

Leisure crafting as a workplace complement

Taken together, the evidence points to leisure craft as a practical complement to workplace interventions rather than a replacement for organisational change. Industry and academic data indicate that encouraging employees to pursue purposeful leisure may be a low-burden way to enhance creativity, reduce burnout risk and support longer, more productive careers. Policymakers and HR leaders weighing work–life initiatives should regard structured hobby engagement as one empirically supported lever for improving job outcomes.

For more on enhancing your employee engagement, click here to visit our Knowledge Hub

Apprenticeships evolve as key to securing jobs

Reward Strategy — Tue, 10 Feb 2026 16:56:28 GMT

Structured apprenticeships are emerging as a practical, industry-led route into resilient, future-proof careers, offering a strong alternative to traditional entry-level jobs.

“If we’re serious about future-proof careers, apprenticeships shouldn’t be the backup plan, they should be the obvious one. What makes apprenticeships so effective is that they evolve with the workplace. When employers, providers and learners work together, you get training that stays relevant, even as technology moves fast, you simply build it in”.

Mark Bremner, CEO of MBKB.

The Evolving Job Market

Apprenticeships are increasingly being cast as a frontline response to labour-market disruption driven by artificial intelligence, with analysts and workforce specialists arguing they provide a practical route into secure, evolving careers as traditional entry-level vacancies decline. According to the Forbes Council, automation and AI have contributed to a contraction in conventional junior roles, prompting employers and educators to promote apprenticeships as an alternative ladder into skilled work. Industry research also highlights how structured, employer-led training can equip workers with complementary human and technical capabilities that AI alone cannot supply. Mark Bremner lends his experience, confirming that “after many years in the apprenticeship world, I’ve learned one thing: when you design them around real work and real people, apprenticeships just work and build the best workforce”.

Revoking early careers and entry-level work

Conor Cotton, from jobs platform Not Going To Uni, explains: “There’s been a lot of debate about AI eroding entry-level roles but what we’re actually seeing is a shift in how early careers are structured, not a collapse in demand. Employers still need people at the start of their careers; they just want them learning in a more applied, work-based way.” Practical-features guidance for applicants echoes this, recommending that candidates emphasise transferable skills and readiness to learn on the job rather than long employment histories.

Future skills

National Apprenticeship Week, which this year carries a Skills For Life message, has singular focus on demonstrating how work-based routes can produce long-term employment and resilience to technological change. Events hosted during the week include sessions that show how AI can be integrated into training pathways and roundtables exploring how the Registered Apprenticeship system should adapt to new occupations emerging from AI-driven change. These gatherings aim to help policymakers, training providers and employers align programmes with future labour-market needs.

But as Mark Bremner notes: “AI can process data, but it can’t replace judgement, creativity or common sense and those are exactly the skills great apprenticeships develop. Which is why we have developed an embedded approach”.

"New-collar" apprenticeships

A prominent development is the expansion of so-called “new-collar” apprenticeships that meld traditional tradesmanship with contemporary digital skills. Debbie Phillips, from data centre firm Equinix, said: “Where traditional ‘blue-collar’ apprenticeships, such as plumbing, focused on hands-on, manual work, ‘new’ collar apprenticeships bridge the gap between traditional blue collar and professional careers by integrating technical skills with soft ones.” Commentators argue such programmes can deliver immediate workplace relevance while developing the human judgement and adaptability that remain essential alongside AI tools.

Accelerated progression

Degree apprenticeships offer a hybrid path for those who want both academic qualifications and paid workplace experience. Level 6 and Level 7 programmes allow participants to combine on-the-job training with degree-level study, accelerating professional progression in fields such as accountancy and technical specialisms. Rachel Jackson, who joined accountancy firm BDO from school and is studying for a Level 7 qualification, said: “I’ve progressed quickly and am on track to become a chartered tax adviser this year, at age 22, which is much quicker than if I had gone to university then chosen a graduate scheme.” Guidance for entrants stresses careful application tailoring, measurable examples of achievement and building a professional profile to stand out.

Practical guidance

For applicants, trainers and employers the practical advice is consistent: highlight potential, be specific about why a particular apprenticeship fits, show commitment to a multi-year programme, use AI tools sparingly and ensure applications are error-free, and cultivate a professional online presence. Apprenticeship advocates also point to employer benefits, apprenticeships create stable talent pipelines, foster community inclusion and can be shaped to meet rapidly changing technology needs.

The future workforce

As policymakers, providers and firms convene during National Apprenticeship Week, workforce specialists from the Urban Institute and sector bodies argue apprenticeships will be central to equipping workers for an AI-enhanced economy. They recommend adapting standards, expanding access to new-collar occupations and deliberately using apprenticeship frameworks to promote equity in emerging career pathways. The combined message to young people and employers is that structured, employer-led learning offers one of the clearest practical routes to futureproofed employment.

For more on total reward and training the next generation of the workforce, click here to visit our Knowledge Hub

Potential to promote inclusion is hindered by design biases and access gaps

Reward Strategy — Mon, 09 Feb 2026 16:06:45 GMT

Despite AI’s potential to promote equity, entrenched biases and unequal access risk deepening inequalities without deliberate, ongoing governance to ensure fair outcomes for underrepresented groups.

Machines that promise impartiality are reshaping who gets seen and who is sidelined at work, but neutrality is an illusion when artificial intelligence systems are trained on human history. According to a pilot survey of more than 1,200 AI and machine‑learning professionals, underrepresented groups, especially employees with disabilities, report poorer workplace experiences, underscoring that technical systems reflect organisational and social inequalities unless deliberately corrected.

A tool for inclusion

AI can widen opportunity when designed with inclusion in mind: automated screening can surface talented candidates who might otherwise be overlooked and analytic tools can rapidly reveal pay and promotion imbalances. Industry commentary shows employers are increasingly deploying analytics and personalised platforms to highlight and address disparities in hiring, rewards and career progression.

How bias becomes embedded

Yet the same mechanics that make AI powerful, scale, data‑driven patterning and automation, can also entrench bias. Academic reviews and empirical studies find that tools not grounded in representative data or subjected to robust oversight often reproduce historical hiring patterns and produce unfair outcomes, particularly for older applicants, women and marginalised communities. This dual potential for benefit or harm makes governance essential.

Diversity intent to daily practice

Practical attempts to translate diversity principles into recruitment software show the gap between intent and effect. A co‑design study with a multinational recruiter found that awareness of D&I increased among practitioners, but converting that awareness into everyday decisions remained difficult as teams balanced inclusion goals against business pressures. Continuous monitoring and clear alignment between DEI objectives and commercial workflows are therefore necessary.

Safeguards

Technical remedies exist at multiple stages of an AI pipeline: pre‑processing data to remove proxies for protected characteristics, in‑processing methods that constrain model behaviour, and post‑processing fixes that adjust outputs for fairness. Human oversight that is trained to interrogate model suggestions, rather than accept them uncritically, complements these technical measures. Industry guidance stresses that these approaches must be routine, ongoing and resourced.

Transparency, audits and accountability

Transparency and external accountability are gaining traction as policy responses. City and national regulations, alongside corporate reporting, push firms to audit automated employment tools and disclose risks; independent audits and public summaries of findings help rebuild trust when communities can see how decisions are made and corrected. Scholarly work and practitioner writing both emphasise that disclosure without remediation is insufficient, audits must lead to concrete fixes.

The access gap

Access remains a foundational limiter: without affordable connectivity, assistive technologies and digital literacy, whole segments of the workforce cannot benefit from AI‑enabled recruitment or workplace supports. Research and public data show connectivity shortfalls and accessibility barriers continue to exclude people, particularly in less resourced regions, meaning equity requires investment beyond algorithms.

Designing for inclusion

When inclusion is treated as a design requirement, AI tools can advance accessibility and belonging, examples include anonymised applications that remove identifying details, real‑time captioning and screen‑reader friendly interfaces that enable participation, and pay‑equity platforms that surface disparities for rapid remediation. Companies that combine diverse development teams with community feedback are more likely to spot and correct harmful blind spots early.

Why the human element still matters

The human element remains decisive. Machines can detect patterns, but they do not supply context, judgement or compassion; organisations must train people to challenge automated outputs and to centre lived experience in decisions about fairness. As Chimamanda Ngozi Adichie reminds us, “Stories matter; many stories matter.” Building systems that reflect a plurality of experiences is both a technical challenge and an ethical commitment.

Committed to establishing strong DEI values? Click here to register for our Payroll and Insight Series session on Neurodivergence in Payroll

PRIS takeaways: How to successfully switch providers?

Lukas Montgomery — Mon, 09 Feb 2026 12:04:41 GMT

Switching payroll providers isn’t about cost alone. Our latest PRIS webinar reveals the real triggers, risks and readiness needed to make change succeed.

In our latest Payroll and Insight Series, Vickie Graham, Managing Director at Reward Strategy, and Simon Bunday, Director at LACE Partners, discussed how to successfully change providers and one theme surfaced repeatedly: organisations almost never wake up one morning and decide, lightly, to change payroll provider. What emerged instead was a picture of slow-building pressure-operational, regulatory and organisational-that eventually reaches a tipping point.

After a group poll questioning what the original reason participants chose their current provider was, Simon was clear that cost savings alone rarely justify such a disruptive move. Changing payroll demands time, internal effort and senior attention. In most cases, the business case only stacks up once multiple pain points converge; deteriorating service quality, rising error rates, audit concerns, organisational growth, and major internal transformation programmes all tend to overlap before serious questions are asked about whether the current provider is still fit for purpose.

Service pain hidden behind firefighting

One of the most striking insights from the discussion was how long payroll teams absorb operational pain before it becomes visible to the wider business. Missed SLAs, weak incident management, heavy rework after payroll runs and reliance on a small number of provider staff with critical knowledge were all cited as common triggers. Yet these issues are often masked by constant “firefighting” from payroll and HR teams determined to ensure people are still paid correctly and on time.

By the time senior stakeholders become aware-often through audit findings or compliance concerns-the underlying problems are already deeply embedded. At that point, payroll risk shifts from an internal inconvenience to a financial, regulatory or reputational issue that boards cannot ignore.

System failure or operating model failure?

A recurring question throughout the seminar was how organisations can tell whether the real problem lies with the payroll system itself or with how payroll is operated day to day. Simon suggested two practical tests:

First, dissatisfaction needs to be unpacked: is it about what the provider delivers, or what the technology can actually do? Slow responses, limited payroll expertise and poor quality assurance tend to signal service or operating-model issues. By contrast, rigid configuration, constrained data models and weak reporting usually point to genuine system limitations.

Second, organisations were urged to trace where errors originate. If mistakes are being introduced upstream-through HR data, time inputs, manual uploads or poorly designed workflows-the platform may not be the culprit at all. Several contributors warned that many organisations replace their payroll provider only to recreate the same problems because underlying processes and governance remain unchanged.

What “readiness” really looks like

Perhaps the most pragmatic part of the seminar was the discussion on readiness. Simon was explicit that being “ready” does not mean having a perfect payroll operation. It means having clarity.

In practice, this includes a shared understanding of how payroll actually operates today, evidence-based pain points rather than vague dissatisfaction, and a clear payroll strategy that sets direction and ambition. Just as importantly, readiness requires visible senior sponsorship and agreement on ownership across Payroll, HR and Finance.

The discussion noted how often key stakeholders are engaged too late. Line managers, operational users, works councils and even employees themselves are frequently treated as peripheral, despite payroll touching almost every part of the organisation. The seminar made a compelling case that excluding these voices early almost guarantees misalignment and rework later on.

Redefining what “good payroll” means

Another strong takeaway was the emphasis on defining success before any provider review begins. Paying people accurately and on time is non-negotiable, but it is not, on its own, a meaningful definition of success.

It was argued that good payroll should feel predictable and stable, with clear accountability, strong controls and minimal dependency on individual knowledge. It should enable wider business change, not constrain it. For employees and managers, success shows up as simplicity, reliability and trust-qualities that are difficult to retrofit if they are not designed into the operating model from the outset.

The risks organisations still underestimate

The same underestimated risks kept resurfacing. Data quality was chief among them. Organisations often assume historic data issues will be resolved during implementation, only to discover late-stage inconsistencies in job structures, pay elements and local exceptions that force compromises.

Change fatigue was another recurring concern. Payroll transformation rarely happens in isolation and often coincides with HR or finance programmes, stretching internal capacity and weakening engagement. Closely linked was the tendency to underestimate internal effort and over-rely on provider teams who lack deep organisational context, a view supported by the participants in a poll.

Finally, unclear boundaries between customer and provider responsibilities-particularly around data validation, exception handling and statutory reporting-were highlighted as a persistent source of friction and escalating cost.

Looking beyond cost and technology

The seminar closed with a reminder that payroll selection decisions succeed or fail well beyond spreadsheets and feature lists. Operating model, service delivery structure and cultural fit matter enormously in the long term. Payroll is not a one-off project but an ongoing partnership, with providers effectively becoming an extension of internal teams.

The importance of understanding how providers retain payroll expertise, how delivery teams are stabilised, and how feedback is used to improve service were stressed as key factors. When operating across borders, the challenge becomes even sharper. Global consistency brings governance and efficiency, but local payroll realities, legislation, language and practice, cannot be abstracted away.

The overriding message from the webinar was clear. Organisations that approach payroll change as a purely technical or commercial exercise are likely to be disappointed. Those that treat it as a strategic, operational and human endeavour stand a far better chance of delivering lasting improvement.

The Payroll and Insight Series continues to evolve to keep you up to date with thought-leading topics and insights. Click here to see our next session: Neurodiversity in payroll.

CIPD release Wales-focussed manifesto

Reward Strategy — Thu, 05 Feb 2026 11:42:54 GMT

Ahead of the 2026 Senedd election, the Chartered Institute of Personnel and Development has launched a Wales manifesto urging targeted action on labour shortages, skills development, and technological change.

The Chartered Institute of Personnel and Development has published a Wales-focused manifesto ahead of the 2026 Senedd election that urges policymakers to prioritise higher-quality, better‑skilled and more innovative employment across the nation. According to the report by the CIPD, the document draws on research and engagement with employers and people professionals in Wales to set out practical steps for confronting labour market pressures including automation, an ageing workforce and persistent skills shortages.

Labour market challenges

The manifesto highlights the scale of the challenge in Wales, citing official labour market measures that show a notably higher level of economic inactivity than the UK average. The CIPD argues this gap constrains growth and underlines the need for targeted interventions to bring more people into sustainable work.

Apprenticeship guarantee proposal

A central recommendation is an apprenticeship guarantee for 16–24‑year‑olds, a policy the CIPD says would expand opportunities for young people and help tackle shortages in key sectors. The call mirrors the organisation’s wider lobbying on apprenticeships, where it has warned that recent government reforms risk narrowing the offer and urged more ambitious action to broaden access.

Removing barriers to employment

On fair work, the manifesto urges the Welsh Government to use devolved powers more proactively to remove barriers to employment. Specific proposals include extending funded childcare to children under two to help carers return to paid work, alongside clearer employer guidance and practical case studies to drive better workplace practices. According to the CIPD, these measures should lift the quality of jobs while easing labour supply constraints.

Reforming skills and training systems

To strengthen skills supply the document proposes reforming Personal Learning Accounts into buildable accounts aimed at priority sectors, creating a responsive careers service for all ages, and broadening flexible apprenticeships and hiring incentives. The CIPD frames these measures as essential to aligning training with demand as roles evolve under technological change.

Preparing for AI and automation

Recognising the opportunities and risks presented by generative AI and automation, the organisation calls for enhanced business support to raise people‑management capability and to ensure technology adoption boosts productivity without undermining jobs. The manifesto stresses that government action must be complemented by employers, education providers and employees working in partnership to create a labour market that is resilient and fit for the future.

Supporting employers in practice

Industry and advocacy work from the CIPD in Wales also includes events and conferences intended to help employers navigate legislative change and emerging workplace trends, reinforcing the organisation’s role in translating policy into practical employer support.

To keep up to date with the latest on changes to employee engagement, click here to visit our Knowledge Hub

"Peanut butter" pay rises

Reward Strategy — Thu, 05 Feb 2026 10:42:22 GMT

Small employers are favouring evenly spread salary increases supplemented by bonuses and non-cash rewards, as they navigate modest pay rises and economic challenges in 2026.

Small employers facing pressure to retain staff increasingly favour spreading limited pay budgets evenly rather than differentiating increases by performance, while supplementing pay with bonuses, promotions and non‑cash rewards to keep top talent engaged.

The "peanut butter" approach

According to Payscale’s 2026 Pay Trend report, many firms are adopting what is popularly called the “peanut butter” approach to pay rises, where a set percentage uplift is applied across the workforce; industry reporting shows roughly 44% of companies plan to use this method in 2026. At the same time, a similar share continue to apply merit‑based increases, reflecting an uneasy balance between administrative simplicity and performance differentiation.

Modest pay growth continues

Average salary increases are expected to remain modest, with total pay rises hovering around 3.5% and merit increases near 3.2%, levels broadly unchanged from 2025 as employers respond to economic uncertainty and a cooling labour market. Smaller firms, however, have tended to grant larger percentage increases to compete for and retain staff.

Expanding rewards beyond base pay

That modest baseline helps explain why employers are expanding the mix of rewards beyond base pay. Companies report using incentive bonuses for goal achievement, spot and year‑end payments, sign‑on and retention bonuses, and tangible non‑cash rewards such as paid time off or event tickets to recognise contributions without permanently increasing headcount costs.

Hybrid models for high performers

Many organisations combine peanut butter increases with targeted payments to high performers: while an across‑the‑board uplift is administratively straightforward, managers often use bonuses, promotions or placement on a higher pay scale to ensure standout employees receive meaningful differentiation. Industry coverage notes that some firms are explicitly moving to that hybrid model to avoid alienating top talent.

Long-term incentive plans

Beyond cash, long‑term incentives and ownership models are increasingly part of the conversation for businesses able to offer them. Where feasible, employers can use stock options, immediate equity awards or Employee Stock Ownership Plans to align employee and company interests and provide reward that grows with the business. Such arrangements are particularly relevant for incorporated firms seeking retention tools that do not immediately burden payroll.

Risks of uniform pay rises

Critics warn that the peanut butter method risks demotivating high performers who expect pay to reflect individual contribution; opinion pieces argue that uniformly applied rises can undermine morale and hinder productivity if top talent feels insufficiently rewarded. Employers adopting blanket increases therefore often pair them with discretionary bonuses or clearer promotion pathways to preserve performance incentives.

The role of recognition

Simple recognition remains a low‑cost but powerful complement to monetary reward. As Mary Kay Ash, founder of Mary Kay Cosmetics, said: "There are two things people want more than love and money , recognition and praise." Managers who combine fair pay practices with timely praise, career development and selective financial incentives are better positioned to retain staff while controlling costs.

For more on managing your strategic pay analysis, click here to take a look at the sessions in this years Reward and Payroll Summit.

Redefining retention: Personalised benefits and flexible strategies in the digital age

Reward Strategy — Wed, 04 Feb 2026 10:28:48 GMT

Organisations prioritising customised benefits and flexible work are boosting retention, productivity, and talent attraction, reshaping traditional HR as workforce expectations evolve.

Organisations that centre their strategies on the employee experience are seeing measurable gains in retention, productivity and the capacity to attract talent, as workforce expectations evolve beyond standard compensation packages. According to PeopleHR, employees with access to wellness resources and a healthier work-life balance report lower stress and greater engagement, outcomes that translate into steadier teams and improved customer service.

Benefits: A strategic lever, not an add-on

For many employers, benefits remain a largely undifferentiated add-on; yet HR specialists now regard them as a strategic lever. Company diagnostics conducted across sectors show staff are less interested in sheer volume of perks than in relevance: they prefer offerings that address real-life needs and remove everyday frictions. This trend echoes reporting by HR Dive, which finds workers increasingly seek a holistic mix of wellbeing, meaningful work and tailored benefits.

Limitations in one-size-fits-all benefits

The one-size-fits-all model falters in workplaces that include early-career professionals, technical specialists, mid-level managers with caregiving duties, remote and hybrid staff, and field-based teams. Tailored packages allow firms to serve distinct circumstances, flexible hours for parents, specific insurance for higher-risk roles, targeted training for technical profiles, mobility support for field workers, yielding greater perceived value without necessarily increasing total benefits expenditure. Industry commentary highlights that differentiation by role, life stage or location can be both fairer and more cost-effective.

Implementing flexible and targeted benefit models

Practical approaches range from simple elective menus to more structured, measurable schemes. Employers can offer flexible benefit bundles that let employees choose options aligned with their situation, create compensatory benefits for those who cannot access standard programmes because of their work modality, or implement area-specific plans where operational realities differ markedly across sites. Research on flexible work arrangements demonstrates these choices boost perceived work–life balance and retention.

Personalised wellbeing and preventive care

Health coaching and personalised wellbeing supports are gaining traction as components of contemporary benefits strategies. According to Labcorp, nearly half of employers already provide health and lifestyle coaching and insurers are planning wider adoption by 2026, reflecting evidence that personalised preventive care can help employees make lasting behaviour changes and reduce downstream costs. Such services reinforce that benefits should solve problems rather than simply exist for appearance.

The remote and hybrid work model

Remote and hybrid working patterns further complicate benefit design but also offer avenues to increase productivity and satisfaction. Surveys and labour statistics studies suggest remote working correlates with gains in total factor productivity and that many employees, particularly younger cohorts, report higher effectiveness in flexible settings. Aligning benefits with these arrangements helps reduce absenteeism and supports sustained performance.

Leadership, empathy and workplace culture

Beyond programmes and platforms, emotional intelligence in management matters. HR Dive highlights that attraction and retention depend as much on empathetic leadership and meaningful work as on tangible perks. Employers that combine personalised benefits with considerate workplace culture tend to see reduced turnover and stronger employer branding, mitigating the high costs associated with staff churn.

Relocating spend for long-term impact

When organisations reallocate benefit spend toward relevance and flexibility, they create environments where employees feel understood and supported, which in turn fosters commitment, steadier attendance and improved operational outcomes. Industry evidence indicates that doing so can raise motivation and make firms more competitive in a tight talent market without simply increasing overall costs.

Total Reward is an ever-evolving topic. Click here to visit the Knowledge Hub and keep up with the latest changes and help your organisation stay at the forefront.

New Appointments in Reward, Payroll and Benefits - January 2026

Lukas Montgomery — Wed, 04 Feb 2026 09:19:19 GMT

The reward, payroll, and benefits profession continues to see exciting career moves across the industry

Rebecca Hedges

Director of Employee Relations and Policy

Imperial College London

Rebecca Hedges has been appointed Director of Employee Relations and Policy at Imperial College London. Rebecca joins Imperial College London with comprehensive experience from senior HR roles within government and complex organisations.

Imperial College London is a world-leading research university, renowned for excellence in science, engineering, medicine and business education.

Sarah Ayles

Payroll and Reward Manager

Monsoon Accessorize

Sarah Ayles has been appointed Payroll and Reward Manager at Monsoon Accessorize. Sarah joins Monsoon Accessorize in the role of Payroll and Reward Manager, where she will shape and manage key reward activity across the business.

Monsoon Accessorize is an international fashion retailer with a strong presence across the UK and global markets, offering clothing, jewellery and accessories.

San Cheung

EMEA Payroll and Operations Manager

Vistra + iiPay

San Chung has been appointed EMEA Payroll and Operations Manager at Vistra + iiPay. San takes on the role with responsibility for overseeing payroll and operational activity across the EMEA region, bringing strong regional payroll and operations experience to the business.

Vistra + iiPay provides global payroll, payments and compliance solutions to multinational organisations operating across multiple jurisdictions.

Leandra Eccles

Global Payroll Director

Nscale

Leandra Eccles has been appointed Global Payroll Director at Nscale. Leandra takes on the role of Global Payroll Director, bringing extensive payroll leadership experience to support and develop the company’s global payroll strategy.

Nscale specialises in the design, build and operation of high-performance data centre infrastructure supporting large-scale digital and cloud services.

Conner Williams

Principal Global Payroll Specialist

UKG

Conner Williams has started a new role as Principal Global Payroll Specialist at UKG. In this position, Conner brings global payroll expertise to support clients and drive best practice across payroll solutions.

UKG is a global provider of HR, payroll and workforce management technology, supporting organisations of all sizes to manage and engage their workforces.

Lois de Legge

Head of People – Western Europe

Revolut

Lois de Legge has joined Revolut as Head of People – Western Europe. Lois takes on responsibility for leading the people strategy across Western Europe, bringing strong international HR experience to the business.

Revolut is a global fintech company offering digital banking, payments and financial services to millions of customers worldwide.

Claire Faik

Head of HR

Datalec

Claire Faik has been appointed Head of HR at Datalec Precision Installations. Claire progresses within the business as Head of HR, where she will lead the HR function and support continued growth.

Datalec Precision Installations delivers specialist data centre installation, engineering and infrastructure services to enterprise and hyperscale clients.

Claire Hussey

Head of HR – UK Operations and Employee Relations

LuxExperience

Claire Hussey has been appointed Head of HR – UK Operations and Employee Relations at LuxExperience. In her new role, Claire will lead HR operations and employee relations across the group’s UK business.

LuxExperience is a global luxury retail group operating premium brands across travel retail, destinations and experiential retail environments.

Claudia Clark

Group Head of Talent and Reward

Synesco

Claudia Clark has been appointed as Group Head of Talent and Reward at Synesco. Claudia takes on the role of Group Head of Talent and Reward, expanding on her previous position as Group Head of Reward and bringing extensive HR experience to the role.

Synesco is a UK-based engineering and services group delivering specialist support across critical infrastructure, utilities and industrial environments.

Recognition as a crucial tool to combat employee turnover and boost performance

Reward Strategy — Tue, 03 Feb 2026 09:22:17 GMT

Employee churn is costly, but evidence shows that systematic employee recognition is one of the most effective and affordable ways to retain talent and stabilise performance.

According to Gallup research, workers who receive high-quality recognition are 45% less likely to leave within two years, a finding echoed in joint Workhuman-Gallup research that positions recognition as central to modern retention strategies.

Executive intent versus employee experience

That growing consensus has begun to reach the C-suite. The proportion of senior leaders who view recognition as a core element of engagement and retention has risen markedly in recent years. Yet employees’ perceptions lag far behind executive intent. Industry reporting shows that only around 22% of workers rate their job satisfaction highly, highlighting a persistent disconnect between leadership priorities and day-to-day employee experience that leaves a substantial implementation gap.

What effective recognition looks like

Research indicates that the advantage lies in recognition that is timely, sincere and substantive, rather than sporadic or superficial. Gallup’s analysis and corroborating industry studies find that high-impact acknowledgement strengthens employees’ connection to organisational purpose and significantly reduces the likelihood they will seek opportunities elsewhere over a two-year period. This effect is especially pronounced among higher performers, whose departure poses the greatest operational and financial risk.

The performance and wellbeing dividend

Beyond retention, consistent recognition is associated with steadier productivity and lower burnout. Workplace analyses show that recognised employees report less exhaustion and higher sustained engagement, while broader surveys consistently identify recognition, fair pay and career development as primary drivers of job satisfaction. In practical terms, recognition programmes can shift engagement from an episodic HR initiative to a measurable contributor to operating performance.

The hidden costs of disengagement

Failing to act carries hidden costs. Research into workforce dynamics reveals that a significant proportion of employees are disengaged yet remain in post, creating a drag on output even when turnover rates appear stable. Employers must also distinguish between damaging attrition of top talent and “functional” turnover that can be healthy; the strategic priority is preventing the loss of institutional knowledge and social capital that underpins team effectiveness.

Closing the execution gap with technology

Technology and peer-led approaches are increasingly helping organisations close the execution gap. Platforms that automate recognition prompts, enable peer-to-peer acknowledgement and track recognition patterns can embed frequent, meaningful feedback at scale without overburdening managers. Industry research and practitioner reporting suggest that, when paired with clear managerial expectations, these tools can institutionalise positive behaviours and deliver measurable returns in both retention and performance.

Click here to visit our Knowledge Hub for more on the benefits of quality recognition within your organisation

Employment reforms for 2026 signal increased employer accountability and proactive workplace safeguards

Reward Strategy — Tue, 03 Feb 2026 09:21:30 GMT

UK employment law reforms in 2026 will increase employer obligations and legal risk, requiring updated policies and training.

The UK’s employment landscape is set for a notable recalibration in 2026, with a cluster of reforms that raise employers’ compliance obligations and increase the legal and financial risks of getting workplace processes wrong. Businesses that begin updating policies and training now will be better placed to manage the year ahead. According to analysis by RSM UK and recent practice briefs from legal advisers, the cumulative effect of these measures will be to shift the balance of responsibility more squarely onto employers.

Stronger duties to prevent sexual harassment

A central change will be the uplift in the preventive duty to tackle sexual harassment. Employers will no longer be judged on whether they took “reasonable steps” but on whether they took “all reasonable steps” to stop such conduct, a higher threshold that requires more active and demonstrable intervention. Industry commentary warns that boards and HR teams should expect closer scrutiny of training, supervision and the practical steps taken to prevent harassment.

Renewed liability for third-party harassment

Liability for harassment by third parties is also returning as a statutory risk. Employers may be held to account for abusive or harassing behaviour by clients, customers or contractors where that conduct occurs in the course of employment and the employer cannot show they took all reasonable steps to prevent it. Employment specialists advise reviewing risk assessments and contractual arrangements with third parties to evidence proactive prevention measures.

Expanded whistleblowing protections and limits on NDAs

Separately, whistleblowing protections are widening. Disclosures about sexual harassment will be explicitly treated as protected, bringing such complaints within the stronger anti-retaliation regime and exposing employers to increased liability if they respond improperly. At the same time, government proposals point to tighter limits on confidentiality clauses in settlements and NDAs where they seek to silence victims of harassment. Legal commentary suggests such clauses will increasingly be regarded as unenforceable, prompting employers to reassess whistleblowing channels, confidentiality practices and settlement approaches.

Higher stakes in redundancy and restructuring

Employers will also need to revisit redundancy and restructuring playbooks. Legal advisers highlight that enhanced consultation obligations and higher potential awards for failures in collective consultation make early planning essential. Practical steps such as timely headcount reviews, clear identification of affected employee pools and thorough record-keeping can significantly reduce the risk of costly protective awards and prolonged disputes.

Increased pressure on dispute resolution

Pressure on dispute resolution routes is likely to intensify. Commentators note that tribunal backlogs, combined with changes to limitation periods and procedural rules, may extend the timeframe during which employers must manage active claims and preserve evidence. As a result, firms are being advised to strengthen document retention, consider alternative dispute resolution at an earlier stage and ensure internal investigations are rigorously documented.

Changes to statutory entitlements and unfair dismissal risk

Changes to statutory entitlements will also affect workforce planning. From April 2026, some family leave and sickness entitlements will apply from day one of employment, and statutory sick pay will be payable from the first day of incapacity, with the lower earnings threshold removed. In addition, the qualifying period for ordinary unfair dismissal is expected to be shortened to six months, increasing the number of employees able to bring claims. Employers should therefore reinforce probation processes, update contracts and assess the operational and cost implications.

Prevention, process and proof

Taken together, the reforms place a premium on prevention, clear process and evidencing action. Legal advisers and HR specialists recommend immediate policy reviews, refreshed manager training, clearer reporting channels and tighter governance around third-party interactions and settlement terms. Organisations that treat these reforms as a compliance exercise rather than an opportunity to embed safer workplace practices may still face heightened legal and reputational risk.

Click here to visit our Knowledge Hub and keep up to date with industry changes as they happen, and see what you can do to prepare for them.

Employee engagement starts with savings security

Lukas Montgomery — Wed, 04 Feb 2026 09:38:23 GMT

Employee engagement isn’t only about culture or purpose. For many UK workers, financial insecurity creates stress that undermines focus, performance and future plans.

Recent research paints a worrying picture of how little financial resilience many workers have built up, particularly younger ones. The implications for employers are significant; Financial stress doesn’t stop at the front door of the workplace, it directly affects mental health, productivity, retention and engagement.

A lack of financial safety nets

New research from OneFamily Group highlights just how exposed many young UK adults are. With 51% saying they do put money aside for if they are unable to work due to illness, injury or redundancy, a striking 44% say they rarely or never do. In real terms, this equates to more than seven million young adults who are financially vulnerable should their income be interrupted.

This lack of preparation is particularly concerning given the volatility of modern working life. Ill health, redundancy, caring responsibilities or economic shocks are no longer rare events, yet millions of people are potentially gambling that nothing will go wrong. For employers, that creates a workforce operating under constant, low-level financial anxiety.

The picture becomes even more stark when looking at those who are already more likely to experience work disruption. Among people with long-term physical or mental health conditions lasting 12 months or more, 53% say they rarely or never put money aside, while only 41% say they do. Meaning the very people who may need financial buffers the most are the least likely to have them.

Financial stress and disengagement go hand in hand

Financial insecurity doesn’t exist in isolation. It shapes how people feel about their jobs, their careers and their futures. Research from ZETY shows that 35% of British workers have thought about changing careers due to money worries. For 12% of those considering a move, the cost-of-living crisis is the direct driver.

If the financial situation worsens, an estimated 10 million more people say they would consider taking on a second job. While this may offer short-term relief, it also increases the risk of burnout, fatigue and disengagement from primary roles.

For employers, this has clear consequences. Employees who are preoccupied with financial survival are less likely to be focused on development, innovation or long-term growth within an organisation. Instead, they are more likely to be distracted, exhausted, or actively looking for ways out and actively encouraging the two-year tenure culture.

The link between savings and mental health

The relationship between savings and wellbeing is not just anecdotal- it is measurable. YouGov research found that individuals with less than £1,000 in savings were almost three times more likely to report poor mental health compared to those with more than £1,000 saved.

This highlights an important point for employers: savings are not simply a financial tool; they are a psychological one. Even relatively modest emergency funds can provide a sense of control and security, reduce anxiety and improve overall wellbeing. In contrast, the absence of any financial buffer can amplify stress, particularly when combined with job insecurity or rising living costs.

Poor mental health is already one of the leading causes of sickness, absence and burnout in the UK. When financial stress is layered on top, the impact on engagement and productivity becomes even more pronounced.

Who is most financially vulnerable in the workplace?

OneFamily’s research reveals that financial vulnerability is not evenly distributed across the workforce. Certain groups are consistently less likely to have savings in place.

Young women, for example, are more financially vulnerable than men, with significantly lower savings rates. This has implications not only for engagement today, but also for long-term financial outcomes such as retirement security.

People with long-term physical or mental health conditions face a double challenge: a higher likelihood of being unable to work for periods of time, combined with lower levels of savings to support them when that happens.

Housing status also plays a role. Renters are substantially less likely to save compared to homeowners, underlining the link between housing insecurity and financial resilience. With many younger employees locked out of home ownership, this creates a cohort that is structurally more exposed to financial shocks.

Single employees are another at-risk group. Without a partner’s income to fall back on, financial disruption can be more severe, yet single people are significantly less likely to save regularly than those who are married.

For employers, these groups often overlap with early-career talent, frontline staff and key operational roles. Ignoring their financial wellbeing risks disengagement and higher turnover among exactly the employees organisations are trying hardest to retain.

Why employers have a growing role to play

Traditionally, saving has been seen as a personal responsibility. But the workplace already plays a major role in shaping financial behaviour, particularly through pensions. As financial pressures intensify, there is a growing recognition that employers can, and potentially should, more to support savings engagement.

This is not about replacing pay rises or taking responsibility for personal finances. It is about reducing vulnerability and tailoring benefits packages to suit the employee. A workforce with even basic financial buffers is more resilient, more focused and better able to engage with work.

Importantly, supporting savings does not require employees to set aside large sums. As OneFamily points out, even a few pounds a month can make a meaningful difference over time. The challenge is helping employees overcome the perception that saving is impossible when budgets are already stretched.

Building a culture of financial resilience

Employers are uniquely positioned to normalise saving behaviours. By talking openly about financial resilience, offering education, and integrating savings into broader wellbeing strategies, organisations can help employees move from short-term survival to longer-term stability.

Targeted support also matters. Understanding which groups are most financially vulnerable allows employers to design inclusive approaches without stigma. The goal is not to single people out, but to ensure that support is accessible, relevant and practical.

Targeted savings initiatives

This extends to the issue of how they are targeted for savings. The most commonly used workplace savings practice is the pension, yet under 40’s often prioritise saving for their first home over contributing to a pension, and in a multigenerational workforce we have to consider whether the over 65’s would want additional contributions to a pension they are in receipt of.

Workplace ISAs are a potential solution, but the Financial Conduct Authority warned that opt-in systems may not be worth it due to the low uptake. This is often a combination of issues stemming from employees understanding the full range of their reward packages, an issue solvable through clear and concise reward programme communication.

But the key comes down to organisations exploring the benefits packages they can offer and understanding their employee base to ensure that the rewards they are offered are applicable to each individual.

Engagement starts with security

Employee engagement cannot thrive in an environment of constant financial anxiety. When people are worried about how they would cope with illness, redundancy or unexpected expenses, engagement initiatives risk feeling superficial.

Savings security is becoming one of the clearest indicators of whether employees feel safe enough to thrive at work. For employers, helping staff build that security is not just a wellbeing initiative- it is a strategic investment in engagement, retention and performance.

The Reward and Payroll Summit is live! Click here to see what insights this year’s summit will offer

Multigenerational benefits strategies reshape workplace wellness and engagement

Reward Strategy — Wed, 28 Jan 2026 12:34:28 GMT

HR leaders are adopting flexible, personalised benefits to meet a four-generation workforce, using platforms and data insights to boost engagement, retention and resilience.

Human resources leaders are reworking benefits strategies to serve a workforce that now spans four generations, recognising that a uniform package no longer matches employees’ varied life stages and priorities. According to research and industry commentary, flexible benefits are emerging as a practical response, allowing individuals to select offerings that align with their personal circumstances while helping employers attract and retain talent.

Flexible benefits programmes typically present employees with a menu of options, health insurance, life cover, vision, preventative screenings, wellness initiatives and financial tools, funded through an allocated allowance or credits redeemable via an online portal. Industry analysis shows this approach increases engagement by giving workers agency over choices that matter to them.

The role of digital platforms and analytics

Digital platforms sit at the heart of modern flexibility, simplifying enrolment for staff and delivering data to HR teams. Employers can use utilisation metrics to identify popular services, expose underused options and refine budgets, an analytics-driven loop that supports more targeted spending and program design. Payroll and benefits trend reports highlight increasing demand for such data-informed decision making.

Generational preferences help explain why flexibility is prized. Older employees often prioritise preventing and managing health conditions and protecting family members, while younger cohorts place greater weight on work-life balance, mental health support and financial independence. Projections indicate Millennials and Gen Z will dominate the workforce by 2030, shaping benefits priorities for the coming decade.

Multigenerational teams as a strategic asset

Beyond individual wellbeing, organisations are seeing multigenerational teams as a strategic asset. Thought leadership on lifelong learning and cross-generational collaboration argues that diverse age groups bring complementary skills, experience, institutional memory and newer perspectives on technology and agility, that can enhance innovation and competitiveness. Employers that lean into these dynamics are more likely to build resilient, adaptable cultures.

Implementation challenges

Despite clear advantages, adoption remains uneven. Sector surveys point out that a minority of firms have implemented truly flexible schemes, leaving scope for HR leaders to modernise offerings and prepare digitally for rollout. Industry guides recommend pairing flexible benefits with communication campaigns and education so employees understand and access available choices.

Wellness and financial-security features are recurring priorities across sources, with mental health services, preventative care, retirement planning and financial literacy appearing consistently among the top requested elements. Practitioners advising benefits design urge a blend of core protections and elective options so essential coverage is preserved while personalisation is enabled.

Evolving vendor ecosystems

Vendors are responding with end-to-end platforms that claim to personalise engagement, manage spend accounts in real time and host wellbeing challenges to build community. According to product literature, these ecosystems aim to connect employee experience with employer insight, though observers caution that effective outcomes depend on thoughtful implementation, clear communication and ongoing evaluation.

To learn more about how your benefits packages can evolve to include all of your employees, across generations, click here to visit our Knowledge Hub.

HMRC’s New Recruit – The AI Caseworker

Jeni Morris — Wed, 28 Jan 2026 08:57:23 GMT

As HMRC prepares to launch a digital Clerical Assistant, we’re witnessing not just technological evolution but a fundamental reimagining of how HMRC investigations operate.

There’s something nostalgic about HMRC naming its new AI tool Caseworker Assistant, I’m old enough to remember when CA stood for Clerical Assistant, a grade that might sound modest but often produced officers worth their weight in gold to inspectors navigating complex cases.

A fundamental shift

The announcement of the Caseworker Assistant proof-of-concept represents more than incremental improvement. This AI tool, designed to scale across 20,000+ caseworkers, will summarise case histories, answer case-specific questions, and monitor returned documents. To anyone outside tax compliance, this might sound unremarkable. Those of us who’ve worked in this space know better.

Early in my career I personally remember the soul-crushing tedium of manually reading through historical case notes, page after page of correspondence, actions, and decisions scattered across multiple systems. It was necessary work but profoundly time-consuming. The promise of AI slashing this administrative burden isn’t hyperbole, it’s genuine relief. Compliance officers could redirect their expertise where it actually matters.

Faster investigations for compliant employers

For you, this means investigations that might have dragged on for years could move significantly faster. If your records are in order and your practices are sound, you’ll reach resolution quicker. That’s genuinely good news for compliant employers tired of cases sitting in HMRC’s queue.

But there’s a flip side, the same efficiency that speeds up straightforward cases also frees investigators to pursue more complex issues, and to pursue more cases overall. Think of it as HMRC gaining superpowers: the same workforce can now handle greater volume and greater complexity simultaneously. Very handy just as the Fair Work Agency (FWA), a new govt agency, is launching in April 2026 a one stop shop for both employers and employees for support with all things employment related.

What this means for HR and Payroll professionals

As HR and payroll professionals, you’re already managing complex employment obligations, PAYE, National Insurance, Minimum Wage, benefits reporting, off-payroll working rules, and employment status questions. The AI revolution at HMRC should sharpen your focus in several areas.

Documentation becomes even more critical. When investigators can instantly access and analyse your entire case history in minutes, inconsistencies or gaps in your records become more visible. It’s important to ensure your payroll documentation tells a clear, consistent story.

Your response times matter more. If HMRC can process information faster, delayed responses from your side become the bottleneck. Organise your document management so you can respond promptly when information is requested.

Proactive compliance always pays dividends. With HMRC able to handle more cases efficiently, the cost-benefit of pursuing marginal issues shifts. Getting ahead of potential problems, becomes more valuable than ever.

The next phase

HMRC has indicated that AI-driven “next best action” recommendations are coming in future phases. When that happens, algorithms will begin suggesting which cases merit deeper investigation and what specific areas to examine.

For compliant businesses with robust processes, this future shouldn’t be frightening, it should mean faster vindication when questions arise. For organisations with grey areas or practices that don’t withstand scrutiny, the increased efficiency and thoroughness could surface issues that might previously have gone unnoticed.

Preparing for the new reality

The transformation of HMRC investigations through AI isn’t some distant possibility, it’s happening now, being built carefully and deliberately. As HR and payroll professionals, understanding this shift helps you prepare your business, not just for today’s compliance landscape, but for tomorrow’s as well.

For more information on how technology is evolving our industries, click here to visit our Knowledge Hub

AI proficiency crisis deepens as organisations struggle to reskill their workforce

Reward Strategy — Wed, 28 Jan 2026 12:42:16 GMT

Despite rising AI investment, most workers lack proficiency, widening skills gaps that stall digital transformation; experts urge targeted, outcome-driven reskilling.

Corporate efforts to deploy artificial intelligence are increasingly unmasked as procedural rather than practical, with human resources emerging as the pivotal function for turning tool proliferation into measurable business value. Industry analyses show heavy investment in AI alongside stagnant workforce proficiency, prompting calls for HR to move beyond access and policy toward skills, role redesign and outcome measurement. According to a Business Wire analysis, just 10% of employees reach AI-proficient levels despite rising enterprise spending; a SHRM report similarly documents uneven adoption across generations and sectors.

Fragmented adoption

Large surveys indicate most staff use AI in a superficial fashion, handling small tasks such as rewriting messages or summarising notes, while only a minority integrate automation into core workstreams. This fragmentation produces four distinct groups: casual experimenters, intermittent users, a smaller set of workflow practitioners and very few experts, a pattern echoed by reporting that many workers see little or no time savings. HR specialists warn that training focused on safety and basic tool use fails to teach workers how to decompose jobs and identify where AI can deliver real gains.

Uneven impact across roles and sectors

The consequences fall hardest on individual contributors in routine roles, who are often the best candidates for productivity gains yet receive the least support. Evidence from SHRM and HR Dive highlights wide gaps in tool access, training and reimbursement between executives and front-line staff, fuelling anxiety and eroding trust within organisations. Sectoral differences deepen the divide: technology and finance lead in adoption and culture, while healthcare, education and retail lag despite substantial untapped upside.

A major bottleneck is the scarcity of job-specific training for HR professionals and employees alike. Fortune reports only around 30% of HR practitioners have comprehensive, role-relevant AI instruction, and Forbes research finds most employees say they have not received recent AI training even though many want it. The Aspen Institute notes that while many workers have encountered AI in learning contexts, few HR leaders are prioritising systematic reskilling for roles likely to change.

Practical priorities for effective AI enablement

Practical remedies are converging around a handful of priorities: measure outcomes such as time reclaimed and business impact rather than logins; build playbooks of high-value use cases; fund standardised training and hands-on labs for individual contributors; and pair coursework with real projects to prove value. Business Wire and Aspen analyses point to programmes that combine immersive learning and on-the-job projects as effective, and industry pilots show structured pathways can raise proficiency quickly.

The economic stakes are significant. Analysts warn that skills mismatches will impose large costs on businesses and economies if organisations fail to act, while hiring and promotion patterns already favour those who list AI capabilities. HR leaders are therefore confronted with a choice: treat AI as a compliance box or mobilise reskilling and redesign at scale to capture productivity gains and avoid competitive erosion.

The path forward

Priya Krishnan, Chief Transformation Officer at Bright Horizons, captured the imperative: “Employers who act now will not only close critical skill gaps but also build a culture of resilience and innovation.” That sentiment encapsulates the view emerging across industry reporting: without decisive HR-led programmes that prioritise hands-on capability and measurable outcomes, the promise of AI will remain largely unrealised for most organisations.

Help your employees navigate the new world of AI with confidence and clarity! Click here to see The Payroll Centre’s new custom designed AI in Payroll course.

Salary sacrifice for pensions faces new cap from April 2029

Reward Strategy — Tue, 27 Jan 2026 09:26:45 GMT

From April 2029, salary sacrifice pension tax relief will be capped at £2,000 a year, forcing employers and staff to adapt.

The short answer is still no: salary sacrifice is not being abolished. However, the November 2025 Budget introduced a concrete, structural change that will significantly blunt one of its main financial attractions. According to the government guidance, from 6 April 2029 pension contributions made via salary sacrifice will only be exempt from National Insurance to the value of £2,000 per employee; amounts above that will be treated as earnings and subject to Class 1 National Insurance.

A modest change with a large impact

That adjustment is modest in wording but large in effect. The change was presented by ministers as a rebalancing: salary sacrifice had become widely used and particularly beneficial to higher earners, producing employer NIC savings the Treasury judges excessive. Employers therefore have several years to understand, prepare for and explain the new rules before they take effect.

In practical terms the headline reform is a £2,000 annual cap on NIC relief for salary sacrifice pension contributions. Industry commentary and technical summaries show that only the first £2,000 of contributions made through salary exchange arrangements will attract the existing National Insurance advantage; any sacrificed salary above that level will attract primary and secondary Class 1 NICs at the usual rates from April 2029. Worked examples published by accounting and advisory firms illustrate how the additional NIC liabilities will fall both on employees’ take-home pay and on employer costings when contributions exceed the cap.

Financial implications for employers

For employers the arithmetic changes materially. Firms that have relied on employer NIC savings from salary sacrifice to fund wider reward packages or to mask pension costs will see those savings reduced, and many will face higher headline pension-related outgoings unless they redesign benefits. Pensions consultancies warn that budgets and workforce planning need updating now so organisations can avoid last-minute disruption nearer 2029.

The impact on employees will vary by earnings and existing contribution patterns. Commentators note that a relatively small share of basic-rate taxpayers currently using salary sacrifice are likely to be affected, while higher earners who routinely make large voluntary contributions via salary exchange will feel the biggest change to net pay. The Treasury has estimated substantial Exchequer savings from the measure, a point highlighted by journalists and analysts reporting on the Budget.

Timing, planning and communication

Timing and communication are the immediate management issues. Although the reforms do not bite until April 2029, advisers urge employers to model the effect now across salary bands, identify the cohorts who will be most affected and develop clear, timely messaging. The period between announcement and implementation is intended to give companies scope to redesign schemes, adjust salary structures or offer alternative benefits.

Practical steps for employers include running quantitative models of gross-to-net pay under the new rules, auditing which staff groups will lose most from the cap and considering how to reframe total reward around flexibility, wellbeing and career development as well as pensions. Pension and tax specialists recommend explaining options honestly to staff rather than assuming the change will go unnoticed.

A diminished but ongoing policy

Salary sacrifice is not dead but it is diminished: the policy remains available, but its financial shine has been dulled by a clear, legislated cap designed to limit NIC relief to £2,000 of pension contributions per employee each year. Employers who treat the change as an opportunity to modernise reward strategy and to communicate transparently with staff are likely to be best placed when the rule takes effect.

For more information on how to make your total rewards package more effective, click here to visit the Knowledge Hub

PRIS takeaways: The future of rewards: Designing total rewards for a multi-life-stage workforce

Lukas Montgomery — Fri, 23 Jan 2026 16:54:59 GMT

Why pay alone no longer works: transparent, personalised rewards for every life stage. As employment costs rise and expectations evolve, pay alone is no longer enough. While still foundational, reward must be transparent, personalised, and reflect employees’ real lives - not generational stereotypes.

In our most recent Payroll and Reward Insight Series webinar series, Vickie Graham, Managing Director at Reward Strategy, and Lewis Roskilly, Global Reward Talent Lead at JGA, explored how reward strategies must evolve to support a workforce that spans multiple life stages, working patterns, and expectations. The discussion highlighted a consistent theme: the future of rewards lies in clarity, personalisation, and trust.

Pay and flexibility still dominate the conversation

Early polling during the session revealed that most participants see the greatest differences in reward expectations across their workforce in two areas:

Pay progression and bonuses
Flexibility, including working patterns and benefits choice

This result was unsurprising. Pay remains the most visible and tangible element of reward, and flexibility has become a core expectation rather than a differentiator. These are also the topics most frequently raised in recruitment and retention discussions.

However, as Lewis noted, these are often the headline issues rather than the root issues. While pay and flexibility open conversations, they rarely explain why people ultimately choose to stay or leave.

Recognition: The quiet driver of retention

Lewis, however, did offer a contrasting perspective, suggesting that recognition is often the most misunderstood and under-measured aspect of reward. While employees across all life stages want recognition, they want it in very different ways.

In recruitment conversations, dissatisfaction is rarely framed as “lack of recognition”. Instead, it surfaces as frustrations with pay, progression, or limited flexibility. Yet beneath those concerns is often a deeper issue: employees do not feel their contribution is understood or valued.

Vickie reinforced this point by highlighting that even competitive pay and flexible working arrangements fail to retain employees if they feel invisible. Recognition, in this context, is not limited to praise or awards; it includes clarity of role, acknowledgment of impact, and a sense of progression and purpose.

From generations to life stages

One of the most significant themes of the discussion was the need to move away from generational labels and toward life-stage-based reward design.

Some organisations now employ people spanning six or seven generations. Treating these groups as homogeneous risks oversimplification and reinforces stereotypes. Life stages, by contrast, reflect real needs and motivations that cut across age boundaries.

Early career

Individuals at an early career stage tend to prioritise:

Immediate cash flow
Learning and development opportunities
Clear, visible progression

Flexibility at this stage is less about family commitments and more about autonomy, trust, and control. Recognition is closely tied to skill development and being taken seriously as a contributor.

Mid-career

For those in mid-career, time becomes a critical resource. Reward expectations shift toward:

Flexible hours and predictable workloads
Benefits that support family and personal responsibilities
Employer understanding of competing pressures

At this stage, employees want to feel seen as whole individuals, not simply as job titles.

Later career

Later-career employees often focus on:

Pension security and long-term financial stability
Continued relevance and purpose
Respect for experience and institutional knowledge

Recognition here is about inclusion and contribution. Many employees want reassurance that there is still a meaningful role for them, rather than feeling quietly phased out.

Lewis emphasised that organisations able to align reward frameworks to these life stages consistently achieve stronger engagement and retention outcomes.

Personalisation without complexity

While personalisation is increasingly seen as essential, both Lewis and Vickie warned against equating personalisation with unlimited choice. Too little flexibility results in disengagement, but too much choice creates confusion and inertia. Employees faced with complex benefit platforms and unclear messaging often disengage entirely.

Organisations that get this right tend to:

Design benefits aligned to their workforce profile and industry context
Limit choice to relevant, meaningful options
Clearly explain why benefits exist and how they are intended to be used

Vickie also highlighted the risk of information overload and the need to consider accessibility, neurodiversity, and differing levels of digital confidence when designing and communicating rewards.

Recruitment, retention, and the illusion of pay-driven attrition

Pay remains essential in recruitment, but Lewis stressed that it is not the primary driver of retention despite the response from other participants. Instead, Lewis suggested that whilst pay is important, people leave because of misalignment, mistrust, and lack of clarity, not simply because of salary levels.

He illustrated this with a common scenario: two employees on the same salary, where only one understands how their pay was determined, what progression looks like, and what is required to move forward. The difference in retention risk between the two is significant.

Under pressure, organisations often make reactive reward decisions-market premiums, counteroffers, or selective benefits-which gradually erode consistency and trust. Over time, this creates perceptions of unfairness, even when intentions are positive.

The issue is not differentiation, but unexplained differentiation.

Fairness through transparency, not uniformity

A recurring message throughout the session was that fairness does not mean treating everyone the same. Instead, fairness is achieved through:

Clear frameworks
Transparent decision-making
Consistent communication

When employees understand where they stand, how decisions are made, and what progression looks like, perceptions of fairness improve-even when outcomes differ.

This theme connected strongly with the discussion on pay transparency and emerging regulatory requirements. While transparency may surface short-term discomfort, both speakers viewed it as a long-term enabler of trust, consistency, and improved retention.

Non-financial rewards must solve real problems

Non-financial benefits only deliver value when employees believe their pay is fair. Without that baseline, wellbeing and lifestyle benefits are often dismissed as superficial. Lewis challenged the assumption that low benefit usage reflects lack of generosity. More often, it reflects irrelevance or friction. Employees engage with benefits that:

Address immediate, real-world problems
Are easy to access and understand
Feel personally relevant

Examples discussed included earned wage access, financial education, and genuine learning budgets. These benefits resonate because they help employees now, not at an abstract future point.

Leadership behaviour and benefit stigma

Another critical factor influencing benefit uptake is leadership behaviour. Lewis shared examples where employees avoided using benefits due to fear of being perceived as weak or less committed. When leaders actively and visibly use benefits, they normalise participation and remove stigma. Without this, even well-designed benefits struggle to achieve impact.

Using data to ask better questions

Reflecting on a participant poll, data and pay analysis were described as powerful tools when used correctly. However, Lewis cautioned against treating data as absolute truth without context.

Effective use of reward data involves:

Ongoing analysis rather than annual reviews
Focus on ranges, trends, and patterns
Asking why patterns exist, not just identifying them

Key questions include who progresses fastest, who stalls, and whether there are systemic barriers affecting certain groups. Data identifies issues; human judgment explains them.

Technology and AI: Enabling continuous reward strategy

The session concluded with a forward-looking discussion on technology and AI. Rather than replacing human decision-making, AI enables reward teams to move from reactive, annual processes to continuous, evidence-led strategy.

AI allows organisations to:

Identify issues earlier
Personalise rewards at scale
Reduce administrative burden
Focus reward teams on strategic impact

By accelerating analysis and automation, technology frees reward leaders to spend more time on conversations, alignment with business objectives, and improving employee experience.

Conclusion: Total reward as a strategic lever

The discussion reinforced that reward is no longer a transactional function. When designed with transparency, supported by data, and grounded in real human needs, reward becomes a strategic lever for engagement, performance, and retention.

The future of rewards lies not in offering more, but in offering better: clearer structures, more relevant benefits, and a deeper understanding of employees lived experiences across their life stages.

The Payroll and Reward Insight Series continues to grow. Click here to see our latest conversations with industry leaders about the issues that we all face.

2026 pay trend: Companies favour uniform salary increases over performance-based raises

Reward Strategy — Wed, 21 Jan 2026 17:31:55 GMT

Payscale’s 2026 report shows firms favouring standardised pay rises over performance-based increases, raising talent retention and recognition concerns.

Payscale’s preview of its 2026 Compensation Best Practices Report shows median base-pay increases holding steady at 3.5% for 2026, unchanged from the prior year, even as a growing share of employers shift away from performance-differentiated raises towards broad, across-the-board increases often described as a “peanut butter” approach. The firm said fewer than half of organisations plan to tie increases to individual performance next cycle, while over forty percent are either using or considering a standardised increase model.

Speaking in the company announcement, Ruth Thomas, chief compensation strategist at Payscale, warned of potential trade-offs in the move to uniform increases: “Regardless of what the job market looks like, organisations can’t afford to lose their best talent,” she said, urging employers to align strategy with market and inflationary pressures while ensuring top performers remain motivated. Payscale recommended that firms adopting a peanut butter model consider alternative rewards such as bonuses, promotions, long-term incentives or structured pay‑band movements to recognise skill attainment.

The preview also highlights variation by employer size and sector. Smaller organisations appear to be using pay more aggressively to compete for talent, with firms of fewer than one hundred employees averaging larger increases than very large employers, which face structural and budgetary constraints. Certain industries where specialised skills are scarce reported above‑median increases, with Construction, Agencies & Consultancies and Technology among those granting larger raises.

Payscale and its earlier salary‑budget work frame the shift partly as a response to growing criticism that performance‑linked pay can be subjective and biased, and as a practical reaction to administrative strain when resources are tight. Previous survey data from the company also signalled employers’ concern about macroeconomic conditions as a reason for conservative salary budgets, and noted modest downward adjustment plans in some sectors. That context helps explain why some organisations prefer simplicity over differentiation even as they seek to preserve competitiveness.

Despite the move towards more standardised increases, most employers remain broadly confident in their pay strategies: roughly three in five said they were fairly or very confident that their planned increases would retain and engage talent. Payscale cautioned, however, that such confidence may mask retention risk if high performers perceive they are not being sufficiently recognised, underscoring the need for compensation plans that balance fairness, simplicity and performance differentiation.

Visit our Knowledge Hub to see how you can ensure your pay practices reward top talent and maintain competitiveness, not just rely on uniform increases

UK home workers face tax penalty as government removes relief from April 2026

Reward Strategy — Wed, 21 Jan 2026 13:14:06 GMT

From April 2026, UK employees working from home will lose tax relief on extra household costs, sparking calls for employer reimbursements and policy reviews amid government deficit-cutting.

Home workers in the UK face a direct hit to their finances from 6 April 2026 when the government removes the income tax relief for additional household costs incurred by employees required to work from home. According to the government publication, the change ends the ability to claim a deduction from Income Tax either at the flat rate of £6 per week or for actual additional costs with evidence.

Chancellor Rachel Reeves announced the abolition as part of the November Budget, a move the Treasury says will contribute to deficit reduction. Industry reporting notes the decision was flagged in the Budget documents and is included in the Finance Bill 2025-26.

Government estimates suggest roughly 300,000 employees will be affected, primarily those who are required to work from home and who do not receive reimbursements from their employers. Analysis from independent advisers calculates the typical effect will be modest for most individuals: basic-rate taxpayers face an annual increase of about £62 while higher-rate taxpayers could see around £124 extra tax.

While the relief for individuals is being removed, official guidance and employer-focused bodies stress that employers retain the option to reimburse employees for homeworking costs tax-free. NHS Employers and tax advisers note there is no legal obligation on firms to make such payments, so any protection for affected staff will depend on employer policy.

MoneyWeek and other commentators have estimated the policy will yield fiscal savings, projecting around £100 million by 2030/31, and the move sits alongside broader Budget measures that keep income tax thresholds frozen, a change described as fiscal drag that will push more people into higher tax bands. Government projections accompanying the Budget imply substantial knock-on effects on who pays tax and at what rate.

Tax specialists recommend employers review their homeworking reimbursement policies ahead of the change to avoid creating unexpected costs for staff. Bloomsbury Professional and other advisory sources urge payroll and HR teams to consider whether to offer tax-free reimbursements or expand other support to mitigate the removal of the individual deduction.

For more information on changing legislation and keeping up with compliance, visit our Knowledge Hub

The future of total reward: How UK leaders are building resilience through complete benefits packages

Lukas Montgomery — Thu, 22 Jan 2026 11:41:41 GMT

For those concerned with Total Reward across the UK, the strategic agenda has been altered, highlighting the growing importance of a comprehensive total reward package.

Once viewed primarily as a framework for pay and benefits, total reward is now critical for workforce retention, organisational performance, and enabling long-term workforce resilience. In an environment shaped by growing skills shortages, hybrid working models, cost-of-living pressures, and rising employee expectations, UK leaders are being challenged to rethink how reward strategies support both the business and the individual.

Shifting expectations

The expectations of the UK workforce have changed fundamentally over the past few years. Employees are no longer evaluating their employer solely on salary levels or annual bonus potential. Instead, they are taking a broader view that includes flexibility, financial security, wellbeing, and purpose.

Inflation and the cost-of-living crisis have heightened awareness of pay, pensions, and benefits, while hybrid working has reset assumptions about where work can be done. Yet tailoring these packages to the varying stage of employee tenure is of utmost importance: early-career employees may prioritise learning and progression, while mid-career and senior employees may focus on flexibility, financial planning, and long-term security.

This has reinforced the importance of understanding employee needs through robust data and analytics. Total reward can no longer be designed in isolation or based on historical norms; it must reflect on the real insights we collect, and the changing expectations of an ever-evolving workforce.

From pay and benefits to strategic total reward

Leading organisations are moving away from fragmented reward offerings and towards collated total reward strategies. Compensation remains foundational, but it is increasingly complemented by broader financial rewards such as enhanced pension contributions, accessible salary sacrifice schemes, share plans, and meaningful recognition programmes. Crucially, these elements are being aligned with organisational values and performance objectives, rather than treated as standalone initiatives.

In a recent conversation with Paul Simpson, Senior Director of Payroll & People Operations EMEA at Ralph Lauren, he described an evolving rewards system that prioritised enabling employees to use their money effectively and allowed them access to systems they already sought, but now built in to their rewards package and supported by the organisation.

Enabling total reward through HR and payroll technology

Technology continues to play a critical role in enabling modern total reward strategies. Accurate, integrated HR and payroll systems can provide the foundation for effective reward delivery, compliance, and insight.

Organisations are increasingly using technology to provide employees with greater transparency and access to their total reward information. Digital reward statements, self-service platforms, and real-time data help employees understand the full value of what they receive, not just their take-home pay.

From a leadership perspective, integrated systems enable data-based decision-making. Workforce analytics support benchmarking, pay equity analysis, and compliance with UK reporting requirements; while automation offers the potential of reduced administrative burden. Technology has the potential to become not only an enabler reward delivery and retention, but of HR’s evolving role as a strategic partner to the business.

In an oversaturated digital rewards market, helping businesses choose the right platform requires a clear focus on strategic fit rather than feature volume. Organisations are prioritising platforms that integrate seamlessly within their existing HR and payroll systems, meet UK data security and compliance requirements, and offer a strong employee and administrator user experience, with over twenty-five hours per week spent by IT teams on managing these data flows, a marked increase from last year according to an ADP report. For some organisations this has seen most success through direct communication with the platform, allowing them to create a catered experience directly for the needs of their employees.

Wellbeing, flexibility, and employee enablement

A defining feature of leading total reward strategies is the emphasis on wellbeing and employee enablement. UK organisations are increasingly recognising that productivity and engagement are closely linked to wellbeing across mental, physical, financial, and social dimensions. Supporting employees whilst balancing decreasing budgets amidst a financial crisis is a key challenge, with organisations focusing on diversifying approaches and making smarter, holistic decisions. Considerations such as the cost of replacing burnt out employees versus the cost of providing mental health services are redefining how a total rewards budget can be implemented as both a wellbeing enabler and cost-considerate measure.

Flexible working policies, hybrid models, and inclusive benefits are now seen as core components of reward, rather than discretionary perks. Similarly, learning and development has become a powerful motivator. Investment in upskilling, clear career progression, and internal mobility signals a long-term commitment to employees and supports organisational adaptability to combat the decreasing expected tenure.

The focus is shifting from simply offering benefits to actively enabling employees to thrive. This enablement mindset positions total reward as a driver of performance, resilience, and retention, rather than a static set of offerings.

Transparency, fairness, and trust

The 2026 Edelman Trust Barometer suggests trust in institutions is at a low point in developed markets such as the UK, with broader societal scepticism and insulation rising sharply. Transparency and fairness are no longer optional in total reward strategies; they are fundamental to organisational credibility and employee trust. The Edelman Trust Barometer highlights that “my employer” is still among one of the most trusted institutions employees rely on, even as trust in external leaders and systems falls, and that employees increasingly expect organisation leaders to engage fairly with diverse perspectives and values when making decisions.

Responding to heightened scrutiny over pay equity, gender and ethnicity pay gaps, and consistency in reward outcomes with proactive, transparent practices grows more vital. Clear communication around how total reward decisions are made, and how they align with performance, progression, and organisational purpose, not only addresses employee expectations but also strengthens trust in leadership. Leading organisations are investing in data-backed and accessible communication tools to make reward practices understandable and demonstrably fair. All for the purpose of helping to bridge internal trust gaps and reinforce a culture of accountability.

Looking ahead: Redefining reward for long-term impact

As the role of HR continues to evolve, total reward offers a powerful opportunity to influence culture, performance, and organisational sustainability. In this context, reward is no longer simply about what employees receive, but about how effectively organisations enable their people to succeed.

The Reward and Payroll Summit agenda is live! Take a look at the Total Reward sessions and see which you’re most excited for.

Flexibility and AI Reshape Talent Strategies Ahead of 2026

Reward Strategy — Wed, 21 Jan 2026 13:14:28 GMT

Experts predict 2026 will favour flexible, skills-first work models, AI and remote work.

Experts who track learning and development and human resources predict 2026 will be defined by a sustained insistence on flexibility, a reckoning with AI as an augmenting force, and a sharper demand for learning that is skills-first, personalised and embedded in the flow of work. According to FlexJobs’ Remote Work Trends Report for 2026, remote work remains the single most important factor for jobseekers, outranking salary for the majority of workers.

The data show the remote market stabilising rather than collapsing: FlexJobs’ Remote Work Index recorded a 3 percent rise in remote job postings in Q4 2025, with engineering, consulting, product and project roles leading the expansion while some traditionally remote categories such as customer service and administrative roles contracted. That mix suggests employers are recalibrating which functions can be meaningfully decentralised.

FlexJobs’ surveys also point to a more mobile, less loyal labour market in which flexibility is the anchor. Eighty-five percent of respondents said remote work would make them apply to a job, while a majority would accept reduced pay to retain it. This appetite for flexibility is already reshaping retention strategies and recruitment offers as employers compete for talent that prizes autonomy.

Career pivots look set to gain momentum in 2026. FlexJobs reports that nearly seven in ten workers have changed or considered changing career fields in the past year to secure more flexibility, and more than a quarter describe themselves as “less loyal” to their current employer. For L&D leaders and HR teams this amplifies the urgency of building internal mobility and clear, skills-based career pathways.

Younger workers and parents are central to this calculus. FlexJobs found widespread “quarter-life” uncertainty among 20–35 year-olds and substantial family-related pressure: 65 percent of working parents said remote or hybrid options better support their caregiving responsibilities. Employers that fail to design flexible, family-friendly arrangements risk losing cohorts who prioritise life-stage fit over traditional compensation alone.

Trust and transparency are major fault lines. FlexJobs’ research warns of a “Great Workplace Divide” between leadership direction and employee expectations: many workers doubt executives could perform front-line roles for a week and report uneven DEI efforts. That disconnect heightens the need for clearer communication, accountable leadership and policies that align culture with day-to-day practice.

The commercial implications are clear: companies that embed learning, AI literacy and supportive policies into flexible work models will be better positioned to recruit, retain and redeploy talent. FlexJobs’ evidence that remote work preferences are reshaping application and retention choices gives HR a lever to redesign job architecture, training and mobility programmes to reflect a workforce that expects learning to be continuous, contextual and connected to real career outcomes.

For practitioners the practical tasks for 2026 are straightforward even if hard to execute: codify flexible work offerings, protect time for development, close the perception gap between leaders and employees, and pair AI adoption with transparent governance and upskilling. The FlexJobs findings make one thing plain, flexibility is now a strategic talent currency, and organisations that convert that preference into durable people practices will gain the advantage.

To see more on how AI can augment your organisations practices, visit our Knowledge Hub

UK Businesses Excel in 2026 Global Happiness Rankings

Reward Strategy — Wed, 21 Jan 2026 13:14:46 GMT

1,500+ UK organisations on the 2026 World’s Happiest Workplaces highlight culture and leadership.

Around 1,500 UK businesses feature on WorkL’s World’s Happiest Workplaces list for 2026, a global catalogue that highlights organisations scoring highly on employee happiness metrics. According to WorkL, the list spans more than 50 countries and thousands of organisations recognised for strong workplace wellbeing.

The rankings are drawn from responses to WorkL’s anonymised “Happy at Work” test, which the company says has been completed by over a million employees worldwide. The assessment examines wellbeing, job satisfaction, reward and recognition, information sharing, empowerment and pride; organisations scoring 70 or above are included.

The 2026 roll call mixes household names and regional firms, with international entrants such as Standard Bank, Disney and DIOR listed alongside national champions in various markets. Industry observers note the presence of major banks and hospitality groups among the highest scorers, illustrating how culture and leadership shape employee experience.

UK small and medium-sized enterprises also feature prominently. WorkL’s list includes British firms from advertising platforms to wealth managers and care-home operators, while some agencies announced multiple category wins in their own press releases, underscoring the awards’ resonance for employer branding.

Commenting on the publication, Lord Mark Price, founder of WorkL, said: “I’m delighted to publish the World’s Happiest Workplaces 2026 list today. Organisations who are recognised report higher productivity, lower staff turnover and lower sick leave as a result of employees being happier. Our research shows that nearly 50% of people are unhappy, anxious or depressed at work. It’s our mission to make the world’s workplaces happier, and it starts with acknowledging the ones who are doing a good job.” WorkL has also launched a Work Happiness Charter, a manifesto it says aims to make happiness at work a universal right.

WorkL states the list and accompanying awards were updated and announced in January 2026, with the awards cycle attracting submissions and test responses from well over 100,000 organisations. The company and partner outlets say the searchable list can be filtered by country, industry and category, enabling employers and jobseekers to examine performance on specific workplace dimensions.

Analysts and commentators point to wellbeing and trust as the dominant drivers behind high rankings, arguing that measurable improvements in morale tend to coincide with lower absenteeism and turnover. Industry reporting highlights that banks, hospitality groups and large service employers frequently top the scores, but that the awards have also become a platform for SMEs to demonstrate people-focused cultures.

Visit our Knowledge Hub to see more about increasing employee engagement within your organisation.

Introducing the Payroll Software User Group - A New Community for Payroll Professionals

Reward Strategy — Thu, 15 Jan 2026 07:35:00 GMT

Launching the Payroll Software User Group: a collaborative community empowering in-house payroll professionals to share insights, solve challenges and shape payroll tech.

We’re delighted to announce the launch of the Payroll Software User Group - a new initiative designed to support, connect and empower in-house payroll professionals across the UK and beyond. Whether you’re managing payroll for a small company or overseeing complex multi-system environments, this group is for you.

Payroll software is at the heart of what we do: it automates calculations, helps maintain compliance with tax and regulatory requirements, boosts accuracy and saves teams valuable time each pay cycle. Yet even the best systems can be challenging to master without the right support, shared knowledge and collaboration between practitioners.

That’s where the Payroll Software User Group comes in. This collaborative network brings payroll professionals together in a supportive, system-agnostic community where the focus is on real-world usage, shared learning and practical problem solving.

Why join?

The group offers several key benefits for payrollers:

Learn from peers - Gain insights into how other teams use payroll systems to streamline processes, improve accuracy, and unlock new efficiencies.
Share and solve challenges - Discuss common issues and explore practical solutions in a confidential, supplier-free setting that encourages open, honest dialogue.
Stay informed on innovation - Keep up to date with new functionality, automation opportunities and best practices emerging across payroll technology.
Help shape the future - Members can contribute insights that feed back into payroll software development, helping improve products and outcomes for the wider profession.
Build connections - Join a growing network of payroll practitioners to exchange ideas, support one another and champion excellence in payroll delivery.

This group is open to all in-house payroll professionals, regardless of the software you use, from global enterprise platforms to SME-focused solutions, because every voice has value in advancing our collective understanding and practice.

If you’re passionate about making payroll technology work harder, smarter and more effectively for your team, the Payroll Software User Group is your new professional community. Register your interest today and be part of shaping the future of payroll systems and processes.

Free UK salary benchmarking tool for Payroll and HR roles

Reward Strategy — Thu, 15 Jan 2026 07:10:00 GMT

Free UK payroll and HR salary benchmarking tool launches, offering real-time, inflation-adjusted pay data to support smarter reward and hiring decisions.

Access to reliable, up-to-date salary data remains a challenge for many payroll, reward and HR professionals, particularly in a market where pay expectations and hiring conditions continue to shift.

PayrollHRSalary.com is a UK-focused salary benchmarking tool that is now available to use free of charge for both employers and candidates. Designed specifically for payroll, reward and HR roles, it provides real-time, inflation-adjusted salary benchmarks, updated daily to reflect current market conditions.

The data underpinning the platform combines official sources, including ONS statistics and CPIH earnings data, with anonymised insights from thousands of real payroll and HR placements. This approach aims to provide a more accurate view of current pay levels than traditional salary surveys or self-reported data alone.

Key features include:

Free access for employers and candidates
Daily-updated, inflation-adjusted salary benchmarks
Insights informed by official earnings data and live market placements
Predictive salary trend indicators with 12-month forecasts
A specific focus on Payroll, Reward, HR and People roles

The tool is intended to support more informed pay decisions, clearer reward discussions and better workforce planning across the UK payroll and HR market.

Nick Day, CEO of JGA Recruitment Group, said:

“Access to accurate salary data shouldn’t be a luxury, Payroll and HR leaders are under increasing pressure to attract, retain, and fairly reward talent in a fast-moving market. This tool gives them trusted, real-time insight – without cost, gatekeeping, or guesswork.”

The Payroll & HR Salary Calculator can be accessed here: https://payrollhrsalary.com/

This is a partner promotion from JGA Recruitment Group

The new war for talent

Reward Strategy — Mon, 19 Jan 2026 15:11:26 GMT

Talent now drives economic power. Countries are competing on visas, lifestyle and institutions as skilled workers gain unprecedented freedom to choose where they live.

Shoppers of opportunity are packing their suitcases, and countries are tailoring welcome mats. Employers, cities and nations are competing for skilled professionals because talent now shapes economic strength, innovation and geopolitical influence , and where people choose to live and work matters more than ever.

Human capital rules: Skilled workers are valued far above physical assets in economic impact and innovation potential.
Three attraction pillars: strong economies, quality of life, and stable institutions draw the top talent.
Policy matters: open immigration and predictable visa rules produce brain gain; uncertainty causes brain drain.
New mobility norms: remote work and digital nomads expand choices, making cities and countries compete on lifestyle and flexibility.
Actionable fix: cut red tape, boost R&D funding and modernise labour laws to convert reputation into real talent inflows.

Why talent has become a geopolitical asset

Talent isn’t just an HR concern anymore, it’s a lever of national power. Studies and economic analyses show that human capital contributes more to growth and corporate value than factories, servers or inventories. That shift gives countries with the right mix of universities, venture capital and research ecosystems a long-term advantage. The smell of coffee at a campus incubator and the late-night hum of developers in a co‑working space are the new indicators of economic health.

How classic hubs built , and keep , their edge

Think Silicon Valley, Boston, Singapore and Berlin. These hubs combined world-class universities with industry, capital and a tolerant social fabric, creating virtuous cycles of talent attraction. Policies that encourage entrepreneurship, protect intellectual property and make it easy to start and scale businesses matter as much as lifestyle perks. Owners of these ecosystems also know reputation is sticky: once you’re known as a place where ambitious people can get things done, others follow.

The role of lifestyle and institutions in winning talent

Quality of life , safety, culture, healthcare and work–life balance , is no longer a fringe factor; it’s central. Cities such as London and Berlin still pull people because they offer cultural variety and career opportunity, while places like Singapore promise order, safety and excellent public services. Crucially, political stability and clear, dependable institutions give professionals the confidence to uproot their lives. When uncertainty creeps in, as happened around Brexit, skilled migration slows and companies rethink location strategies.

Remote work and the rise of choice

The pandemic accelerated what was already underway: geography matters less for some roles. Remote work and digital nomadism mean people can live in Lisbon while working for a New York tech firm, or pick smaller cities with better housing and green space. That flexibility raises the bar for governments and cities: if you want top talent to relocate, you must offer more than a job , you need accessible culture, reliable public services and streamlined admin for living and working.

Immigration policy is the single biggest lever

Open, predictable visa systems are a magnet. Countries that have designed clear pathways for skilled migrants , Canada, Australia, parts of the EU , enjoy brain gain. By contrast, sudden changes to immigration rules or hostile rhetoric create reputational damage and deter candidates. Policymakers who want to win the invisible war for human capital should focus on creating transparent, fast, and humane channels for talent mobility.

Practical steps for governments and employers

If you’re a policymaker, start with removing unnecessary bureaucracy, updating labour legislation for flexible work, and significantly increasing R&D funding to create local opportunities. Cities should invest in housing, transport and cultural life so newcomers settle rather than merely commute. Employers can help by offering relocation support, family services and clear career pathways that justify the move. Small changes , quicker visa processing, affordable childcare, collaborated R&D grants , can translate into decisive competitive gains.

A European moment, if we choose it

Europe, including Portugal, can position itself as a safe, open and educated alternative in a more multipolar world. The continent’s strengths , social safety nets, education systems and rule of law , are attractive if matched with administrative agility and investment in innovation. It’s less about copying Silicon Valley than about offering a predictable, high-quality environment where professionals can build lives as well as careers.

Look ahead: competition will sharpen, but so will opportunity

The contest for talent is now a core element of geopolitics. Countries that combine predictable institutions, generous investment in research, and a modern, human-centred approach to immigration stand to win. And for the rest, failing to adapt risks being left behind.

It’s a small set of policy and culture moves that can make every city and nation far more attractive , and that matters for economies, communities and the kind of future we build.

Sourced by Noah Wire Services.

Read more in our Knowledge Hub.

How the UK competes in the global talent race

Reward Strategy — Wed, 14 Jan 2026 12:30:05 GMT

Why skills shortages, remote work and post-Brexit uncertainty have turned talent into a strategic battleground for the UK’s growth and competitiveness.

Why the talent debate has sharpened in the UK

Across the UK, policymakers, employers and city leaders are re-examining how the country attracts and retains skilled professionals. Talent has moved beyond being an HR concern to a core driver of productivity, innovation and national competitiveness. In a world of mobile skills and remote work, where people choose to live and work has become a strategic question for the UK economy.

For Britain, the stakes are high. Skills shortages, uneven regional growth and post-Brexit uncertainty have made human capital one of the most important levers available to government and business alike.

The fundamentals shaping the UK talent race

Human capital leads growth: Skilled workers now contribute more to long-term economic value than physical infrastructure alone.
Three attraction pillars: Strong job markets, quality of life and trusted institutions remain decisive for mobile professionals.
Policy clarity counts: Predictable immigration and visa rules encourage inflows; uncertainty discourages relocation.
New mobility norms: Remote and hybrid work give professionals more choice, forcing UK cities to compete on lifestyle and flexibility.
What works in practice: Reducing red tape, backing R&D and modernising labour rules turns reputation into real talent inflows.

Talent as an economic and strategic asset

In advanced economies like the UK, growth increasingly depends on ideas, research and high-value services rather than physical output. Universities, start-ups and research clusters now matter as much as ports or factories once did. The practical implication is clear: countries that attract engineers, scientists, clinicians and founders gain an enduring advantage, while those that lose them face slower growth and weaker innovation.

How the UK’s major hubs compete

The UK still benefits from globally recognised centres of talent. London remains a powerful draw thanks to its mix of finance, technology, culture and global connectivity. Other cities are building momentum around universities and specialised industries. What differentiates successful hubs is not just jobs, but ecosystems — access to capital, research partnerships, and a social environment that supports experimentation and diversity.

Reputation matters too. Once a city or region is seen as a place where ambitious people can build careers, attraction becomes self-reinforcing.

Lifestyle, institutions and trust

Quality of life has become central to the UK’s talent offer. Safety, healthcare, schools, housing and cultural life increasingly influence relocation decisions. Equally important is institutional trust. Clear rules, political stability and dependable public services give professionals confidence to move countries with their families. Periods of uncertainty, by contrast, tend to slow skilled migration and make employers cautious about expansion.

Remote work has raised the bar

Remote and hybrid work mean the UK no longer competes only with other countries, but also with alternative lifestyles. Skilled professionals can live abroad or outside major cities while working for UK firms. This flexibility is an opportunity — to attract people who value quality of life — but also a challenge, as it forces cities and regions to offer more than employment alone.

Immigration policy remains decisive

For the UK, immigration policy is the single most powerful tool in the talent race. Transparent, fast and predictable visa routes encourage skilled workers to choose Britain. Complex processes, frequent rule changes or unclear messaging undermine confidence. Countries that treat immigration as an economic enabler rather than a political afterthought tend to see sustained brain gain.

What governments, cities and employers can do

Policymakers can focus on simplifying visa processes, updating labour laws for flexible work and increasing R&D investment to anchor opportunities locally. Cities need to address housing affordability, transport and amenities so newcomers stay long term. Employers play a role by offering relocation support, family services and credible career progression. Often, small administrative improvements make the biggest difference.

A moment of choice for the UK

The UK has strong foundations: world-class universities, respected legal institutions and global business links. Converting these strengths into sustained talent inflows requires consistency, openness and practical delivery. This is less about copying other hubs and more about aligning policy, place and opportunity.

Looking ahead

The competition for skilled people is now a defining feature of global economics. For the UK, success will depend on combining predictable institutions, investment in innovation and a modern, human-centred approach to mobility. Get that balance right, and talent becomes a long-term advantage rather than a constraint.

Sourced by Noah Wire.

Read more in our Knowledge Hub.

UKG to acquire Inova Payroll

Reward Strategy — Tue, 06 Jan 2026 06:54:00 GMT

UKG plans to acquire Inova Payroll, expanding outsourced HR, payroll, and benefits support for small and mid-sized businesses.

UKG Inc., a leading global AI platform for HR, pay, and workforce management, has entered into a definitive agreement to acquire Inova Payroll, a U.S.-based human capital management (HCM) and payroll services provider focused on small and mid-sized businesses (SMBs). The transaction, subject to customary closing conditions, is expected to close in early 2026.

The acquisition will strengthen UKG’s ability to directly serve the SMB market by expanding access to outsourced HR support, full benefits brokerage services, and enhanced compliance and workforce management capabilities.

Founded in Nashville, Tennessee, Inova Payroll supports more than 4,000 businesses nationwide. As the largest reseller of the UKG Ready® suite in the United States, Inova has built a strong reputation for combining robust HR technology with hands-on service expertise. Its offerings help SMBs streamline everyday HR tasks, navigate regulatory requirements, and improve employee experiences through targeted third-party technology integrations that reduce manual effort.

“Inova has been a trusted UKG Ready partner since 2007, helping thousands of small and mid-sized businesses level the playing field against larger competitors,” said Arlen Shenkman, president and chief financial officer at UKG. “By combining UKG’s technology and scale with Inova’s deep service expertise, we will be able to deliver best-in-class frontline employee experiences and even greater value to our SMB customers.”

For Inova, joining UKG represents an opportunity to extend its service-driven model to a broader audience. “This marks an exciting new chapter for Inova,” said Joe Schweppe, chief executive officer at Inova Payroll. “Our clients and team will benefit from direct access to enhanced product development and innovation, while UKG gains from our deep expertise in attracting and supporting small and mid-sized businesses. Together, we can further simplify how employers schedule, manage, engage, and inspire their people.”

Inova’s growth and customer satisfaction have been widely recognized. The company has appeared on the Inc. 5000 list of the fastest-growing private companies in the United States eight times - an achievement reached by fewer than 1% of honorees. Inova has also earned multiple awards from G2, reflecting strong customer satisfaction scores based on verified user feedback.

Once completed, the acquisition will further enhance UKG’s end-to-end capabilities for SMBs, combining advanced workforce technology with high-touch service to help organizations build productive, compliant, and engaging workplaces.

Read more in our Knowledge Hub.

Why employee engagement technology is now a strategy priority for UK employers

Reward Strategy — Tue, 06 Jan 2026 04:34:00 GMT

With retention under pressure, UK organisations are using employee engagement platforms to build consistency, motivation and measurable workforce value.

Engagement Moves to the Centre of Business Strategy

Employee engagement has shifted from a soft HR concern to a core business priority for mid-market and enterprise organisations across the UK. Distributed work, higher employee expectations and the rising cost of turnover mean organisations can no longer rely on ad hoc initiatives to keep people motivated.

As a result, HR leaders are increasingly investing in employee engagement software to create consistent, scalable experiences that help people feel recognised, supported and connected to their work.

The Real Cost of Disengagement

Disengagement is expensive. Beyond recruitment fees, employee turnover drives lost productivity, disruption to teams and the erosion of institutional knowledge. For UK employers facing margin pressure and skills shortages, these hidden costs represent a significant operational risk.

This has sharpened the focus on engagement as a preventative strategy, reducing avoidable exits rather than reacting after employees have already decided to leave.

Why Engagement Remains Challenging

Although the labour market has cooled from its most volatile phase, engagement pressures remain high, particularly in frontline, healthcare and specialist roles. Burnout, limited development pathways and inconsistent recognition continue to undermine morale.

At the same time, HR teams are under growing pressure to demonstrate measurable returns on engagement investment. Employee engagement software is increasingly positioned as a way to meet both challenges at once.

What Employee Engagement Platforms Actually Do

Engagement platforms are not single-purpose tools. They typically combine recognition, feedback, learning, wellbeing and analytics into a single ecosystem.

Together, these capabilities help organisations move from reactive engagement efforts to proactive, data-informed strategies that identify risk early and reinforce positive behaviours consistently across teams.

Recognition as a Foundation of Engagement

Recognition plays a central role in modern engagement strategies. Timely, visible appreciation helps employees feel valued and connected to organisational values, not just their individual output.

Digital recognition platforms make it easier for both managers and peers to acknowledge contributions in real time, embedding appreciation into daily work rather than relying on infrequent gestures.

Feedback, Voice and Ongoing Development

Engagement is also shaped by whether employees feel heard and supported. Continuous feedback tools and employee voice surveys provide insight into sentiment, workload and emerging burnout.

When combined with learning and development systems, engagement platforms help organisations link feedback to action, supporting growth and progression rather than allowing dissatisfaction to fester.

Wellbeing as an Engagement Driver

Mental health and wellbeing are no longer treated as optional benefits. Burnout is a leading cause of disengagement even in well-paid roles, making wellbeing support a strategic necessity.

Engagement platforms increasingly incorporate wellbeing resources, signposting and flexible benefits that help employees sustain performance over the long term.

Scaling Engagement Fairly and Consistently

High-performing organisations use engagement technology to reduce over-reliance on individual managers while still enabling personal leadership. Standardised experiences such as milestone recognition and values-based rewards ensure fairness, while analytics highlight teams or roles where engagement is slipping.

This combination allows HR teams to intervene early and demonstrate the impact of engagement initiatives with credible data.

Choosing the Right Engagement Technology

The most effective engagement systems integrate seamlessly with existing HR and collaboration tools, support mobile and frontline access, and provide actionable analytics.

Rather than adding disconnected point solutions, organisations gain the most value from platforms that embed engagement into everyday workflows and decision-making.

Engagement as a Long-Term Investment

Employee engagement technology is increasingly seen as a strategic investment rather than an HR add-on. By operationalising recognition, development and wellbeing, organisations can stabilise their workforce, protect institutional knowledge and strengthen their employer brand.

For UK employers navigating ongoing uncertainty, sustained engagement is becoming one of the most reliable levers for performance and resilience.

Source: Noah Wire Services

What fairness really means for AI and DEI in the UK

Reward Strategy — Mon, 19 Jan 2026 15:13:40 GMT

Fairness in AI is not just technical. For UK organisations, it sits at the heart of diversity, equity and inclusion decisions about power, harm and accountability.

Why Fairness Matters for DEI in AI

Fairness is one of the most frequently used terms in artificial intelligence, yet it remains one of the most contested. In the context of diversity, equity and inclusion (DEI), fairness goes beyond accuracy or efficiency and speaks directly to how technology treats people and groups within society.

In the UK, debates around AI fairness are shaped by equality law, social values and long-standing concerns about discrimination. What counts as “fair” depends on context, history and the types of harm that automated systems may create or reinforce.

Competing Meanings of Fairness

Fairness can mean impartial treatment, equal outcomes, equal opportunity or active protection for groups that have historically faced disadvantage. Different disciplines emphasise different interpretations, and none are value-neutral.

This matters for DEI because choosing one definition of fairness over another can advantage certain groups while disadvantaging others. These choices are inherently normative and reflect organisational priorities, not just technical constraints.

How Fairness Is Often Reduced to Metrics

In practice, many AI systems translate fairness into mathematical rules applied during model training or testing. Common approaches aim to balance outcomes between groups or limit differences in error rates.

While these metrics can be useful, they do not resolve deeper DEI questions. Different definitions of fairness can conflict, forcing trade-offs that require judgement rather than calculation. A system can meet one fairness metric while failing another, raising questions about whose interests are being prioritised.

Lessons From Real-World Harm

High-profile examples from criminal justice and risk assessment have shown how systems can appear fair on paper while producing unequal real-world impacts. Algorithms trained on historical data can reproduce structural inequalities, even when they meet formal fairness thresholds.

These cases underline a key DEI lesson: technical compliance does not guarantee equitable outcomes. Without understanding the social context in which data is generated, AI systems risk obscuring discrimination rather than addressing it.

Law, Regulation and Ambiguity

UK equality and data protection frameworks prohibit discrimination, but they do not prescribe a single statistical definition of fairness. This leaves organisations with significant discretion, and responsibility, when designing and deploying AI.

That ambiguity makes governance crucial. Decisions about fairness cannot be delegated solely to engineers; they must involve legal, ethical and organisational leadership.

Putting Social Goals First

A DEI-informed approach to AI fairness starts by defining the social goal before selecting technical tools. This means asking who may benefit, who may be harmed and how existing power imbalances might be affected.

Qualitative methods, such as stakeholder engagement and impact assessments, complement quantitative metrics by capturing lived experience and institutional context. These approaches help organisations surface trade-offs early and document why particular choices were made.

Tools Are Helpful, But Not Enough

A growing ecosystem of tools exists to measure and mitigate bias in AI systems. These can support analysis and transparency, but they reflect a technical lens and cannot determine what is fair or acceptable in isolation.

Without governance, documentation and accountability, tools risk becoming box-ticking exercises that mask deeper DEI concerns.

Fairness as an Ongoing Responsibility

For UK organisations, fairness should be treated as a continuous governance issue rather than a one-off design task. Good practice includes documenting fairness decisions, involving domain experts, keeping audit trails and ensuring people affected by automated decisions can seek explanations and challenge outcomes.

These process-based safeguards are central to meaningful DEI, helping organisations confront value judgements rather than claim false objectivity.

From Perfect Fairness to Reduced Harm

Bias is unavoidable in machine learning because systems learn from historical data shaped by human decisions and inequality. The DEI challenge is not to create perfectly fair systems, but to identify, reduce and openly manage harms.

Combining technical measures with inclusive governance, transparency and institutional accountability offers the most credible path forward. Fair AI, in this sense, is less about mathematical purity and more about social responsibility.

Source: Noah Wire Services

Read more in our Knowledge Hub.

Mental health as reward

Reward Strategy — Tue, 23 Dec 2025 04:06:00 GMT

UK employers are rethinking total reward as mental wellbeing moves from a peripheral benefit to a core driver of performance and retention.

Mental Wellbeing and Total Reward

Mental health is increasingly recognised as a core component of total reward in the UK, yet it is still often overshadowed by pay, bonuses and traditional benefits. Wellbeing is not simply the absence of illness; it shapes how people cope with pressure, perform their roles and contribute to organisations over time.

As employers compete for talent and resilience, mental wellbeing is becoming inseparable from how reward is defined and delivered.

Work as a Driver of Wellbeing

Workplaces play a decisive role in mental health because most adults spend a large proportion of their lives at work. Flexible and hybrid models, while valued, have also blurred boundaries between work and personal life, increasing cognitive load and expectations of constant availability.

Many UK employers acknowledge the strain this creates, but struggle to move from awareness to sustained action that meaningfully reduces stress.

Rising Strain in the Workforce

Evidence across the UK points to persistent stress, burnout and anxiety among employees, particularly in sectors facing skills shortages, regulatory pressure and rapid change. The economic impact is significant, affecting productivity, absence levels and retention.

Despite growing discussion of wellbeing, many employees continue to experience mental strain as a routine feature of working life rather than an exception.

Perceived Support Remains Weak

A consistent challenge is the gap between employer intent and employee experience. Many workers do not feel adequately supported with their mental wellbeing, or are unclear about what help is available to them.

Mental health benefits are often underused, poorly communicated or viewed as secondary to financial rewards, reducing their impact within the overall reward proposition.

Structural Barriers to Progress

Employers face real constraints. Budget pressures, limited in-house expertise and fragmented initiatives can undermine the effectiveness of wellbeing programmes. Smaller organisations in particular struggle to move beyond ad hoc activities.

More broadly, mental health services in the UK remain stretched, limiting access to timely clinical support and placing greater responsibility on employers to manage risk within the workplace.

Stigma and Disclosure Risks

Stigma continues to influence how employees engage with mental health support. Concerns about career impact, disclosure and discrimination discourage many from seeking help or using employer-provided resources.

This undermines the value of wellbeing benefits and weakens trust, a critical component of any effective total reward strategy.

From Benefits to Integrated Reward

The most effective approaches treat mental wellbeing as an integral part of total reward rather than a standalone benefit. This means addressing workload design, management capability, psychological safety and organisational culture alongside access to support services.

Embedding wellbeing into performance management, leadership expectations and everyday working practices signals that mental health is a genuine priority, not a compliance exercise.

Practical Priorities for Employers

Clear actions are emerging for UK employers: equip managers to recognise and respond to distress; set realistic expectations around availability; improve communication of available support; and align wellbeing initiatives with workforce needs and culture.

Sustained investment, rather than short-term campaigns, is essential if mental wellbeing is to deliver lasting value as part of total reward.

A Strategic Imperative

Improving workplace mental health is both a moral responsibility and a strategic necessity. When mental wellbeing is treated as a core element of reward, employees are more engaged, organisations are more resilient and performance is more sustainable.

For UK employers, the challenge now is to close the gap between intent and implementation, ensuring total reward strategies reflect the central role mental health plays in long-term workforce value.

Source: Noah Wire Services

Read more in our Knowledge Hub.

When redesigns go wrong

Reward Strategy — Tue, 23 Dec 2025 04:03:15 GMT

UK tech teams often mistake visual polish for progress, but redesigns that ignore user behaviour can damage trust, usability and adoption.

The Temptation of the Shiny New

The moment a UK tech leader compares their product to a sleeker competitor and declares it “old” is often the start of a costly mistake. Modernisation driven by appearance rather than evidence can create the illusion of progress while undermining what already works.

Redesigns that prioritise surface aesthetics over established user habits risk breaking workflows, increasing support tickets and driving customers away, even when the new interface looks objectively better.

Design Should Start With Evidence

Effective product design begins with research, not opinion. Many existing interfaces function well: users complete tasks quickly, navigate confidently and understand where to find key features. Problems arise when change is pushed purely because something appears dated.

In such cases, redesigns can shatter mental models that users have built up over years. Recovering from that disruption often requires months of stabilisation, additional training and compensating features just to regain lost trust.

Startups and the Wrong Problem

Early-stage UK technology firms are particularly vulnerable to redesign missteps. Founders frequently optimise products around their own frustrations rather than validated customer needs. This can lead to feature-heavy interfaces when users actually want simplicity.

When teams pivot back toward what users truly value, adoption often improves rapidly. The lesson is consistent: slow uptake is more often caused by misplaced priorities than by outdated visuals.

Research That Challenges Assumptions

User research is most valuable when it delivers uncomfortable truths. Features that teams love may be confusing, tiring or rarely used in practice. Excessive customisation, for example, can overwhelm users and introduce errors rather than empowerment.

Successful redesigns often replace complexity with strong defaults and limited flexibility for advanced users, trading optionality for clarity and reliability.

Cosmetic Fix or Structural Problem?

Not all redesigns are misguided. The critical question is whether the issue is visual or structural. Sometimes dated styling hides deeper problems such as poor information architecture, inconsistent navigation or unclear hierarchy.

Applying a new visual layer to a flawed structure usually amplifies frustration. Structural redesigns must address root causes uncovered through behavioural data and user testing, not just refresh colours and typography.

Regulated Environments Change the Rules

In sectors such as healthcare, finance and public services, design decisions are constrained by safety and compliance requirements. Over-engineered interfaces intended to reduce risk can backfire, creating fatigue that increases the likelihood of mistakes.

Well-designed systems balance legal obligations with human factors, using fewer but more meaningful checks to improve outcomes rather than relying on excessive confirmations.

Brand Is More Than Visual Identity

Brand guidelines often fail when they stop at logos and colour palettes. Users experience brand most acutely through language, tone and micro-interactions: error messages, loading states and recovery paths.

UK fintech and digital services have found that plain English, transparent explanations and human tone do more to reinforce trust than polished visuals alone.

Mobile-First Requires Real Trade-Offs

Claiming to be mobile-first means more than shrinking a desktop interface. Successful mobile design focuses on the handful of tasks users most frequently perform on phones and deprioritises everything else.

Attempting feature parity across devices often results in cluttered, compromised experiences that satisfy neither desktop nor mobile users.

The AI Hype Trap

The rush to add AI features risks repeating old mistakes. AI included for narrative appeal rather than user benefit often underperforms simpler improvements such as better information architecture or clearer documentation.

Where AI is used, it must be transparent, correctable and genuinely useful. In many cases, human-centred fixes deliver more value than unreliable automation.

Measure Before You Move

Every redesign should begin with a clear definition of success. Metrics such as task completion rates, daily active users or reduced support queries provide an objective basis for evaluating change.

UK product teams that treat design as a measurable business discipline, rather than a matter of taste, are better positioned to defend decisions and deliver lasting improvements.

Designing With Restraint

What ultimately matters is discipline: prioritising validated user needs, measurable outcomes and the confidence to leave effective systems untouched. The strongest technology teams simplify rather than embellish, challenge assumptions and align usability, compliance and brand into coherent experiences.

Good design is not about making products look newer. It is about making them work better for the people who rely on them every day.

Source: Noah Wire Services

UK compliance burden rewired

Reward Strategy — Tue, 23 Dec 2025 03:29:00 GMT

UK regulators and firms are modernising authorisation and approval processes, cutting risk, easing compliance burdens and reducing operational friction.

Compliance Pressure Meets Reform

Across the UK, compliance and risk management functions are undergoing a structural reset as regulators and technology converge to reduce administrative drag. Processes that once relied on paper forms, email chains and fragmented portals are being redesigned to improve oversight, speed decisions and lower operational risk.

What was previously tolerated as bureaucratic friction is now seen as a material governance and resilience issue, particularly in regulated sectors such as financial services, insurance and healthcare.

The Cost of Manual Processes

The weaknesses of manual authorisation and approval systems are well understood. Lengthy turnaround times, duplicated data entry and inconsistent documentation increase the risk of error, delay and non-compliance. For staff, this translates into workload pressure and fatigue; for organisations, it raises the likelihood of regulatory breaches and audit failures.

UK regulators have increasingly highlighted that poor process control is itself a source of systemic risk, not merely an efficiency problem.

Regulatory Push for Standardisation

Regulatory guidance in the UK is now placing greater emphasis on clear decision timelines, auditable workflows and consistent data standards. Supervisory bodies expect firms to demonstrate not just policy intent, but operational capability - including the ability to evidence decisions, manage exceptions and explain outcomes.

This shift reflects a broader regulatory objective: reducing reliance on informal workarounds and strengthening end-to-end accountability across compliance processes.

Automation as Risk Control

Automation is emerging as a core compliance tool rather than a back-office convenience. Structured digital workflows reduce reliance on manual judgement for routine cases, enforce consistent checks and create clear audit trails.

Rules-based systems can validate submissions against regulatory criteria, flag missing information and route complex cases for human review. In doing so, automation lowers the risk of inconsistent decisions and documentation gaps that often attract regulatory scrutiny.

The Role of Artificial Intelligence

Artificial intelligence is increasingly layered on top of automated workflows to enhance risk management. Machine learning tools can identify patterns in approvals, predict exceptions and highlight anomalies that warrant further investigation.

Used appropriately, AI shifts compliance teams away from repetitive checking towards oversight and judgement, allowing skilled staff to focus on higher-risk decisions rather than routine processing.

Measurable Operational Benefits

Organisations adopting digital authorisation frameworks report faster decision-making, fewer errors and improved staff productivity. Clear digital records also simplify regulatory reporting and internal audits, reducing the time and cost associated with compliance reviews.

From a risk perspective, the ability to evidence consistent treatment and timely decision-making is becoming as important as the decisions themselves.

Governance and Implementation Risks

Deploying automation and AI is not without risk. UK regulators expect firms to maintain strong governance over automated decision-making, including clear accountability, testing regimes and human oversight.

Technology choices must align with existing systems and data standards, while staff training and change management are critical to avoid new forms of operational risk emerging during transition.

From Burden to Control Mechanism

While adoption remains uneven, the direction of travel is clear. Compliance processes are evolving from fragmented administrative tasks into structured control mechanisms that support both regulatory objectives and operational resilience.

For UK organisations facing rising regulatory expectations, modernising authorisation and approval workflows is increasingly less about efficiency and more about managing risk in a demonstrable, defensible way.

Source: Noah Wire Services

Read more in our Knowledge Hub.

Rethinking workplace wellbeing in the UK

Reward Strategy — Thu, 18 Dec 2025 06:47:47 GMT

For UK employers, the most effective well-being strategies are often systemic, practical changes to how work is designed and managed.

Moving Beyond Perks

When organisations think about employee well-being, they often default to visible perks such as gym discounts or mindfulness apps. Yet some of the most effective interventions are quieter and more structural: improving commute experiences, giving people genuine control over their working day, redesigning breaks and strengthening line management. The goal is to embed well-being into how work is organised, rather than treating it as a standalone initiative.

The Commute as a Well-Being Issue

In the UK, commuting remains a significant source of stress and cost for many employees. Rising travel expenses, long journey times and crowded transport can affect sleep, morale and attitudes towards office attendance. Practical responses, such as flexible start times, hybrid working, secure cycle storage, showers or travel support, can materially improve daily experience. Addressing the commute is therefore both a well-being intervention and a retention strategy.

Giving Employees Control Over Their Day

Greater autonomy over when and where work is done consistently reduces stress and improves job satisfaction. Flexible working arrangements, now well established in the UK, allow employees to balance work with caring responsibilities and personal needs. However, some employees worry that flexibility may affect visibility or progression. Approaches that focus on outcomes rather than hours or presence help preserve accountability while increasing autonomy.

Line Managers Matter Most

Line managers are the point at which policy becomes lived experience. Training managers in communication, empathy and mental health awareness is one of the most effective ways to improve well-being at scale. A supportive, skilled manager can make demanding roles sustainable, while poor line management can negate even the most generous policies. Investment in management capability remains a high-impact, often underused lever.

Designing Better Breaks

How breaks are structured during the working day also matters. Short, intentional breaks for movement, stretching or quiet reflection can improve both physical and mental health while sustaining productivity. Treating rest as a legitimate part of the working day, supported by quiet rooms, outdoor seating or informal spaces, helps employees reset and maintain focus on complex tasks.

The Role of the Physical Workplace

Workplace design influences mood and performance in subtle but meaningful ways. Good lighting, sound control, temperature regulation and flexible layouts reduce stress and support concentration. Simple biophilic elements, such as plants or access to natural light, can further improve well-being. Allowing employees some personalisation of their workspace also fosters comfort and a sense of ownership.

Community and Belonging

Social connection at work acts as an emotional buffer, particularly during periods of change or pressure. Informal shared spaces and opportunities for organic interaction support community and belonging more effectively than forced team-building exercises. UK employers are increasingly recognising that connection and inclusion are core components of holistic well-being, not optional extras.

Protecting Time Off

Time away from work must be protected in practice, not just in policy. Clear boundaries around out-of-hours contact, encouragement to take full holiday entitlement and the use of well-being or personal days reinforce the message that rest is valued. When employees can genuinely disconnect, recovery improves and long-term creativity and productivity benefit.

Listening as the Foundation

Perhaps the simplest and most effective intervention is listening. Regular check-ins, anonymous surveys and open feedback channels help organisations understand what employees actually need. Using a continuous improvement approach allows well-being initiatives to evolve over time, tailored to diverse roles and circumstances, while reinforcing psychological safety and trust.

Small Changes, Lasting Impact

Small, thoughtful changes add up. When UK organisations reframe well-being as a design challenge spanning commute, schedule, management, physical space and culture, they move beyond superficial perks. The result is a working environment where health, engagement and performance are supported as part of everyday practice.

Source: Noah Wire Services

Read more in our Knowledge Hub.

Why the EVP has become a strategic asset

Reward Strategy — Thu, 18 Dec 2025 06:24:18 GMT

Employee value propositions are no longer static perks lists. Done well, they shape attraction, retention and long-term workforce value.

The EVP Takes on Strategic Weight in the UK

UK HR leaders are increasingly treating the employee value proposition (EVP) as a strategic asset rather than a static list of benefits. A strong EVP defines the overall exchange between employer and employee, combining pay, benefits, culture and development opportunities in return for skills and commitment. In a tight labour market, its effectiveness depends on clarity, credibility and consistent communication across the employee lifecycle.

Building an EVP Around Workforce Insight

Developing an effective EVP in the UK typically begins with employee insight. Surveys, focus groups and structured conversations help organisations understand what employees value most, from flexibility and wellbeing to progression and job security. These findings are then benchmarked against sector norms and competitors to identify strengths and gaps. The result should be a clear, concise EVP framework that can be reflected across recruitment materials, careers sites and internal communications.

Responding to Gaps Without Relying on Pay Alone

When EVP analysis highlights pressure points, such as below-market pay or limited promotion pathways, UK employers are increasingly looking beyond pay rises alone. Benefits design has emerged as a key lever, allowing organisations to enhance perceived value without disproportionately increasing fixed costs. Flexible and wellbeing-focused benefits can play a meaningful role in supporting attraction and retention where salary competition is constrained.

Flexible Health Benefits as Part of the EVP

Health and wellbeing benefits are a growing component of UK EVPs. Rather than relying solely on traditional one-size-fits-all offerings, many employers are introducing more flexible approaches, such as tailored private medical insurance options, health cash plans or defined benefit allowances. These models give employees greater choice while enabling employers to maintain cost predictability and align benefits more closely with workforce needs.

Supporting Inclusion and Workforce Diversity

More flexible benefits structures can also support inclusivity. By designing benefits that work for different employment types, such as part-time staff, contractors or employees at different life stages, organisations can extend coverage and support more equitably across the workforce. This aligns with EVPs that emphasise fairness, accessibility and support for diverse working patterns.

Governance, Compliance and Communication

UK employers must also account for governance and regulatory considerations when evolving benefits strategies. Tax treatment, employment law and provider oversight all influence how benefits can be structured and communicated. Clear employee guidance and effective administration are essential to ensure that benefits enhance the EVP rather than creating confusion or risk.

Balancing Cost Control and Employee Value

From a cost perspective, UK organisations are seeking benefits models that balance affordability with impact. Flexible approaches can help employers manage rising costs while still delivering meaningful value to employees. However, outcomes depend on careful design, ongoing monitoring and employee feedback to ensure changes strengthen, rather than dilute, the EVP.

The EVP as a Living Asset

For UK HR leaders, the key takeaway is that the EVP should be treated as a living asset. When informed by employee insight, market benchmarking and thoughtful benefits design, it can support attraction, retention and engagement over the long term. Success depends on regular review, transparent communication and alignment with wider workforce strategy.

Source: Noah Wire Services

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The coming fintech security reckoning

Reward Strategy — Mon, 15 Dec 2025 10:10:00 GMT

A fintech cyber tipping point: AI-driven attacks, fragile supply chains and looming quantum threats force security from IT function to board-level priority.

The financial-technology sector faces an inflection point: a collision of rapidly maturing offensive capabilities driven by generative AI, widening third‑party attack surfaces, and the looming cryptographic threat posed by quantum computing. According to the original report, finance now accounts for a disproportionate share of cyberattacks and data breaches, with average incident costs running into the millions , figures echoed by independent industry studies , making resilience not merely operational hygiene but an existential business priority.

Generative AI has transformed the frontline of cyber risk. Attackers are automating malware mutation and social‑engineering at scale, producing phishing, deepfake audio‑video impersonation, and autonomous attack campaigns that can evade static detection and exploit hybrid working arrangements. Industry data shows more than 90% of successful intrusions still begin with human‑targeting techniques, a vulnerability now amplified by increasingly convincing synthetic media. The implication for fintech is stark: protection of identity and transaction flows must be elevated above perimeter assumptions.

Recent, high‑impact incidents underline that threat actors are exploiting supply‑chain complexity and insider access as much as traditional network flaws. The original report cited the Finastra leak, and publicised breaches affecting neobanks, payments services and lending firms demonstrate how vendor misconfigurations, exposed APIs and insider incidents can cascade into mass customer data loss and reputational damage. Studies indicate that a significant share of fintech breaches , industry figures point to roughly four in ten , trace back to third‑party providers, making vendor resilience a systemic concern.

The financial cost of these breaches is rising. Global reporting and sector analyses place the mean cost of a data breach in the financial industry in the high single millions, with several authoritative reports listing figures around $5.9–$6.1 million per incident and noting year‑on‑year increases driven by lost business and post‑breach response costs. Regional variation is material: the United States shows substantially higher averages, reinforcing why US and UK firms must prioritise investment in detection, containment and customer remediation.

In response, fintech leaders are accelerating architectural shifts. The original report recommends Zero Trust Architecture as the immediate, non‑negotiable baseline: continuous identity verification, least‑privilege access, micro‑segmentation, and explicit device posture checks to limit lateral movement even when credentials or supplier links are compromised. Organisations adopting integrated resilience programmes , combining ZTA with hardened API management and stronger insider‑threat controls , are better placed to contain breaches and reduce dwell time, which industry data correlates directly with overall cost.

Beyond today’s risks sits the quantum problem. Public‑key systems that underpin online banking, payment rails and many blockchain protocols, notably RSA and ECC, are theoretically vulnerable to sufficiently powerful quantum processors. The original analysis frames “Q‑Day” as a plausible future event that could render archived and in‑transit data harvestable, and urges the financial sector to commence migration planning now. Standards work being led by the US National Institute of Standards and Technology is providing a roadmap for post‑quantum cryptography; firms are therefore called on to inventory cryptographic dependencies, begin algorithm agility testing and prioritise high‑value assets for early remediation.

Some institutions are already experimenting with quantum technologies defensively. According to the original report, partnerships between major banks and technology vendors aim to explore quantum‑enhanced detection and fraud‑analytics use cases, demonstrating that investment can both mitigate future risk and unlock new defensive capabilities. Regulators in the UK and US have signalled that existing supervisory frameworks will be applied to AI and emerging technologies, reinforcing that firms will be judged on outcomes and governance rather than permissive innovation alone.

Policymakers and industry bodies also face pressure to rebalance accountability across the ecosystem. The original report highlights calls in the UK for regulatory adjustments that would place greater responsibility on the platforms and communications networks where much consumer fraud originates, and notes the heavy compliance costs already borne by financial firms. The argument is strategic: without clearer obligations for upstream technology and social platforms, fintech firms will continue to absorb disproportionate risk and remediation costs.

For UK and US fintechs the operational prescription is twofold and urgent: implement Zero Trust principles now to reduce exposure to AI‑enabled attacks and supply‑chain compromise, while launching deliberate, phased migrations to post‑quantum cryptographic algorithms to protect against future cryptanalytic breakthroughs. The alternative , delayed action , risks regulatory sanction, irrevocable customer loss and the retroactive compromise of data assumed secure today.

Source: Noah Wire Services

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Payroll software that fits

Reward Strategy — Mon, 15 Dec 2025 03:59:00 GMT

A review of leading payroll platforms shows how usability, integrations and compliance tools shape the right software choice for growing firms.

When managing payroll, choosing the right software can decisively affect efficiency, compliance and cost; a recent survey of leading options highlights seven programmes that serve different organisational sizes and needs, from start-ups to global employers. According to the original report, each platform emphasises different strengths , usability, international reach, accounting integration, HR support or industry-specific compliance , so the optimal choice depends on a firm’s structure and priorities.

Gusto is singled out for ease of use, with the vendor claiming businesses can set up payroll in under 30 minutes and automate payroll runs and tax filings across all 50 states. The platform bundles benefits administration, time tracking and compliance alerts, and the Simple plan begins at $49 per month plus $6 per employee, making it a scalable option for many small firms. Industry data shows high satisfaction scores for its user experience.

Rippling is presented as the best option for global teams, supporting payroll in more than 160 countries while integrating HR, finance and IT into a single dashboard. The company highlights more than 500 integrations and workflow automation that can reduce manual onboarding and compliance work; pricing starts at a base rate with per‑employee fees and optional global payroll add‑ons, though initial implementation can take longer.

For businesses already using Intuit’s accounting suite, QuickBooks Payroll promises seamless synchronization with QuickBooks Online, same‑day direct deposit, automated tax filing and guided setup that can have organisations operational within a day. Mobile access and an entry price that begins around $45 per month plus per‑employee fees make it attractive to small firms seeking tight accounting–payroll integration.

Paychex Flex is positioned for mid‑sized firms that value scalability and hands‑on HR support; the service offers 24/7 access to certified HR professionals, automated tax filing, compliance tracking and a mobile app. Pricing and feature sets are designed to grow with an organisation, though some users find the interface less modern than newer competitors.

OnPay and Square Payroll address niche needs: OnPay focuses on industry‑specific compliance for sectors such as agriculture and nonprofits, with flat‑rate pricing, 50‑state filing and features like PTO management; the company also offers notable discounts for nonprofits. Square Payroll targets micro‑businesses and contractor‑heavy models, with a contractor‑only plan priced per contractor and tight integration with Square’s POS for tip handling and fast set‑up. Both aim to simplify common challenges for their target users.

ADP RUN is noted for depth of compliance resources and automated payroll forms, making it a strong contender for organisations prioritising regulatory accuracy and comprehensive HCM features; the platform provides employee self‑service for pay slips and tax documents and robust tools for workers’ compensation and tax policy management. According to the original report, ADP remains a go‑to where compliance depth is the principal concern.

Choosing between these systems requires weighing immediate needs against future growth: usability and quick onboarding matter for small employers; integration with existing accounting systems will favour platforms like QuickBooks; global operations often necessitate a provider such as Rippling; and regulated or specialised sectors may be best served by OnPay or ADP. Industry data shows prices and tiered features vary, so businesses should map expected headcount, international coverage and HR requirements to vendor features before committing.

Source: Noah Wire Services.

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OBBBA overtime compliance challenges

Reward Strategy — Mon, 15 Dec 2025 03:57:33 GMT

New federal overtime deductions create reporting and payroll risks for public employers as IRS transition relief gives way to future mandates.

Public employers face a near‑term compliance puzzle as the One Big Beautiful Bill Act (OBBBA) creates a temporary federal tax deduction for “qualified overtime compensation” while imposing new reporting expectations. The deduction, effective retrospectively from 1 January 2025 through 31 December 2028 unless extended, permits employees to deduct the overtime premium that FLSA requires (for example, the “half” of time‑and‑a‑half pay); annual caps are $12,500 for single filers and $25,000 for joint filers, with phase‑outs beginning at $150,000 and $300,000 of modified adjusted gross income respectively. According to IRS guidance, employers will ultimately be required to report qualified overtime on Forms W‑2 and 1099, but the agency has provided transition relief for tax year 2025.

At the heart of employer decision‑making is a clear statutory distinction: the deduction applies only to overtime that is “required under Section 7 of the Fair Labor Standards Act” , essentially weekly overtime (or overtime calculated under a lawful alternative workweek such as section 7(k) for public safety personnel). Industry and legal commentary emphasise that only FLSA‑required overtime qualifies; state, contractual or employer‑generous overtime arrangements that go beyond Section 7 do not, by themselves, create deductible overtime. Employers therefore must be able to separate FLSA‑mandated overtime from other overtime or premium payments when preparing employee statements.

Common forms of premium pay that fall outside the OBBBA deduction unless they are themselves FLSA weekly overtime include state daily overtime and double‑time rules, contractual or MOU (collective bargaining) overtime provisions, discretionary or non‑regular pay elements excluded from the FLSA “regular rate,” and employer choices to pay exempt staff additional compensation. Payroll practices that count paid time off toward overtime thresholds or include non‑regular pay in the regular rate can produce pay that is generous but not eligible for the federal deduction. Employers should therefore inventory where their pay practices mirror, exceed, or diverge from Section 7 requirements.

The IRS has recognised the practical difficulty of immediate, system‑wide changes and issued transitional guidance for TY2025: Notice 2025‑69 instructs individual taxpayers on claiming the deduction without requiring employers to separately account for qualified overtime or tips on 2025 forms, and a related IRS notice confirmed that employers will not be penalised for failing to update payroll systems or W‑2s for TY2025. Nevertheless, the IRS has urged employers to prepare for mandatory reporting in later years and has published draft W‑2 changes (including a proposed code “TT” on a revised Box 12) for TY2026; employers should watch for finalised instructions.

Practical next steps for public employers include: conduct a policy and contract review to identify where overtime rules derive from FLSA, MOUs, state law or employer policy; audit payroll data and coding so weekly FLSA overtime is tracked separately from daily, double‑time, contractual or premium payments; modify payroll systems where feasible to retain discrete overtime categories; and prepare employee communications or Box 14 entries or supplemental statements if choosing to provide TY2025 assistance. Employers should also train HR and payroll staff on the OBBBA rules and document chosen “reasonable methods” for approximations where precise historical data are unavailable, consistent with the statute’s transition rule. Payroll vendors and state comptrollers have circulated similar implementation guidance and templates to help agencies assess system change costs.

The balance for public employers is between cost and employee benefit. Acting now to disaggregate and document FLSA‑required overtime can ease the shift to mandatory reporting in 2026 and support employees’ access to the deduction, but hasty or poorly documented changes risk overstated W‑2 reporting and subsequent IRS scrutiny. Industry and bar analyses urge measured, documented action: prepare systems, train staff, and adopt conservative, auditable methods for any 2025 reporting an employer elects to provide. Government guidance and draft forms remain the primary touchstones as agencies plan their next steps.

Source: Noah Wire Services

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Predictions for Reward, Payroll and HR in 2026

Amy Assad — Fri, 12 Dec 2025 16:33:30 GMT

And the year payroll becomes strategic

The reward, payroll and HR community has been standing on the precipice of transformation for a while now, shaped by economic volatility, accelerating AI adoption, shifting workforce expectations and deepening skills shortages. But as we look ahead to 2026 there’ll be a clear move from a reactive to intentional approach to this change.

In 2026 payroll will emerge as an intelligence function, as reward becomes hyper-personalised, and HR becomes a tech-enabled engine for organisational outcomes.

Transparency and Fairness Become the Norm

In reward, organisations are moving away from broad, generic benefits towards data-driven choice-architecture that recommends the benefits most relevant to each employee’s life stage, wellbeing needs and financial position. Reward will become more intuitive and more meaningful as employees receive tailored suggestions like mental health support, financial tools, learning pathways or lifestyle benefits. This shift is happening alongside growing expectations for fairness and transparency. In 2026 employees will assume they will see salary bands, bonus criteria and promotion logic as standard, not as privileged information.

Payroll Emerges as a Strategic Intelligence Function

In parallel, payroll is finally embraced as a strategic function. For years, payroll teams have been edging toward influence, but in 2026 they’ll finally step into a more central role. Kathryn Smith, Payroll Product Manager at MHR, emphasises that the real breakthrough comes from smart automation and AI-powered foresight, tools that relieve administrative burden and unlock payroll’s analytical potential.

Payroll systems will increasingly send payroll for approval automatically to finance, automate payment file submission, flag errors before they escalate, and surface anomalous payrolls without teams having to hunt for discrepancies. This frees payrollers to contribute insight into workforce planning, real-time labour costs, retention risks and financial wellbeing. Payroll becomes the steadiest source of cost intelligence in the organisation.

More broadly, 2026 is the year AI becomes tangible rather than theoretical. AI will streamline workflows, anticipate risk and improve decision-making. We will see predictive error detection before payroll cut-offs, HR platforms that nudge managers when attrition risk rises, and reward modelling that automatically identifies pay inequities. Automation will reduce digital friction as one of the lesser-seen but most corrosive drivers of disengagement. AI empowerment replaces AI apprehension, but only if leaders set strong governance and transparent safeguards.

HR Becomes a Tech-Enabled Engine for Outcomes

A structural shift is also emerging inside organisations as the HR–IT divide dissolves. As LACE Partners suggests, HR is becoming a tech-enabled, data-fluent function built around outcomes, not processes. Leaders will increasingly orchestrate integrated AI platforms, sentiment-driven change management, personalised EX content and hybrid shared services that blend automation with human expertise. HR tech debt audits will become common as legacy systems slow transformation, while “payroll health-check-as-a-service” becomes a new form of productised consulting.

Much like in 2025, skills shortages will be one of the defining economic tensions of 2026. Despite optimistic IMF projections, sectors such as finance, insurance, logistics, manufacturing and healthcare continue to face critical gaps in AI, data and engineering capability. This scarcity puts upward pressure on pay in high-demand roles, while growth for generalist white-collar positions softens. Reward teams will need to strategically invest in critical skills, balance pay affordability and intensify upskilling efforts to protect organisational competitiveness.

Reward strategy itself matures. After years of turbulence, pay budgets are stabilising. Brightmine data suggests pay bill increases will settle around a sustainable 3% in 2026, down from the record 6% rises of 2023. But stabilisation doesn’t mean simplicity. Businesses will need to balance affordability with retention, protect productivity through targeted pay progression, and use salary sacrifice and cost-neutral benefits to maintain value. Pay-gap scrutiny is also expanding beyond gender to ethnicity, disability and socio-economic background, making fairness a core part of organisational credibility.

Trust and Wellbeing Drive Engagement and Retention

A quieter but powerful shift is taking place too. Trust has become the ultimate differentiator. Employees increasingly expect transparent reward structures, ethical AI governance, personalised experiences and authentic support for wellbeing and neurodiversity. Wellbeing itself has evolved from perk to purpose, influencing engagement, productivity and retention.

Underpinning many of these changes is payroll data as one of the most underused strategic assets in the business. In 2026, payroll will sit at the heart of people analytics, enabling skills-based workforce planning, real-time labour forecasting, pay equity modelling, retention analysis and even ESG and sustainability reporting. Payroll’s precision and its rich human context help organisations make faster, fairer, more informed decisions.

2026: AI, Fairness, and Payroll at the Heart of Leadership

For decades, payroll has been trusted but underestimated, reward has been strategic yet constrained, and HR has been people-first but limited by technology. In 2026, those boundaries dissolve. AI accelerates everything; skills shortages force new workforce models; fairness and trust become competitive strategy; and payroll moves decisively to the centre of business leadership.

If 2025 was the year AI entered the workplace, 2026 is the year people leaders learn to harness it with humanity, intention and impact.

The pursuit of happiness

Reward Strategy — Fri, 12 Dec 2025 16:33:51 GMT

Only half of UK employees are happy at work

Only half of British employees say they are frequently happy at work, according to new findings from Reward Gateway | Edenred’s Bridging the ROI Gap Report.

The research, released as organisations prepare for a challenging 2026, paints a concerning picture of employee morale, appreciation and emotional wellbeing across the UK workforce. With happiness, productivity and retention more closely linked than ever, the report suggests many employers are failing to track the very metrics that could safeguard both their people and their performance.

The study reveals that just 51% of employees feel frequently happy in their jobs, while a quarter report they do not often feel appreciated. A similar proportion, 22%, say they do not often feel valued by their employer.

The sense of being overlooked intensifies significantly with age: more than a third of employees aged 55 and over say they often feel unappreciated, and 30% say they frequently feel unvalued. This suggests a growing disconnect between organisations and older workers, a group whose experience, stability and institutional knowledge are central to operational effectiveness and knowledge transfer.

These emotional trends carry real consequences for productivity. According to the research, 74% of employees feel more productive when they are supported by their organisation, yet only 58% of employers are currently tracking motivation and productivity in any structured way.

As businesses face ongoing cost pressures, skills shortages and shifting employee expectations, the failure to monitor these basic indicators of workforce health represents a significant blind spot. Without visibility into motivation levels or the early signals of disengagement, organisations risk a decline in morale that may not be identified until it has already impacted performance or attrition.

A key finding of the report is the lack of emphasis placed on emotional wellbeing within organisational measurement frameworks. While many HR teams track wellbeing or satisfaction in some form, only two-thirds of those who monitor support and wellbeing regularly measure how these metrics correlate with business outcomes.

When it comes to happiness specifically, the proportion drops further, with just over half of HR managers drawing clear links between employee happiness and organisational performance. This gap highlights an enduring cultural challenge: although wellbeing has been widely discussed for years, many organisations still have no systematic way to quantify its impact or integrate it into decision-making.

For Suzanna Kemal, Head of HR at Reward Gateway | Edenred, the findings signal a pivotal moment for employers. “The link between happiness and productivity is undeniable, and it’s essential that businesses and HR teams recognise this,” she says.

“With almost half of the UK workforce feeling generally unhappy in their place of work, the country is losing out on the creativity, determination and resilience found in a thriving workplace.” Kemal argues that the issue extends beyond happiness alone and urges organisations to take a broader approach to emotional wellbeing. “It’s not just happiness that needs to be tracked, but wellbeing overall.

Businesses need to take stock of absenteeism, performance and participation, as well as assess emotional capital metrics like happiness and enthusiasm through pulse surveys and one-to-one communications. Without taking these tangible measures, organisations will only fall behind and have their workforce move onto greener pastures without them.”

The research leaves demonstrates emotional wellbeing is a measurable driver of performance.

As 2026 approaches, employers who continue to overlook how their people feel at work risk eroding trust, engagement and productivity at a time when stability is crucial. Those who invest in understanding and improving happiness, appreciation and support will not only strengthen the employee experience but position themselves for greater resilience in the year ahead.