Reward Strategy - Latest news

The difference in COLA vs COL (besides the missing A)

Sean Luitjens — Wed, 26 Aug 2026 07:00:00 GMT

One of the most common questions about compensation people hear is also one of the hardest to answer: “If the cost of living has gone up so much, why hasn’t my pay gone up the same amount?” And you know what? It’s a completely fair question.

Employees don’t experience compensation through salary surveys, regression models, geographic differentials, market percentiles, or beautifully color-coded spreadsheets. They experience it at the grocery store. At the petrol pump. When the rent goes up. When the insurance renewal arrives. When childcare suddenly costs roughly the same as a small yacht. From that perspective, the math seems pretty simple: my life costs more, so I should make more. Makes sense right?

But employers generally make compensation decisions using a different measure: the cost of labour. And while cost of living and cost of labour sound like they should be hanging out together around the same campfire, passing around some granola and listening to a little acoustic guitar, they’re actually two very different things.

Two Similar Terms, Two Different Trails

Cost of living measures what it costs someone to live in a particular place. Housing, food, transportation, healthcare, taxes, utilities, and all the other wonderful little expenses that make our paycheque disappear faster than we’d like. The Consumer Price Index (CPI) is probably the measure people know best as this is what makes the news.. When inflation rises 4%, it’s natural for an employee to think, “Okay, everything costs 4% more. Where’s my 4%?”

Cost of labour asks a different question. Instead of asking what it costs to live somewhere, it asks what an employer needs to pay to attract and retain people with certain skills in a particular labour market. Put another way, cost of living asks, “What does it cost to live here?” while the cost of labour asks, “What does it cost to hire someone here?” They influence each other and occasionally wander down the same trail, but they aren’t carrying the same backpack.

Imagine two people doing essentially the same job. One lives in London and the other lives in Newcastle. Their housing costs may be wildly different. Groceries may cost more. Petrol may be different. One person’s morning coffee may require a small personal loan. But their salaries won’t necessarily differ by the same percentage.

That’s because employers aren’t buying groceries, paying someone’s mortgage, or trying to calculate exactly what it costs each employee to maintain their lifestyle. They’re buying talent. They’re asking how many qualified people are available, how many other companies are competing for them, how difficult the job is to fill, what competitors are paying, and how quickly wages are moving. That beautiful, slightly messy cocktail of supply, demand, skills, geography, and competition creates the cost of labour.

And Then Geography Joins the Drum Circle

Organisations often use geographic pay differentials to recognize that labour costs vary from one place to another. Imagine a job with a national market midpoint of £100,000. Maybe the labour market says that same job pays 15% more in one city, 5% more somewhere else, and 10% less in another location. Those differences aren’t designed to perfectly offset rent, groceries, taxes, petrol, or the price of your locally sourced organic oat milk latte. They reflect what employers actually pay for similar talent in those markets.

That’s why a city where housing costs 40% more doesn’t necessarily pay 40% more for the same job. Housing markets and labour markets definitely dance together sometimes, but they don’t always hear the same music. That disconnect is often what makes this conversation so difficult. The employee is looking at one very real economic picture while the employer is looking at another equally real set of market data.

And then remote work wandered into the festival and basically kicked over the compensation picnic table.

For years, geographic compensation was relatively straightforward. Employee works in Manchester? Use Manchester market data. Employee works in Surrey? Use Surrey market data. Then remote work scattered everybody across the map. Now someone might work for a company in Manchester while sitting in Lincoln, Watford, Canturbury or in a camper beside a lake with questionable Wi-Fi and an excellent view.

So where exactly is their labour market? Some companies pay based on the employee’s location. Others use the company’s headquarters. Some have national pay ranges. Others group locations into geographic zones. There isn’t one magical answer handed down from the compensation universe on a stone tablet. What matters is having a philosophy, applying it consistently, and being able to explain it without requiring employees to decode a 47-slide PowerPoint presentation.

Transparency Is Changing the Conversation

Pay transparency has made this distinction even more important. Employees can see salary ranges in job postings. They can compare jobs across cities. They can compare remote opportunities. They can talk with co-workers about compensation and gather more market information in 15 minutes than employees could have collected in months a generation ago.

So saying “that’s what the market pays” isn’t enough anymore. Employees are increasingly asking: What market? Why that market? How did you determine it? Why is someone doing the same job somewhere else paid differently? And frankly, those are good questions. A strong compensation program shouldn’t depend on employees not understanding how it works.

There’s also one piece we sometimes forget while happily swimming around in our compensation data: the employee’s cost-of-living experience is real. If someone’s rent increased 15%, telling them the market rate for their job increased 3% might be technically correct. It also probably won’t make them feel any better. We can acknowledge both realities. Compensation decisions can be based primarily on the cost of labour and we can recognise that inflation affects employees personally.

This isn’t about winning an economic argument. It’s about helping people understand how pay decisions are made. Sometimes compensation professionals get so focused on being technically correct that we forget the human sitting on the other side of the spreadsheet. A little empathy goes a long way. You can explain the economics without dismissing someone’s reality.

Where Things Get Spicy: Geographic Differentials

If there’s one topic that perfectly illustrates the difference between cost of labour and cost of living, it’s geographic pay. This is also where things tend to get a little spicy. Many people naturally assume geographic differentials are based on cost of living. Most aren’t. They’re based on cost of labour — what organisations actually need to pay to compete for talent in a particular market.

Take London and Newcastle. Yes, housing is dramatically more expensive in London. You don’t need a compensation survey to figure that one out. But organisations generally don’t pay software engineers more simply because their rent is higher. They pay more because they’re competing with a huge number of organisations for the same highly sought-after talent. It’s the competition for people — not necessarily the price of a two-bedroom apartment — that drives the pay differential.

Now flip the script. There are communities across the country where housing prices have skyrocketed over the last decade while wages have remained relatively stable. If cost of living automatically drove compensation, wages should have climbed right alongside those home prices. But they often didn’t. Why? Because the local labour market didn’t change nearly as fast as the real estate market. Housing and labour markets may be dancing at the same festival, but they aren’t always dancing to the same band.

Remote work made the whole conversation even more interesting. If someone moves from Birmingham to Carlyle, should their salary change? If another employee relocates from Hatfield to London, should their salary increase? Compensation folks can have a pretty lively drum circle around those questions. Some organisations say yes. Some say no. Some have national salary structures regardless of where employees live. Others use geographic differentials, regional labour markets, or geographic zones to adjust compensation based on location.

There isn’t one universally perfect answer, and that’s part of what makes geographic compensation so interesting. Organisations have different talent strategies, different compensation philosophies, and different competitive markets. But what’s fascinating is that almost none of those decisions begin by pulling up Rightmove and seeing what a three-bedroom house costs. They start with the talent market. What does this job pay here? Who are we competing against? What do we need to pay to attract and keep the people we need?

That brings us right back to the heart of the conversation. Where someone chooses to live absolutely affects their personal economics, and that reality shouldn’t be dismissed. But when organisations build compensation structures, they’re generally following the labour market rather than the housing market. Same geography, different trail map.

Same Trail. Different Map.

Cost of living asks, “What does it cost to live here?” Cost of labour asks, “What does it cost to hire and retain talent here?” They’re related. They influence each other. Sometimes they even walk side by side for a while. But they’re not the same trail.

For compensation professionals, understanding the difference is the easy part. Our bigger responsibility is explaining it in a way employees can actually understand. Because compensation isn’t really about spreadsheets, market data, percentiles, and pay ranges. Those are just the tools we carry in the backpack.

There are humans on the other side of all those numbers. Sometimes the best thing we can do is put down the spreadsheet, step away from the market percentile debate, sit around the campfire for a minute, and help people understand the trail we’re actually walking together.

Want to hear more from Sean? Join him on the Reward stage at The Reward and Payroll Summit. Only one month to go! - Click here for more information.

Legal and General study highlights rising demand for proactive return-to-work support

Reward Strategy — Wed, 26 Aug 2026 07:53:17 GMT

A Legal & General survey reveals strong employer and employee support for better sickness absence, return-to-work, prevention and rehabilitation services.

A new study by Legal & General suggests that employees and employers are aligned on one point: more help is needed to manage sickness absence and the journey back to work. The survey found that 82% of employees want their employer to take a more proactive approach to return-to-work support after illness, while 49% believe that support should be provided as standard and 33% say it should be available as an optional extra.

Employers are also looking for greater support

The appetite for support is not limited to staff. Legal & General said 94% of employers would value greater help from advisers or insurers on wellbeing and absence management. The areas most often identified were early intervention and return-to-work planning, alongside better communication of benefits to employees, each cited by 44% of respondents. Almost a third, 29%, said they would also welcome more help in understanding the different benefits available.

Earlier intervention could improve return-to-work outcomes

Vanessa Sallows, claims and clinical development director, group protection, at Legal & General, said employee needs assessments are too often left until the point when someone is already preparing to come back. She said many employers are now exploring ways to support people throughout the full period of absence, and argued that access to vocational rehabilitation clinicians and other specialists can make support more practical, more personal and more timely. That, she said, can shorten time away from work and improve the chances of a sustainable return.

Prevention and rehabilitation move up the agenda

The findings sit alongside a broader push by the insurer to expand prevention and rehabilitation services. Legal & General has previously said technology can strengthen long-term absence management, while its group protection data has pointed to strong return-to-work outcomes where early intervention is used. More recently, the company introduced a toolkit for HR teams and line managers to support employees affected by cancer, reflecting a wider focus on reducing the fear and uncertainty that can surround illness at work.

Reward Strategy’s response

The findings highlight a clear expectation for employers to take a more proactive role in managing sickness absence. With 82% of employees wanting greater return-to-work support and 94% of employers seeking more guidance, early intervention is becoming an increasingly important part of the wellbeing and benefits conversation.

The opportunity is to ensure existing benefits are communicated clearly and support is available throughout an employee’s absence, rather than only when they are ready to return. A more joined-up approach between reward teams, HR, insurers and advisers could help reduce absence, support sustainable returns to work and demonstrate the value of workplace benefits.

Want to know more? Visit the Knowledge Hub for the latest insights to help your organisation thrive- Click here to find out more

In conversation with... Dan Bailey

Lukas Montgomery — Tue, 25 Aug 2026 08:31:57 GMT

Dan Bailey, Performance and Reward Director at AXA UK, is speaking at the Reward and Payroll Summit 2026! Find out more about Dan and what he’s looking forward to at the Summit below...

What are the most significant challenges facing reward professionals today?

I think the most significant challenges are how to differentiate your reward offering under increasingly tight budgets and how you can prove the ROI of the (very expensive) benefits that may be on offer.

In addition, how do we build a package that not only appeals to the next generation of workers and talent, but keeps existing employed engaged and retained.

What excites you most about participating in Reward & Payroll Summit this year?

I’m looking forward to exchanging ideas/thoughts with other Reward and Payroll professionals. I have also just taken on payroll responsibility at AXA UK so it would be good to connect with Heads of Payroll!

Which session or theme are you most looking forward to, and why?

Looking forward to understanding if the new Burnham government has signalled any changes to the regulatory landscape, which affects both Reward and Payroll. Also, any real use cases using Al would be of great interest.

What’s a common misconception people have about Designing Reward for the Future Workforce: Using Personas to Build Pay & Reward That Lasts, and how does your session challenge that?

I think a common misconception is assuming that the package that has ’always done the job’ will continue to attract and retain talented employees. Given the likely change in workforce composition over the next 10 years, whether that be the new skills that are needed in the workforce or the fact people will likely be working for longer, the session should challenge the notion that you can just continue as you always have done.

How does Designing Reward for the Future Workforce: Using Personas to Build Pay & Reward That Lasts connect to broader organisational strategy or business performance?

It’s increasingly important to ensure that the benefits/reward package on offer aligns to organisational goals, and maximises on EVP, attraction, retention, all of these things have a direct impact on turnover, etc and therefore cost. Also, the mix of benefits and reward should link to organisational strategy and culture, whether that’s more of a meritocracy or a collective performance strategy.

What do you hope attendees will take away from your session at Reward & Payroll Summit?

If attendees can come away from the session and take something to challenge their current thinking and reward strategy I will have done my job!

Where do you see the biggest opportunities for innovation in reward over the next 2–3 years?

Of course, everyone says Al, but its difficult in a reward space, with small teams to try and scale it up at a level that makes sense to implement over other areas of HR. I think the innovation is someone cracking that link between introduction of benefits and business ROI, which I have yet to see any benefit provider prove convincingly.

What’s one thing you’re hoping to learn from other speakers at the summit?

I want to take things back to my current situation and use them to challenge our current thinking, whether that be on benefits, payroll, etc. I am also keen to learn from others in different industries who may be looking at problems from a different slant.

Coffee or tea before your big session at RaPS?

Tricky one as I’m decaf for both, I would normally say a decaf flat white!

Find out more about Dan’s session and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

Money worries hit productivity for two thirds of workers

Lukas Montgomery — Mon, 24 Aug 2026 10:29:26 GMT

Money worries are increasingly hitting workplace performance, with 67% of employees reporting an impact on productivity as financial stress drives absence and disengagement.

More than two thirds of employees say financial worries are affecting their productivity at work, as new research points to a sharp rise in the workplace impact of financial stress.

The annual employee financial stress survey from Hymans Robertson Personal Wealth found that 67% of employees report money worries affecting their productivity, compared with 38% in 2025.

The findings suggest financial wellbeing is becoming an increasingly significant workforce issue, with 68% of employees saying financial concerns have negatively affected their motivation or engagement at work.

More than a third (37%) have also taken time off during the past year because of financial stress.

Financial stress becoming a business cost

While 32% of respondents described the impact of money worries on their productivity as minimal, Hymans Robertson Personal Wealth warned that relatively small financial pressures could develop into more significant challenges if they are not addressed early.

Steve Butler, head of corporate at Hymans Robertson Personal Wealth, said financial stress could represent a “hidden cost” for employers as employees increasingly bring money concerns into the workplace.

“Employees’ money worries don’t stay at home when they start work each day,” he said. “Our research shows that it affects concentration, motivation and, ultimately, performance.”

Butler added that the proportion of employees reporting a productivity impact has risen by 29 percentage points since 2025, creating a stronger case for employers to treat financial wellbeing as an evolving workforce risk.

The findings come as employees continue to face changing external financial pressures, potentially increasing the importance of workplace support in helping people build longer-term financial resilience.

Existing support failing to connect with employees

However, the research suggests simply providing financial wellbeing benefits may not be enough.

More than half (54%) of employees said they have access to financial wellbeing support through their employer, but 28% said the support focuses on areas that are not important to them.

Nearly a third (31%) were also unable to confirm that their employer’s current wellbeing support felt relevant to their needs.

Butler said standardised benefits packages can struggle to reflect employees’ individual circumstances, limiting engagement with the support already available.

“Too often, support is built around a standardised set of benefits which don’t always reflect individual need,” he said.

“Our research shows that this impacts the take-up of financial wellbeing support, leading to missed opportunities to support employees and alleviate stresses.”

Life-stage support could drive greater engagement

The research indicates that tailoring financial wellbeing programmes around major life events could help employers make support more relevant.

Almost a quarter (24%) of employees said they would engage more with financial guidance linked to key moments such as buying a home or having children.

Butler said employers should consider how financial needs change throughout an employee’s working life, from saving for a first home and starting a family to preparing for retirement.

“Ultimately, effective financial wellbeing isn’t about offering more support, it’s about offering the right support at the right time,” he said.

He added that employers should also review how existing benefits are communicated, ensuring employees understand what is available and how it can support them at different stages of their lives.

With financial concerns increasingly affecting absence, engagement and productivity, the findings suggest employers may need to move beyond one-size-fits-all financial wellbeing programmes and consider whether their existing support is reaching employees when they need it most.

Looking to get more for your employees with what you already have? Join us at The Reward and Payroll Summit for our curated Reward stream- Click here for more details

The Rewards 2026 shortlist revealed

Lukas Montgomery — Fri, 21 Aug 2026 08:59:06 GMT

The Rewards 2026 shortlist is revealed, celebrating the organisations, teams and individuals driving excellence and innovation across reward, payroll, employee benefits and workplace culture.

The wait is over. Reward Strategy is delighted to announce the shortlist for The Rewards 2026, recognising the organisations, teams, suppliers and individuals setting new standards across reward, payroll, employee benefits, recognition and incentives.

Celebrating excellence across reward and payroll

The Rewards continues to celebrate the innovation, strategic thinking and measurable impact that are shaping the future of work. This year’s finalists have demonstrated outstanding achievements in areas ranging from total reward and employee wellbeing to payroll transformation, recognition technology, financial wellbeing and workplace culture.

Following another highly competitive entry process, the shortlisted organisations represent the very best of the profession. From global enterprises and household brands to fast-growing suppliers and pioneering specialist teams, the breadth and quality of this year’s entries reflect an industry that continues to evolve at pace.

Judges praised the calibre of submissions, highlighting a strong emphasis on measurable business outcomes, employee experience, innovation and strategic leadership. Across every category, entrants showcased how pay and reward have become increasingly critical drivers of organisational performance, talent attraction, retention and engagement.

The winners revealed on 16 September

The winners will be revealed on 16 September at The Rewards 2026, held at the Hilton London Bankside. The black-tie celebration brings together the reward and payroll community for an evening of recognition, networking and celebration, honouring the people and organisations making the greatest impact across the profession.

A full day for the reward and payroll community

The celebrations follow the Reward & Payroll Summit, taking place earlier the same day. Bringing together senior reward, payroll and HR leaders, the summit will explore the trends, challenges and innovations shaping the future of the profession through keynote presentations, panel discussions and practical case studies.

Together, the summit and awards create a unique opportunity to learn from industry experts during the day before celebrating excellence with peers in the evening.

Congratulations to The Rewards 2026 finalists

Congratulations to everyone who has secured a place on this year’s shortlist. Being recognised as a finalist is an achievement in itself and reflects the exceptional work taking place across the reward, payroll and employee benefits community.

View the full shortlist here.

We look forward to welcoming all of our finalists, partners and guests for what promises to be an inspiring day of insight, networking and celebration at the Reward & Payroll Summit and The Rewards 2026.

The Magical Combination of Skills-based Pay and Pay Transparency

Paul Welch — Wed, 19 Aug 2026 06:56:00 GMT

The world of work is changing at an increasing pace and employers need to reconsider how they value and reward their people in line with this change

Historically the “knowledge economy” was heavily driven by formal academic qualifications and on the job experience. However, as organisations grapple with skills shortages, rapid technological change, and evolving workforce expectations, traditional approaches to pay and career progression are being challenged.

A critical question for business leaders becomes: “Do we have the skills required to deliver our business objectives, and how do we reward people for developing those skills?” Therefore increasingly, businesses are moving towards a skills-based approach to managing people, where what employees can do matters more than the qualifications they hold or the job titles they have. As a consequence, we are seeing a move away from traditional job-based or grade-based pay systems towards Skills-Based Pay.

Skills Based Pay, (SBP)

Unlike traditional pay structures, where progression is typically linked to a move between grades or roles, SBP is a compensation approach that rewards employees for the skills, knowledge, and competencies they possess and demonstrate. It is therefore, a more flexible, person-centric approach to reward. This approach aligns with the increasing focus on pay transparency, accelerated by the EU Pay Transparency Directive because it requires greater transparency around pay.

To ensure employees trust the system and to enable organisations to manage legal and employee-relations risks, SBP must be underpinned by a high degree of pay transparency. This is because SBP only works, and stays legally and ethically defensible when people can clearly see how skills translate into pay, thereby driving the need for transparent reward structures.

Key issues to consider when thinking about implementing SBP

1. At its core, SBP pays people for demonstrated skills/ competencies rather than job title/ grade. So, in order to be credible, it must be clear to employees what skills trigger what pay. For employees to believe SBP is fair, organisations must be transparent about:

What skills are valued and why those skills matter to the business
How much each skill/proficiency level is worth
What proficiency levels look like with clear definitions and evidence standards
How skills are assessed/ validated in an objective way

2. To successfully introduce and embed SBP, organisations must adopt a strategic approach without which there is a danger that it will be seen as arbitrary and subjective especially because it is a “person-based” approach. Organisations therefore need to have robust reward principles and structures in place that provide clear and documented explanations for why certain skills command premiums, how capabilities are assessed, and how decisions are applied consistently. This visibility helps employees understand how reward decisions are made and creates confidence in the fairness of the system.

3. Use SBP as a driver of employee development because, when employees clearly understand the rewards associated with developing new skills, they are more likely to invest in learning. This creates a direct linkage between skills development and reward:

4. SBP must to be implemented correctly to mitigate against equal pay and discrimination risks, especially when two people in the same role are paid differently. Any such differentials must be managed through implementation of clear, evidence-based criteria and processes based on skill certification, scarcity, or verified capability as suggested above. In other words: SBP increases the burden of explanation, and transparency in how you meet that requirement.

5. SBP can be simple in concept but complex in execution, requiring ongoing governance to identify and value skills and ensure that what is rewarded remains relevant as markets shift and job requirements change. It is important that such changes are clearly documented thereby increasing the volume of information organisations will need to keep. In practice, SBP doesn’t require organisations to publish everyone’s pay but requires transparency about the reward system and processes used to set and progress pay.

6. If organisations have reservations about transitioning to a full blown SBP model, they may decide to adopt approaches that are a step toward SBP, for example:

Skill premiums (small, targeted additions that value in-demand skills without fully rebasing base pay)
One-time bonuses for acquiring skills (rewarding development without permanently inflating base pay)
Performance based pay linked to objectives and skills/ competencies.

In summary: The strongest outcomes come from combining skills-based pay and transparency

Together they create clearer career pathways, stronger workforce capability, increased organisational agility, and reward systems that are easier to defend and trust.

Business leaders considering skills-based pay should think beyond reward design alone. The real differentiator is transparency, making skills, assessment processes, development pathways, and reward outcomes visible and understandable. When these elements work together, organisations can build a more capable, adaptable, and engaged workforce while ensuring fairness and trust in their reward practices.

Employers face mounting pressure to disclose salaries amid stricter pay transparency laws

Reward Strategy — Mon, 17 Aug 2026 10:06:53 GMT

Pay transparency is rapidly shifting from best practice to business necessity. As new rules emerge across Europe and the UK, employers face growing pressure to rethink how they communicate pay.

Employers hiring across Europe are facing a sharper reality on pay disclosure: silence on salary can now deter applicants and create legal exposure. Agility EOR said research showed 80% of jobseekers would not apply for roles that fail to publish pay details, while only 42% of HR adverts currently include salary information. That gap, it argued, leaves many companies struggling to compete for talent even before compliance is considered.

EU rules raise the compliance bar

The pressure is being driven by the EU Pay Transparency Directive, which member states are beginning to implement. According to the Council of the European Union, the rules require employers to tell candidates the starting salary or pay range before interview, ban questions about salary history, and give workers the right to ask for information about their own pay and the average pay of colleagues doing the same work, broken down by gender. Larger employers will also have to report gender pay gap data and take action if unjustified gaps above 5% persist.

UK consultation signals similar direction

Britain is moving in a similar direction. The government opened a consultation on 15 July 2026 proposing that employers must either publish salary details in job adverts or provide them in writing before interview. The consultation, which runs until 27 October 2026, would apply in England, Scotland and Wales if adopted. Unlike the EU regime, the UK proposal does not currently include a ban on asking candidates about salary history.

Transparency as a competitive advantage

Sam Barnes, co-founder and sales director at Agility EOR, said the direction of travel is clear and that employers should stop treating pay transparency as a matter of choice. He argued that organisations which move early can cut compliance risk, reinforce trust and improve their chances of attracting candidates in a tighter labour market. His advice was to standardise salary frameworks, benchmark pay for unexplained disparities, train managers to explain pay decisions consistently and develop a reward strategy that works across borders. HR Review has separately reported that only 39% of UK job adverts disclose salary, reinforcing the scale of the challenge for employers who still rely on vague descriptions such as "competitive" or "DOE".

Reward Strategy’s response

Pay transparency is no longer just a compliance issue and is quickly becoming a defining feature of employer credibility. Organisations that have invested in robust job evaluation, clear salary structures and evidence-based reward strategies are likely to find themselves at a distinct advantage as transparency expectations grow. Those that haven’t may discover that publishing pay ranges exposes inconsistencies that were previously hidden. Rather than viewing these changes as another regulatory burden, reward leaders have an opportunity to position themselves at the centre of business strategy, helping organisations build fairer, more consistent pay practices that strengthen both employee trust and talent attraction.

- Lukas Montgomery

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The cost implications of mismatched software

Will Jackson — Fri, 14 Aug 2026 07:26:00 GMT

Payroll software plays a vital role in ensuring employees are paid accurately and on time. However, many UK businesses overlook a critical factor: whether their payroll software truly fits their current needs.

Using mismatched or outdated payroll software can create costly problems, from compliance errors to inefficiencies that drain resources and damage employee trust.

Payroll is complex, involving tax codes, National Insurance, pensions, benefits, and compliance with ever-changing regulations. When software isn’t aligned with a company’s size, structure, or industry requirements, errors become more likely. These mistakes can result in fines, back payments, and time-consuming corrections.

Regularly assessing payroll software ensures it keeps pace with business growth, legislative changes, and technological advances. This blog explores the hidden costs of mismatched payroll software, the risks involved, and why regular reviews are essential for smooth, cost-effective payroll management.

What does mismatched payroll software mean?

Mismatched payroll software refers to systems that no longer meet the specific needs of a business. This could mean software that is too basic for a growing company, lacks necessary features, or is incompatible with other HR or accounting systems. It can also refer to outdated software that doesn’t support current tax regulations or reporting requirements.

For example, a small business using a simple payroll tool might struggle as it hires more employees or introduces complex benefits. Alternatively, a company using legacy software might face difficulties complying with Real-Time Information (RTI) submissions or Making Tax Digital (MTD) standards.

The hidden costs of using the wrong payroll software

Using payroll software that doesn’t fit your business can lead to direct and indirect costs. Direct costs include penalties from HMRC (HM Revenue & Customs) for late or inaccurate submissions, which can be hefty. Errors in tax or National Insurance calculations can trigger investigations or require costly back payments to employees.

Indirect costs often go unnoticed but can be just as damaging. These include wasted staff time spent fixing errors, duplicated work due to poor integration, and delays in payroll processing. Employee dissatisfaction caused by incorrect pay or delayed payments can harm morale and increase turnover.
Moreover, inefficient payroll systems can limit your ability to scale or adapt quickly to regulatory changes, putting your business at a competitive disadvantage.

Risks to compliance and accuracy

Payroll compliance is non-negotiable. HMRC (HM Revenue & Customs) demands accurate, timely reporting, and failure to meet these standards risks penalties and reputational damage. Mismatched software may lack updates for new tax codes, pension auto-enrolment rules, or RTI requirements, increasing the risk of non-compliance.

Accuracy suffers when software cannot handle complex pay structures, multiple contracts, or variable working hours. This can lead to underpayments or overpayments, both of which have financial and legal consequences.

Regularly assessing your payroll software helps identify gaps in compliance support and accuracy, allowing you to address issues before they escalate.

How business growth affects payroll software needs

As businesses grow, their payroll needs evolve. More employees mean more data to manage, diverse pay structures, and additional statutory requirements. What worked well for a handful of staff might become cumbersome or insufficient for a larger workforce.

Growth may also bring new challenges, such as multi-location payroll, international employees, or enhanced employee benefits. Payroll software must be flexible enough to accommodate these changes without adding complexity or risk.

Failing to reassess software during growth phases can result in bottlenecks, errors, and increased administrative costs.

The importance of integration with other systems

Payroll does not operate in isolation. It must integrate seamlessly with HR, accounting, time and attendance, and pension systems to ensure data consistency and operational efficiency.

Mismatched software often leads to manual data transfers or duplicate entries, increasing the chance of errors and wasting valuable time. Lack of integration can also delay reporting and reduce visibility into overall workforce costs.

Regular reviews of payroll software should include an assessment of how well it communicates with other business systems and whether upgrades or replacements are necessary.

Signs it’s time to assess your payroll software

There are several clear signs that your payroll software might be mismatched. Frequent payroll errors, missed deadlines, or repeated compliance issues are major red flags. If payroll staff spend excessive time on manual corrections or workarounds, it indicates inefficiency.

Difficulty adapting to regulatory changes or inability to generate required reports quickly also suggests software limitations. Employee complaints about pay accuracy or delays further highlight potential problems.

If your business has grown or changed significantly since the software was implemented, it’s wise to reassess to ensure continued suitability.

Benefits of regular payroll software assessments

Regularly reviewing payroll software helps identify issues before they become costly problems. It allows businesses to stay compliant with evolving legislation, reduce errors, and improve overall payroll efficiency.

Assessments also provide an opportunity to explore new features or technologies, such as cloud-based systems, automation, or AI-driven analytics, that can enhance payroll management.

By ensuring payroll software fits current needs, businesses can save money, reduce risk, and improve employee satisfaction.

How to conduct an effective payroll software review

Start by gathering feedback from payroll staff and other users about pain points and limitations. Review error logs, compliance reports, and processing times to identify problem areas.

Compare current software capabilities against business needs, considering factors like scalability, integration, user experience, and support for regulatory changes.

Research alternative solutions if gaps are identified and consider trialling new software before making a switch. Engage stakeholders from HR, finance, and IT to ensure a holistic assessment.

Conclusion

Payroll is a critical function that demands accuracy, compliance, and efficiency. Using mismatched payroll software can quietly erode these essentials, leading to costly errors, compliance risks, and unhappy employees.

Regularly assessing your payroll software ensures it grows with your business, adapts to legal changes, and integrates smoothly with other systems. This proactive approach protects your organisation from hidden costs and operational headaches.

Staying aligned with the right software is not just a convenience; it’s a business imperative.

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Benefits platforms show limited strategic value despite increasing investment

Reward Strategy — Wed, 19 Aug 2026 22:15:28 GMT

UK HR decision makers view benefits platforms primarily as administrative tools, with only a third recognising their potential for engagement and strategic value, highlighting a gap between investment and impact.

Employers may be investing in benefits technology, but many remain unclear about what platforms actually deliver for employees, new research suggests.

A survey from Everywhen found that just 36% of UK HR decision makers believe a benefits platform makes it easier for employees to use their benefits, indicating that the technology may still be viewed primarily as an administrative tool rather than a driver of engagement.

Benefits platforms yet to reach their potential

The survey of 500 UK HR decision makers found that 36% believe benefits platforms help employees see all their benefits in one place.

A slightly smaller proportion, 34%, said platforms make benefits accessible at any time, while 30% felt the technology enables employees to make more personalised decisions when selecting perks and provisions.

Employers were also relatively cautious about the value of platforms as an insight and communication tool. Around a third (32%) said the technology helps them analyse benefits take-up, while just 28% said it improves how benefits are communicated to employees.

The latter finding is particularly significant given the ongoing challenge employers face in ensuring workers understand the benefits available to them and how to access them.

Lack of strategy risks undermining investment

The findings reflect a broader disconnect between benefits investment and employers’ strategic objectives.

Separate research from the CIPD found that 22% of UK employers do not have clear objectives for their employee benefits, potentially making it more difficult to determine whether investment is supporting areas such as employee engagement, retention or organisational performance.

Only 31% of employers link their benefits provision to productivity or business performance, according to the CIPD.

Without clearly defined objectives, organisations may therefore risk investing in benefits and the technology used to deliver them without fully understanding whether that investment is producing the desired workforce or business outcomes.

Technology can offer employers greater workforce insight

Everywhen said its findings demonstrate the untapped potential of benefits technology, particularly when platforms are used for more than simply managing and administering schemes.

Richard Doig, client director at Everywhen, said employers should not overlook the wider business value that platforms can provide through reporting, employee communication and engagement.

He argued that organisations making fuller use of these capabilities can gain a clearer picture of workforce needs and use those insights to inform future benefits provision.

Greater visibility of take-up, for example, can help employers understand which benefits employees value, identify areas where awareness may be low and determine whether existing provision continues to meet workforce needs.

Wellbeing strategies also remain fragmented

The findings come amid wider concerns about how strategically employers approach workforce wellbeing.

Separate research from Everywhen found that 43% of UK companies do not have a formal health and wellbeing strategy, despite mental health remaining employers’ leading wellbeing concern for a fifth consecutive year.

Taken together, the findings suggest that while many organisations have invested in benefits infrastructure, there remains an opportunity to make better use of the technology behind it.

Moving beyond administration towards stronger communication, employee engagement and workforce insight could help employers turn benefits platforms into a more strategic part of their reward and wellbeing approach.

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Accidental salary discovery highlights growing demand for pay transparency in organisations

Reward Strategy — Thu, 13 Aug 2026 07:00:00 GMT

A salary discrepancy uncovered by chance highlights the growing importance of pay transparency, with experts arguing it can reduce inequities, strengthen trust and create fairer pay practices.

Priya Rajan’s discovery was accidental, but the implications were anything but. The junior analyst at Meridian Analytics, a mid-sized consultancy with 1,400 staff, came across an unsecured salary summary while retrieving a client report. What she found was stark: a male colleague in the same role, with similar experience and qualifications, was earning 30 per cent more. According to the company’s own review, the difference arose because he negotiated harder at hiring and cited a higher previous salary, while she accepted the first offer.

When negotiation creates lasting inequality

That explanation may satisfy the arithmetic, but it does little to settle the fairness question. HR circles have spent years wrestling with the same tension: how much pay variation is a legitimate reflection of market forces, and how much is simply the residue of inconsistent hiring decisions? Mercer has argued that pay disparities often stem from policies and practices that accumulate over time, while ADP has said pay transparency is increasingly central to trust, retention and compliance. The broader concern is not merely whether one employee was underpaid, but whether the organisation’s compensation system has been rewarding confidence more than capability.

Pay transparency changes behaviour

The instinct to fix Priya’s salary quietly is understandable, but it is rarely the end of the matter. Research cited by the National Bureau of Economic Research suggests that greater pay transparency can alter wage-setting behaviour inside firms, sometimes reducing the scope for one-off bargaining advantages. Separate NBER work on pay disclosure in job postings found that transparent pay practices were associated with a measurable rise in advertised wages, without obvious harm to hiring or employment. Taken together, the evidence suggests that openness can change incentives, not just optics.

The cost of ignoring pay equity

That matters because the cost of leaving the issue unresolved is often underestimated. SHRM has reported that many employers still do not review pay annually, even as employees remain sceptical about transparency efforts. Business Wire has similarly found a large perception gap between leaders and workers: senior executives may believe pay equity is a priority, while many employees do not share that view. In practice, a one-off correction can quickly become a question of precedent, particularly once payroll, finance or informal internal channels make the adjustment known.

Pay equity requires a systemic response

For Meridian, the most defensible course would be to correct Priya’s pay immediately, then run a proper equity diagnostic rather than assuming the problem stops with one file in one folder. If the review shows wider distortions, the organisation can phase in remedies according to clear principles, rather than making arbitrary fixes under pressure. That approach aligns with the growing consensus that pay fairness is not just about compliance, but about retention, credibility and the credibility of management itself.

Reward Strategy’s response

Cases like this highlight why pay equity cannot rely on individual negotiation or historical hiring decisions alone. While market forces will always influence starting salaries, employers have a responsibility to ensure those differences do not become embedded over time without justification. Regular pay audits, transparent salary frameworks and clear progression criteria are no longer just good governance; they are essential for building trust. As pay transparency continues to gain momentum, organisations that proactively address inequities will be better placed to attract and retain talent than those waiting for employees to uncover the problem themselves.

-Lukas Montgomery

Pay transparency and compensation benchmarking go hand in hand. Join us at the Reward and Payroll Summit to see how you can help your organisation lead in matters of pay and reward- Click here to find out more

In conversation with... Jeni Morris

Lukas Montgomery — Wed, 12 Aug 2026 10:30:00 GMT

Jeni Morris, National Minimum Wage Specialist and CEO of both Minimum Wage Specialist and Fair Work Solutions, is speaking at the Reward and Payroll Summit 2026! Find out more about Jeni and what she’s looking forward to at the Summit below...

What are the most significant challenges facing Reward and Payroll professionals today?

Honestly, it’s probably keeping up with the pace of change, the world of work is shifting fast. Getting reward and payroll right for a workforce that doesn’t fit the traditional mould is probably the biggest headache right now and the stakes are high when you get it wrong.

What excites you most about participating in Reward & Payroll Summit this year?

That simple… the people! There’s nothing quite like being in a room full of people who genuinely geek out over reward and payroll. The conversations that happen in the breaks are often as valuable as the sessions themselves. I always come away with something new.

Which session or theme are you most looking forward to, and why?

I’m really keen to hear how others are tackling the future workforce challenge. It feels like we’re all grappling with the same questions from slightly different angles, so I’m looking forward to seeing what approaches people are taking and maybe stealing some good ideas.

What’s a common misconception people have about your session topic, and how does your session challenge that?

The big one is we pay well above minimum wage, so we’re fine. It feels logical, surely a generous salary can’t be in breach? But it’s one of the most common traps out there. Compliance isn’t about the headline number on the contract, it’s about what someone’s effectively paid for the hours they actually work, once you factor in deductions, unpaid time, uniform costs, salary sacrifice, and how averaging plays out across pay periods. Even a high earner can quietly slip below the line. My session challenges that "the contract says so" mindset and asks the real question, if HMRC came knocking, could you actually prove it? Because assuming you’re compliant and evidencing it are two very different things.

How does your session connect to broader organisational strategy or business performance?

This is the heart of it. People tend to file minimum wage under payroll’s problem or HR’s job, but compliance sits across the whole business. Reward strategy shapes how pay is structured. Operational calls shift patterns, rounding hours, what you ask people to do before they clock in, are where breaches actually happen. HR owns the policies, but the risk lives everywhere else. So this isn’t box-ticking off in a corner, it’s joined-up governance that protects you from real financial and reputational damage. When those departments talk, you get compliance and a smoother business. When they don’t, you get nasty surprises. That’s what I want people to walk away with.

What do you hope attendees will take away from your session at Reward & Payroll Summit?

I’d love them to leave with one practical “thing” they can go back to work and implement straight away. Whether that’s starting a conversation with their team, looking at their workforce data differently, or just questioning whether their current approach is really fit for purpose. Small shifts can lead to big changes.

Where do you see the biggest opportunities for innovation in Reward and Payroll over the next 2–3 years?

Data, tech and personalisation. We’re finally at a point where we can move beyond one-size-fits-all reward and actually tailor things in a meaningful way. I think the next few years are going to look very different.

One thing you’re hoping to learn from other speakers at the summit?

How other organisations are handling the grey areas, the stuff that doesn’t have a neat answer yet. That’s where the most interesting conversations always happen.

Coffee or tea before your big session at the Summit?

It has to be tea, splash of milk and 1 sugar – I’m a northern girl at heart!

Find out more about Jeni’s session and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

Employer PAYE debt deferred through HMRC scheme rises to £7.1bn

Lukas Montgomery — Wed, 12 Aug 2026 07:01:00 GMT

The value of employer PAYE debt deferred through HMRC’s Time to Pay scheme has risen by almost 70% in two years, as businesses contend with higher employment costs and mounting pressure on cashflow.

New Freedom of Information data found HMRC agreed 221,207 new Time to Pay arrangements covering £7.136bn of PAYE debt during the 2025/26 financial year. This compares with 217,925 arrangements worth £4.259bn in 2023/24.

Despite the total value of debt increasing sharply, the number of arrangements rose by just 1.5%, suggesting the change has been driven primarily by employers reaching HMRC with substantially larger liabilities.

The average debt covered by each arrangement increased from £19,543 to £32,260 over the two-year period, a rise of more than £12,700, or around 65%.

Employment costs add to pressure

The figures come after a period of significant change to employers’ payroll costs.

From April 2025, the rate of employer National Insurance contributions increased from 13.8% to 15%, while the earnings threshold at which employers begin paying contributions fell from £9,100 to £5,000.

National minimum wage increases have added further cost pressures. The National Living Wage increased from £12.21 to £12.71 an hour for workers aged 21 and over from April 2026, a 4.1% increase. The government estimated the change would benefit around 2.4 million workers.

Official data also indicates labour costs remain a significant concern for employers. In May 2026, 39% of businesses with 10 or more employees identified the cost of labour as a challenge affecting turnover.

Earlier in the year, 46% of businesses with 10 or more employees considering raising prices said labour costs were a factor behind their plans.

For payroll teams, the combination of increasing employment costs and more complicated statutory requirements makes forecasting the total cost of payroll increasingly important.

Larger debts, rather than more employers

HMRC’s Time to Pay service enables taxpayers experiencing financial difficulty to spread outstanding tax liabilities across an agreed repayment schedule. HMRC considers whether the proposed arrangement is affordable, while employers remain responsible for addressing outstanding liabilities.

Employers normally have to pay monthly PAYE liabilities by the 22nd of the following tax month when paying electronically, with interest and potential penalties applying to late payments.

The latest figures therefore point less towards a widespread increase in employers requiring support and more towards businesses accumulating larger liabilities before entering an arrangement.

The wider tax-debt picture has also remained a focus for HMRC. Its tax debt strategy, published in November 2025, showed debt more than a year old and not subject to a managed payment arrangement had increased from £5.3bn in 2020 to £18.8bn in 2025.

Firmin Zocchetto, CEO and co-founder of PayFit, said: “Time to Pay has always been an important safety net for businesses facing temporary financial pressure. But what these new figures suggest is that the challenge is becoming less about the number of employers needing support and more about the size of the liabilities they’re carrying when they reach that point.”

He added that employers were now balancing PAYE, National Insurance, real-time reporting requirements and changing regulations alongside wider economic pressures.

Payroll governance moves up the agenda

PayFit said the figures reinforce the importance of employers reviewing PAYE and National Insurance liabilities before payment deadlines and connecting payroll information more closely with finance and cashflow forecasts.

Zocchetto also urged organisations to ensure Real Time Information submissions correspond with HMRC payment records and to contact HMRC at an early stage where it appears a payment deadline could be missed.

The growing average value of Time to Pay arrangements ultimately highlights a broader role for payroll teams beyond processing accurate and timely pay.

As employment costs increase and payroll legislation becomes more complex, visibility over upcoming liabilities and closer coordination between payroll and finance could become increasingly important in preventing temporary cashflow difficulties from turning into significant tax debt.

So what has changed and what’s coming? Join us and Jeni Morris to discuss all things compliance at the Reward and Payroll Summit- Click here for more information

Rethinking retention: early signals matter more than the exit interview

Reward Strategy — Wed, 12 Aug 2026 06:53:00 GMT

Experts say exit interviews often come too late. Improving manager capability, career development and employee experience is key to spotting disengagement early and reducing staff turnover.

By the time an employee sits down for an exit interview, the decisive moment is usually long past. As Workday and Inpulse both note, people often begin detaching from an organisation months before they hand in notice, which means the final conversation rarely captures the full story. More often, it records a softened version of events from someone who has already emotionally moved on. The better question is not why they left in the end, but what the workplace missed while they were still there.

Retention is about more than pay

That distinction matters because turnover is frequently misdiagnosed as a pay problem alone. Compensation certainly plays a part, but research cited in the lead article points to something deeper: culture, management quality and day-to-day experience can be far more influential than salary when people decide whether to stay. Employers Advantage argues that employees commonly leave first in spirit, then in fact, after feeling unheard, seeing little prospect of growth or losing trust in leadership. In that sense, resignation is often the final symptom of a much longer decline.

Managers play a critical role in retention

The manager relationship is central to that decline. Continuous feedback, meaningful one-to-ones and visible support are repeatedly identified by HR commentators as the interventions most likely to surface problems early. HR Reporter and MangoApps both stress that exit interviews are useful only as a retrospective tool; they cannot save the person already walking away. What they can do is point to gaps in leadership, recognition and internal mobility that organisations should have addressed earlier. The more effective approach is to treat retention as an ongoing discipline, not a post-departure audit.

Early warning signs should not be ignored

That means paying attention to the signals that appear well before resignation. The lead article points to poor scheduling, limited career progression, weak feedback and inconsistent recognition as recurring drivers of avoidable turnover. It also highlights the growing risk attached to rigid return-to-office mandates: the article cites data showing that more than half of remote-capable employees would look for another role if required back full-time, while caregivers and disabled workers are especially likely to be affected. In that context, turnover is not just an HR issue but an operational and, in some cases, a compliance concern.

Retention requires continuous attention

The lesson across the source material is consistent. Exit interviews still have value, but only as one small part of a wider retention strategy. Organisations that rely on them alone are waiting until the door has already closed. Those that keep people, by contrast, build systems that surface strain early: regular check-ins, better manager capability, visible career paths and data that reveal where pressure is building before it turns into a resignation.

Reward Strategy’s response

Exit interviews are a valuable data source, but they should validate what organisations already know, not reveal it for the first time. The most effective employers are shifting their focus from understanding why people leave to understanding why they stay. That requires better managers, regular conversations, meaningful career development and the confidence to act on employee feedback before disengagement becomes irreversible. In an increasingly competitive labour market, retention is less about conducting better exit interviews and more about building stronger day-to-day employee experiences that make leaving a less attractive option.

-Lukas Montgomery

The hidden cost of benefit complexity

Lukas Montgomery — Tue, 11 Aug 2026 09:35:07 GMT

As employee benefit portfolios have expanded, many reward leaders are asking whether more choice is driving greater value or simply creating complexity that reduces engagement and ROI.

The underlying assumption was simple: more choice would create more value.

Today, however, many reward leaders are questioning whether that assumption still holds true. As benefit portfolios have grown, so too has the challenge of helping employees understand, access and make meaningful use of everything available to them. Rather than asking what new benefit they should introduce next, organisations are increasingly asking a different question: are employees engaging with the benefits they already have?

The answer is prompting a subtle but significant shift in reward strategy. Instead of continually expanding benefit offerings, employers are focusing on simplifying employee experiences, targeting investment more effectively and demonstrating measurable return on investment.

When more becomes less

Every new benefit represents more than a licence fee or provider contract. It requires procurement, governance, payroll administration, technology integration, employee communications and ongoing management. Individually these demands may be relatively modest, but collectively they create increasing complexity for reward teams and employees alike.

The result is that many organisations now have benefit portfolios that are comprehensive on paper but fragmented in practice. Employees are expected to navigate multiple platforms, understand different eligibility criteria and remember enrolment periods, while reward teams invest considerable time maintaining programmes that may receive little attention.

Evidence suggests that this complexity is becoming a strategic challenge. Research from the CIPD found that 22% of UK employers have no clearly defined objectives for the benefits they provide, making it difficult to assess whether investment is improving employee engagement, retention or organisational performance. Even where objectives exist, relatively few organisations consistently evaluate benefits against measurable business outcomes such as productivity or workforce performance. This raises an important question: if organisations cannot clearly define success, how can they confidently measure return on investment?

Measuring what matters

Historically, reward strategies often focused on breadth. Benchmarking exercises compared the number of benefits offered against competitors, with success frequently measured by the size of the overall package.

That conversation has changed.

Rather than asking how many benefits they provide, leading organisations are increasingly asking which benefits employees actually use, which employee groups derive the greatest value, and whether those programmes influence recruitment, retention, wellbeing or performance.

The shift reflects growing pressure on reward leaders to demonstrate commercial value. Benefit budgets continue to represent significant organisational investment, particularly as employers face ongoing cost pressures and increased scrutiny over discretionary spending. As a result, utilisation, employee outcomes and business impact are becoming just as important as the benefits themselves.

The challenge is particularly evident in financial wellbeing. Mercer research found that 86% of employers have not collected data on the financial wellbeing needs of their workforce, while 63% admit they do not fully understand how employees are managing financially. Without that insight, organisations risk investing in programmes that appear attractive but fail to address the issues employees actually face.

Emma Roberts, Principal for DC and Financial Wellbeing at Mercer, has argued that "the cost of living crisis has underscored the importance of financial wellness at work, but many employers still have a long way to go." Her observation highlights a broader issue across reward: organisations cannot maximise the value of benefits if they do not first understand employee need.

From broad choice to targeted relevance

This does not mean employers should simply reduce choice. Today’s workforce is more diverse than ever, with employees at different stages of life placing very different value on the same benefits.

A graduate entering the workforce may prioritise help with student debt or financial education. Parents may value childcare support or family leave. Employees approaching retirement are likely to place greater emphasis utilising their pension and appropriate financial advice.

The challenge for reward teams is therefore not necessarily offering more benefits, but making the right benefits more visible to the right employees.

Technology is increasingly enabling this shift. Rather than presenting every employee with an extensive catalogue of options, organisations are using workforce data, life-stage segmentation and digital platforms to personalise communications and recommend benefits that are most relevant to individual circumstances.

Marsh McLennan’s latest Benefits Technology research illustrates the direction of travel. The firm found that 89% of employers have either centralised their benefits or plan to do so within the next year, largely to improve the employee experience through simpler access and more personalised delivery. Yet despite these investments, more than half of employees still report unmet benefit needs, suggesting that availability alone does not guarantee value.

The implication is clear. Personalisation is becoming less about adding new benefits and more about helping employees discover, understand and use those that already exist.

The hidden ROI opportunity

Perhaps the greatest opportunity for reward leaders lies not in expanding benefit portfolios, but in improving engagement with existing investment.

Low utilisation represents a hidden cost. Organisations continue paying provider fees, managing administration and promoting programmes that employees neither understand nor access. While these costs rarely receive the same attention as salary expenditure, collectively they can represent significant inefficiency.

Conversely, targeted benefits that address clearly identified workforce needs often generate substantially greater returns. Financial wellbeing programmes that improve resilience, healthcare initiatives that reduce absence, or family support policies that improve retention may deliver measurable organisational value precisely because they solve specific employee challenges rather than attempting to appeal to everyone.

This is changing the way many organisations define return on investment. Rather than measuring success solely through enrolment figures, reward teams are increasingly combining utilisation data with employee feedback, retention metrics, wellbeing indicators and workforce analytics to understand whether benefits are influencing behaviour and supporting broader organisational objectives.

Steve Threader, Managing Director of Employee Benefits Consulting at Gallagher, believes this commercial focus is becoming increasingly important. "In an era of increasingly pinched budgets it is understandable that ROI on employee benefits is top of mind for benefits professionals and the C-suite."

That does not necessarily mean spending less. In many cases, it means spending more intelligently.

Some organisations are consolidating multiple wellbeing platforms into a single integrated service with stronger engagement. Others are retiring underused lifestyle benefits to invest further in financial wellbeing, healthcare or flexible working support after identifying these as the areas employees value most. The common thread is a willingness to redirect investment towards benefits that demonstrate measurable impact rather than simply expanding the overall offer.

Simplicity as a competitive advantage

As reward strategies continue to evolve, simplicity is emerging as an increasingly valuable differentiator.

Employees are far more likely to value benefits they can easily understand, access and use than an extensive catalogue that feels confusing or overwhelming. At the same time, reward leaders are under increasing pressure to evidence the commercial contribution of every investment they make.

The most mature reward functions are therefore moving beyond the mindset that bigger benefit portfolios automatically create stronger employee value propositions. Instead, they are building benefit ecosystems that are simpler to navigate, informed by workforce data and designed around genuine employee needs.

Ultimately, the organisations achieving the strongest return on investment may not be those offering the greatest number of benefits. They will be those that create the greatest engagement with the benefits that matter most and deliver targeted support that employees genuinely value while providing clear evidence that reward investment is contributing to retention, wellbeing, productivity and long-term business performance.

Want more from your benefits schemes? Learn how to use Personas to design your reward programmes from the experts- Click here to find out more.

Annual leave and employee wellbeing: Why switching off matters

Reward Strategy — Tue, 11 Aug 2026 09:10:33 GMT

Annual leave only delivers value if employees truly switch off. New evidence suggests that better boundaries, planning and workplace culture are essential for turning time off into genuine recovery.

Halfway through the year, many workers are looking at their remaining holiday allowance, but time away from the office does not always translate into real recovery. According to Kerri Mee, clinical lead at Onebright, annual leave should be treated as a core wellbeing measure rather than a simple administrative benefit, especially at a time when absence linked to illness and stress remains stubbornly high across the UK workforce.

Sickness absence remains a significant challenge

Official figures underline the scale of the problem. The Office for National Statistics says 148.8 million working days were lost to sickness or injury in 2025, while government statistics put the UK sickness absence rate at 2.0%, unchanged from 2024. The Health and Safety Executive has also reported 22.1 million working days lost to work-related stress, depression and anxiety in 2024/25, and research from Breathe suggests only 35% of UK workers use all their holiday entitlement.

Why switching off is harder than ever

Mee argues that many employees never properly detach from work, even when they are technically on leave. Checking emails, fielding messages and worrying about what is waiting on return can prevent the psychological break annual leave is supposed to provide, leaving people no more refreshed than when they left.

Leadership sets the tone for healthy boundaries

That is why management culture matters. In many organisations, constant availability is still quietly rewarded, and staff who answer emails late at night or during holidays can be seen as conscientious. But difficulty switching off is closely tied to burnout, poor sleep and anxiety, and managers can reinforce healthy boundaries by avoiding unnecessary contact with staff who are away.

Better planning makes better breaks

A stronger handover process can also help. Employees are more likely to relax if they know what has been covered, who is handling urgent matters and what can safely wait. Mee notes that annual leave should not be treated as remote working from somewhere else, but as a proper break from responsibility.

Timing can influence the benefits of leave

The timing of leave matters as well. Mee says it can take two to three days for cortisol levels to begin dropping meaningfully once people are away from work, which means that holidays can start with some of the highest stress. That makes it especially important not to send people into leave already exhausted by impossible workloads or a last-minute scramble to clear their desks.

Frequent breaks may deliver greater wellbeing

There is also a case for shorter, more regular breaks rather than relying on one large annual trip. Research cited in the article suggests the mental health benefit of time off is partly driven by frequency, not just duration, while a difficult return can quickly erase the gains of a holiday. A softer re-entry, fewer meetings on the first day back and realistic catch-up time can make recovery last longer.

Time off should be seen as a strategic investment

The wider context is concerning. The UK Civil Service reported an average of 8.2 working days lost per staff year to sickness in 2025, with mental ill-health the leading cause of long-term absence, and the CIPD has said UK employees were absent for an average of 9.4 days in the last 12 months, up sharply from pre-pandemic levels. Against that backdrop, Mee’s message is that annual leave is not a perk to be squeezed around work, but part of the system that keeps work sustainable.

Reward Strategy’s response

This is a timely reminder that wellbeing is not created by offering generous benefits alone, but by ensuring employees feel able to use them as intended. Organisations often focus on increasing annual leave allowances or introducing wellbeing initiatives, yet those investments deliver limited value if workplace culture discourages people from properly switching off. Reward and HR teams have an important role to play in shaping policies, educating managers and embedding behaviours that make genuine rest possible. In an environment where stress-related absence continues to rise, helping employees disconnect is no longer simply a wellbeing initiative, but rather, it is a business imperative that supports engagement, productivity and long-term workforce resilience.

- Lukas Montgomery

Looking to maximise the value of benefits to improve employee wellbeing? Click here to see the Future of Employee Benefits

Are better pay conversations a forgotten AI opportunity

Sean Luitjens — Fri, 07 Aug 2026 07:15:00 GMT

From pay transparency to manager confidence, AI is reshaping compensation conversations. The future of Total Rewards may depend on how well managers explain pay.

AI has quickly become one of the hottest topics around resources for HR. From writing job descriptions, or consolidating them, to modeling merit cycles, AI is finding its way into nearly every corner of HR. Yet one of its greatest opportunities may lie in a place that hasn’t received nearly as much attention: helping managers have better conversations about pay. Pay is exceedingly personal, and helping managers work through this process (one which I believe very few enjoy and ⅓ of managers are new!) could be a huge step forward.

And let’s face it, compensation teams are going to get blamed (or, as I like to say, thrown under the bus) anyway. We should use any tools we can to help crystallize communications and limit the opportunity for "bus"-like situations.

The Conversation Is Where Compensation Becomes Real

Compensation professionals spend months developing salary structures, evaluating market data, conducting pay equity analyses, and allocating merit budgets. But with all these new resources available, employees rarely experience those efforts through spreadsheets or compensation models. They experience them through a conversation with their manager, the human part of human resources.

That’s where even the strongest compensation strategy can succeed—or completely fall apart.

Consider a common scenario. Two employees receive nearly identical merit increases. One leaves the conversation feeling valued and motivated because their manager clearly explained the decision, connected it to performance, and outlined future growth opportunities. The other leaves frustrated because the explanation was vague, inconsistent, or overly focused on percentages rather than purpose. The pay decision may have been fair, but the conversation wasn’t.

AI as a Coach, Not a Decision-Maker

AI has the potential to close that communication gap.

Rather than replacing managers or making compensation decisions, AI can serve as a coach that helps managers prepare for one of the most important conversations they’ll have all year. Before a meeting, a manager could ask, "How do I explain a 3% increase to a high performer when our budget was limited?" The response wouldn’t invent an answer, it would draw from the organization’s compensation philosophy, approved messaging, and manager guidelines to provide clear, consistent talking points.

Many organizations are already seeing the value of AI assistants that help managers quickly find HR policies, summarize information, and prepare for employee conversations. Extending those capabilities into Total Rewards is a natural next step. Instead of searching through policy documents or calling HR with the same questions every merit cycle, managers could receive timely guidance that reflects the organization’s own pay philosophy and create the appropriate communication vehicle for both humans involved.

Making Compensation Language Human

AI can also help translate compensation jargon into language employees actually understand. HR professionals are comfortable discussing concepts like compa-ratio, salary range penetration, or market positioning. AI can convert technical language into plain English, helping managers explain not just what the decision was, but more importantly why it was made.

As organizations continue investing in pay transparency, the quality and consistency of manager conversations will become just as important as the quality of compensation programs themselves. Employees aren’t just comparing their pay but also the explanations behind it. When one manager clearly connects compensation to performance, growth, and the organization’s pay philosophy, another struggles to answer basic questions, perceptions of fairness can quickly erode. AI can help provide a consistent foundation for those conversations while still allowing managers to bring the empathy, authenticity, and human connection that employees value most.

An Experiment in Translation

I recently ran an experiment with a pay philosophy and different LLMs. Instead of simply asking to translate to normal work speak, I expanded the prompts with instructions like, read this like a line worker, like a teenager, like a VP of Sales, like a Tik-Tokker. And while some of those are highly entertaining to read, the outcomes were consistent. Several thread rose to the top in consistent language that can be used to translate comp speak to human; a critical part to making a numerical process human.

Practising the Tough Conversations

Another promising use case is practice. Difficult conversations become easier with rehearsal, yet few managers have the opportunity to practice compensation discussions. AI can simulate employee questions such as, "Why wasn’t my increase higher?" or "Why am I below the midpoint of the salary range?" Managers can refine their responses, receive coaching on tone and clarity, and build confidence before meeting with employees.

Trust Still Needs Human Leadership

Of course, organizations should establish clear guardrails. Compensation decisions require governance, transparency, and accountability. AI’s role can not only help create the framework for these decisions but also be an opportunity to help managers explain them with greater confidence, consistency, and empathy.

AI cannot create trust on its own. But it can help managers communicate with greater clarity, answer questions more confidently, and reinforce the organization’s compensation philosophy in a way that feels consistent and credible.

The Organizations That Will Stand Out

For HR and Total Rewards leaders, it could be that AI’s most valuable contribution isn’t replacing the human side of compensation, but helping managers excel at it. In the years ahead, the organizations that stand out may not simply have the smartest compensation systems, have the best compensation conversations.

Want to hear more from Sean? Join him at The Reward and Payroll Summit the September- Click here for more information

Employers re-evaluate financial education amid rising staff benefit costs

Reward Strategy — Wed, 05 Aug 2026 08:45:55 GMT

As benefit costs rise, UK employers are cutting financial education, but experts warn this could prove a false economy as financial wellbeing becomes increasingly important for workforce resilience.

UK employers are being forced to make uncomfortable choices as the cost of staff benefits continues to climb, with fresh research suggesting that financial education is often among the first areas to be pared back. Gallagher’s latest findings show that 69% of employers now regard benefits costs as their biggest financial headache, up from 51% a year earlier, even as households continue to face persistent cost-of-living pressure.

Benefits are becoming part of the wider employee experience

The same research suggests the squeeze is also changing how organisations think about their role. Rather than treating benefits purely as a retention tool, more employers are trying to make them part of the wider employee experience, with culture and the employee value proposition increasingly central to strategy. Yet communication remains a weak point: many firms still struggle to explain what is on offer, and low engagement with benefits platforms remains widespread.

Flexible support is expanding, but gaps remain

That shift has coincided with a stronger move towards more tailored support. Flexible benefits have become far more common, and employers are increasingly extending help to different life stages, from working parents to employees dealing with menopause, fertility treatment or bereavement. However, the coverage is uneven. Gallagher found that most organisations still offer only limited salary sacrifice options, despite their potential to reduce costs for both sides, while relatively few have adopted advanced systems that allow staff to reshape their package more freely.

Financial education could be a false economy to cut

There is also a growing counter-argument that cutting financial education may be short-sighted. NatWest Group expanded its Financial Foundations programme in April 2026, saying it aimed to reach 50,000 people across the UK with free guidance on budgeting, saving and investing, including through workplaces. The bank said the initiative built on more than 1,500 workshops delivered to about 800 businesses and 32,000 people in 2025. Separately, the Department for Work and Pensions’ 2024 employer survey suggested many firms still do not provide even basic financial support measures, such as savings schemes or earned wage access, despite evidence that poor financial literacy can heighten workforce risk.

Modernising benefits while proving value

David Piltz, chief executive of Gallagher’s UK Benefits and HR Consulting Division, said employers need to modernise their benefits offer while still keeping a close eye on value. “As employees continue to navigate cost-of-living pressures, some employers are making difficult trade-offs between managing costs and retaining talent,” he said. “Now is the time for organisations to modernise their benefits strategies to meet the needs of today’s workforce.” He added that a standardised model no longer fits a more varied workforce, and said financial education may be one of the areas most in need of a rethink.

Reward Strategy’s Response

As benefits budgets come under increasing pressure, it is understandable that employers are scrutinising every pound they spend. However, cutting financial education risks creating longer-term costs that are far harder to measure. Employees who are financially stressed are more likely to experience lower productivity, higher absenteeism and poorer wellbeing, all of which can have a direct impact on business performance. The challenge for reward leaders is not simply to reduce spend, but to ensure every benefit delivers measurable value.

Financial education, when integrated into a broader wellbeing strategy and communicated effectively, has the potential to improve engagement, resilience and retention; making it an investment rather than an expense.

- Lukas Montgomery

Make sure your employee’s make the most of their total reward package and truly engage! Join us at the Reward and Payroll Summit for session tailored towards reward and engagement- Click here to find out more

New Appointments in Reward, Payroll and Benefits - July

Lukas Montgomery — Tue, 25 Aug 2026 10:50:34 GMT

From new heads of reward to payroll leaders and benefits specialists, here are the latest people moves from across the UK reward profession as senior talent continues to shape the future of work.

Paul Exall appointed Reward Director at IG Group

Paul Exall has been appointed reward director at IG Group after serving as interim head of reward earlier this year. Exall has more than 20 years’ experience across reward, executive remuneration and people strategy, having previously held senior reward positions at organisations including Tesco Bank, Nationwide Building Society and Barclays.

His permanent appointment comes as IG Group continues to evolve its organisational structure as part of a wider strategic review.

Richard Vianello joins the Cabinet Office as Pensions Director

Richard Vianello has taken up the role of pensions director within the Cabinet Office, where he will lead the Civil Service Pension Scheme and oversee one of the UK’s largest public sector pension arrangements.

Vianello joins following an extensive career in pensions leadership and governance, bringing significant experience across scheme management, regulation and policy.

Eilyn Evans appointed Talent and Reward Director at EX3

Eilyn Evans has joined consultancy ex3 as talent and reward director. Evans brings extensive experience across talent, reward and people strategy, and will be responsible for helping clients develop integrated approaches to attracting, retaining and rewarding talent. Her appointment reflects the growing demand for organisations to align reward strategies more closely with wider workforce planning and employee experience.

Emma Douglas becomes chair of The Pensions Regulator

Emma Douglas has officially taken up the position of chair of The Pensions Regulator, following her appointment by the Department for Work and Pensions.

Douglas brings more than 25 years’ experience across pensions and wealth management, having previously served as wealth policy director at Aviva and chair of Pensions UK. She succeeds interim chair Kirstin Baker as the regulator continues to oversee significant reforms across the UK pensions landscape.

Bogusia Pinkowska takes on new Payroll Client Director role

Payroll professional Bogusia Pinkowska has announced a new leadership position as Payroll Client Director, continuing her career within payroll operations and transformation.

Pinkowska has developed extensive expertise in payroll management, compliance and process improvement, supporting organisations through increasingly complex payroll and legislative requirements.

Richard Knight appointed Head of reward, Benefits and Governance

Richard Knight has been appointed head of reward, benefits and governance at Fenton Private Office.

Knight advises organisations and senior executives on reward strategy, executive remuneration, employee benefits and governance, and has built a reputation across financial services and professional services for supporting businesses with complex reward challenges.

Rob Morgan joins Accountancy Solutions as Head of Payroll

Rob Morgan has been appointed head of payroll at Accountancy Solutions. The appointment was announced by director Ken Shaw, who welcomed Morgan to the business, highlighting his extensive payroll expertise as the firm continues to expand its payroll services offering. Morgan will lead the firm’s payroll function, supporting clients with payroll operations, compliance and advisory services as demand for specialist payroll expertise continues to grow.

James Mulligan joins British Business Bank as Head of Reward

James Mulligan has joined the British Business Bank as head of reward, marking the latest step in a career spanning reward strategy, compensation and benefits, and organisational design. Announcing his new role on LinkedIn, Mulligan said he was looking forward to bringing his experience to the UK’s economic development bank, describing reward as "work I care deeply about" because of its impact on both employees and organisations.

Maria Devlin joins ICF as Total Rewards Specialist

Her role covers reward, benefits and payroll support across the region, contributing to the organisation’s wider people strategy while supporting employee experience and reward operations.

Keep up to date with the latest movers and shakers in payroll and reward every month- Click here to visit the knowledge hub

Nearly half of employers face unfair dismissal claims ahead of Employment Rights Act changes

Lukas Montgomery — Wed, 19 Aug 2026 16:12:47 GMT

New research from Birketts suggests employers may need to rethink probation processes and manager training before six-month unfair dismissal rights come into force.

Almost half of UK employers have dealt with unfair dismissal claims over the past year, according to new research from law firm Birketts, highlighting the challenges organisations already face as they prepare for one of the most significant changes to employment law in decades.

The survey, conducted among employers across a range of sectors, found that 44% had defended at least one unfair dismissal claim in the past 12 months. With the Employment Rights Act 2025 set to introduce unfair dismissal protection after just six months of service from 1 January 2027, employment specialists warn that businesses may need to rethink how they recruit, assess and manage new employees.

Employers already navigating dismissal disputes

While unfair dismissal claims are not widespread across every organisation, they remain a regular feature for many employers.

More than half (56.4%) of respondents reported no unfair dismissal claims during the past year, but 37.1% had handled between one and five cases, while 6.5% had faced more than five claims.

The research also suggests that many employers are choosing to settle disputes before they reach an employment tribunal hearing. Around one in six (16.4%) said they settled every unfair dismissal claim before a final hearing, reflecting the financial and reputational costs associated with prolonged litigation.

The findings come as employers continue to prepare for reforms that will significantly shorten the qualifying period for unfair dismissal protection, reducing it from two years to six months for employees starting work from January 2027.

Probation periods under the spotlight

The reforms are expected to place greater importance on probationary periods as employers look to assess performance, capability and cultural fit before employees gain statutory protection.

Birketts’ research found that almost 44% of employers currently operate probation periods lasting six months or longer, while 38.7% use probation periods of between one and three months.

However, once the new legislation comes into effect, organisations operating six-month probation periods could face an unfair dismissal claim if employment is terminated at the end of that period without a fair process.

According to Sonya O’Reilly, Partner in the employment team at Birketts, employers should not assume that existing processes will remain fit for purpose.

"While respondents with low volumes of unfair dismissal claims at present may be unconcerned," she says, "the proposed introduction of six-month unfair dismissal rights will place much greater scrutiny on how employers manage new hires during their early months of employment."

Rather than viewing probation as an administrative process, O’Reilly believes organisations should treat it as an essential risk management tool.

Training gap raises concerns

Perhaps the most significant finding from the research is the apparent disconnect between the importance employers place on probation periods and the support provided to managers responsible for delivering them.

More than half (52.9%) of respondents said their managers receive no formal training on managing probationary employees, while only 36.1% confirmed that such training is currently in place.

For reward and HR leaders, the findings raise broader questions about management capability at a time when employment legislation is becoming increasingly complex.

O’Reilly argues that probation processes are only as effective as the managers implementing them, making investment in training just as important as reviewing policies themselves.

Documentation and consistency will matter

Employment lawyers have long advised organisations that procedural fairness is often as important as the decision itself when defending tribunal claims.

Olivia Toulson, Partner in the employment team at Birketts, believes the survey highlights a potentially significant weakness in many employers’ current approach.

"What stands out from this research is the disconnect between the widespread use of longer probationary periods and the relatively low levels of manager training," she says.

If employers intend to rely on probation periods to assess performance and suitability, Toulson argues managers must understand how to conduct reviews fairly, consistently and in accordance with company procedures.

That includes maintaining appropriate documentation, holding regular review meetings and ensuring employees receive clear feedback throughout their probationary period rather than only at its conclusion.

Preparing for the new employment landscape

The Employment Rights Act 2025 represents one of the most significant shifts in UK employment law for many years, with the reduction in qualifying service expected to increase scrutiny of employers’ recruitment, onboarding and performance management practices.

For reward, HR and payroll professionals, the reforms are likely to require close collaboration with legal and operational teams to ensure policies remain compliant while continuing to support effective workforce management.

Birketts is encouraging employers to begin preparations well before the legislation takes effect by reviewing recruitment policies, probationary frameworks and manager training programmes.

As employment protections expand, organisations that invest early in robust processes and capable line managers are likely to be better positioned to reduce legal risk, improve employee experience and navigate an increasingly regulated workplace.

How do the legislative changes really effect you? Join us as we discuss what’s changed and what’s coming with Jeni Morris, National Minimum Wage expert- Click here for more information

Are women are turning away from leadership opportunities?

Reward Strategy — Thu, 30 Jul 2026 12:00:02 GMT

Women are becoming less motivated to seek promotion, not because of a lack of ambition, but because leadership roles often come with structural barriers, unsustainable expectations and limited support.

Women’s reluctance to chase promotion is increasingly being read not as a confidence problem, but as a warning sign about how leadership itself is designed. Recent research cited by recruitment agency Robert Walters found that 54% of female professionals say they are less motivated to seek promotion than they were two years ago, while 81% feel disadvantaged in the process compared with male colleagues.

Ambition has become more conditional

That finding sits alongside wider evidence that ambition has not disappeared, but has become more conditional. The Los Angeles Times reported in December 2025 that, in LeanIn.org and McKinsey & Co.’s workplace research, fewer women than men across entry-level, mid-career and senior posts said they wanted promotion. Sheryl Sandberg linked part of that shift to weak employer support, while the report also found that a significant share of companies offered no specific help for women’s career progression.

Non-promotable work continues to hold women back

A recurring theme in the research is that many women are pushed towards work that rarely leads to advancement. The Guardian reported in 2022 that women are far more likely than men to take on so-called non-promotable tasks, such as office housekeeping and organisational chores, which absorb time and energy without improving prospects. Psychology Today later pointed to the same pattern, arguing that promotion systems still reward visibility, firefighting and overextension, even as women are disproportionately asked to shoulder the work that keeps teams running.

Leadership is being judged against wellbeing

That helps explain why some women are not rejecting leadership, but rejecting the version of leadership they are being offered. A 2022 survey in Japan, reported by Nippon.com, found that fewer than half of women in management wanted further promotion, with stress the most common reason. Many also said they were content in their current role or felt ill-suited to higher office. The message is not that women lack ambition, but that the next step up is often seen as a downgrade in wellbeing.

Organisations need to redesign the path to leadership

The deeper issue is structural. A January 2026 piece from the Forté Foundation argued that organisations still lag on basic advancement measures, with women trailing men in promotions, direct reports, senior exposure and budget authority. Against that backdrop, coaching and resilience training may have limited value if the role itself remains built on outdated assumptions about constant availability, emotional labour and endurance. If companies want to keep talented women in the pipeline, they may need to redesign senior posts around sustainable performance rather than chronic depletion.

Reward Strategy’s Response

The conversation around women in leadership has too often focused on fixing women rather than fixing leadership. Confidence workshops, mentoring and resilience training all have great value, but they do little if the roles women are stepping into are fundamentally unsustainable. If organisations want to strengthen their leadership pipeline, they need to look beyond who is applying for promotion and ask whether senior roles are genuinely attractive in the first place.

Redesigning leadership around flexibility, meaningful decision-making and sustainable workloads is likely to have a far greater impact than simply encouraging more women to put themselves forward.

-Lukas Montgomery

Want more information on how your organisation can support its employees and help them grow? Click here to visit our knowledge hub for the latest insights

How to activate your RVP across every moment that matters

Becky Pugh — Wed, 29 Jul 2026 07:30:00 GMT

Most organisations don’t struggle with strategy. They struggle with activation. They invest time defining their Reward Value Proposition. They align stakeholders. They agree the narrative. And then, too often, it quietly stalls. Living in a slide deck. Referred to occasionally. Rarely felt.

The truth is simple. A Reward Value Proposition only has value when people experience it. Belief isn’t built through documents. It’s built through moments. And it’s those moments, repeated day after day, that determine whether your RVP becomes real or remains theoretical.

Your RVP is told and retold across hundreds of touchpoints, many of them easy to overlook. It shows up in job ads that either intrigue or blend in. In careers sites that either inspire confidence or overwhelm with information. In interviews that reveal what working here is really like or carefully avoid it. In offers that excite people or confuse them.

It shows up on day one. In onboarding experiences that either set expectations clearly or leave people guessing. In early manager conversations that either reinforce the story or quietly contradict it.

And crucially, it shows up in everyday interactions. Annual reward statements. Benefits enrolment windows. Performance reviews. Recognition moments. These aren’t admin tasks. They are moments of meaning. Every one of them either reinforces your RVP or weakens it.

Making complexity feel human

Reward is complex. It always will be. Pay structures, benefits, policies and programmes rarely lend themselves to simple explanations. But complexity doesn’t have to mean confusion.

Great activation is about translation. Turning technical detail into something people can understand, relate to and use. Clear language. Thoughtful design. Visual storytelling that shows how things connect, rather than listing them in isolation. When activation is done well, people are often surprised. Not because something new has been added, but because they finally see the full picture. They realise how much is already there. And importantly, how it applies to them. This is where creativity plays a critical role. Not to decorate the message, but to make it accessible. To reduce friction. To turn information into understanding.

The critical role managers play

No RVP survives poor management. Managers are the most powerful activation channel an organisation has. They are the ones who make reward personal. Who explain what it means for you. Who connect the organisation’s story to individual circumstances.

But this only works when managers are properly enabled. Too often, managers are expected to carry the message without being given the language, confidence or clarity to do so. They default to what feels safest. Or they avoid the conversation altogether.

Strong activation invests in managers. It equips them with simple frameworks, clear narratives and practical guidance. Not scripts, but confidence.

When managers understand the RVP, they reinforce it naturally. When they don’t, even the strongest proposition unravels at the edges.

Measuring what really matters

It’s tempting to measure activation through outputs. Views. Clicks. Attendance. Downloads. Those metrics have their place. But they don’t tell you whether the story is landing. More meaningful signals sit elsewhere. Do people understand what’s available to them? Can they explain it to someone else? Do they act on it? Do managers reference it naturally in conversations?

Engagement, understanding, advocacy and behaviour are far better indicators of success than awareness alone. When people start using the language of the RVP without being prompted, that’s when you know it’s working.

For global organisations, activation brings additional complexity. Different markets. Different cultures. Different expectations. A one-size-fits-all rollout rarely works. The strongest RVP activations balance consistency with local relevance. The core story stays the same, but expression adapts. Examples shift. Emphasis changes. Language flexes. This isn’t dilution. It’s respect. When people see themselves reflected in the story, wherever they sit, belief follows.

The most effective Reward Value Propositions don’t live in presentations. They live in conversations. In moments. In memories. They show up when someone decides to apply. When someone chooses to stay. When someone explains their job to a friend. When a manager has a difficult conversation and knows how to frame it. That’s where strategy becomes experience. And that’s when reward stops being something people skim past and starts becoming something they genuinely value.

Great RVPs aren’t launched.

They’re lived.

So how do we improve employee engagement? Join Sean Luitjens, Karen Beckett, Will Winter-Smith, and Claire Kennedy as they discuss how to drive your engagement and retention- Click here for more information.

Industry urges government to rethink salary sacrifice pension reforms

Lukas Montgomery — Tue, 28 Jul 2026 16:08:29 GMT

New polling suggests pension professionals want ministers to revisit planned National Insurance changes before they come into force in 2029.

More than six in ten pension professionals believe the government’s planned reforms to salary sacrifice pension arrangements should be scrapped, according to new industry polling from the Society of Pension Professionals (SPP), highlighting growing concern over the potential impact on retirement saving, employers and payroll costs.

The findings come as employers continue to assess the implications of reforms announced in the 2025 Budget, which will introduce a £2,000 annual cap on the amount employees can contribute to pensions via salary sacrifice without attracting National Insurance contributions (NICs). From April 2029, employee and employer NICs will apply to salary sacrifice pension contributions above that threshold, although income tax relief on pension contributions will remain unchanged. The government says the reforms are designed to make the system fairer and more sustainable, arguing that the greatest benefits currently accrue to higher earners.

Industry backs a rethink

The SPP hosted a webinar attended by more than 250 pension professionals to examine the reforms and their potential consequences. Following presentations from a panel of industry experts, delegates were asked how they believed the government should proceed.

The results suggest there is little support for the proposals in their current form.

Almost two-thirds (62%) said the reforms should be scrapped altogether, while a further 24% supported reform in principle but believed it should take a different shape. Only 5% agreed the proposals should proceed as currently planned, and 9% said salary sacrifice for pension contributions should be abolished entirely.

For Steve Hitchiner, an SPP member who chaired the event, the findings reflect widespread concern about the unintended consequences of the policy.

"The industry polling reveals strong support for rethinking these reforms," he says, noting that the proposals would increase costs for both employers and employees while potentially reducing pension saving at a time when greater retirement provision is needed.

Why salary sacrifice matters

Salary sacrifice has become one of the UK’s most widely used workplace pension arrangements because it delivers benefits for both employers and employees.

Under the arrangement, employees agree to exchange part of their salary for an equivalent employer pension contribution. Because the sacrificed salary is no longer subject to National Insurance, both parties can make savings, with many employers choosing to reinvest some or all of their employer NIC savings back into employees’ pensions.

The government estimates the cost of salary sacrifice tax relief has risen significantly in recent years and is forecast to continue growing, prompting ministers to cap the NIC exemption rather than abolish the arrangement altogether. Officials argue that most employees making typical pension contributions will remain unaffected by the £2,000 threshold.

However, many within the pensions industry believe the impact will extend well beyond higher earners.

Hitchiner argues that salary sacrifice has "long been an effective way of helping both employers and employees maximise pension contributions while reducing National Insurance costs", adding that restricting the exemption risks undermining one of the most effective workplace savings mechanisms currently available.

Implications for employers

While much of the public debate has focused on employees, reward and payroll professionals are also considering the additional costs employers may face.

Contributions above the £2,000 threshold will attract employer National Insurance from 2029, increasing payroll costs for organisations with generous pension schemes or highly engaged workforces that make significant salary sacrifice contributions. Employers will also need payroll systems capable of tracking contributions against the new threshold and reporting them correctly to HMRC.

Some organisations may decide to absorb those additional costs, while others may redesign their pension arrangements or reduce the use of salary sacrifice altogether.

That possibility concerns Hitchiner, who warns that the reforms "could discourage some employers from continuing to offer salary sacrifice arrangements altogether."

Balancing fairness with retirement outcomes

The government has consistently argued that the reforms are intended to improve fairness by limiting a tax advantage that disproportionately benefits those making larger pension contributions. According to HM Treasury, capping the NIC exemption helps control the growing fiscal cost of salary sacrifice while retaining income tax relief on pension saving.

The pensions industry, however, believes there is a broader policy question around encouraging long-term saving.

With automatic enrolment continuing to drive pension participation, many employers have invested heavily in communications and benefit strategies designed to increase contribution levels beyond statutory minimums. Industry bodies have repeatedly highlighted concerns that the UK already faces an adequacy challenge, with many workers projected to retire with insufficient savings.

Against that backdrop, Hitchiner believes reducing the financial advantages of salary sacrifice sends the wrong signal.

Higher costs for employers and employees, he argues, inevitably make it harder to encourage increased pension contributions precisely when policymakers are trying to improve retirement outcomes.

A call for further consultation

Although the polling demonstrates clear opposition to the current proposals, it also suggests the industry is not universally against reform.

Nearly one quarter of respondents supported changes in principle, provided they are delivered differently, indicating there may be scope for alternative approaches that meet the government’s fiscal objectives while preserving incentives for workplace saving.

Hitchiner believes the arrival of a new Prime Minister and Chancellor presents an opportunity to revisit the proposals before implementation.

"While there was recognition from some attendees that reform may be necessary," he says, "there is little appetite for the proposals in their current form."

He is calling on ministers to work more closely with the pensions industry to develop alternatives that avoid placing additional financial burdens on employers and employees while continuing to support long-term retirement saving.

With implementation not scheduled until April 2029, employers still have time to prepare. However, the strength of industry sentiment suggests the debate over salary sacrifice is unlikely to end any time soon.

But what does salary sacrifice mean to your employees? Join Jeni Morris, National Minimum Wage Expert, at the Reward and Payroll Summit where she’ll discuss what’s changed and what’s coming- Click here for more information.

Why payroll teams are at the centre of the next pensions revolution

Lukas Montgomery — Mon, 27 Jul 2026 07:15:00 GMT

Workplace pensions remain little more than a compliance exercise. Auto-enrolment has successfully brought millions of employees into pension saving, but for payroll teams, pensions are still largely viewed as another administrative task to manage.

That perception is about to change.

Joao Cabral, Founder of Nexum Pensions, sat down with Lukas Montgomery, Content and Community Manager at Reward Strategy, in a recent interview and argued that a combination of regulatory change, employee expectations and technological innovation is set to fundamentally reshape how employers think about workplace pensions. And with payroll sitting at the intersection of all three, payroll professionals will play a bigger role than ever before.

From financial wellbeing to payroll challenges

Cabral’s journey into pensions began in the financial wellbeing space, where he helped launch a pension proposition at Octopus Money. The business allowed employees to consolidate previous workplace pensions while receiving ongoing financial coaching and planning support.

However, one problem quickly became apparent.

Employees could consolidate their existing pension pots, but they couldn’t easily continue receiving workplace pension contributions into their pension of choice. The issue wasn’t regulation, it was administration. Payroll teams simply didn’t have the time or systems required to manage multiple pension arrangements manually.

"What clicked for me was that there was an opportunity to help both payroll teams and employees at the same time," he explains. "Payroll teams are carrying significant pension administration responsibilities every month, while employees are increasingly engaged with their personal finances and pensions."

Workplace pensions are no longer just a box-ticking exercise

Cabral believes that whether pensions are viewed as a compliance requirement largely depends on the maturity of the organisation.

For smaller businesses taking on their first employees, workplace pensions are understandably a box-ticking exercise. However, as organisations grow and compete for talent, pension provision increasingly becomes part of the wider employee value proposition.

The real shift, however, is still to come.

Several developments are expected to drive greater pension engagement over the next five years, including value for money assessments, pension dashboards and broader regulatory changes that will encourage both employers and employees to pay more attention to pension outcomes.

"We’ll start seeing change coming from both regulatory policy and employee demand," says Cabral. "People are becoming more and more engaged with their pensions."

For reward professionals, this means workplace pensions are likely to become an increasingly important differentiator when attracting and retaining talent.

Payroll is paying the price for a lack of standardisation

One of the biggest challenges facing payroll teams today is the sheer complexity of workplace pension administration.

There are hundreds of payroll software providers in the UK and numerous pension providers, all operating differently. Each pension scheme has its own processes, contribution files, portals and technological capabilities. Some offer APIs and integrations, while others do not.

The result is that payroll professionals are often left acting as the intermediary between two systems that don’t naturally communicate.

"There isn’t one streamlined process for handling all pensions," Cabral explains. "You have payroll people in the middle manually downloading files, editing spreadsheets and making uploads to different pension providers every month."

Rather than being a payroll problem, Cabral argues this is fundamentally a standardisation problem across the pensions and payroll ecosystem.

Pension flexibility doesn’t have to mean more admin

Perhaps the biggest misconception Cabral encounters is the assumption that employers can only contribute into their designated workplace pension scheme.

In reality, employees can receive pension contributions into existing pension arrangements, including private pensions.

"It’s no different to how employers pay salaries into different bank accounts," he explains. "Why shouldn’t pensions work in the same way?"

This misconception has led many employers to adopt a one-size-fits-all approach to pension provision despite increasingly diverse workforces.

Employees have different financial priorities, levels of pension engagement and preferences for pension providers.

Yet many organisations continue to offer a single pension solution because they assume flexibility would create an unsustainable administrative burden.

Cabral believes employers shouldn’t have to choose between operational simplicity and employee choice.

"You can still have a streamlined process and keep administration to a minimum while offering flexibility to employees. It’s not one or the other."

Payroll technology still has some catching up to do

One surprise for Cabral since entering the payroll industry has been just how manual many payroll and pension processes remain.

During conversations with employers, he has encountered organisations relying heavily on spreadsheets, macros and email-based processes to manage pension administration. Some payroll teams are even choosing bespoke spreadsheet solutions over payroll software functionality due to cost or trust issues.

While payroll processes are rightly designed to prioritise accuracy and consistency, Cabral believes the industry has been slower than many others to embrace technological change.

"It’s payroll, it needs to work every single time," he says. "But payroll only really gets recognised when something goes wrong. If everything runs smoothly, nobody notices."

This creates a difficult balancing act for payroll professionals, who are expected to deliver flawless outcomes while managing increasingly complex responsibilities with limited time and resources.

Change is coming

If there is one message Cabral would give to payroll professionals, it is simple: prepare for change.

Government initiatives such as pension dashboards and value for money frameworks are expected to drive greater pension engagement among employees. Meanwhile, targeted support reforms will allow financial services firms to communicate more openly about pensions and investment options.

At the same time, advances in technology are lowering barriers to entry for new pension providers, resulting in more specialised and targeted propositions entering the market.

"Change is coming from government, from employees and from providers themselves," he explains. "Workforces are diverse and different groups of employees will respond differently to different pension propositions."

For payroll and reward professionals, this means pension provision is unlikely to remain static over the coming years.

The future of pensions is employee engagement

Ultimately, what excites Cabral most about the future of pensions is growing employee engagement.

Auto-enrolment has been hugely successful because it relied on inertia. Employees were automatically enrolled and, for many, pensions became something they simply didn’t need to think about.

However, Cabral believes that approach can only take the industry so far.

"If we want people to achieve better retirement outcomes, we need them to engage more," he says. "Many people have pension pots worth more than their cars or even the equity in their homes, yet they don’t think about them."

As pension dashboards become commonplace and conversations around retirement savings become more visible, engagement levels are expected to rise significantly.

For reward and payroll teams, that engagement presents both a challenge and an opportunity. Employees are likely to ask more questions, expect greater flexibility and take a more active role in managing their pension arrangements.

The employers that can balance operational efficiency with employee choice may well find that pensions become far more than a compliance requirement, but instead becoming a meaningful part of their wider reward strategy.

From pension dashboards and regulatory reform to payroll innovation and employee financial wellbeing, discover how leading organisations are preparing for the future at Reward & Payroll Summit 2026- Click here to find out more information

Generative Designs. Agentic Builds: A Housing Analogy

Sean Luitjens — Fri, 24 Jul 2026 07:00:00 GMT

AI is everywhere in HR conversations today. How many conversations go more than 5 minutes without it popping up?

New tools promise to write job descriptions, summarize performance reviews, answer employee questions, recommend compensation strategies, and even automate entire workflows. Amid all the excitement, people continue to ask what is the difference between generative AI and agentic AI.

Understanding that difference will become increasingly important as organizations decide not just where AI can help, but where it can be trusted to act.

The Foundation: Data Comes First

I like to use the analogy of building a house.

Every successful home begins with a solid foundation. In AI, that foundation is your data. If your compensation data is inconsistent, employee records are incomplete, or your job architecture hasn’t been maintained, no amount of sophisticated AI will produce consistently good outcomes. A weak foundation eventually creates cracks in everything built on top of it.

Designing the House: Where Generative AI Excels

Once the foundation is in place, it’s time for the design.

This is where generative AI shines. Ask three architects to design the same house and you’ll likely receive three different, yet equally creative, solutions. One may favor clean modern lines; another might embrace a traditional farmhouse; and a third may maximize natural light or outdoor living space. None of them are necessarily wrong—they’re interpreting the same objective through their own perspective and experience.

Generative AI works much the same way. Give it the prompt, "Write a manager communication explaining this year’s merit increases," and you’ll receive a thoughtful response. Change the prompt slightly, provide more context, or ask for a different tone, and the answer changes as well. The quality of the output depends heavily on the quality of the prompt and the information available.

That’s a feature, not a flaw. Generative AI is designed to explore possibilities, create options, and help people communicate, analyze, and think differently.

Building the House: The Role of Agentic AI

But eventually, the house has to be built, and that’s where agentic AI enters the picture.

If generative AI is the architect, agentic AI is the construction crew.

Builders don’t wake up each morning and decide they’d rather move a wall three feet to the left because it looks nicer. They follow the blueprint. They execute the plan. They complete one task after another in the proper sequence until the project is finished. Agentic AI works the same way. Rather than generating ideas, it carries out actions, monitors processes, and makes decisions within defined guardrails. It can trigger workflows, update systems, coordinate multiple applications, and complete work with minimal human intervention.

Agentic AI in Action: HR Applications

In HR, that could mean an AI agent identifying employees eligible for merit increases, routing approvals to the appropriate managers, generating communication packets, updating HRIS records, notifying payroll, and documenting each step for audit purposes. Unlike generative AI, the goal isn’t creativity. The goal is reliable execution.

Why Data Quality Matters More Than Ever

And that’s why the foundation matters so much. Imagine handing the construction crew inaccurate blueprints. They won’t stop and question every measurement. They’ll build exactly what’s specified. If the plans call for a window in the wrong location, that’s where the window goes. If the measurements are wrong, the mistakes become part of the finished house.

Agentic AI behaves similarly. If it’s acting on inaccurate employee data, outdated job structures, or flawed business rules, it will execute those instructions with impressive speed and consistency. Automation doesn’t eliminate mistakes—it scales them. That’s why organizations should resist the temptation to begin with autonomous agents before investing in data quality and governance.

The Future of HR and AI

The future of HR won’t belong to organizations with the most AI. It will belong to those with the strongest foundation. Reliable employee data. Clear compensation philosophies. Well-defined workflows. Strong governance. Those are the concrete footings upon which both generative and agentic AI are built.

Generative AI helps us imagine what’s possible. Agentic AI helps us make it happen.

One creates the blueprint. The other builds the house. Neither succeeds without a solid foundation.

The Key Question

As HR leaders evaluate the next wave of AI capabilities, perhaps the most important question isn’t, "Should you use generative AI or agentic AI?"

It’s much simpler.

"Generative AI imagines the house. Agentic AI builds it. But neither can fix a cracked foundation."

Want to hear more from Sean? Join him at The Reward and Payroll Summit the September- Click here for more information

In conversation with... Mark Bremner

Lukas Montgomery — Wed, 22 Jul 2026 09:30:00 GMT

Mark Bremner, CEO of MBKB, is speaking at the Reward and Payroll Summit 2026! Find out more about Mark and what he’s looking forward to at the Summit below...

What are the most significant challenges facing Reward and Payroll professionals today?

The pace of change has never been greater. From AI and automation to changing legislation, employee expectations and increasing compliance demands, payroll and reward professionals are expected to be both technically brilliant and commercially strategic. The biggest challenge isn’t simply keeping up, it’s remaining human while embracing technology. That’s where leadership becomes critical.

What excites you most about participating in Reward & Payroll Summit this year?

The opportunity to share ideas with a profession that often doesn’t get the recognition it deserves. Payroll and reward professionals are at the heart of every organisation, and it’s fantastic to be part of an event that celebrates their expertise while exploring what the future could look like.

Which session or theme are you most looking forward to, and why?

Anything focused on the future of work, AI and leadership. Technology will continue to transform our profession, but success will still depend on people. Understanding how we combine innovation with great leadership is where the real opportunity lies.

What’s a common misconception people have about your session topic, and how does your session challenge that?

Many people think leadership is about position or personality. It isn’t. Great leadership is a set of behaviours that anyone can develop. Through MBKB’s 4C’s Framework Clarity, Creativity, Confidence and Culture, we demonstrate that leadership is practical, measurable and something that directly improves individual and organisational performance.

How does your session connect to broader organisational strategy or business performance?

Leadership isn’t an HR initiative it’s a business strategy. Organisations with leaders who provide clarity, encourage creativity, build confidence and create positive cultures consistently achieve better engagement, productivity and retention. Developing leaders isn’t a cost; it’s one of the best investments an organisation can make.

What do you hope attendees will take away from your session at Reward & Payroll Summit?

That leadership doesn’t have to be complicated. I hope delegates leave with practical ideas they can implement immediately and the confidence to lead conversations, embrace change and make a bigger impact within their organisations.

Where do you see the biggest opportunities for innovation in Reward and Payroll over the next 2–3 years?

AI will automate many transactional processes, giving professionals more time to become strategic advisers. The biggest opportunity isn’t replacing people, it’s freeing them to focus on employee experience, data-driven decision making and helping shape organisational culture.

One thing you’re hoping to learn from other speakers at the summit?

I’m always interested in hearing real-world examples of innovation that organisations are successfully implementing. The best ideas usually come from practitioners who have faced genuine challenges and found practical solutions.

Coffee or tea before your big session at the Summit?

Coffee. Strong enough to power the slides, but not so strong that I start explaining payroll legislation at double speed!

Find out more about Mark’s sessions and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

Navigating the Rise of Real-Time Information (RTI) Reporting: What UK Payroll Professionals Need to Know

Will Jackson — Wed, 22 Jul 2026 08:40:04 GMT

Payroll in the UK has undergone a significant transformation over the past decade, largely driven by the introduction of Real-Time Information (RTI) reporting.

Since its rollout in 2013, RTI has fundamentally changed how employers report employee earnings and deductions to HM Revenue & Customs (HMRC).

Instead of submitting payroll data annually or quarterly, employers now send detailed reports every time they pay their staff. This shift aims to improve tax collection, reduce errors, and enhance transparency across the tax system.

However, RTI is more than just a reporting requirement. It has become a cornerstone for numerous government services, including Universal Credit calculations and National Insurance tracking.

As HMRC increasingly leverages RTI data, payroll teams face mounting pressure to ensure their submissions are accurate and timely. Mistakes can lead to penalties, employee dissatisfaction, and even complications with welfare benefits.

For payroll professionals, understanding the nuances of RTI, its challenges, and best practices is essential. This blog explores the current state of RTI, the hurdles businesses face, and how to stay ahead in this everchanging industry.

What is Real-Time Information (RTI)?

Real-Time Information is a payroll reporting system introduced by HMRC to bring payroll data submission into the present. Instead of sending PAYE information annually or quarterly, employers report details every time employees are paid. This includes employee earnings, tax deductions, National Insurance contributions, and other relevant payroll data.

The goal is to provide HMRC with up-to-date information that allows for more accurate tax collection, quicker adjustments to employees’ tax code, and better integration with government benefits.

Why RTI Remains a Hot Topic

Although RTI has been mandatory for most UK employers since 2013, it continues to be a hot topic due to several evolving factors. HMRC now cross-references RTI submissions with other government databases to detect discrepancies or potential fraud.

Employers who submit late or inaccurate RTI reports risk fines, making compliance more critical than ever. Additionally, RTI data feeds into Universal Credit and other welfare programmes, meaning errors can affect employees’ financial support. RTI is also part of a broader push towards digital tax administration, including Making Tax Digital (MTD), which is expanding digital record-keeping and reporting requirements.

Challenges Payroll Teams Face with RTI

The shift to RTI reporting has brought several challenges for payroll professionals. Maintaining accuracy under tight deadlines is a constant pressure, as payroll data must be submitted every pay period with little room for error or delay.

Many businesses had to invest in new payroll software or update existing systems to handle RTI reporting efficiently. Managing employee data changes, such as tax codes, benefits, or employment status, must be done promptly to avoid errors.

Payroll teams also require ongoing training to keep up with HMRC updates and reporting requirements.

The Importance of Accuracy and Timeliness

Accuracy in RTI reporting is not just about avoiding penalties; it directly affects employees’ take-home pay and their interactions with the tax and welfare systems. Inaccurate submissions can lead to incorrect tax deductions, delays in benefit payments, employee frustration, and increased administrative burden to correct errors.

Timely reporting ensures that HMRC has the most current information, allowing for smoother tax code adjustments and benefit calculations.

Best Practices for RTI Compliance

To navigate the complexities of RTI, payroll teams should use compliant payroll software that can automate submissions and reduce errors. Regular staff training is essential to keep payroll professionals updated on changes to RTI rules, tax codes, and HMRC guidelines. Implementing robust checks and conducting audits before submitting RTI reports helps catch mistakes early.

Clear communication with employees about how changes in their circumstances affect payroll reporting is also important. Finally, having procedures in place to quickly correct and resubmit any inaccurate RTI data can save time and reduce penalties.

The Role of Payroll Software in RTI Success

Choosing the right payroll software is crucial for RTI success. Modern systems offer automated RTI submissions, real-time error alerts, and integration with HR and accounting platforms.

They also provide easy updates for tax code changes and legislation, along with employee self-service portals to help maintain data accuracy. Investing in reliable software reduces the administrative load and helps maintain compliance effortlessly.

RTI’s Impact Beyond Payroll

RTI data is now central to many government services beyond payroll. It feeds into Universal Credit and other welfare benefit calculations, making accurate payroll data vital for employees relying on government support.

Real-time updates also improve National Insurance tracking, helping both employees and employers monitor contributions more precisely. Additionally, HMRC uses RTI to identify suspicious activity and reduce tax evasion.

This integration means payroll teams have a wider responsibility to ensure data accuracy, impacting not just the business but employees’ financial wellbeing.

The Future of Payroll: RTI and Beyond

RTI is part of a broader digital transformation in UK tax and payroll administration. Future developments include Making Tax Digital (MTD), which expands digital record-keeping and reporting to VAT and income tax.

Real-time pension reporting is expected to increase transparency and accuracy in pension contributions. Artificial intelligence and data analytics will likely play a bigger role in detecting errors and fraud more efficiently.

Greater integration across government services aims to streamline processes for employers and employees alike. Payroll professionals who embrace these changes will be better positioned to support their organisations and workforce.

Conclusion

Real-Time Information reporting has reshaped payroll in the UK, making it more immediate, transparent, and integrated with wider government systems.

While the transition has brought challenges, it also offers opportunities for greater accuracy and efficiency. By investing in the right tools, training, and processes, payroll teams can not only meet compliance requirements but also enhance the employee experience and contribute to a fairer tax system.

In a world where data flows faster than ever, RTI is the pulse of UK payroll, and staying in rhythm with it is essential for success.

Need to know more about how technology could impact your daily workflow? Click here to see our curated technology session for The Reward and Payroll Summit

The £11 Problem: Are Coastguards Volunteers or Workers?

Jeni Morris — Tue, 21 Jul 2026 10:19:42 GMT

One of the UK’s foremost specialists in minimum wage compliance; providing unique insights and knowledge, supporting businesses to mitigate the financial & reputational impact of ongoing or pending HMRC NMW investigations.

There is a bitter irony at the heart of the Coastguard Rescue Officer saga, and it has been largely lost in the understandable focus on morale, recruitment and the fate of the UK’s fourth emergency service. Strip the story back to its mechanics and it is, fundamentally, a minimum wage story. It is a cautionary tale about what happens when an organisation pays people for their time, expects something in return, and pays them below the legal minimum wage while calling them volunteers.

Coastguard Rescue Officers were paid roughly £11 an hour for attending call-outs and training. For years this was framed as a modest recognition payment, a thank-you, an enabler, something that made volunteering possible for people juggling full-time jobs and family commitments.

Now hold that £11 against the statutory backdrop. From 1 April 2026, the National Living Wage for workers aged 21 and over is £12.71 an hour. The National Minimum Wage for younger workers sits below that, but for the bulk of the coastguard’s adult workforce, £11 is not a generous honorarium. It is a sub-minimum rate. That gap is the whole gamechanger. As long as these officers were genuinely volunteers, the number was legally irrelevant – the minimum wage simply does not apply to volunteers. The moment they became workers, the same £11 stopped being a kindness and became a potential unlawful underpayment.

The Court of Appeal Decision

In January 2026, the Court of Appeal confirmed what an employment tribunal had already found: officers who attended paid duties were workers, not volunteers, despite decades of the opposite label.

The reasoning matters because it applies far beyond the coastguards. The courts looked past the paperwork to the practical reality of the relationship. Two points mattered:

The payment flowed to the individual for their time, not pure out-of-pocket expenses.
There was obligation on the other side. Officers were required to attend set levels of training and maintain a reasonable level of incident attendance. Payment provided, and a duty to turn up. That mutual commitment is the anatomy of a contract, whatever the handbook calls it.

Once that contract exists, the individual is a worker and the minimum wage is not optional.

Worker Status Comes With a Price Tag

Here is where the story becomes genuinely instructive for anyone outside the coastguard. Worker status does not just unlock holiday pay and whistleblowing protection. It brings the full weight of minimum wage enforcement, which is one of the most unforgiving corners of UK employment law.

There is no "we didn’t realise" defence. If a worker has been paid below the statutory rate, the employer owes arrears, often calculated at current rates, not historic ones. HMRC can impose penalties of up to 200% of the underpayment, capped at £20,000 per worker. And there is the reputational sting of being publicly named and shamed.

For an organisation with 3,500 rescue officers, the arithmetic of retrospectively topping every paid hour up to the legal minimum and defending against claims for the years already worked is not a rounding error – it is an existential number.

An organisation sets a payment low precisely because it thinks of the people as volunteers. That very act – paying below minimum wage – is only survivable if the volunteer label holds. If a court later decides it doesn’t, the low payment that felt generous in a volunteer frame becomes the most expensive feature of the arrangement.

The Cheapest Solution? Remove the Payment

Which explains the outcome that has so angered coastal communities.

Faced with the ruling, the Maritime and Coastguard Agency did not raise the £11 to £12.71 and absorb the workers’ rights that come with it. It announced it would scrap the payments altogether and return to a genuinely unpaid volunteer model, retaining only expense reimbursement.

From a pure minimum wage standpoint, this is coldly logical. The cheapest way to make a sub-minimum payment lawful is to remove the payment. No payment for time, no contract of the relevant kind, no worker status, no minimum wage obligation.

A campaign brought to win rights for these officers ended with them losing money entirely, because the organisation chose the exit that closed its minimum wage exposure rather than the one that priced it in.

You can criticise that choice on grounds of fairness, morale and public duty – and many have, and powerfully – but you cannot call it irrational once you see the minimum wage machinery underneath.

Is There Another Option?

There is another route that the Government may wish to explore for the future. They could change legislation to exclude coastguards from minimum wage legislation. A bit extreme, you may think; however, there is a precedent, as members of the UK armed forces are already exempt. Coastguards could continue receiving a sub-minimum wage payment and would not be in breach of National Minimum Wage legislation.

Why Every Volunteer Programme Should Take Notice

The voluntary, charity and emergency sectors run on people who volunteer. Lifeboat crews, festival stewards, community first responders, sports officials, faith and heritage organisations, mentoring schemes – countless bodies hand volunteers a flat session rate, a per-shift payment or a disturbance allowance.

Very often these payments sit below the minimum wage, and very often there is an unspoken expectation of attendance and commitment attached. That combination is now a risk.

The coastguard case is a live demonstration that a below-minimum payment plus an expectation of turning up can be reclassified as sub-minimum wage employment years after the fact, with penalties attached.

Three Questions to Ask About Your Volunteer Programme

Is the payment truly reimbursement, or is it for time? Genuine expenses, mileage and actual costs incurred sit differently from a flat hourly or per-session rate that rewards the person for showing up.
Is there obligation? Can your volunteer genuinely decline with no consequence, or are there minimum commitments, rotas or disciplinary processes that imply a contract?
If a tribunal re-categorised these people as workers tomorrow, could you survive the minimum wage arithmetic? If the honest answer is no, you are carrying a risk.

The Uncomfortable Conclusion

The instinct behind paying volunteers a modest sum is a good one. It recognises commitment and makes service possible for people who could not otherwise afford to give their time. But UK minimum wage law does not deal in instincts – it deals in whether money changed hands for work, and whether the minimum wage was met.

The coastguard story is what happens when those two things collide. A payment designed as a gesture of respect became, in law, a wage – and a wage below the legal minimum is not a small problem to have. The tragedy is that the cleanest way to fix it was to take the money away.

For every organisation still engaging volunteers, the message is stark: either your payments are genuine expense reimbursement, or they are wages that must clear the minimum wage floor. There is very little safe ground in between, and the coastguards have just shown the whole sector how quickly that ground can give way.

Jeni Morris is speaking at The Reward and Payroll Summit- Click here to learn about her session on Compliance and Legislation

The human advantage: Why HR must rethink workforce capability

Lukas Montgomery — Mon, 20 Jul 2026 15:04:16 GMT

As AI reshapes the workplace, HR leaders are redefining talent by prioritising the human skills that technology can’t replace.

For the past several years, organisations have focused heavily on digital transformation, investing in technology, automation and technical upskilling. While those priorities remain essential, a growing body of evidence suggests the next competitive advantage will come not from technology itself, but from the human capabilities that allow organisations to use it effectively.

Research from MyPerfectCV highlights a significant shift in employer priorities, with communication, adaptability, emotional intelligence and critical thinking emerging as some of the most sought-after skills in today’s workforce. As AI becomes embedded in day-to-day operations, employers are increasingly looking for people who can complement technology rather than compete with it.

For senior HR leaders, this presents a strategic question: is your organisation developing the skills that AI cannot replicate?

AI is changing what organisations value

The latest research suggests employers are placing greater emphasis on the skills that enable collaboration, innovation and sound decision-making in increasingly complex workplaces. While digital and AI literacy remain important, they are now viewed as part of a broader capability mix rather than the defining characteristic of high-performing employees.

Among the most in-demand skills identified are:

Communication
Teamwork and collaboration
Adaptability
Work ethic and reliability
Problem-solving and critical thinking
Enthusiasm and willingness to learn
Emotional intelligence and interpersonal skills
Confidence
Digital literacy
AI literacy.

The message is clear: technical competence may get employees through the door, but human capability is increasingly what enables organisations to create value.

For HR leaders, this reflects a broader shift in how organisations define talent. Success is becoming less about what employees know today and more about how quickly they can learn, adapt and influence others as business needs evolve.

Workforce planning must evolve

Many organisations continue to build workforce strategies around technical capability gaps. However, the rapid pace of AI adoption means technical skills alone are unlikely to remain a sustainable source of competitive advantage.

Technology will continue to evolve. Human capabilities such as judgement, empathy, creativity, resilience and communication are likely to prove far more durable.

This has implications across the employee lifecycle.

Recruitment processes may need to place greater emphasis on behaviours and potential alongside technical expertise. Succession planning should consider leadership attributes such as adaptability and influencing skills, while workforce planning should assess whether organisations have the change capability required to deliver transformation at scale.

For HR, the challenge is moving beyond hiring for today’s technical requirements towards building a workforce capable of navigating continuous change.

Learning strategies need to become more balanced

The past two years have seen organisations invest heavily in AI literacy programmes and digital skills development. Those investments remain critical, but they should not come at the expense of developing the capabilities that enable people to lead, collaborate and make effective decisions.

Communication, coaching, stakeholder management, critical thinking and emotional intelligence are no longer simply leadership competencies—they are becoming core business skills.

The organisations that are likely to benefit most from AI will be those that develop both sides of the equation: employees who understand emerging technologies while also possessing the judgement to apply them appropriately.

That requires learning strategies that combine technical development with opportunities to build interpersonal capability through mentoring, cross-functional projects, coaching and experiential learning.

Reward and recognition should reinforce the right behaviours

HR leaders should also consider whether performance management and reward frameworks reflect the capabilities organisations increasingly value.

Many incentive structures continue to reward individual output, technical delivery or short-term performance. Yet the successful adoption of AI often depends on behaviours that are less tangible: collaboration across teams, knowledge sharing, continuous learning and leading others through change.

If organisations want employees to embrace experimentation, develop new skills and support colleagues through transformation, those behaviours need to be recognised and rewarded consistently.

Human capability is becoming a business differentiator

As AI becomes more accessible, technology itself will become less of a differentiator. What will distinguish organisations is how effectively their people use it.

Employees who combine digital confidence with curiosity, emotional intelligence, sound judgement and the ability to influence others will be central to organisational success.

For senior HR professionals, this represents an opportunity to redefine workforce strategy. Rather than viewing human skills as ’soft’ capabilities, organisations should recognise them as strategic assets that drive innovation, resilience and long-term performance.

In the AI era, organisations are unlikely to succeed because they have the best technology alone. They will succeed because they have built workforces with the human skills to unlock its full potential.

Join us at The Reward and Payroll Summit where we will be discussing AI and it’s myriad of uses- Click here to find out more

In conversation with... Karen Beckett

Lukas Montgomery — Tue, 21 Jul 2026 10:39:28 GMT

Karen Beckett, Head of Payroll and Benefits at Dorset Healthcare University NHS Foundation Trust, is speaking at the Reward and Payroll Summit 2026! Find out more about Karen and what she’s looking forward to at the Summit below...

What are the most significant challenges facing Reward professionals today?

With a multi-generational workforce, being able to offer a reward package that staff see as being relevant to them is challenging. It is also being able to manage expectations as an employer. Working within the public sector, all our schemes have to be cost neutral and so we are limited on what we can offer as a reward package. However, what we can offer to staff is access to financial wellbeing and education, pay on demand, health & wellbeing support and access to salary sacrifice schemes.

What excites you most about participating in Reward & Payroll Summit this year?

I always enjoy being able to spend time with other pay and reward professionals to hear about their challenges and successes and as well as being able to share ours. There is a real positive aspect to being a pay and reward professional and that is we all like to support each other sharing our knowledge and just being there to listen to any challenges. Any gathering of pay and reward professionals has a real community feeling about it.

Which session or theme are you most looking forward to, and why?

Doing More with Less: Maximising Reward and Payroll Impact Within Constrained Budgets. All organisations have financial constraints and I’m keen to learn of ways in which to be innovative when it comes to offering a reward package with limited financial resources. To hear it from another organisation’s perspective will be interesting and I hope will provide some ideas on what we can include in our reward packages.

What’s a common misconception people have about Proving the Value of Reward, and how does your session challenge that?

People will often think that pay, pensions and other term and conditions are not reward. But they are the basics and the starting point. There is something around being able to share an understanding of what is included in a reward package. Once that is realised, then the full value of reward can be understood. I hope people will get an understanding of reward from our session as well and how to promote the value of reward across the organisation.

How does Proving the Value of Reward connect to broader organisational strategy or business performance?

Staff are the organisations greatest asset. Being able to support them in ways not expected means staff are likely to be retained. As a result, a knowledgeable workforce is created enabling an organisation to become high performing and one that is an employer of choice; thus, attracting the best staff suited for the organisation. For the areas I would in, that leads to staff being focused on providing the best patient care and support the community we work in to live healthier lives.

What do you hope attendees will take away from your session at Reward & Payroll Summit?

I would like people to come away from my session thinking about how they can raise the profile of reward in their organisation and to be able to promote their reward packages to their senior management team as well as to their staff. We won’t have all the solutions, but if we can provide some thought-provoking aspects of Proving the Value of Reward, I will be happy the session has gone well.

Where do you see the biggest opportunities for innovation in Reward over the next 2–3 years?

There is a lot of focus on wellbeing, be that in health or financial. I believe that financial education is important, and we need to find ways in which we can support staff when they are in our employment throughout their career which runs alongside their home life. Being able to give people a good work/life balance is essential. Supporting them in financial education is a big part of their every day living. Our reward packages need to start with that support to be able to develop further. And some of that will possibly include more flexible working arrangements as staff go through their lives and their careers.

One thing you’re hoping to learn from other speakers at the summit?

I‘m hoping to come away from the summit with new ideas on what we could offer to staff as well as learning about the challenges organisations have faced and how they have overcome them.

Coffee or tea before your big session at the Summit?

I’m a tea drinker normally but before presenting or being part of a panel session I usually drink water.

Find out more about Karen’s session, Proving the Value of Reward: How Total Reward Statements Drive Engagement and Retention, and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

Roundtable Takeaways: Global Payroll Transformation and Building the Case for Change

Lukas Montgomery — Tue, 14 Jul 2026 10:24:10 GMT

As organisations continue to expand internationally through acquisition, enter new markets and modernise legacy technology, payroll leaders are finding themselves at the centre of wider business transformation.

Global payroll is no longer simply about paying people accurately and on time. That was the clear message from our recent roundtable Global Payroll Transformation: Building the Case for Change in partnership with UKG, where payroll professionals from multinational organisations gathered under the Chatham House Rule to discuss the realities of managing payroll across increasingly complex global operations.

Representing organisations at different stages of their transformation journeys, participants shared a strikingly consistent set of challenges and, importantly, the lessons they have learned along the way.

The pursuit of a global payroll strategy is rarely straightforward

Many organisations around the table had inherited fragmented payroll landscapes following years of acquisitions. Several described managing more than 30 payroll providers globally, while others were in the process of consolidating multiple local vendors into regional or global operating models.

Yet there was broad agreement that the idea of a single, perfect global payroll solution remains largely aspirational.

Instead, many organisations are moving towards hybrid models, combining global governance with regional or local providers where legislation, collective bargaining agreements or business requirements demand a different approach.

As one participant observed, every business reaches a point where it needs to ask whether its existing operating model is still fit for purpose. The answer is rarely about replacing every provider, but rather about finding the right balance between consistency, flexibility and control.

Technology alone won’t solve the problem

Despite significant investment in payroll technology across the market, delegates repeatedly stressed that software is only one part of successful transformation.

Several participants spoke candidly about implementation projects where vendors focused heavily on configuring systems but spent too little time understanding how the organisation actually operates.

Without that business understanding, implementations quickly become exercises in forcing organisations to adapt to software rather than designing solutions that support business objectives.

There was also recognition that many payroll teams are still constrained by manual processes, disconnected systems and poor-quality upstream data. In many cases, payroll professionals continue to spend considerable time correcting information before payroll can even begin.

As one delegate put it, payroll is often the final recipient of every process issue across the organisation.

Winning executive support requires speaking the language of the board

One of the strongest themes throughout the discussion centred on business cases.

Payroll leaders acknowledged that securing investment remains difficult, particularly when finance teams view payroll primarily as a cost centre.

However, several delegates explained that the most successful business cases moved beyond efficiency savings.

Rather than focusing solely on reducing headcount or administrative effort, successful proposals highlighted business risk, regulatory exposure and reputational damage.

Examples included payroll compliance failures, penalties for missed statutory obligations and the wider commercial impact of being publicly identified for payroll failings.

For many around the table, framing payroll as a risk management function rather than simply an operational service proved far more persuasive with CFOs and executive teams.

The discussion also highlighted the importance of tailoring messages to different stakeholders. What resonates with HR may not resonate with finance, private equity investors or boards, meaning payroll leaders increasingly need commercial awareness alongside technical expertise.

AI brings opportunity but caution remains essential

Artificial intelligence naturally featured heavily in the discussion.

Delegates recognised its potential to improve reporting, automate routine tasks and support employee queries, particularly as vendors continue embedding AI into payroll platforms.

However, there was widespread agreement that payroll professionals must remain cautious when it comes to compliance.

Several participants shared examples of asking different AI tools identical payroll questions, only to receive contradictory answers. That inconsistency reinforces an important point: AI is only as reliable as the data it has access to.

Rather than replacing payroll expertise, delegates viewed AI as something that can enhance productivity, provided organisations have trusted data, strong governance and robust internal controls.

For payroll, where compliance and accuracy remain non-negotiable, human judgement continues to be indispensable.

Payroll’s influence is growing but so are expectations

Another recurring theme was the changing nature of payroll leadership itself.

Today’s global payroll leaders are expected to understand technology, finance, risk, employment law, transformation, stakeholder management and business strategy, in addition to delivering technically accurate payroll.

Several participants reflected that the profession has evolved far beyond processing payroll.

Increasingly, payroll leaders are expected to influence executive decision-making, contribute to acquisition strategies, manage major transformation programmes and communicate confidently with boards.

Many felt that professional development within payroll now needs to evolve to reflect these broader leadership expectations.

Payroll succeeds quietly and that can be its biggest challenge

Perhaps the most thought-provoking part of the discussion was the observation that payroll’s biggest strength can also be its greatest weakness.

Payroll teams are exceptionally good at preventing problems from becoming visible. They work around failing processes, resolve issues behind the scenes and consistently deliver payroll despite significant operational complexity.

The result is that many organisations underestimate both the expertise required to achieve that consistency and the risks involved when payroll is under-resourced or overlooked.

As one delegate noted, because payroll professionals rarely allow problems to become business-critical, payroll often receives less strategic attention than functions where issues are more visible.

Yet as organisations become more global, regulatory expectations increase and technology continues to evolve, that perception is beginning to change.

Looking ahead

The roundtable highlighted an important shift in the profession.

Global payroll transformation is no longer simply about implementing new technology or consolidating providers. Success increasingly depends on operating models, governance, stakeholder engagement and the ability to align payroll with wider business objectives.

For payroll professionals, that presents both a challenge and an opportunity. The function is becoming more visible, more influential and more strategically important than ever before, but only for organisations prepared to recognise payroll as a business capability rather than an administrative necessity.

Interested in perfecting your global payroll knowledge? Join Max van der Klis for his Global Payroll Excellence Programme at The Reward and Payroll Summit- Click here for more information

‘Always-on’ culture pushes employees towards burnout and quitting

Reward Strategy — Tue, 14 Jul 2026 08:50:11 GMT

A new survey by HiBob reveals that half of British employees are checking work messages during holidays, with rising pressures blurring boundaries, risking mental health and staffing shortages.

New research from HiBob paints a concerning picture of the modern workplace, with constant connectivity becoming the norm for many employees. Half (50%) of workers say they check work messages while on holiday, while 55% do so within minutes of waking up.

The findings suggest that an "always-on" culture is becoming increasingly embedded in working life. Nearly half (49%) of employees say they feel expected to be available at all times, while 58% believe that expectation has increased over the past two years.

Work is increasingly encroaching on personal time

The research highlights how the boundaries between work and home life continue to erode. More than a third (36%) of respondents regularly work beyond their contracted hours, while 27% believe failing to respond to messages outside working hours could harm their career progression.

Work is also interrupting everyday life. Around 42% of employees admit to checking work messages during personal conversations, while 41% do so in the bathroom and 29% even check work communications while on a date, illustrating how deeply work has permeated personal time.

Recovery time is shrinking

The survey suggests employees are finding it increasingly difficult to switch off and recover during the working day. Nearly half (49%) say there is no longer a genuine quiet period during the day, while 51% report having less time to recover between periods of intense workload than they did two years ago.

That lack of recovery appears to be affecting wellbeing. Almost half (47%) say they feel mentally exhausted at the end of most working days, 41% report that work is negatively affecting their sleep, and a third (33%) believe their current role is not sustainable in the long term.

Workplace pressure is becoming a retention risk

The findings also point to a growing retention challenge for employers. More than four in 10 employees (42%) say they are considering leaving their current role because of workplace pressure, with 11% already actively looking for another job.

Meanwhile, 37% say they would be willing to accept a lower salary in exchange for a less stressful role, reinforcing the growing importance of wellbeing, flexibility and sustainable workloads alongside pay when it comes to attracting and retaining talent.

Managers feel squeezed from both sides

The pressure is not limited to employees. Managers also report increasing demands, with 76% saying pressure on their teams has risen over the past two years and 72% feeling under greater pressure from senior leadership to maintain high levels of performance.

More than half say they struggle to balance business expectations with supporting employee wellbeing, while 51% admit they feel underprepared for the responsibilities of management.

Commenting on the findings, Toby Hough, vice-president for people and culture, EMEA at HiBob, said the results reflect a fundamental shift in the way people work. He argued that organisations need to move beyond viewing wellbeing as a standalone initiative and instead make recovery, trust and sustainable ways of working integral to long-term business performance.

Reward Strategy’s response

For me, the most striking findings isn’t that employees are checking emails on holiday or before they’ve even got out of bed; it’s that many believe they have to. This points to a growing cultural issue rather than an individual one. While technology has undoubtedly made flexible working possible, it has also made work omnipresent. The organisations getting this right aren’t necessarily introducing more wellbeing initiatives or resilience training; they’re setting clear expectations around availability, role-modelling healthy behaviours from the top, and measuring performance by outcomes rather than responsiveness.

As skills shortages persist and retention remains high on the HR agenda, employers that can genuinely protect employees’ time to disconnect may find it becomes a competitive advantage rather than simply a wellbeing initiative.

- Lukas Montgomery

Helping your employees grow helps them balance their life with work. Join us and MBKB at The Reward and Payroll Summit for their tailored Career Development Stream- Click here for more information

Reward Strategy reveals its 2026 industry recognition lists

Lukas Montgomery — Fri, 10 Jul 2026 13:13:57 GMT

Reward Strategy has revealed the 2026 R300, P75 and 30 Under 30, celebrating the leaders, innovators and rising stars driving the future of reward, payroll, benefits and pensions.

Reward Strategy has unveiled its 2026 Reward 300 (R300), Partner 75 (P75) and 30 Under 30 lists, recognising the individuals and organisations shaping the future of reward, payroll, employee benefits, pensions and the wider people profession.

Now in its 17th year, the Reward 300 continues to celebrate the most influential in-house reward leaders driving strategic change across UK organisations. Alongside it, the Partner 75 recognises the consultancies, technology providers, advisers and service partners whose innovation and expertise are helping employers respond to an increasingly complex workplace landscape.

The 30 Under 30 highlights the next generation of talent already making a significant impact on the profession. Created to shine a spotlight on emerging leaders, the initiative recognises those demonstrating exceptional potential early in their careers while inspiring others to see reward, payroll and employee benefits as exciting, long-term professions. At a time when attracting new talent into the industry has never been more important, the list celebrates individuals who are helping to shape its future.

"we have launched our first 30 under 30 in partnership with MBKB. Over the course of the last 12 months, our Content and Community team has reached out to those listed within the Reward 300 for 2025 and a common challenge which came up was succession planning – attracting, retaining and motivating talent within pay & reward. The 30 under 30 being launched and announced here today showcases the young professionals who have come into these wonderful professions and are already making an impact."

Together, the three indexes reflect a profession that continues to evolve at pace. From artificial intelligence and skills-based reward strategies to pay transparency, financial wellbeing, workplace pensions and employee experience, today’s leaders are navigating new challenges while redefining how organisations attract, engage and retain talent.

Vickie Graham, Managing Director of Reward Strategy, said:

"Last year I made a comment about those successfully listed representing the top 1% within pay & reward and two things were said to me…

First, my maths was wrong, it’s the top 0.1%

Second, I was asked why I would create an ‘exclusive’ community which excludes people. That is not what this is, and those of you in this room who know me, and my colleagues and what we strive for at Reward Strategy, will know that we are about inclusivity and collaboration

Yes, these indexes are exclusive, there are over 300,000 people working in pay & reward in the UK alone and fewer than 400 listed across these three lists, so yes, they are exclusive. But not to exclude people. To inspire people, to showcase what each of you recognised today has achieved and to build true peer to peer communities which people want to be part of, and working actively to engage within."

Recognition across the three indexes extends beyond inclusion on the annual lists. Members become part of an influential professional community, with opportunities to contribute to industry research, speak at Reward Strategy events, join editorial advisory groups and serve as judges for the annual Rewards and Incentive Awards.

The indexes also serve as a benchmark for excellence across the profession, showcasing those who are not simply responding to change but actively shaping its direction. By bringing together senior leaders, trusted partners and emerging talent, they create a community committed to sharing knowledge, championing best practice and advancing the reward profession.

The full Reward 300, Partner 75 and 30 Under 30 lists, including profiles of each honouree and their achievements, are available to view on the Reward Strategy website.

Employers urged to rethink workplace socials amid rising alcohol abstention

Reward Strategy — Wed, 22 Jul 2026 14:46:33 GMT

During Alcohol Awareness Week, Tina Benson highlights the need for diverse and inclusive employee activities, moving away from the traditional pub-based socialising as England sees a rising trend of alcohol abstention among adults

As employers marked Alcohol Awareness Week, Tina Benson, founder and managing director of Team Tactics, is encouraging organisations to rethink their approach to workplace social events. She argues that in 2026, employers should move beyond treating the pub as the default destination for team bonding and instead create experiences that better reflect the diversity of today’s workforce.

Drinking habits are changing

Benson’s comments come as alcohol consumption continues to decline across England. According to the Health Survey for England, reported by The Guardian, 24% of adults said they did not drink alcohol in 2024, up from 19% in 2022. The shift has been particularly noticeable among younger people and men.

Research published by the BMJ also points to a growing trend towards abstinence, suggesting the change reflects evolving social norms as well as greater awareness of health and wellbeing.

Inclusion should shape social events

Benson stresses that alcohol itself is not the problem. Many employees will continue to enjoy having a drink with colleagues. However, she believes issues arise when alcohol becomes the expected focus of every workplace social event.

Employees may choose not to drink for religious, cultural, health, financial or personal reasons. When social activities revolve around alcohol, employers risk unintentionally excluding colleagues they are trying to bring together, potentially undermining the very purpose of team-building initiatives.

Rethinking how teams connect

Rather than relying on familiar after-work drinks, Benson encourages employers to consider a wider range of shared experiences. Creative workshops, volunteering opportunities, away days and purpose-led activities can all help strengthen relationships while creating a more inclusive environment.

She argues that these formats often encourage greater collaboration and more meaningful conversations, without the social pressures that can sometimes accompany alcohol-focused events.

Building belonging through choice

The broader message for employers is that successful team building is not about eliminating alcohol altogether, but about offering genuine choice. As employee expectations around inclusion and wellbeing continue to evolve, organisations that design social experiences around the needs of their people, rather than tradition, are likely to foster stronger engagement, greater belonging and more connected teams.

Reward Strategy’s response

The conversation around workplace inclusion often focuses on policies, benefits and flexible working, but social culture deserves equal attention; it builds the foundation of your teams and is the source of workplace cohesion. Team events are where relationships are built, networks are formed and people develop a sense of belonging. If those experiences unintentionally exclude parts of the workforce, employers risk creating invisible barriers despite their best intentions.

This isn’t to say we should all stop hosting drinks events; simply ensure those events sit alongside a broader mix of activities that appeal to different personalities, lifestyles and preferences. Inclusion is rarely about removing options; it’s about expanding them.

- Lukas Montgomery

Want to know more about DEI and how your organisation can use its existing systems and programs to greater effect? -Click here to visit the Knowledge Hub

Report reveals disconnect between HR perceptions and employee reality

Reward Strategy — Wed, 22 Jul 2026 14:44:32 GMT

Study highlights a significant gap between HR leaders’ confidence in recognition policies and employees’ feelings of being genuinely valued

New research from Perkbox suggests many employers are overestimating the effectiveness of their employee recognition strategies. While 78% of UK employees say they feel more motivated when recognition is accompanied by a financial reward, the report’s most significant finding is the gap between how employers believe recognition is being received and how employees actually experience it.

The Science of Reward study, based on responses from 4,000 UK employees and 1,000 HR leaders, highlights a disconnect that could undermine engagement, retention and performance if left unaddressed.

HR and employees see recognition differently

Three-quarters (75%) of HR leaders believe employees feel valued through their organisation’s reward and recognition programmes. However, only just over half of employees agree, leaving a 22-percentage-point perception gap.

A similar divide exists around the quality of recognition. HR leaders are considerably more likely than employees to believe their organisations have created meaningful recognition programmes, suggesting that many initiatives may not be having the intended impact.

Authenticity matters more than budget

The report indicates that improving recognition is not simply a question of increasing budgets. While 38% of HR leaders identified funding as the biggest barrier, others pointed to inconsistent management practices and a lack of time.

At the same time, the findings suggest that meaningful recognition does not always need to come with a financial cost. Nearly three-quarters (72%) of employees said verbal or written praise alone can boost motivation, provided it is timely and genuine.

Tracey Paxton, clinical director at Perkbox, said organisations should focus less on the size of rewards and more on making recognition authentic, frequent and relevant to individual contributions.

Consistency is key

The findings align with wider guidance from the CIPD, which argues that recognition programmes are most effective when they are fair, closely linked to performance and embedded into everyday management practices rather than reserved for occasional formal awards.

Regular appreciation from both managers and colleagues is often more impactful than infrequent recognition delivered through structured schemes alone.

Recognition supports engagement and retention

Beyond motivation, the research highlights recognition’s wider impact on the employee experience. Two-thirds (66%) of employees say feeling recognised increases their loyalty to their employer, while 59% say it strengthens their sense of belonging and 56% believe it makes them more productive.

For organisations looking to improve both employee engagement and customer experience, these findings reinforce the role recognition can play in building a more committed and higher-performing workforce.

Reward Strategy’s response

Recognition is often viewed as the "soft" side of reward, yet the evidence increasingly suggests it delivers hard business outcomes. The challenge for employers isn’t necessarily creating another recognition platform or launching a new award scheme, but equipping managers to recognise good work consistently and authentically.

The 22% gap revealed is perhaps the biggest takeaway. If leaders believe employees already feel valued when many do not, organisations risk solving the wrong problem. Before investing in new recognition initiatives, organisations may benefit from asking a simpler question: Do our people genuinely feel seen?

-Lukas Montgomery

Feeling seen is more valuable than people think. Employee engagement hinges on your employees views of you as an organisation and managing that relationship is key to success- Click here to see our Summit agenda and the sessions dedicates to employee engagment and total reward.

Why Development Is the Most Undervalued Benefit

Mark Bremner — Wed, 08 Jul 2026 10:15:00 GMT

Total reward strategies often focus on salary, pension, benefits, and flexibility. Those matter but in many sectors, the differentiator is increasingly one thing: growth.

People stay where they can see a future. They leave when they can’t.

Development is one of the most undervalued and under-leveraged components of total reward. It is also one of the most powerful because it creates both emotional commitment ("you’re investing in me") and practical value ("I’m becoming more capable and employable").

Apprenticeships and structured development make this tangible. The 4Cs provide a practical framework for embedding development into your reward proposition.

Define the Growth Contract

Many employers offer development but don’t articulate it. Employees hear vague promises like "we support learning" without understanding what that means in practice.

Clarity means making the growth offer explicit:

What learning routes exist
How time is protected
What qualifications are possible
What progression could look like

When the growth contract is clear, employees perceive development as a genuine benefit rather than a nice-to-have.

Publish Your Development Menu

Create a simple development menu for employees that includes:

Apprenticeships available by role
Short courses
Mentoring opportunities
Leadership development
Progression pathways

Keep it visible, accessible and regularly updated.

Qualifications Build Momentum and Pride

Confidence is strengthened by evidence of progress. Apprenticeships provide structured milestones and recognised achievement. That matters psychologically, and it matters commercially.

Employees gain:

Professional identity
Transferable qualifications
Greater confidence in their value

Organisations gain:

Improved performance
Stronger retention
Enhanced internal mobility

Celebrate Development Milestones

Recognise development achievements in the same way you celebrate performance milestones, including:

Course completions
Gateway progression
Qualification achievement

Public recognition builds pride and reinforces the value of learning.

Show That You Build People

Culture is shaped by what an organisation invests in consistently.

When development is embedded into total reward:

Managers make time for learning
Progression conversations become normal
Growth becomes part of "how we do things"

This also supports wellbeing. People cope better with pressure when they feel they are progressing because challenges feel purposeful rather than draining.

Manager Commitment Statement

Ask managers to commit to two behaviours:

Protect learning time.
Hold regular development check-ins.

Then support them with the training they need to deliver on that commitment.

Differentiate Through Development

In competitive labour markets, small pay differences rarely win loyalty. Growth opportunities do.

Creative people leaders position development as a signature benefit:

"Join us and gain a recognised qualification"
"We will build your leadership capability"
"We invest in career pathways, not just roles"

For levy-paying employers, apprenticeships become a highly cost-effective way to deliver this benefit at scale. For others, structured development programmes still provide a strong return on investment through improved retention and performance.

Make Development Part of Your Employer Brand

Include the following in your recruitment marketing:

Learner stories
Progression examples
Qualification outcomes

Make development a headline benefit rather than a supporting message.

The Strategic Takeaway

Total reward is not just what you pay people. It is what you build in them.

Using the 4Cs:

Clarity makes the growth offer explicit.
Confidence comes from recognised progress.
Culture makes development a shared norm.
Creativity turns learning into market differentiation.

When development is positioned as a central benefit, you attract people who want to grow and retain them because they can. That is workforce confidence as a reward strategy.

Want to hear more from Mark and the MBKB team? Join us for their career development sessions at The Reward and Payroll Summit- Click here for more information

World Cup absence: why preparation beats suspicion

Lukas Montgomery — Wed, 08 Jul 2026 09:35:49 GMT

The World Cup has always had the power to disrupt the working day, but England’s 1am clash with Mexico has brought the issue of staff absence into sharper focus.

With the game having kicked off in the early hours of Monday morning, and pubs permitted to stay open until 5am, employers were warned to expect tired workers, late starts and possible last-minute absence.

The challenge is not simply whether employees should be allowed to watch football. It is how organisations balance productivity, fairness and employee wellbeing when major cultural moments collide with working hours.

The “World Cup sickie” may be overstated

Despite familiar headlines around football-related absence, recent data suggests the picture is more nuanced.

Breathe HR analysed attendance data from more than 186,200 UK workers and found no spike in sickness absence after England’s first match. Only 0.72% of workers were off sick the following day, lower than the previous two comparable Thursdays.

Citation’s data tells a similar story. Weeknight England fixtures drove absences as high as 16.4% above normal the following day, but this was largely through planned holiday bookings. Sickness absence was flat or in some cases down by as much as 22%.

This matters because it changes the employer response. If employees are planning ahead, the solution is not a crackdown. It is clear communication, sensible flexibility and consistent processes.

Late-night fixtures create a different risk

England’s overnight fixture created a more difficult challenge. Unlike earlier group-stage matches, there was little time for employees to plan annual leave, and many fans faced the prospect of starting work after only a few hours’ sleep.

Employees do not have an automatic right to take short-notice leave for a football match. Unauthorised absence, dishonestly calling in sick or repeatedly arriving late without agreement could lead to disciplinary action.

However, employers should be careful not to assume every absence is suspicious. Genuine illness still needs to be treated fairly, and any action should follow normal absence procedures. Return-to-work conversations, consistency and evidence-based decision-making remain essential.

Absence is already a wider business issue

The World Cup should also be seen in the context of a broader absence and wellbeing challenge.

Across Europe, absence is becoming a growing concern for employers. In Germany, sick leave has reached an average of 19.5 working days per year, up from around 13 days in 2018, with mental health, musculoskeletal issues and better digital reporting contributing to the rise.

For UK employers, this reinforces the need to treat absence management as a strategic workforce issue, rather than a reactive HR process.

Flexibility can reduce disruption

The TUC has urged employers to show “common sense” by allowing flexibility where possible, including later starts, home working, shift swaps or making up time later in the week.

For employers, this is not about giving football fans special treatment. It is about reducing operational uncertainty.

A planned late start is easier to manage than an unexpected sick call. A shift swap is easier to rota than a no-show. A clear policy is easier to enforce than a rushed decision on Monday morning.

Fairness must remain central

Flexibility should not only benefit office-based employees. Not every role can be done from home, and frontline or shift-based workers may have fewer options.

Employers should consider alternatives such as shift swaps, adjusted start times, time off in lieu, amended breaks or fair overtime arrangements.

The key is consistency. If flexibility is offered, it should be applied transparently and in line with business needs. If requests are refused, managers should be able to explain why.

What employers should do now

Employers can prepare for future fixtures by setting expectations early. This should include reminding staff how to request annual leave, whether flexible working will be considered, how sickness absence should be reported and what standards of conduct apply during and after matches.

Managers should also be encouraged to have open conversations with their teams. Employees are more likely to be honest when they feel trusted, and employers are more likely to maintain productivity when they can plan ahead.

Preparation is the best defence

The World Cup may only last a few weeks, but the workplace lesson is longer term.

Major events will continue to test absence policies, workforce planning and employee trust. Organisations that rely only on suspicion risk damaging morale. Those that prepare early, communicate clearly and apply policies fairly are more likely to protect both productivity and engagement.

The best defence against World Cup disruption is not a crackdown. It is preparation.

Effective Total Reward Communications are key to allowing employees and employers to work in tandem. Join us at The Reward and Payroll Summit to see how efficient communication can help your business thrive- Click here to find out more

In conversation with... Joe Ranzau

Lukas Montgomery — Tue, 21 Jul 2026 10:39:16 GMT

Joe Ranzau, Partner at Grant Thornton, is speaking at the Reward and Payroll Summit 2026! Find out more about Joe and what he’s looking forward to at the Summit below...

What are the most significant challenges facing payroll and reward professionals today?

The hardest challenge is not a new regulation or a new tool. It is that payroll and reward sit downstream of decisions they do not own, and in most organisations the two functions barely talk to each other. I am not saying it never happens. I just do not see it often. Total reward and payroll usually live in separate parts of the organisation, even when both sit inside HR, and the collaboration that should connect them is rarely there.

That separation matters because payroll is the moment of truth where every upstream decision becomes real, legally binding, and visible to the employee. Job architecture lives in HR. Hours live in time and attendance. Headcount lives in finance. None of those systems were built to talk to each other, and neither, too often, are the people who run them.

So the real challenge is accountability without authority. We are asked to guarantee an outcome built on inputs we did not control and cannot always trace. Everything else, compliance pressure, pay transparency, AI, is a symptom of that single structural gap.

What excites you most about participating in Reward & Payroll Summit this year?

It is a rare combination: senior, global leaders in one room, with a genuinely strategic focus. That mix is unusual, and it means you can have an honest conversation about operating model, not just process.

I am looking forward to the international speakers, Max among them, because cross-border complexity is where the most interesting problems live and where the easy answers fall apart. I also value being in Europe for this. You get both the UK and the wider EU perspective in the same conversation, and those views are not identical. That range is exactly what makes the discussion worth having.

Which session or theme are you most looking forward to, and why?

As a theme, the sessions that treat technology as an operating model question rather than a feature question. AI is the obvious headline, but the more useful conversation is what has to be true underneath it for any of it to work. I am drawn to anything that connects the tooling back to ownership and governance.
Specifically, I am looking forward to hearing about how Max van der Klis on the Global Payroll Operating Model session goes. His framing, that you cannot unlock the power of data until you understand your tech stack and how data travels, is the foundation everything else in our AI panel depends on. It sets up the harder questions well.

What’s a common misconception people have about AI & automation in payroll & HR, and how does your session challenge that?

The biggest misconception is that AI fixes broken processes. It does not. It accelerates them. If your inputs are inconsistent, your ownership is unclear, and your workflows live in people’s heads instead of in the business, AI will not clean that up. It will run it faster, at scale, with more confidence than the underlying data deserves.

The second misconception is that this is a technology readiness question. It is not. It is a process question. “Are we ready for AI?” is the wrong thing to ask. The right question is whether your source-to-gross data and processes are clean enough that you would trust an automated decision built on them, with no human in the loop, in front of an auditor.

There is a determinism point the market keeps missing. Payroll is a deterministic obligation. It must produce the identical result that is legally correct and defensible every single cycle. A probabilistic system is a powerful assistant, but it cannot be the system of record for an obligation that has to be exactly right and auditable every time.

And there is a human reality underneath all of it. Payroll professionals do not trust what they cannot see and reverse engineer. That instinct is correct, it is what keeps pay accurate. You cannot easily reverse engineer an AI output, which is precisely why knowing where AI belongs, and where it must not sit, is the actual skill. Not access to the tool.

How does technology connect to broader organisational strategy or business performance?

Payroll is the largest governable cost in most organisations and the one process that, if it fails, stops the company. That alone should put it in a strategy conversation, yet it rarely is. Technology only connects to performance when it is chosen to fit a redesigned operating model, not bolted onto the existing one.

The pattern I see most often is centralisation, or outsourcing, or a new system and a new vendor, all without transformation. That is just relocation. Moving a broken process to a lower-cost location, a third party, or a newer platform does not improve it. It compounds the problem and adds vendors into the mix. Redesign the work first, fit the technology second, and decide the location third. Done in that order, technology drives performance. Done in reverse, it just makes the existing fragmentation more expensive.

What do you hope attendees will take away from your session at Reward & Payroll Summit?

One idea, stated plainly: AI is not a technology play. It is a process play. That is the single thing I think most people still get wrong. The tool is the easy part. The work is upstream.

The second takeaway follows from it. The role has shifted. It is now about orchestration, and not just across departments and datasets, but across technologies and across AI itself. Governance and owning the inputs are part of that orchestration, not separate from it. The professionals who lead the next decade will be the ones who orchestrate the whole picture, not the ones with the most tools.

Where do you see the biggest opportunities for innovation in reward and payroll over the next 2-3 years?

The biggest opportunity is the orchestration layer that nobody owns yet. Agentic AI will take on a large share of routine back-office work, and the centre of gravity shifts from doing the work to governing the inputs that feed the agents. That is a genuinely new role, and the profession that claims it will lead.

Here is the tension I would put to the panel. Most of the innovation conversation is about automating the calculation and the service. I think that is the wrong frontier. The calculation is largely solved. The unsolved problem is upstream, and it is during transformation and consolidation that it is still wildly manual.

We talk about payroll like you push a button and it all happens. Everyone in this room knows how much work sits behind getting to that button. The staging is the hard part. Once everything is in place and connected, it runs. So deploy agentic AI on top of ungoverned, un-staged inputs and you do not innovate. You automate failure at scale, and you do it faster than anyone can catch it. Get the staging right and the agents are extraordinary.

One thing you’re hoping to learn from other speakers at the summit?

How leaders outside the US are handling cross-border fragmentation in practice, not in theory. And I mean the whole of it. It is regulatory. It is cultural. It is vendors and technology. It is perceptions and attitudes about what payroll even is. The reality of running pay across Europe is different from the US conversation, and the international speakers here have lived all of those dimensions at once. I learn the most from the specifics of what actually broke and what they did about it.

Coffee or tea before your big session at Reward and Payroll Summit?

Champagne, and it is always champagne first. But when in London, I am going tea, with milk. Coffee is fine when it is excellent and has a clear owner. It is simply not built for the demands of an afternoon payroll panel in London.
Cheers!

Find out more about Joe’s session, AI & Automation in HR and Payroll, and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

Workers urged to maximise salary sacrifice pensions before 2029 tax changes disrupt savings

Reward Strategy — Wed, 08 Jul 2026 09:36:30 GMT

As the government prepares to cap National Insurance exemptions on pension contributions from April 2029, millions of employees are encouraged to seize the opportunity to boost retirement savings ahead of the reform, which could significantly alter the attractiveness of salary sacrifice schemes.

Millions of workers are being urged to make the most of salary sacrifice pension arrangements before the tax break is pared back in April 2029. The scheme lets employees swap part of their pay for pension contributions before income tax and National Insurance are applied, which can lower monthly deductions while boosting retirement savings. Pension specialists say that, for those who can afford to do so, the next few years may offer an opportunity to lock in valuable savings before the rules change.

National Insurance relief set to be capped from 2029

According to the Government, the planned reform will cap the National Insurance exemption on employee pension contributions made through salary sacrifice at £2,000 a year from 6 April 2029. Contributions above that threshold will be subject to both employee and employer National Insurance contributions, with ministers saying the measure is intended to make the system fairer and more sustainable. Further guidance is expected before the new rules take effect.

Millions of savers likely to be affected

Industry figures suggest the arrangement is already widely used. HMRC data show around 7.7 million employees contribute to pensions through salary sacrifice, while more than 3.3 million are paying in above the £2,000 level and are therefore likely to be caught by the reform. Jason Hollands of Bestinvest by Evelyn Partners told The Guardian that making use of the current rules over the next three years "really makes sense", particularly for people who plan to increase their retirement saving later in life. Former pensions minister Steve Webb was even more direct, saying: "Anything you can sacrifice before April 2029 is worth a look."

Benefits come with important considerations

The potential appeal goes beyond pension saving alone. Because salary sacrifice lowers taxable pay, it can also help some workers reduce higher-rate tax liabilities or cut charges linked to Child Benefit. But advisers also warn that the arrangement is not suitable for everyone. It depends on an employer offering it, and reducing contractual salary can affect entitlements such as maternity pay, sick pay and even some mortgage assessments.

Reward Strategy’s Say

The planned changes to salary sacrifice pensions highlight the importance of clear employee communication around financial wellbeing. While the 2029 reforms may encourage some workers to maximise contributions under the current rules, the reality is that salary sacrifice remains a complex benefit with both advantages and trade-offs. This presents an opportunity to educate employees on how pension savings, tax efficiency and wider financial planning fit together, while ensuring they understand the potential impact on areas such as maternity pay, sick pay and borrowing.

As pension costs and retirement adequacy continue to climb the HR agenda, organisations that provide accessible guidance and support are likely to see greater engagement with one of their most valuable employee benefits.

Join Jeni Morris at The Reward and Payroll Summit, where she’ll run us through What’s Changed? What’s Coming? and Why it Matters? Click here to find out more

PRIS Takeaways: Beyond automation

Lukas Montgomery — Wed, 01 Jul 2026 19:49:22 GMT

We discuss how AI is taking payroll beyond automation, helping teams improve compliance, insight and strategy while keeping people at the centre.

Artificial intelligence has rapidly moved beyond being a future concept and is now becoming an integral part of the payroll function. In the latest Payroll and Reward Insight Series session, Vickie Graham, Managing Director of Reward Strategy, was joined by Patrick Tripp, Senior Director, Product Marketing at UKG, to explore how AI is reshaping global payroll, where organisations should be focusing their efforts, and why success depends on far more than simply automating existing processes.

Throughout the discussion, one message stood out above all others: the future of payroll isn’t about replacing people with AI. It’s about empowering payroll professionals to spend less time on repetitive tasks and more time delivering strategic value.

AI is already part of payroll, whether we realise it or not

One of the first misconceptions Patrick challenged was the idea that AI has suddenly appeared overnight. While generative AI tools such as ChatGPT have accelerated public awareness, many payroll teams have already been benefiting from AI-driven technologies for years through predictive analytics, machine learning and robotic process automation.

Rather than viewing AI as a disruptive new technology, organisations should recognise it as the next stage in the evolution of payroll technology.

Just as recommendation engines quietly power services such as Spotify, Netflix and navigation apps, AI has long been embedded within enterprise software. Today’s difference is that these capabilities have become far more accessible through conversational interfaces, allowing payroll professionals to interact with systems in more natural ways.

Moving beyond the myths

Much of the conversation focused on separating perception from reality.

One of the biggest concerns surrounding AI is that it will replace payroll jobs. Patrick argued that this misses the point entirely. AI excels at automating routine, repetitive work, but human oversight remains essential.

Rather than eliminating payroll professionals, AI creates opportunities for them to focus on judgement, decision-making, stakeholder relationships and solving complex problems.

Equally important was the reminder that AI is not automatically accurate or unbiased. The quality of any output depends entirely on the data it has been trained on and the guidance users provide. Human review, validation and governance remain fundamental.

Patrick likened AI to "a very well-intentioned junior intern"—one that works incredibly hard but still needs direction, coaching and feedback to produce the best results. It’s a simple analogy that reinforces the importance of keeping people firmly at the centre of AI-enabled payroll.

Data quality remains the foundation

While AI may capture the headlines, Patrick repeatedly returned to a less glamorous but arguably more important topic: data.

Without accurate, consistent and connected payroll data, even the most sophisticated AI tools will struggle to deliver meaningful outcomes.

For organisations operating across multiple countries, this challenge becomes even greater. Bringing together payroll, HR, time and attendance, benefits and workforce data into a unified ecosystem creates the foundation that AI requires to generate useful insights and automate decision-making with confidence.

In other words, organisations hoping AI will fix fragmented payroll processes may need to solve those underlying issues first.

Compliance is emerging as one of AI’s strongest use cases

For global payroll teams, compliance continues to be one of the most complex and resource-intensive responsibilities.

Patrick highlighted compliance as one of the areas attracting the greatest interest from organisations worldwide. Managing constantly changing legislation across multiple jurisdictions is increasingly difficult, particularly when information is spread across numerous systems and providers.

AI offers an opportunity to automate much of this monitoring, helping payroll teams compare data across HR, benefits and time systems, identify inconsistencies, monitor legislative updates and flag potential compliance risks before they become costly problems.

Rather than replacing payroll expertise, AI becomes another layer of protection, helping teams stay ahead of an increasingly complex regulatory landscape.

From reactive payroll to proactive payroll

Another major shift discussed was AI’s ability to transform payroll from a reactive function into a proactive one.

Instead of identifying issues only after payroll has been processed, AI can continuously analyse patterns, detect anomalies and identify unusual payroll variances before they become larger issues.

These predictive capabilities allow payroll teams to spend less time investigating problems after the event and more time preventing them altogether.

The conversation also explored the growing role of AI assistants and intelligent agents that can help payroll professionals complete specific tasks, answer employee questions or perform root cause analysis when payroll discrepancies arise.

As these capabilities mature, payroll teams will increasingly work alongside AI rather than simply using it as another software tool.

Scaling AI responsibly

As organisations become more confident with AI, Patrick suggested that the conversation naturally shifts from individual use cases towards enterprise-wide adoption.

He outlined five areas organisations should consider when evaluating their AI maturity:

Using AI to enhance payroll workflows, compliance and employee support.
Building strong data readiness through integrated payroll, HR and workforce information.
Establishing governance, controls and risk management.
Turning payroll data into actionable insights and predictive intelligence.
Scaling successful AI practices consistently across teams, regions and business processes.

Together, these create a roadmap that moves AI from isolated experiments to sustainable business capability.

The human element becomes even more valuable

Perhaps the strongest message from the session was that AI doesn’t reduce the importance of payroll professionals, it increases it.

As routine work becomes increasingly automated, the skills that matter most become critical thinking, judgement, communication, governance and the ability to interpret insights within a business context.

Payroll professionals remain accountable for ensuring outcomes are accurate, ethical and aligned with organisational objectives.

AI can surface information, recommend actions and automate repetitive work, but people continue to provide the expertise, context and trust that organisations depend upon.

Looking beyond automation

The webinar ultimately encouraged organisations to think beyond efficiency alone.

Automation remains an important benefit, but the real opportunity lies in using AI to improve decision-making, strengthen compliance, deliver better employee experiences and position payroll as a more strategic function within the business.

As AI capabilities continue to evolve, the organisations that benefit most are unlikely to be those chasing every new tool. Instead, success will come from combining strong data, clear governance and skilled payroll professionals who know how to work alongside intelligent technology.

The future of payroll, as Patrick concluded throughout the discussion, isn’t about humans versus AI, it’s about humans and AI delivering better outcomes together.

Want to continue the AI discussion? Join us at The Reward and Payroll Summit for our dedicated AI session- Click here for more information

Generation Z reshapes work with multiple income streams and portfolio careers

Reward Strategy — Wed, 01 Jul 2026 08:37:02 GMT

As Generation Z embraces income stacking and flexible career models, employers must adapt or risk losing their youngest talent to a new era of work characterised by multiple streams of income, digital skills, and resilience-building.

Netflix was reportedly exploring so-called "second screen" content, a tacit acknowledgement that audiences increasingly watch while doing something else. The same kind of behavioural shift is now running through the labour market, where Generation Z is not waiting for employers to define a single, linear career. Instead, younger workers are building lives around multiple streams of income, learning, community and side projects, according to the supplied reports.

Multiple income streams become the norm

That change is not merely anecdotal. Research cited by Fiverr says 40% of Gen Z respondents want to freelance in order to create an additional income stream, while only 14% aim to work for major corporations. The same research found just 18% believed staying with one employer was a sensible long-term strategy, and 56% thought traditional employment would eventually become obsolete. The Los Angeles Times, reporting on the same broad trend this month, said nearly half of young adults now earn money from more than one source, with almost 16% of Gen Z holding multiple jobs.

LinkedIn data cited by Outlook Money points in the same direction, showing that nearly three in four Gen Z entrepreneurs earn from more than one source, compared with 62% of Gen X. The pattern is often described as "portfolio careers" or "income stacking": a main job, paired with freelance work, digital products, content creation or other flexible earning. The trend is being amplified by artificial intelligence tools, which are helping younger workers pick up skills faster, automate routine tasks and test ideas with less friction, according to the reports.

Side hustles are becoming platforms for growth

Fiverr’s own examples underline how fluid this new model has become. The platform says demand is rising in areas such as AI-generated content, book indexing, songwriting and copy editing, alongside professional services including finance and data. It also highlights the case of Harlan Rappaport, a digital marketing and lead-generation specialist who combined investment analysis, AI training, a Fiverr side hustle and volunteer work. In that telling, the point is not simply extra cash; it is a structure for resilience, skill-building and purpose.

Employers may need to rethink talent strategies

For employers, the implication is uncomfortable but clear. Younger workers are increasingly resisting the idea that one organisation should supply financial security, professional development, creative fulfilment and social belonging all at once. The reports suggest companies that try to shut down outside work through strict policies or non-compete clauses may end up pushing talent away, while those that support learning, experimentation and broader professional networks could be better placed to retain ambitious staff. In that sense, the question is no longer whether Gen Z is changing work. It is whether employers are prepared to adapt to the new shape of it.

Reward Strategy’s Say

The rise of portfolio careers and side hustles among Gen Z reflects a shift in how younger workers view employment. The research suggests many no longer see a single employer as the sole source of income, development or career security, instead choosing to build multiple income streams that offer greater flexibility, resilience and opportunities to learn new skills. This presents both a challenge and an opportunity.

Organisations that rely on traditional expectations of loyalty may struggle to attract and retain younger talent, while those that support continuous learning, entrepreneurial thinking and flexible career development are likely to be better positioned for the future. The message is clear: Gen Z is redefining what a successful career looks like, and employers will need to evolve alongside them.

Looking to build a reward system that appeals to the future workforce? Join us at The Reward and Payroll Summit, as Dan Bailey runs us through Designing Reward for the Future Workforce- Click here for more information

In conversation with... Jamie Milroy

Lukas Montgomery — Tue, 21 Jul 2026 10:39:05 GMT

Jamie Milroy, CEO of DASH rides, is speaking at the Reward and Payroll Summit 2026! Find out more about Jamie and what he’s looking forward to at the Summit below...

What are the most significant challenges facing reward professionals today?

The defining challenge I keep hearing is a squeeze from both ends. The cost of employing people has stepped up materially, with the National Insurance rise, climbing PMI premiums and more besides. At the same time, thanks to AI, employees are more discerning than ever, while frozen thresholds and the cost of living quietly erode their real pay.

So reward teams are being asked to make people feel better off, having less to do it with, and in front of a sharper-eyed audience.

What excites you most about participating in Reward & Payroll Summit this year?

I’m looking forward to hearing what reward teams are wrestling with on the ground, which is usually more nuanced than it looks from the outside, and this year especially, with everything going on, I expect those conversations to be particularly interesting. What I most enjoy is when someone explains how they solved a seemingly small or esoteric problem and the fix turns out to carry a much broader lesson.

The panel is part of that for me too. I’ll be there to make a case on uptake, and to talk about how we do things at DASH, but I’m just as interested in what the rest of the room makes of it, and what questions come up.

Which session or theme are you most looking forward to, and why?

That’s a tough one. I’m torn between "Confidence Under Pressure: Confronting the Imposter Saboteur in Leadership" and "Designing Reward for the Future Workforce: Using Personas to Build Pay & Reward That Lasts".

I’m very much a "confidence player" and struggle without it, so getting better at managing that appeals to me personally. Equally, we regularly test our platform against different employee personas, to make sure we’re catering for as broad a range of people as possible, so I’m keen to see how others approach it, and whether there are personas we’ve overlooked or not thought through as deeply as we should have.

What’s a common misconception people have about Doing more with less: Maximising Reward impact, and how does your session challenge that?

The big misconception is that uptake is simply a function of communication, that you fix it with more emails, a louder launch, a better-looking benefits portal. I don’t think it usually is.

In my experience people tend to know a benefit is there. They just don’t use it, because the journey is awkward, or they’re being asked to commit beyond what they’re comfortable with, or to act at a moment that doesn’t suit them. You can’t communicate your way out of a benefit that’s hard to use, or force people to act at a time that doesn’t work for them. Cycle to Work is a prime example of all this.

So the point I’ll be pushing on the panel is that low uptake is mostly a product and friction problem, wrongly dressed up just as an awareness problem. Make the thing easy to use, relevant to more people, and put it in front of them at the moment it’s useful, and uptake tends to follow.

How does Doing more with less: Maximising Reward impact connect to broader organisational strategy or business performance?

In our world, benefits are one of the clearest ways an organisation shows it has thought carefully about its people: that it’s paid attention, helped them to something they couldn’t easily get on their own, or shared the load in a hard moment. Done well, it fosters a real sense of togetherness, that the place is looking out for you, and that is what keeps people turning up and performing at their best over sustained periods.

But that multiplier, happier, healthier, more productive people, only comes from benefits that people both use and value, and the two aren’t the same thing. Some get high uptake but little real impact, the sort people would barely miss if they vanished. Others have low uptake but matter enormously to the few who use them.

So maximising reward impact, and the performance that flows from it, isn’t about offering more, and it isn’t only about uptake. It’s about working out which benefits matter most to people, and getting those into as many hands as possible. That’s the difference between a reward package that reads well on a careers page and one that changes how people feel about coming to work.

What do you hope attendees will take away from your session at Reward & Payroll Summit?

A clearer sense of who they’re competing with for employees’ attention, why getting people to use their benefits matters so much, and some practical ways to make it happen.

If people walk away able to look at a benefit with stubbornly low uptake, or one that isn’t delighting the people who do use it, and identify the real culprit, that’s a good hour on a panel.

Where do you see the biggest opportunities for innovation in reward over the next 2–3 years?

I’ll stick to benefits here. The thing that frustrates me most is latency: you decide to sign up for something, then can’t get what you signed up for until the following month, sometimes the one after. That has to end.

More broadly, anything that lets employees act as individuals, on their own timing, rather than being held to organisation-level processes and windows, will be valuable. People make these decisions in the moment, and the benefit should be there in the moment too.

What’s one thing you’re hoping to learn from other speakers at the summit?

What it would take to get them all cycling to work!

On a more serious note, I’d like to learn how reward teams read the data to separate two things: benefits with high uptake but low impact, the ones people would barely miss if they vanished, from benefits with low uptake but high impact, where the few who use them would be lost without them. Take-up alone won’t tell you which is which, and getting better at spotting the difference is the thing I’d most like to take away.

Coffee or tea before your big session at The Reward and Payroll Summit?

Coffee please (flat white, if you’ve got it!)

Find out more about Jamie’s session, Doing more with less: Maximising Reward Impact, and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

Employers unite to launch National Coalition for Workplace Savings

Lukas Montgomery — Mon, 29 Jun 2026 07:53:00 GMT

A new employer-led coalition aimed at improving financial resilience through workplace savings has officially launched.

The National Coalition for Workplace Savings was unveiled with the support of Her Majesty Queen Máxima of the Netherlands in her role as the United Nations Secretary-General’s Special Advocate for Financial Health, alongside Rachel Blake MP, Economic Secretary to the Treasury. The initiative, established through the Government’s Financial Inclusion Strategy, seeks to increase access to workplace savings schemes by encouraging more employers to introduce payroll savings and share best practice across sectors.

Founding signatories include organisations such as the Co-op, Next, First Bus, Mitie, Travelodge, DEFRA and StepChange, with the Coalition aiming to increase both the number of employers offering workplace savings and the number of employees regularly setting money aside through payroll. The initiative is convened by the Money and Pensions Service (MaPS), Nest Insight and The Investing and Saving Alliance (TISA).

Government backs workplace savings

Announcing the launch, Rachel Blake MP said the Coalition represents an important step in helping more people build financial resilience through work.

"Everyone should have the opportunity to build financial resilience, but we know that when household budgets are stretched, saving can be difficult.

"The Government’s Financial Inclusion Strategy creates more opportunities for people to save through workplace savings schemes. Working with employers across sectors, this Coalition will help make workplace savings schemes easier to access and support more working people to build regular savings habits and a financial safety net. I strongly encourage employers to get behind this scheme today."

Why workplace savings matter

The Coalition has been formed against a backdrop of continued cost-of-living pressures, with emergency savings increasingly recognised as a key component of employee financial wellbeing. Workplace savings schemes enable employees to save directly from their salary into an easy-access account, helping them build a financial buffer for unexpected expenses while reducing reliance on high-cost borrowing.

For employers, the benefits extend beyond supporting individual financial resilience. The Coalition highlights evidence that reducing money worries can improve productivity, increase job satisfaction and retention, and reduce sickness absence, making workplace savings an increasingly valuable addition to a broader reward and wellbeing strategy.

Employers unite behind a common goal

Claire Costello, Chief People Officer at the Co-op Group and Chair of the Coalition, said employers have a unique opportunity to make saving more accessible:

"Building consistent saving habits is an important part of improving financial resilience across the UK. With growing evidence of the benefits provided by workplace saving schemes, this collective of employers, supporters and partners will help more people build a financial safety net. By making saving easier and more accessible, workplace saving schemes could transform the savings landscape, and I am excited to work with all involved as the Coalition progresses."

Echoing that sentiment, Sarah Williams, Chief People Officer at OCS UK & Ireland, said workplace savings reflect the everyday financial realities faced by many employees:

"For many colleagues, the gap between a manageable month and a difficult one comes down to whether something unexpected happens. A broken car, a school trip, an appliance that needs replacing. Workplace savings schemes work because they’re built around the realities of how people actually live.

"OCS joined this Coalition because colleague financial wellbeing sits at the heart of what it means to be a responsible employer, and progress at this scale only comes when employers commit to acting together."

A call for more employers to get involved

The Coalition is now calling on more employers to become signatories and introduce workplace savings schemes, with ambitions to increase participation rates and help more employees build a meaningful savings buffer.

Employers from a broad range of sectors have already joined the initiative, alongside industry bodies, solution providers and financial wellbeing organisations committed to supporting its long-term objectives.

For reward, HR and payroll leaders, the launch reinforces the growing importance of financial wellbeing within the employee value proposition. As organisations continue to expand their reward offering beyond pay and pensions, workplace savings schemes are emerging as a practical and scalable way to support financial resilience, improve employee wellbeing and strengthen workforce engagement.

HR leaders may be overestimating workplace trust, research suggests

Lukas Montgomery — Wed, 24 Jun 2026 15:17:35 GMT

HR leaders could be overestimating levels of trust within their organisations, according to new research from Investors in People, which suggests many employees are reluctant to speak up, admit mistakes or raise concerns despite leaders believing trust levels are high.

The study, conducted by Censuswide on behalf of Investors in People, surveyed more than 1,000 employees and 500 HR leaders. While trust was widely recognised as important by both groups, the findings reveal a notable gap between leadership perceptions and employee behaviour.

Trust valued by leaders and employees alike

According to the research, 82% of HR leaders believe employees are trusted to use their judgement at work, while more than half (55%) describe trust as essential to organisational success.

Trust is also highly valued by employees, with 93% saying it is important in the workplace.

However, the findings suggest that while trust may be viewed as a core organisational value, employees do not always experience it in practice.

Employees are protecting themselves and staying silent

The research found that 61% of employees regularly “cover themselves” at work by keeping emails, screenshots or other records, with almost a third (32%) doing so most weeks.

Meanwhile, 65% say they have avoided raising or speaking openly about an issue at work during the past six months.

According to Investors in People, these behaviours may indicate that employees do not feel fully comfortable speaking up, even in organisations where leaders believe trust levels are high.

Eddie Salmon, chief operating officer at Investors in People, said organisations risk “trusting the idea of trust” rather than examining whether employees genuinely feel able to speak openly.

“Trust is not what people say in a survey or what appears in a values statement. It is what people feel safe enough to do. Do they speak up early? Do they admit mistakes? Do they challenge decisions? Do they raise workload concerns?”

Concerns over workload and manager behaviour go unspoken

Employees are most likely to avoid raising issues relating to workload and burnout, manager behaviour, disagreement with organisational decisions, ideas that challenge existing ways of working and concerns about organisational change.

While almost half (49%) of HR leaders believe employees raise issues early when problems arise, a quarter of employees say they would attempt to resolve a mistake or problem themselves before informing colleagues or managers.

“It can be easy to read silence as acceptance, resilience or alignment. In reality it can mean employees have decided that speaking openly feels too risky.”

Low trust impacts performance and engagement

The research also highlights the impact low levels of trust can have on employee behaviour.

When trust in leadership or the wider organisation is low, employees are more likely to focus on self-protection (29%), do only what is required of them (25%), look for a new role (19%) or avoid taking risks and showing initiative (19%).

HR leaders recognise the business implications of these behaviours. Nearly half (48%) identify reduced productivity as a key concern when trust is low, while 37% cite lower levels of engagement.

Salmon said that organisations can lose valuable ideas, energy and early warning signs when employees become more cautious and less willing to raise concerns.

Managers remain central to building trust

The findings also underline the critical role managers play in shaping employees’ experiences of trust.

More than a third (37%) of employees say they would approach their manager first if something went wrong at work. However, one in five employees say their level of trust in the organisation depends largely on who their manager is.

The same proportion say they have avoided speaking up about concerns relating to manager behaviour.

HR leaders identified poor leadership behaviour (37%), inconsistent communication during periods of uncertainty (29%) and inconsistent manager capability (26%) as the biggest risks to trust within organisations.

Communication gaps emerge during organisational change

The research suggests there is also a disconnect between how HR leaders believe organisational change is communicated and how employees experience it.

More than half (53%) of HR leaders say decisions affecting employees’ roles or teams are explained with appropriate reasoning and context. However, only 34% of employees agree.

Similarly, 35% of HR leaders believe employees are consulted before decisions are finalised, compared with just 24% of employees.

Salmon said trust is often tested most during periods of change:

“Employees do not experience trust as an abstract organisational value. They experience it through the person they report to, the decisions that affect them and the way concerns are handled.”

Measuring trust through behaviour

Investors in People said organisations should focus on measuring the behaviours that demonstrate whether employees feel psychologically safe, rather than relying solely on perceptions of trust.

The organisation recommends equipping managers to build trust consistently, creating environments where employees feel comfortable speaking up and involving employees earlier in decisions that affect their work.

The findings suggest that while many organisations view trust as a strength, employee behaviour may provide a more accurate measure of whether trust is truly embedded within workplace culture.

Building trust is essential, and measuring how we do that helps us improve. Join us at The Reward and Payroll Summit to find out how you can increase engagement and build more cohesive reward strategies- Click here to find out more.

Payroll's Strategic Shift: Five Trends Defining the Profession

Lukas Montgomery — Wed, 24 Jun 2026 15:17:11 GMT

It’s no secret that payroll has been seen as the operational function within a business for countless years. The payroll team sorts the payroll, employees are paid, we roll on to next month. Except that’s just not true, and we’ve been underutilising our payroll for years. It’s time to change that.

While accuracy and compliance remain fundamental, recent industry research suggests the profession is undergoing a significant transformation. Payroll is increasingly being recognised as a strategic business function that supports workforce planning, employee experience, organisational resilience and executive decision-making.

As organisations face growing regulatory complexity, increasing employee expectations and rapid technological change, payroll teams are finding themselves at the centre of wider business conversations. Recent reports from Thomson Reuters, SD Worx and other industry commentators highlight several trends that are shaping the future of payroll in 2026:

A move beyond compliance

Perhaps the most significant shift is the growing recognition of payroll as a source of business intelligence rather than simply an administrative process.

According to Thomson Reuters, payroll is "no longer just about compliance and timely payments" but increasingly about "financial intelligence, strategic workforce planning, and boardroom influence."

Your payroll team is the focus of so much company data and utilising that is the difference in innovation. Information traditionally used for processing salaries is now being leveraged to support workforce planning, labour cost forecasting and organisational decision-making.

Payroll leaders are increasingly expected to provide insight into workforce trends, productivity and operational risk, elevating the function’s role within the business.

As payroll gains greater visibility among senior leadership teams, its contribution is becoming measured not only by operational efficiency but also by the value it brings to wider business strategy.

Data is a strategic asset

Research from SD Worx highlights that payroll data contains significant untapped business value, with organisations increasingly investing in data quality, reporting and analytics capabilities. In fact, improving payroll data has become a priority for many employers as they seek better visibility over workforce costs, pay equity and employee trends.

Historically, payroll data was often viewed as a record-keeping function. Today, it is increasingly being used alongside HR and finance data to support strategic planning and business performance analysis.

As organisations place greater emphasis on workforce intelligence, payroll professionals are uniquely positioned to provide insights that can influence everything from budgeting decisions to talent strategies.

The ability to transform payroll data into actionable business information is becoming an increasingly valuable skill within the profession, and highlighting this importance to your board allows you to move from reactive, to proactive.

Employee experience is raising the stakes

While payroll accuracy has always been important, organisations are increasingly recognising its direct impact on employee trust and engagement.

Recent commentary from Thomson Reuters notes that "payroll precision now influences retention, engagement, and credibility." In other words, payroll is no longer simply about avoiding errors; it is about supporting a positive employee experience.

This is particularly important at a time when employee expectations continue to rise. Research from SD Worx found that despite significant technological advances, one in three employees still reports experiencing payroll errors. Even relatively minor issues can undermine trust and create unnecessary friction in the employee relationship.

As a result, payroll teams are becoming more closely aligned with employee experience initiatives, working beside HR and reward functions to ensure employees receive a seamless and reliable experience throughout the employment lifecycle.

Workforce planning is a shared priority

According to SD Worx, more than half of organisations now consider workforce planning a critical business priority. At the same time, many employers are looking for more effective ways to align workforce needs with business objectives.

Payroll data plays an important role in this process. Labour costs remain one of the largest organisational expenses, and payroll systems provide some of the most accurate and comprehensive workforce data available.

This creates opportunities for payroll teams to contribute to discussions around skills planning, workforce forecasting, organisational growth and cost management. Rather than operating in isolation, payroll is becoming more integrated with HR, finance and business planning functions.

As organisations continue to seek greater agility in uncertain economic conditions, the insights payroll can provide are likely to become even more valuable.

Technology integration is becoming essential

Technology continues to be a major driver of change across the payroll profession.

Recent research highlights growing concern around fragmented payroll environments, manual processes and disconnected systems. Organisations are increasingly seeking to integrate payroll, HR and finance platforms to improve efficiency, governance and reporting capabilities.

Industry commentators have suggested that payroll increasingly behaves like critical business infrastructure. As a result, resilience, automation and data integrity are becoming central priorities for payroll leaders.

Integrated technology environments offer several benefits, including reduced manual intervention, improved reporting accuracy and stronger compliance controls. They also enable organisations to make better use of payroll data by creating a more connected view of workforce information across the business.

As payroll continues to evolve, investment in modern technology and automation is likely to remain a key focus area for organisations seeking to improve both operational performance and strategic capability.

Looking ahead

Taken together, these trends point to a profession that is rapidly expanding its influence. Payroll remains responsible for delivering accuracy and compliance, but its role now extends far beyond processing pay.

From workforce planning and business intelligence to employee experience and organisational resilience, payroll is becoming increasingly central to business success. For payroll professionals, the opportunity lies not only in embracing new technologies and capabilities but also in demonstrating the strategic value that payroll can bring to the wider organisation.

The message from the latest industry research is clear: payroll’s future is not simply operational. It is strategic.

So maybe it’s time to reimagine payroll? We aren’t the only one’s who think so! Join us at The Reward and Payroll Summit this year to hear industry leading insight about how the function of payroll can be reimagined for your business- Click here to find out more.

In conversation with... Lara Smart

Lukas Montgomery — Tue, 21 Jul 2026 10:38:54 GMT

Lara Smart, Director of LSC Group, is speaking at the Reward and Payroll Summit 2026! Find out more about Lara and what she’s looking forward to at the Summit below...

What are the most significant challenges facing Payroll professionals today?

Increasing complexity with limited resource, industry talent & skill shortages, data quality issues, transformation fatigue & demonstrating strategic value.

What excites you most about participating in Reward & Payroll Summit this year?

Giving back knowledge, education & Experience alongside industry experts for a rounded view.

Which session or theme are you most looking forward to, and why?

Doing More with Less: Maximising Reward and Payroll Impact Within Constrained Budgets. It’s the undercurrent of everything in a non profit making business critical function - learning how to use what you have to go further in efficiencies will drive strategic leadership.

What’s a common misconception people have about Insourcing vs Outsourcing, and how does your session challenge that?

That outsourcing saves money (and accountability) & insourcing gives you control.

How does Insourcing vs Outsourcing connect to broader organisational strategy or business performance?

Transformation & Agility
Business commercials / cost
Employee experience
Talent management & Skillset Capabilities
Risk & Compliance appetite

What do you hope attendees will take away from your session at Reward & Payroll Summit?

How to step by step approach strategic analysis of whether insourcing or outsourcing is the right model for my business

Where do you see the biggest opportunities for innovation in Payroll over the next 2–3 years?

Real time processing & visibility / transparency Intelligent agents (AI) answering complex queries in system, faster issue resolutions
Improved data quality & automated validation pre payroll
Workforce intelligence lead by payroll
Auto control monitoring & consistent audit readiness

One thing you’re hoping to learn from other speakers at the summit?

What can I apply?
What’s easy that brings effective and efficient results I don’t need to spend loads of money and time on?
What risks & Issues should I be aware of?
What does success actually look like?
What trends are shaping the industry over the next 3-5 years?

Coffee or tea before your big session at the Summit?

Peppermint tea pls 🙂

Find out more about Lara’s session, Insourcing vs Outsourcing: The New Shift in Payroll Operating Models, and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

PRIS Takeaways: Getting the most out of your Payroll Software

Lukas Montgomery — Mon, 22 Jun 2026 06:21:00 GMT

As payroll teams continue to modernise systems, automate processes and support increasingly complex organisational requirements, one theme consistently emerges: success depends as much on people, partnerships and planning as it does on software.

During a recent Payroll and Insight Series discussion, bought to you in partnership with the Payroll Software User Group, payroll leaders and transformation specialists joined Vickie Graham, Managing Director of Reward Strategy, and Lara Smart, Director of LSC Group, shared their experiences of system implementations, supplier relationships and the realities of managing change. While individual circumstances varied, several common themes stood out.

Start with requirements, not software

A recurring challenge raised during the discussion was organisations focusing on software functionality before fully understanding their own requirements.

When selecting a payroll solution, it can be tempting to be drawn towards impressive demonstrations and extensive feature lists. However, successful projects begin with a detailed understanding of business processes, data flows, integrations and future objectives.

Participants highlighted that many implementation issues can be traced back to incomplete requirements gathering. Organisations often focus on the payroll system itself without considering the wider ecosystem of HR, finance and workforce management platforms that must work alongside it.

Understanding how data moves across the organisation, where ownership sits and what future-state processes should look like can significantly reduce complexity later in the project.

The importance of strong supplier relationships

Technology alone does not guarantee success. Several attendees emphasised the value of building genuine partnerships with software providers.

While every vendor will encounter challenges during implementation, organisations that establish open communication channels and collaborative working relationships are often better positioned to resolve issues quickly.

The discussion reinforced that successful implementations are rarely achieved through contractual obligations alone. Instead, they require trust, transparency and a shared commitment to achieving project outcomes.

Where challenges arise, organisations should focus on understanding root causes and working collaboratively towards solutions rather than assigning blame.

Implementation is only the beginning

One of the strongest themes to emerge was that go-live should not be viewed as the finish line.

Many organisations reach a point where payroll is operational, employees are being paid accurately and compliance requirements are being met. However, important optimisation work often remains unfinished.

Reporting capabilities, workflow automation, self-service functionality and process improvements are frequently deferred until after go-live. Unfortunately, once implementation teams disband and project funding ends, these activities can struggle to gain momentum.

Participants stressed the importance of viewing implementation as part of a broader transformation journey rather than a standalone project. Organisations that allocate resources for post-go-live optimisation are more likely to realise the full value of their investment.

Data remains the foundation of transformation

Data quality and data mapping were repeatedly identified as critical success factors.

Whether migrating from legacy systems, introducing automation or integrating multiple platforms, organisations must have a clear understanding of where data originates, how it flows between systems and how it will be used.

Even seemingly simple changes can have significant downstream impacts if data structures, workflows and integrations are not fully considered. Investing time in data cleansing, mapping and governance before implementation can prevent costly issues later.

As one attendee noted, many transformation challenges are complex in practice but often stem from relatively simple data and process issues that were not addressed early enough.

New technology requires new skills

The discussion also highlighted the changing role of payroll professionals.

Modern payroll platforms increasingly rely on automation, configuration, workflows and system administration capabilities. As a result, payroll teams are being asked to develop more technical skills than ever before.

Several participants observed that organisations sometimes underestimate the level of expertise required to maximise the value of modern software platforms. While vendors may position solutions as user-friendly, successful operation often requires dedicated technical knowledge and ongoing system management.

This shift presents both challenges and opportunities, creating new career pathways for payroll professionals while reinforcing payroll’s strategic role within organisations.

Plan for reality, not perfection

Finally, attendees emphasised the importance of realistic project planning.

Implementations rarely run exactly as expected. Budgets, timelines and resource requirements often evolve as projects progress, particularly in complex or global environments.

Building contingency into business cases, budgets and project plans can help organisations manage inevitable challenges without compromising long-term objectives. Rather than aiming for perfection at go-live, organisations should focus on establishing a stable foundation and creating a clear roadmap for continuous improvement.

Looking ahead

Payroll transformation continues to accelerate as organisations seek greater efficiency, improved employee experiences and more strategic use of workforce data. Yet the discussion demonstrated that technology is only one part of the equation.

Successful projects are built on strong partnerships, clear requirements, robust data foundations and realistic expectations. Organisations that take a holistic approach to transformation are far more likely to achieve lasting success and maximise the value of their payroll technology investments.

As payroll continues to evolve, the ability to balance operational excellence with technological innovation will remain a defining characteristic of high-performing payroll functions.

Want to find out more on utilising your system? Click here to join our Payroll Software User Group

HR compliance faces new pressures as AI regulations race ahead

Reward Strategy — Thu, 18 Jun 2026 06:50:00 GMT

HR leaders grapple with rapidly evolving AI, privacy, pay transparency and cross-border employment regulations, demanding seamless integration of compliance into daily operations amid increasing legal and reputational risks.

Compliance in HR is no longer a matter of keeping pace with annual policy updates. As Fuse Workforce argues, the bigger challenge in 2026 is that rules around AI, privacy, pay transparency and cross-border employment are changing fast enough to outstrip the systems meant to enforce them. The result is a new kind of pressure on HR leaders: they are not simply expected to follow the rules, but to interpret them, embed them into day-to-day processes and show evidence of compliance as work happens.

AI adoption creates new compliance risks

The most dangerous exposures are often the least visible. AI is being introduced into hiring, performance and workforce management, but according to Exterro, many employers still lack enough governance, human oversight and vendor accountability to understand how those tools affect privacy and legal risk. That concern is echoed in Paycor’s analysis, which points to bias, transparency and accountability as recurring flashpoints in AI-enabled HR decisions, especially when employers deploy tools without fully testing their impact.

Awareness struggles to keep pace with regulation

A SHRM report on AI in HR in 2026 suggests the scale of the gap is already significant. It found that 57% of HR professionals in areas with AI regulations were unaware of those policies, underscoring how quickly the legal landscape is moving beyond internal awareness. The same report also cited privacy and security concerns as major obstacles to wider AI adoption, showing that the problem is not only regulatory complexity but also basic visibility.

Why manual compliance processes are no longer enough

The temptation, when risk rises, is to respond with more manual checks and more layers of approval. Yet that approach is increasingly brittle. As TechRadar has noted in separate coverage of AI in compliance and workplace systems, automation can help with audits and monitoring, but only if it sits inside a clear governance framework. In practice, that means organisations need audit trails, controlled access, real-time alerts and workflows designed to adapt as laws change, rather than relying on after-the-fact review.

Compliance moves from control function to business infrastructure

That shift matters because the consequences of failure can be immediate. Paycor cites previous disputes involving AI hiring and assessment tools as reminders that compliance failures in this area can quickly become public, legal and reputational problems. Fuse Workforce’s wider warning is that HR can no longer treat compliance as a background control function. In an environment where regulations, systems and workforce data are all moving at once, compliance is becoming part of the infrastructure itself.

Reward Strategy’s Say

AI is the next step for many organisations, allowing for faster responses, collated systems, and the potential of agentic responses to free up the workforce and increase efficiency, but the reality is: are we ready for this? So many unknowns still persist that put organisations at risk when using AI: unintentional programmed bias; transparency in decision making; data and privacy concerns; accountability; and whether these systems work independently or with human oversight. But this boils down to one clear question: Can we prove...? That’s the big takeaway for organisations when implementing AI into their systems, can they still track the data and prove how each decision is made. This will be the difference between successful systems that promote trust, and risk-filled systems that put their organisations at risk.

- Lukas Montgomery

Learning from real use cases is how we will progress. Join us at The Reward and Payroll Summit where industry leading voices will discuss where AI adds value and what’s coming next- Click here for more details

In conversation with... Andrew McAulay

Lukas Montgomery — Tue, 21 Jul 2026 10:35:48 GMT

Andrew McAulay, Head of EMEA Payroll at Illumina, is speaking at the Reward and Payroll Summit 2026! Find out more about Andrew and what he’s looking forward to at the Summit below...

What are the most significant challenges facing Payroll professionals today?

Personally I would say that the key challenges we face is recruiting and retaining top talent within Payroll, and then embracing the rapidly changing software/systems landscape and ensuring we are part of the journey so that we are proactive and engaged with it to maximise the benefits for Payroll.

What excites you most about participating in Reward & Payroll Summit this year?

The best thing about attending the Reward & Payroll Summit is seeing how far the industry has come over the last few years, and having a collection of fellow Payroll professionals who are keen to continue to push the industry forward into the future.

Which session or theme are you most looking forward to, and why?

As I work with the world of Global Payroll, I will be interested in the sessions on Global Payroll Excellence, to see how other people who manage multi-jurisdictional Payrolls are planning for the future, especially around systems and AI, and how they plan on making the most from the recent improvements we are seeing in this area, feeding into strategies for excellence going forward.

I also think it will be interesting to understand more on the Big Rebrand session, as I firmly believe having an excellent customer experience remains one of the top goals for any successful Payroll department.

What’s a common misconception people have about The New Rules of Global Payroll, and how does your session challenge that?

One area that I think Payroll has improved on over recent years, is fellow professionals really looking to understand the market for tools that support Global Payroll, so that we can develop a stand alone strategy for how Payroll can take ownership of this area. In the past, we tended to be more tentative to AI developments over job fears, reactive to new entity roll outs, or being driven by HR system choices or businesses choosing the Payroll partner by sticking with the companies that supported the entities incorporation.

Whereas now, I am seeing more engagement in building out our strategies so we can engage early with senior leaders to explain why it is important for Payroll to own this piece, and engage with the software market to ensure we have the best system/processes in place to support our Payroll requirements.

How does The New Rules of Global Payroll connect to broader organisational strategy or business performance?

A lot of businesses are facing macroeconomic impacts on their operating models in a more complex global landscape, and as such they are looking at ways to innovate to save costs, driving different functions to compete for a limited budget. Therefore, if Payroll is to continue to function within this challenging landscape we need to ensure that we can clearly demonstrate why it is as vital to invest in our function, due to our links to improved business performance (i.e. recruitment & retention), or the risks of reputational damage/financial impacts (i.e. fines for incorrect/late statutory filings) if our strategy is not supported/included in the broader business wide one.

What do you hope attendees will take away from your session at Reward & Payroll Summit?

Hopefully they can take away that we need to be the ones driving the strategy for Global Payroll, and we should embrace the rapidly changing and expanding software landscape to help evolve our strategies to ensure we are viewed as strategically important to the business. There are now lots of ways we can handle Global Payroll, so there are lots of opportunities to showcase how key of a function we are to the success of the business.

Where do you see the biggest opportunities for innovation in Payroll over the next 2–3 years?

Currently for me, excluding AI, is that I see a shift in the Global Payroll model from the more established in country partner (ICP) model, to a software driven model, which will potentially open up opportunities for us, as a software model will help reduce timing drag on our operating model, as we could see Payrolls being calculated within hours, rather than days.

Even the ICP model will see further enhancements using AI, and the ability for clients to own the process more, taking greater control of the processes which will improve our operating flexibility.

One thing you’re hoping to learn from other speakers at the summit?

How they plan on continuing to drive the industry forward, as for me, the more we continue to do this, the more opportunities there will be for Global Payroll Director roles, giving Payroll more access to the SLT within companies (rather than reporting into a Finance Director or HR Director), standing us as a separate key function. This will then help with recruitment and retention, as we can show the benefits of a long, varied and rewarding career within Payroll.

Coffee or tea before your big session at the Summit?

Definitely coffee!

Find out more about Andrew’s session, The New Rules of Global Payroll, and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

The Impact of National Minimum Wage and National Living Wage Changes on UK Payroll: How to Ensure Compliance

Will Jackson — Wed, 17 Jun 2026 16:03:32 GMT

Each year, changes to the National Minimum Wage (NMW) and National Living Wage (NLW) create a ripple effect across UK payroll departments.

These wage rates are legally binding for employers and determine the minimum hourly pay most workers must receive based on their age and employment status.

Recent increases have brought this topic sharply into focus, especially for businesses navigating tight budgets, complex payroll calculations, and compliance demands.

Payroll professionals must stay ahead of these changes to ensure employees are paid correctly and on time. Mistakes in applying the right wage rates can lead to costly penalties, back pay claims, and employee dissatisfaction. Moreover, the evolving structure of wage bands and exemptions means payroll teams must be vigilant and precise.

The latest NMW (National Minimum Wage) and NLW (National Living Wage) changes bring challenges for payroll and it’s vital to any organisation to have strategies to manage compliance effectively. Understanding these dynamics is crucial for employers committed to fair pay and smooth payroll operations in an increasingly regulated environment.

What Are the National Minimum Wage and National Living Wage?

The National Minimum Wage is the minimum hourly pay rate that most workers in the UK must receive. It varies depending on the employee’s age, their position within the organisation and whether they are an apprentice.

For workers aged 23 and over, the National Living Wage applies, which is higher than the minimum wage and reflects the government’s commitment to a “living wage” standard.

These rates are reviewed and adjusted annually by the government, usually announced in the autumn and implemented from the following April, at the start of a new tax year. The goal is to ensure fair pay that keeps pace with economic conditions and cost of living.

Recent Changes and Their Significance

In the latest update, the NLW (National Living Wage) was increased by a notable percentage, affecting millions of workers and thousands of employers across the UK. The rise means higher payroll costs for businesses but also better earnings for employees at the lower end of the pay scale.

These changes are significant because they affect wage calculations, payroll budgets, and compliance requirements. Employers must adjust their payroll systems and pay structures accordingly, ensuring all eligible employees receive at least the updated minimum or living wage, or legal repercussions will commence.

Challenges for Payroll Teams

One of the biggest challenges payroll teams face with NMW (National Minimum Wage) and NLW (National Living Wage) changes is correctly identifying which rate applies to each employee. Age, apprenticeship status, and hours worked can influence the applicable rate, and payroll systems must be configured to handle these variables accurately.

Another challenge is managing retroactive pay adjustments. If wage increases are announced after the start of a pay period or after payroll processing, back pay calculations might be necessary. This requires careful record-keeping and in-depth communication with employees.

Payroll teams also need to monitor working hours carefully. The minimum wage applies to all ‘time worked’, which can include training, travel between sites, and certain breaks. Misclassifying these hours can lead to underpayment and legal risks.

Ensuring Compliance and Avoiding Penalties

Failure to comply with NMW (National Minimum Wage) and NLW (National Living Wage) regulations can result in severe penalties from HMRC (HM Revenue & Customs). Employers found to have underpaid workers may face fines, be required to pay arrears, and suffer reputational damage.

To avoid these risks, payroll teams must keep up to date with rate changes and ensure payroll software is promptly updated. Regular payroll audits can help identify any discrepancies before they become problems.

Clear communication with employees about their pay rates and any changes is also essential. Transparency helps build trust and reduces disputes.

Best Practices for Managing Wage Rate Changes

To manage minimum and living wage changes effectively, payroll teams should first ensure their payroll software is fully updated and capable of handling multiple wage bands and complex calculations. Automation reduces errors and saves time.

Regular training for payroll staff is vital to keep everyone informed about the latest legislation and its practical impact. This includes understanding how to calculate hours worked and what counts towards pay.

Keeping detailed records of hours, pay rates, and communications with employees helps provide evidence in case of audits or disputes.

Finally, engaging with HR and finance teams ensures that wage increases are reflected in budgets and employment contracts, preventing any surprises down the line.

The Broader Impact on Businesses and Employees

Rising minimum and living wages affect more than just payroll calculations. For businesses, increased wage costs may lead to reviewing staffing levels, pricing strategies, or operational efficiencies. Some sectors, like retail and hospitality, feel these impacts more acutely due to their reliance on lower-paid workers.

For employees, higher wages improve financial wellbeing and can boost morale and retention. However, some workers may face reduced hours or fewer benefits if employers adjust to offset increased wage expenses.

Payroll teams play a crucial role in balancing these competing pressures by ensuring accurate, compliant pay while supporting broader business goals.

Looking Ahead: Future Trends in Wage Regulation

The government has signalled ongoing increases in the National Living Wage with a target for it to reach. This means payroll teams should expect continued changes and plan accordingly.

There is also growing discussion around expanding the living wage concept beyond legal minimums, with some employers voluntarily adopting higher pay standards to attract and retain talent.

Technological advancements may further assist payroll teams in managing these complexities, with AI-driven tools helping to forecast costs, automate adjustments, and ensure compliance.

Conclusion

The National Minimum Wage and National Living Wage remain central to UK payroll management. Each change brings challenges but also opportunities to support fair pay and employee wellbeing.

Payroll professionals who stay informed, invest in the right tools, and maintain clear communication can navigate these changes smoothly. In doing so, they help their organisations comply with the law, manage costs effectively, and foster a motivated workforce.

In an environment where wage regulations are increasingly scrutinised, by governments, advocacy groups, and employees alike, vigilance and adaptability are no longer optional traits for payroll teams; they are essential. Organisations that embrace these principles don’t just comply with the law; they future proof their operations, cultivate a culture of fairness, and empower their workforce to thrive.

Ultimately, the success of payroll management in the UK hinges on more than technical accuracy. It’s about aligning financial responsibility with social responsibility, ensuring that every payslip reflects both the law and the values of the organisation.

In this evolving landscape, the payroll function becomes more than a back-office task, it becomes a strategic driver of equity, stability, and growth.

Understanding legislative changes effects the day to day of your payroll department. Join us at The Reward and Payroll Summit to hear expert insights about what’s changed and what’s coming- Click here to find out.

Teal and IRIS partner on income and employment verification

Lukas Montgomery — Tue, 16 Jun 2026 12:43:21 GMT

Income and employment verification platform Teal has partnered with IRIS Software Group to enable lenders and financial services providers to access payroll-verified employment and income data for millions of UK workers.

The integration will see IRIS join Teal’s network of payroll and HR software providers, allowing lenders, brokers and fintech firms to verify an applicant’s employment status and income directly through payroll records, rather than relying on payslips, employer references or other manual checks.

IRIS provides payroll and HR software to more than 300,000 UK organisations and processes payroll for around one in six UK employees. Through the partnership, organisations using Teal’s verification platform will be able to access employment and income data relating to workers paid through IRIS payroll systems.

Reducing verification friction

Income verification remains a significant challenge across lending and financial services, with many organisations still relying on document uploads, open banking journeys or manual employer checks. These processes can create delays, increase administrative workloads and contribute to application drop-off.

Under the new arrangement, lenders submit basic applicant information through Teal’s platform, which then matches those details against payroll records held by participating providers. Verified information on employment status, income and employer details is returned through a single API connection.

The companies say the process is designed to take place in the background without requiring applicants to upload documents or log into third-party systems.

Growing role of payroll data

The partnership reflects the growing role payroll data is playing within the wider financial ecosystem, particularly as organisations seek more reliable and timely ways to assess affordability, verify employment and reduce fraud.

For payroll providers and employers, the development highlights increasing demand for secure, controlled access to workforce data beyond traditional HR and payroll functions. As payroll information becomes more widely used to support lending and financial decision-making, questions around data governance, consent, security and employee trust are likely to remain key considerations.

Stephanie Coward, Managing Director for HCM at IRIS, said the partnership supports the company’s aim of enabling payroll data to be used securely while delivering value to both customers and the wider financial services sector.

The announcement comes amid broader industry efforts to streamline income verification processes and improve access to verified employment data, as lenders seek faster decision-making and more robust approaches to affordability assessment.

Want to know the latest on how your Payroll data can help you? Join us at The Reward and Payroll Summit- Click here to find out more.

Almost half of employers remain silent on ethnicity pay gap reporting

Reward Strategy — Fri, 12 Jun 2026 09:29:00 GMT

A survey reveals that 46.1% of employers do not publish ethnicity pay gap data, highlighting uneven transparency as the UK prepares to make reporting mandatory for large organisations amid ongoing diversity efforts.

Almost half of employers still do not publish ethnicity pay gap data, according to a poll of Employee Benefits readers that suggests transparency remains uneven even as reporting looks set to become mandatory. The survey found that 46.1% of respondents said they do not disclose the figures, while 38.5% said they do publish them and 15.4% were unsure whether they do so.

Mandatory reporting moves closer

The findings come as the UK government prepares to introduce compulsory ethnicity and disability pay gap reporting for large employers. In March 2026, ministers said organisations with 250 or more staff would have to publish six pay-gap measures alongside workforce composition data, with the policy intended to build on the existing gender pay gap regime. The government said 87% of consultation respondents backed the move, and the Regulatory Policy Committee has since given its impact assessment a green rating.

Voluntary disclosures highlight persistent gaps

Recent voluntary disclosures show why the issue is likely to remain under scrutiny. In April, Employee Benefits reported that British Airways posted a 41% mean ethnicity pay gap for 2025, narrowly down from 42% a year earlier, while its median gap edged down to 14% from 15%. Hachette UK also reported progress, with its mean ethnicity pay gap falling to 15.1% from 16.9% and its median gap easing to 8.9% from 13.4%.

Representation and transparency remain ongoing challenges

The wider picture, however, is still one of limited representation and incomplete disclosure. Hachette UK said it is aiming to increase representation of Black, Asian, mixed-heritage and ethnically diverse employees to 18.3% by 2026, up from 15.7% currently. Separately, Grant Thornton UK has expanded pay gap reporting to include class and disability data, reflecting a broader push among some employers to treat pay transparency as part of a wider equality agenda.

Reward Strategy Says

The findings highlight the growing importance of ethnicity pay gap reporting as the UK moves towards mandatory disclosure requirements for larger employers. While many organisations have yet to publish ethnicity pay data, forthcoming legislation will require employers with 250 or more staff to report a range of pay gap metrics alongside workforce composition figures, increasing scrutiny of pay equity and diversity outcomes. Recent disclosures from major employers demonstrate that significant gaps persist despite gradual progress, reinforcing the need for robust workforce data, transparent reporting and targeted inclusion strategies. Reward teams should begin preparing for the new reporting framework by reviewing data collection processes, analysing pay disparities and ensuring they can communicate results and action plans effectively to employees and stakeholders.

Zero-hours contract reforms face union and industry criticism amid push for more predictable work hours

Reward Strategy — Fri, 12 Jun 2026 07:35:00 GMT

The UK government has launched a consultation on new rules to curb exploitative zero-hours and flexible contracts, promising greater earnings stability and schedule control, but facing opposition from unions and industry groups over proposed guarantees and notification requirements.

The government has opened a consultation on plans to curb zero-hours and similarly flexible contracts, setting out proposals that ministers say are designed to give workers more predictable earnings and more control over their schedules. According to the Department for Business and Trade, the reforms are intended to end what it calls one-sided flexibility and cover rights to guaranteed hours, reasonable notice of shifts and compensation when shifts are changed or cancelled at short notice.

Changes form part of wider employment rights reforms

The consultation sits within the wider Employment Rights Act 2025, the legislation that followed the Employment Rights Bill after it received Royal Assent in December 2025. Ministers say the changes could affect more than one million workers directly, while government publicity around the launch suggests many more people face uncertainty over weekly hours and pay. The consultation closes on 25 August 2026, with the new regime expected to be phased in afterwards.

Debate grows over proposed guaranteed hours

One of the most contentious elements is the proposal for guaranteed hours based on a 12-week reference period, with the government’s preferred range set at between eight and 20 hours a week. That has prompted criticism from trade unions, which argue the baseline is too low and could leave many staff trapped on short-hours contracts while still regularly working more than they are formally offered. Usdaw’s general secretary, Joanne Thomas, has said that many retail workers already face that mismatch, with hours that can be reduced at the employer’s discretion.

Employers warn against excessive rigidity

Business groups have also warned that the package may be too rigid for sectors that rely on fluctuating demand. UKHospitality has argued that standard zero-hours arrangements remain important for seasonal industries, while the British Retail Consortium has criticised the idea of lengthy notice requirements for shift changes as unrealistic on the high street. The Living Wage Foundation has separately said that almost a third of working adults receive less than a week’s notice of their hours, underscoring the scale of instability ministers are trying to address.

Reward Strategy Says

The government’s consultation on reforms to zero-hours and flexible contracts signals potentially significant implications for workforce planning, payroll administration and labour costs. The proposals would introduce rights to guaranteed hours, advance notice of shifts and compensation for short-notice cancellations, with the aim of improving income security for employees. While unions argue the proposed guaranteed-hours threshold may not go far enough, employers have raised concerns about reduced flexibility and increased administrative burdens, particularly in sectors with fluctuating staffing needs.

All this means we should monitor the consultation closely, as the changes could require updates to scheduling practices, contract management, payroll processes and budgeting for additional compensation liabilities.

Want to hear the latest insights about changing legislation? Join us for The Reward and Payroll Summit. -Click here to find out more.

Pension master trusts unite to overhaul sluggish transfer system and boost member outcomes

Reward Strategy — Thu, 11 Jun 2026 07:31:00 GMT

Eight of the UK’s largest pension master trusts have launched Pathfinder, a collaboration to modernise pension transfer processes, reduce delays, and prepare for increased activity driven by pensions dashboards and small-pot consolidation.

Eight of the UK’s largest pension master trusts have formed a new industry group in an effort to modernise a transfer system widely criticised for being too slow, too fragmented and too dependent on outdated processes. The coalition, known as Pathfinder, includes Nest, Smart Pension, People’s Pension and Now:Pensions, and together they oversee more than £162.7bn for 14.5 million savers.

Focus on reducing friction and improving security

According to the participating trusts, the group will look at how pension transfer infrastructure can be brought up to date, with a particular focus on smoother validation, common data standards and less friction for members moving pots between providers. The aim is not simply speed for its own sake: Gavin Perera-Betts, Nest’s chief customer officer, said member outcomes, fraud prevention and protection from unauthorised access must remain central to any reform.

Transfer delays remain a persistent problem

The initiative arrives as the industry braces for a sharp rise in transfer activity. PensionBee analysis has shown that some providers take many times longer than others to complete transfers, with the slowest cases stretching to 47 to 90 days compared with as little as five days at the fastest end of the market. The average transfer time has stayed broadly unchanged at 23 days, but the laggards have become even slower, while some firms have also been accused of using so-called sludge practices, such as paper-based signatures, to make transfers harder.

Dashboards and consolidation set to increase demand

Pathfinder is also preparing for the expected effect of pensions dashboards and small-pot consolidation. Industry estimates suggest dashboards could trigger the consolidation of more than 13 million small pots worth £1,000 or less, increasing pressure on an already stretched system. Related industry reporting says transfer volumes are expected to more than double, with small pots forecast to reach 17.5 million by 2030, making better pre-transfer checks and more scalable processes increasingly important.

Industry seeks a more efficient future system

Angela Staral, chief operating officer at People’s Pension, said transferring a pension is not the same as switching a bank account because the decisions involved can affect retirement income for years to come. Even so, she argued that once savers have made an informed choice, the mechanics should be as straightforward as possible. Industry publications say Pathfinder is inviting more master trusts to join, as the sector looks to adopt open, interoperable standards and earlier data checks to reduce rejections and delays.

Reward Strategy Says

The launch of the Pathfinder coalition highlights a growing industry focus on improving pension engagement and administration efficiency as pension transfer volumes are expected to rise significantly. The initiative aims to streamline transfer processes through better data standards, stronger validation checks and enhanced security, helping to reduce delays that can currently leave savers waiting weeks or even months for transfers to complete. With pensions dashboards and small-pot consolidation likely to increase member activity and expectations, employers and pension scheme stakeholders should monitor the effect closely, as more efficient transfer systems could improve member experience, support retirement outcomes and reduce administrative friction across workplace pension arrangements. But this isn’t just about your older generation workers. Improvements in pensions will resonate with the younger employees as the growth of mistrust around government pensions rises amongst them.

Flexible working stigma continues to push parents out of the labour market

Reward Strategy — Thu, 11 Jun 2026 06:33:00 GMT

New research reveals that inflexible work practices are forcing parents with young children to leave jobs or forgo career advancement, prompting calls for mandatory transparency in flexible work arrangements.

A growing body of evidence suggests that inflexible working is pushing parents out of jobs and into difficult financial trade-offs, with fresh polling showing that more than a third of workers with children under seven have left a role because it would not fit around childcare.

Lack of flexibility affects recruitment as well as retention

The Opinium survey, highlighted by The Independent and echoed in a separate TUC briefing, found that 30% of parents with young children had seen informal requests for flexibility refused, either wholly or partly. More than half of prospective applicants said they were less likely to apply for a post if they could not tell whether the hours or location would suit their lives, underlining how employers’ recruitment practices can narrow the pool before interviews even begin.

Trade unions call for stronger action

The TUC says that is not just a family issue but a labour-market one. General secretary Paul Nowak argued that flexible working is "a lifeline for working families", adding that rigid workplace culture is still excluding parents from jobs and harming retention. The union wants ministers to go further than existing reforms by requiring employers to advertise whether roles can be done flexibly.

Research highlights the scale of the problem

That concern is shared by the Chartered Institute of Personnel and Development, which says around 4 million UK employees have changed careers because of a lack of flexibility. The Nuffield Foundation has also warned that one in three flexible working requests are rejected, while many mothers end up sacrificing pay or promotion prospects to secure the arrangements they need.

Lower earners face greater barriers to flexibility

The issue is especially acute for lower earners. The TUC has separately said that 53% of new fathers and partners who asked for flexibility did not get what they requested, with rejection rates even higher among those earning under £40,000. A wider survey cited alongside the flexible working research suggests that workers are already under pressure from rising living costs, making it harder to absorb the loss of income that can come with leaving a job or reducing hours.

Flexible working increasingly seen as a necessity

For campaigners, the case is becoming clearer: flexible working is no longer a benefit to be granted selectively, but a basic condition for keeping parents, and others with caring responsibilities, in work. They argue that businesses which fail to adapt risk losing experienced staff at a time when recruitment remains difficult and skills shortages persist.

Reward Strategy Says

The latest research reinforces the growing business case for flexible working as both a retention and recruitment tool. With surveys suggesting that a significant proportion of parents have left roles due to inflexible working arrangements, uncertainty over working patterns is deterring potential applicants before they even apply. With evidence indicating that lower-paid workers face greater barriers to securing flexibility, employers may face increased turnover, recruitment costs and workforce planning challenges if flexible options are not readily available. As policymakers and unions continue to push for stronger flexible working rights, organisations should review their policies, reward strategies and workforce practices to ensure they remain competitive in attracting and retaining talent, particularly among employees with caring responsibilities. Flexibility is losing its title as a benefit, and gaining one as an expectation.

In conversation with... Paul Simpson

Lukas Montgomery — Tue, 21 Jul 2026 10:35:36 GMT

Paul Simpson, Senior Director of Payroll and People Operations at Ralph Lauren, is speaking at the Reward and Payroll Summit 2026! Find out more about Paul and what he’s looking forward to at the Summit below...

What are the most significant challenges facing Payroll professionals today?

Compliance and managing the constant change. Cybersecurity and data privacy.

What excites you most about participating in Reward & Payroll Summit this year?

The opportunity to network with my fellow peers and hear about exciting new updates.

Which session or theme are you most looking forward to, and why?

Maximising Reward & Payroll Impact within constrained budgets.

Reward budgets are constantly being squeezed, and we are often asked to do more with less so any insight into how to do this will be very helpful!

What’s a common misconception people have about Reimagining Payroll as a Customer Experience Function, and how does your session challenge that?

Payroll is one of the few departments which touches every single employee and department in the organisation.

We have a massive impact on employee wellbeing and engagement, and Payroll leaders need to recognise and embrace this important fact and not be afraid to highlight this impact speaking with senior leaders.

How does Reimagining Payroll as a Customer Experience Function connect to broader organisational strategy or business performance?

People are an organisations most valuable asset and pay & benefits is the most tangible expression of how an employer takes care of them. A positive Payroll experience enhances employee wellbeing, engagement and strengthens talent attraction and retention, by using modern pay services, such as EWA.

What do you hope attendees will take away from your session at Reward & Payroll Summit?

That Payroll is far more important to an organisation than paying it’s employees at the end of the month, it’s about building trust and making a real difference to employees’ lives.

Where do you see the biggest opportunities for innovation in Payroll over the next 2–3 years?

AI is the obvious answer, as it will help streamline many processes, we have today, but just as importantly I will be used to extract our data more easily which will enable Payroll to become more strategic to support company decision making.

One thing you’re hoping to learn from other speakers at the summit?

There is never one thing! I attend these events with open ears and mind looking to learn from my peers in order to constantly improve what we do at Ralph Lauren.

Coffee or tea before your big session at the Summit?

I’m going to live to 100, which makes me bit health obsessed, so I prefer water!!

Find out more about Paul’s session, Reimagining Payroll, and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

Technology: Digital Transformation Requires Human Capability

Mark Bremner — Wed, 10 Jun 2026 08:00:00 GMT

New systems are implemented. Processes change. Data flows shift. Automation is introduced. And then adoption stalls. Workarounds appear. Managers complain that the system “doesn’t work.” Data quality drops. Risk increases.

The truth is uncomfortable: digital transformation is fundamentally human transformation.

For HR Directors and People Leaders, this is good news. It means success is not only about IT budgets and vendor selection. It’s about capability, confidence and culture areas HR can lead powerfully.

Apprenticeships and structured development provide a practical bridge between technology strategy and workforce readiness, especially when guided by the 4Cs.
Clarity: define what “digital competence” means

Many organisations talk about “digital skills” as if it’s a single capability. It isn’t.

Digital competence includes:

system literacy (using tools correctly),
data literacy (understanding what data means),
governance (security, privacy, compliance),
process discipline (following workflows),
and change agility (learning new ways of working).

Clarity means naming these capabilities and aligning them to roles. Apprenticeships and structured training can then build them intentionally rather than hoping they emerge organically.

Practical tool: digital capability role profiles

For each function, define:

essential systems,
essential data responsibilities,
and required behaviours.

Then identify development pathways that build those capabilities (apprenticeships, modular training, coaching).

Confidence: adoption requires psychological safety

People resist technology when they feel exposed. If a new system makes errors visible, slows them down initially, or changes what “good performance” looks like, anxiety rises.

Confidence comes from supported practice:

training that matches real workflows,
time to learn without penalty,
and managers who model learning rather than perfection.

Structured programmes create this support. Apprenticeships in digital, business administration, HR, and leadership include reflective practice and coaching building confidence not just to use tools, but to adapt continuously.

Practical tool: the “first 30 days” adoption plan

For any major tech change, plan:

weekly practice sessions,
peer champions,
a safe feedback channel,
and micro-learning refreshers.

Measure confidence, not just completion.

Culture: build a learning culture, not a compliance culture

Technology programmes often create a compliance culture: “complete the training,” “tick the module,” “follow the instructions.” This produces surface adoption, not sustainable capability.

A learning culture encourages:

questions,
experimentation,
and improvement.

HR can shape this culture by embedding learning time, recognising progress, and normalising “learning out loud.” When apprenticeships are part of the ecosystem, continuous learning becomes visible and structured.

Practical tool: celebrate learning behaviours

Recognise:

people who improve a process,
who share learning,
who help colleagues,
and who raise risks early.

Culture shifts through what leadership applauds.

Creativity: align technology investment with development investment

The biggest mistake organisations make is spending heavily on systems while underinvesting in human capability. That imbalance creates fragility.

Creative People Leaders integrate development with tech strategy:

apprenticeship pathways aligned to transformation programmes,
role-based capability upgrades,
and management development focused on leading change.

This turns technology from disruption into opportunity and prevents digital systems from exposing skills gaps that were already present.

Practical tool: the “tech + talent” business case

When approving new systems, include:

development cost,
learning time allocation,
adoption support roles,
and capability metrics.

Make capability part of ROI, not an afterthought.

The strategic takeaway

Digital transformation succeeds when the workforce is ready not just when the system goes live.
Using the 4Cs:

Clarity defines digital competence for each role.
Confidence creates safe adoption and change agility.
Culture turns training into continuous learning.
Creativity aligns tech spend with talent development.

For HR Directors and People Leaders, this is a strategic opportunity: lead digital transformation by leading human capability and build workforce confidence that outlasts any single system.

Want to hear more from Mark and the team at MBKB? Click here to see more about their career development workshops at The Reward and Payroll Summit

Timing challenges hinder effective workplace analytics in decision-making

Reward Strategy — Wed, 10 Jun 2026 07:30:00 GMT

Organisations face critical timing issues in leveraging workplace data, with delayed insights undermining quick decision-making amid fragmented systems and trust concerns, as they strive to optimise space and employee experience.

Workplace decisions are increasingly being made on the move, while the evidence that should inform them often arrives after the moment has passed. In office environments, that can mean a request for more desks, fewer desks, extra rooms or different support arriving long before the relevant data has been cleaned, interpreted and shared. According to the article, that timing problem is now central to the wider challenge of workplace analytics: the issue is not simply whether organisations have data, but whether they have it soon enough to act on it.

Why leaders still rely on instinct over insight

The pressure is real. The lead article says 60% of UK leaders now have less time to decide than they did a year ago, while Oracle research found that 72% of leaders have been blocked from acting because they faced too much data and too little confidence in it. That combination helps explain why many workplace choices still rely heavily on instinct, anecdote and the loudest complaint in the room, rather than on a trusted signal that arrives at the right moment.

Analytics only matter when someone acts on them

The problem is not that workplace analytics are useless. Properly used, they can reveal overcrowded floors, underused rooms, service failures, hybrid friction and patterns of meeting overload. Yet, as the article argues, visibility only matters if someone is responsible for turning it into action. A dashboard that repeatedly shows the same Tuesday congestion is not a solution if no one is empowered to change staffing, space rules or room reliability before the next peak day.

The risk of misleading workplace metrics

Timing also affects how data is interpreted. Low average utilisation can look like proof that organisations are paying for too much space, even when certain days are badly stretched. The article cites OfficeSpace data showing average peak utilisation of 25% across 954 organisations in 2025, alongside the reminder that workplace spending can account for 10% to 20% of P&L. It also points to Forrester research linked to Cisco Spaces showing that 25% of scheduled meetings were “zombie meetings”, with rooms booked but unused. Taken together, those figures show how one metric can suggest surplus while another points to scarcity.

Too much data and too little clarity

There is also a broader trust problem. IBM has said that 76% of businesses have made decisions without consulting data because it was too hard to access, and that requests for data can take one to four weeks to turn around. Oracle’s research, meanwhile, suggests that decision distress is widespread, with leaders struggling to separate useful signals from noise. The article argues that this is why so many organisations drown in charts but still fail to answer the basic questions fast enough: what changed, why it matters and what should happen next.

Fragmented systems create an incomplete picture

A further complication is fragmentation. Workplace information often sits across booking systems, badge records, sensors, HR platforms, collaboration tools, ticketing systems and employee feedback channels. Each may be accurate on its own, but none tells the full story. The article warns that booking data shows intent, badge data shows arrival and sensors show presence, yet none of that proves whether work improved, whether the office experience was better or whether people simply found a way around a broken system.

Different decisions require different reporting speeds

That is why the most useful workplace analytics are matched to the speed of the decision. Live or near-live data can help with room failures, access problems, peak-day congestion and support gaps. Weekly or monthly reporting may be perfectly adequate for broader issues such as workload trends, policy friction or space redesign. The mistake, the article says, is treating every workplace question as though it belongs on the same reporting cycle.

Starting with the decision rather than the dashboard

The practical answer is to start with the decision, not the dashboard. Organisations need to define the specific problem, identify the signals that would genuinely change the call, assign ownership and set a threshold for action. They also need to keep the system trust-safe, using data to support better workplace decisions rather than to police individual behaviour. If employees believe analytics exists to catch them out, they will adapt their behaviour and undermine the quality of the very data leaders depend on.

Reward Strategy Says

As the demand for data rises there’s a growing challenge in turning workplace data into timely, actionable insight. As organisations make faster decisions about hybrid working, office utilisation and employee experience, the value of analytics increasingly depends on whether the right information reaches decision-makers quickly enough to influence outcomes. Fragmented data sources, reporting delays and information overload often lead leaders to rely on instinct rather than evidence, despite significant workplace costs and operational implications. For employers, the key lesson is that effective workplace analytics should be aligned to specific business decisions, supported by clear ownership and trusted by employees, enabling organisations to make more informed choices about workforce planning, workplace investment and employee experience without undermining trust or engagement.

Parental leave falls behind as comparable countries reform family support policies

Reward Strategy — Tue, 09 Jun 2026 16:30:00 GMT

A new report highlights how the UK’s parental leave system lags behind Australia and Poland, calling for redesigns centred on fair pay and non-transferable rights to promote gender equality and better childcare support.

A new study has warned that the UK’s parental leave regime is lagging behind comparable countries, with researchers arguing that low statutory pay, limited support for fathers and weak links with childcare are holding back progress towards more equal caregiving. Launched at a House of Commons event, the report from King’s Global Institute for Women’s Leadership, produced with Working Families, says the UK has a broad set of rights on paper but that complex rules and poor pay mean many parents cannot use them in practice.

Low pay and limited uptake undermine existing rights

The report compares the UK with Australia and Poland, and says the difference lies not just in the level of entitlement but in how the schemes are built. In the UK, statutory pay drops to a flat rate after the first six weeks of leave, while fathers are generally entitled to just two weeks of paternity leave at the same rate. Shared Parental Leave has also had little impact, with the report saying only about 1% of mothers and 4% of fathers or partners have used it. Researchers argue that this keeps mothers in the role of default carers and leaves families with few realistic options for sharing care.

Australia and Poland show alternative approaches

By contrast, Australia and Poland are presented as examples of how better design can change behaviour. According to the report, Australia has expanded paid parental leave, introduced reserved leave that parents cannot transfer to each other, and started paying pension contributions on government-funded leave. Poland, meanwhile, introduced two months of earnings-related, non-transferable leave for fathers under the European Union’s Work-Life Balance framework, lifting take-up from around 1% before reform to 24% in 2025.

Calls for a redesigned system centred on equality

The report says the UK should move away from simply promoting Shared Parental Leave and instead redesign the system around three principles: properly paid leave, individual rights that fathers and partners cannot hand over, and better coordination with childcare. It also warns that parental leave reform cannot be separated from childcare policy or flexible working rights. Sarah Russell, the Labour MP for Congleton, said ring-fenced paid leave for fathers and non-birthing parents should be seen as essential to a more equal society, while Professor Heejung Chung said properly paid, non-transferable leave is an economic policy as much as a family one. Jane van Zyl, chief executive of Working Families, said parents need a system that works as family infrastructure rather than a complicated benefit few can afford to use.

Reward Strategy Says

There are growing calls for the reform of the UK’s parental leave framework, highlighting concerns that low statutory pay and limited support for fathers are restricting uptake and reinforcing traditional caregiving patterns. Better-paid, non-transferable parental leave and closer alignment with childcare provision could improve workforce participation, gender equality and talent retention. With international examples demonstrating higher take-up rates among fathers following targeted reforms, employers may face increasing pressure to enhance occupational parental leave benefits beyond statutory minimums. Reward teams should monitor policy developments closely, as any future changes could have significant implications for leave policies, workforce planning, gender pay gap objectives and broader employee value proposition strategies.

PRIS Takeaways: Unlock the Power of EU Pay Transparency

Lukas Montgomery — Wed, 10 Jun 2026 15:19:57 GMT

With the EU Pay Transparency Directive beginning to take effect across member states, employers are increasingly shifting their focus from understanding the legislation to preparing their organisations for a more transparent future.

Speaking during the latest Payroll & Reward Insight Series, Katherine Murray, Senior Reward Consultant and EU Pay Transparency Proposition Lead at Gallagher, and Vickie Graham, Managing Director at Reward Strategy, argued that while the directive may not directly apply to many UK employers, its influence is already being felt across reward strategies, talent practices and employee expectations.

The directive is accelerating a broader transparency trend

While the UK remains outside the scope of the EU legislation following Brexit, Murray noted that many organisations are paying close attention to developments across Europe.

She described the directive as an acceleration of trends that have already been developing through gender pay gap reporting and wider conversations around fairness, equity and inclusion.

Countries across Europe are implementing the directive at different speeds, but the direction of travel is clear. Organisations are increasingly expected to be able to explain and justify pay decisions, demonstrate fairness and identify the root causes of pay disparities.

Preparation starts with reward fundamentals

One of the strongest themes from the discussion was that successful pay transparency starts long before salary ranges are published.

Murray highlighted three priority areas for organisations beginning their preparation:

1. Revisit your reward strategy

Organisations should first ensure their reward strategy clearly supports business objectives, values and long-term workforce goals. Pay transparency should not be treated as a standalone compliance project but as part of a broader reward philosophy.

2. Build a robust job architecture

Job architecture was repeatedly identified as a critical foundation. Clear job families, levels and role definitions help organisations create consistency, reduce subjectivity and provide employees with greater visibility over career progression opportunities.

As Murray noted, job architecture acts as the framework that connects pay, performance, development and promotion decisions.

3. Strengthen pay structures

A well-defined pay structure provides the backbone for transparency. It helps ensure employees are rewarded fairly based on role, skills, experience and performance while reducing the risk of inconsistent decision-making.

Communication could be the make-or-break factor

While organisations often focus heavily on data, structures and compliance, attendees heard that communication and culture may ultimately determine whether pay transparency succeeds.

Murray stressed that managers will become the face of pay transparency within organisations. As a result, businesses must equip leaders with the skills and confidence to have informed conversations about pay, progression and reward decisions.

Without clear communication, even the strongest technical frameworks risk creating confusion or mistrust.

Transparency is about trust, not just reporting

The discussion also explored the wider benefits of pay transparency beyond regulatory compliance.

Attendees identified several potential advantages, including:

Greater employee trust
Stronger employer brand and recruitment outcomes
Improved accountability in pay decisions
Better visibility of pay gaps and their causes
More consistent performance and progression processes

Importantly, transparency can help organisations address unconscious bias by introducing greater structure and accountability into reward decisions.

The biggest challenge remains implementation

Polling during the session suggested that many organisations are still in the early stages of preparation.

While awareness of the directive is growing, challenges remain around data quality, pay gap analysis, job levelling, leadership buy-in and communication. Many employers are still working through how to translate transparency principles into practical processes that can be consistently applied across the workforce.

An opportunity rather than a threat

A recurring message throughout the discussion was that organisations should view pay transparency as an opportunity rather than a compliance burden.

For reward professionals, the directive reinforces many of the principles the profession has long championed: fairness, consistency, clear career pathways and evidence-based pay decisions.

Rather than creating something entirely new, pay transparency provides an opportunity to strengthen reward foundations, improve employee understanding and build greater trust in how organisations make pay decisions.

As transparency expectations continue to rise globally, those organisations that invest now in their reward frameworks, communication and manager capability are likely to be best placed to benefit.

Want to hear more insights form the Gallagher team? Join us at this year’s Reward and Payroll Summit- Click here for more details

Best Practice Case Study: Experian, Innovation

Lukas Montgomery — Tue, 09 Jun 2026 08:32:00 GMT

At scale, this becomes a structural inefficiency. Experian identified that each verification request takes an average of four-and-a-half minutes to process, with employees requiring verification around 1.4 times per year. Across large workforces, this creates a steady flow of low-value administrative work that distracts payroll teams from higher-impact activity.

At the same time, these manual processes slow down outcomes for employees, particularly in high-stakes scenarios such as mortgage applications.

Verification processes struggle to keep up with expectations

The operational context has shifted. Employees now expect faster, digital-first experiences, while third parties require reliable, standardised data to make decisions quickly. Traditional payroll verification processes are not designed for this environment.

The pressure points were clear:

High volumes of inbound verification requests handled manually

Inconsistent formats across payroll systems, making standardisation difficult

Delays in employee outcomes due to processing time

For organisations, this created both a productivity issue and a reputational risk, particularly where delays affected employee financial decisions.

Replacing manual workflows with consent-driven automation

Experian’s response was to redesign the verification process entirely through its Work Report™ solution. Instead of relying on payroll teams to respond to individual requests, the model enables third parties to access verified income and employment data directly from payroll systems provided the employee gives consent.

This shifts verification from a reactive, manual process to an automated, real-time service. Payroll teams are removed from the transaction, eliminating the need to retrieve and share documents.

A key technical challenge was standardisation. Payroll data varies significantly across employers, particularly when it comes to variable pay elements such as overtime, bonuses or shift allowances. To address this, Experian adapted its open banking categorisation engine to interpret payroll data, automatically identifying and classifying income types across different formats.

This innovation allows third parties to make consistent, data-driven decisions without requiring follow-up queries, reducing friction across the process.

Aligning delivery with security and compliance requirements

Given the sensitivity of payroll data, governance was central to the design. The system was built around consent, ensuring that data is only shared when authorised by the employee. Access is controlled, traceable and aligned with GDPR and ISO 27001 standards.

This addresses a key concern for payroll and HR teams: maintaining control over data while enabling more efficient processes. By limiting data sharing to what is necessary and ensuring transparency, the model balances efficiency with compliance.

Integration was also critical. By working with major payroll providers, the solution was embedded into existing systems, reducing implementation complexity and supporting adoption at scale.

Measurable impact on speed and workload

The impact of this approach is visible in both operational efficiency and employee experience. Payroll teams experience a reduction in inbound queries, freeing capacity for more strategic work. At the same time, employees benefit from significantly faster outcomes.

In one example, mortgage application-to-offer time was reduced to as little as twelve minutes, compared to a process that previously took weeks. This demonstrates how removing manual verification steps can transform end-to-end processes.

The system also supports financial inclusion by providing verified income data for individuals without strong credit histories, enabling fairer access to financial services.

Redesigning payroll processes around data access

For payroll and reward leaders, the key lesson is that inefficiencies often sit at the edges of payroll processes, not within core delivery.

Three practical insights emerge from this example:

Identify repetitive, low-value tasks that can be removed through automation

Standardise payroll data to enable consistent external use

Build consent-driven models to balance efficiency with data protection

Experian’s approach shows that when payroll data is made accessible in a controlled, real-time way, it can unlock efficiencies far beyond the payroll function itself, reducing workload, improving employee outcomes and enabling faster decision-making across multiple industries.

Our Best Practice Case Studies are based off the award entries we get each year. Check out The Rewards for your chance to be featured.

Reputation and culture now key in hiring decisions among younger workers

Reward Strategy — Wed, 03 Jun 2026 09:30:00 GMT

Research shows Gen Z jobseekers increasingly prioritise employer reputation, culture and leadership visibility alongside pay when choosing roles.

Workers are increasingly ruling out employers before an application is even submitted, as company values, workplace culture and public image take a stronger hold over hiring decisions. New research from the PR firm Midnight suggests that reputation is no longer a soft branding issue but a practical filter for jobseekers, particularly among younger employees who are far more likely than older workers to treat an employer’s public standing as part of the offer itself.

Gen Z places greater weight on employer reputation

The survey, based on 1,000 UK employees and focus groups with University of Sussex Career Lab students, found that 19% of respondents had decided not to apply for a role because of a company’s reputation, while 15% had turned down an offer for the same reason. A further 13% said they had left a job over concerns about reputation, culture or value alignment. Midnight said the effect was especially pronounced among Gen Z workers, 41% of whom had accepted a role because of a company’s reputation, compared with just 5% of Baby Boomers.

Online reviews and social media shape first impressions

The findings build on a broader body of evidence showing that digital reputation now weighs heavily in recruitment. CNBC reported in 2020 that one in three workers had rejected a job offer after reading negative online reviews, while other industry research has found that many candidates will walk away if they sense unhappy staff, weak leadership or a poor culture fit. Review platforms, social media and employer careers pages now shape first impressions long before a recruiter speaks to an applicant.

Workplace culture rivals pay as a hiring factor

Culture is emerging as a near-equal partner to pay in those decisions. Midnight research found that fair pay and benefits remained the biggest factor behind recommendations, but workplace culture followed closely behind, ahead of trust in leadership and ethical conduct. The report also showed strong demand for employers to reflect personal values: more than four in five employees said they wanted businesses to mirror their own beliefs, and 83% said companies should weigh their impact on society and the environment as well as profit.

Poor culture linked to quiet quitting and disengagement

That helps explain why misaligned cultures can contribute to disengagement as well as outright rejection. Mo Kanjilal, founder and director of the Brighton-based diversity, equity and inclusion consultancy Edge of Difference, said poor culture can feed so-called quiet quitting, where workers remain in post but mentally check out. The risk is greatest, she suggested, where people stay only because they need the wage, or because the job is convenient, and leave as soon as a better option appears.

Senior leaders increasingly seen as part of the employer brand

Visibility from senior leadership is also becoming part of the employer brand test. Midnight found that more than 60% of workers said a senior leader’s public profile would affect whether they applied for a role, with chief executives’ media appearances and public statements shaping perception. Chris Hatherall said the age of the invisible chief executive is coming to an end, as employees and candidates increasingly expect leaders to be identifiable, consistent and clear about what the company stands for.

Reward Strategy Says:

This reinforces a shift that many employers are already experiencing: recruitment is no longer driven solely by pay, benefits and career progression, but increasingly by reputation, culture and visible leadership. Employees, particularly Gen Z, are conducting their own due diligence long before they engage with a recruiter, using online reviews, social media and public commentary to assess whether an organisation aligns with their values. Things like Glassdoor and AI means that employees can get one side of the story with very little searching, so its more important than ever that you help them see the full Picture.

For HR teams, this means employer branding can no longer sit separately from people strategy. Workplace culture, employee experience, leadership visibility and organisational values now have a direct impact on attraction, retention and engagement. It also highlights the growing risk of reputational damage leading not only to fewer applicants but also to higher levels of disengagement and turnover among existing employees. As a result, HR professionals will need to work more closely with leadership, communications and marketing functions to ensure that the reality of the employee experience matches the image being projected externally.

And then we add the EU Pay Transparency Directive coming into place within the EU on June 7th. The effect won’t end at the EU border. Companies with EU presence will increase their transparency to abide by the directive, meaning competitors will have to do the same. The domino effect is there and getting ahead of it is the best way to ensure you stay appealing to jobseekers.

Want to hear more on the EU Pay Transparency Directive? -Click here to find out more.

An Inspector Calls and This Time it maybe Unannounced

Jeni Morris — Wed, 03 Jun 2026 07:25:00 GMT

The Fair Work Agency marks a major shift in UK employment enforcement. Jeni Morris explains why proactive inspections, stronger powers and poor records could catch even well-meaning employers out.

For a good chunk of my earlier career, I was the person employers didn’t want to hear from. I investigated Minimum Wage compliance for HMRC, the letters, the records requests, the meetings where someone’s payroll manager slid a ring binder across the table and hoped for the best. These days I sit on the other side of the fence, advising businesses on how to stay out of exactly the trouble I used to create for them. This unique perspective has led me to become an accidental translator between regulators and employers.

When people ask me whether the Fair Work Agency is just old wine in a new bottle, I have a fairly strong view, it isn’t, and the reasons why are more interesting than most of the generic commentary suggests.

The system used to wait, this one doesn’t

Here’s the quiet truth about enforcement as it was a decade ago: it was largely reactive. A worker had to complain, usually after they’d already left. A union might push. HMRC’s minimum wage team would pick up a case, often months or years after the underpayment happened. The various bodies, HMRC’s National Minimum Wage unit, the Employment Agency Standards Inspectorate and others, each guarded their own patch. If you were an employer who never triggered a complaint, you could go a very long time without anyone looking at you at all.

The Fair Work Agency, live since 7 April 2026, was built to end that. It folds those separate functions into a single executive agency inside the Department for Business and Trade, and it arrived with more than a quarter more funding than its predecessor bodies had between them, the signal there is not subtle.

The shift that matters is from reactive to proactive and follows a pattern which the National Minimum Wage Unit have been forging over the past few years. The FWA doesn’t intend to wait for a whistle, it intends to pick its targets, by sector, by risk profile, by data, by region, and go looking.

The thing nobody wants to hear: most employers aren’t villains

This is where my two careers collide, because both taught me the same lesson from different angles. When I was investigating, the cartoon image, the employer deliberately robbing staff, was the rare case. Far more often I found honest businesses tripped up by the boring stuff, a salary sacrifice scheme that quietly dragged someone under the wage floor, a uniform deduction nobody had pressure-tested, working time that wasn’t being counted properly, accrued holiday calculated on a method that made sense to someone in 2015 and to no one since.

The government’s own Working Lives research backs this up with numbers that should give every employer food for thought. It was a serious piece of work, led by UCL, commissioned back in 2022 and reported in late 2025, built on a representative survey of workers across all four UK nations and mapping twelve separate forms of non-compliance and work-based harm. Minimum Wage violations ran at around 6% across the full workforce, rising to roughly one in seven, close to 15%, among precarious workers.

But look past the headline wage figures and you see the real shape of the problem. Nearly a quarter of the wider workforce reported not getting a contract on time or at all, and among precarious workers it was a third. Missing payslips climbed from under 5% of the general workforce to more than 17% of those in precarious work. Unfair deductions ran at roughly 14% across the board, closer to 22% at the sharp end. Annual Leave that just didn’t add up. These are administrative failures, not heists, and under the new regime an administrative failure can still cost you.

And here’s the figure that should stop any "well, that’s not us" reflex in its tracks. Unpaid extra hours were reported by almost a third of the entire workforce, slightly more, in fact, than among precarious workers. Read that again, the single most widespread money problem in the survey wasn’t tucked away in the gig economy or the back of a warehouse, it ran right through the middle of the ordinary labour market, the salaried workers who work more than their contract states. The businesses I investigated rarely thought the numbers applied to them, the numbers usually disagreed.

Your records are the essential

If I could tattoo one sentence onto every business owner, it would be this, when the FWA comes, your records are your defence, or your conviction. HMRC’s Minimum Wage Unit have been using the ’show and tell’ model for a while, tell me how you manage compliance and then show me!

Inspectors can walk into your premises, demand documents, examine payroll and holiday records, and require people to sit down and answer questions. They can ask for records in clear, legible form, including electronic ones (the digital footprint is strong evidence), stretching back across the previous six years. Where they find underpayment, they can issue a notice demanding the arrears plus a civil penalty of 200% of what was owed, capped at £20,000 per worker. Over time, that reach is set to extend beyond Minimum Wage into holiday pay and statutory sick pay.

Notably, the law doesn’t tell you how to keep records. You’re expected to keep them in whatever manner you reasonably think fit. That sounds generous until you realise what it really means, the test isn’t your filing system, it’s whether you can produce something clear, accurate and retrievable when someone asks. In my investigating days, the businesses that struggled weren’t always the worst payers. They were the ones who couldn’t find anything, and disorganisation, read from the other side of the table, can look an awful lot like having something to hide.

The part that should genuinely make you think

Now the bit that keeps me up at night on behalf of clients, and that I think deserves far more attention than it’s getting.

The legislation hands the Secretary of State the power to bring an employment tribunal claim on a worker’s behalf, where the view is taken that the worker has a claim but won’t pursue it themselves. No grievance. No ACAS early conciliation. No request from the employee. The worker doesn’t have to be consulted and, this is the striking part, has no right to veto it, even if they object to their own name being used. The claim runs in the worker’s name and any award goes to them, but the FWA decides whether to litigate and how. And the Secretary of State "is not liable to any worker for anything done (or not done)" in wielding that power.

Let that sink in for a minute. On one hand, the Working Lives evidence is partly a story about access to justice, about vulnerable workers who can’t or won’t enforce rights they plainly have. It’s worth remembering this is the same research that found one in seven precarious workers underpaid against the minimum wage, and a third without a proper contract, people, in other words, who are among the least likely to ever bring a claim of their own. A state willing to step in for them answers a real and stubborn problem. On the other hand, we’ve just created a route to litigation that bypasses the worker’s own choice entirely. What’s not in doubt is the consequence for employers, you can no longer reassure yourself that a happy, loyal workforce means no claims, the warning signs you used to rely on may simply not appear.

So what advice would I give an employer?

The same things I’d have hoped to find when I was the one knocking on the door:

Get your pay compliance looked at properly by someone who fully understands where the pitfalls can hide, deductions, salary sacrifice and working-time calculations are where the quiet breaches live.
Make sure holiday entitlement and pay are calculated correctly and clearly evidenced.
Confirm your pay, hours and leave records are held securely for at least six years and can be pulled fast.
Make sure HR, payroll and your managers actually understand what an FWA inspector can do and how to respond.
Have a plan for an inspection before you need one, who leads, who escalates, who speaks. And if you find a problem, fix it early, engagement and self-correction genuinely move the dial on outcomes, where stalling does the opposite.

None of this is dramatic, that’s rather the point. The Fair Work Agency isn’t coming for the obvious villains so much as for the businesses that assumed "we’d never deliberately do that" was the same as "we’re compliant." Having stood in both places, I can tell you they were never the same thing, and the gap between them just became a lot more expensive.

Join us and Jeni at The Reward and Payroll Summit this September, where Jeni will be discussing payroll and employment law legislation -Click here to find out more

New Appointments in Reward, Payroll and Benefits - May

Lukas Montgomery — Wed, 03 Jun 2026 08:10:48 GMT

The reward, payroll, and benefits profession continues to see exciting career moves across the industry

Lisa Beeching

Head of People and Organisational Effectiveness

ManyPets

Lisa has experience in operational transformation, customer experience, and organisational change. She brings a commercial and data-driven approach to improving culture, performance, and people operations.

Phoebe Orbell

Head of People Operations

Hugh James

Phoebe has progressed through HR and talent roles within Hugh James, with experience in employee engagement and early careers. She brings strong people operations and talent development expertise.

Hadley Pressley

Head of People and Culture

Pilgrims Hospice

Hadley has broad HR leadership experience across workforce transformation and employee relations. He brings a people-focused leadership style with an emphasis on culture and wellbeing.

Hayley Miles

Head of Human Resources

Implantcast UK

Hayley has HR leadership experience within specialist medical technology environments, supporting workforce development and organisational growth. She brings strong operational HR expertise and experience working in highly regulated sectors.

Andrew Gould

Global Head of Payroll

Howden

Andrew specialises in global payroll operations and HR systems transformation. He brings expertise in payroll efficiency, governance, and international process improvement.

Sonia Costa

EMEA Payroll Manager

Spencer Thomas Group

Sonia has strong international payroll experience across EMEA markets. She brings expertise in compliance, payroll operations, and multi-country programme management.

Monika Kimmins

Global Payroll Director - UK & EMEA

Houlihan Lokey

Monika has led payroll operations across major multinational firms including Visa and PayPal. She brings deep experience in global payroll transformation and stakeholder management.

Victoria O’Callaghan

VP of Implementation

Multiplier

Victoria has more than 25 years of experience in global payroll, implementation, and scaling international teams. She brings deep expertise in payroll transformation, global operations, and implementation strategy to support Multiplier’s next stage of growth.

Employees question fairness of workplace rewards amid transparency concerns

Reward Strategy — Thu, 28 May 2026 08:45:00 GMT

Employees are increasingly sceptical about fair workplace rewards, with gender gaps and inconsistent recognition hurting motivation and retention.

New research from Perkbox suggests many UK employees no longer see workplace rewards as an impartial system. The Science of Reward Report found that 23% believe rewards are influenced by personal relationships rather than performance, while just 39% say they understand how reward decisions are made. Only a quarter described their organisation’s approach as structured and clearly defined, pointing to a broader lack of transparency around how recognition is allocated. According to Employee Benefits, the same research also found that 37% received recognition in the past month that made them feel valued.

Gender gap emerges in perceptions of fairness

The findings also show a clear gender divide. Perkbox said women were less likely than men to see reward as fair and consistent, with 37% of women saying so compared with 45% of men. When asked more directly whether rewards were distributed fairly, 31% of women agreed, versus 39% of men. The gap is notable because it mirrors wider workplace concerns about fairness in pay and progression: HR Dive has reported on other surveys showing many women believe they are paid less than men for equal work, underlining how perceptions of inequity can spread across different parts of the employment relationship.

Manager recognition seen as meaningful but inconsistent

Recognition from managers appears to matter greatly, but remains inconsistent. Perkbox found that 47% of employees consider manager recognition meaningful, yet only 29% receive it regularly. Employers surveyed in the study also pointed to manager inconsistency as one of the biggest obstacles to effective reward and recognition. Human Resources Director has separately reported that employees want praise that is timely and specific rather than routine or generic, suggesting that the problem may be as much about quality as frequency.

Poor recognition linked to retention risks

The stakes are not purely cultural. Nearly a third of employees said weak reward and recognition would affect whether they stayed with an employer, and among those who had considered leaving in the previous 12 months, 64% linked that decision to poor recognition. Tracey Paxton said unclear and inconsistent systems can erode trust, motivation and retention, and argued that managers need training to make recognition a regular part of team life. Her comments reflect a growing consensus across workplace research that recognition works best when it is visible, consistent and clearly connected to contribution.

Reward Strategy’s Say

When rewards feel inconsistent or influenced by favouritism, it undermines morale far more quickly than many employers realise. The gender gap in perceptions of fairness is also difficult to ignore, especially as it reflects wider concerns around pay equity and career progression. Recognition clearly matters to employees, particularly when it comes directly from their managers, yet too many organisations still treat it as an occasional gesture rather than a core leadership responsibility. The findings around retention should be a wake-up call for employers. If employees do not feel valued, appreciated or fairly rewarded, they are far more likely to disengage or leave altogether. Transparent, consistent and meaningful recognition is no longer a “nice to have” aspect of workplace culture, it is becoming a critical part of employee trust and retention.

-Lukas Montgomery

The value of reward is often understated. We’ve put together multiple sessions at this years Reward and Payroll Summit to help you fully communicate it’s importance -Click here for more information.

One story, many voices: Creating an RVP that resonates across your whole workforce

Becky Pugh — Wed, 27 May 2026 11:00:42 GMT

For a long time, reward communication has aimed for simplicity. One message. One story. One way of explaining what working here gets you. That approach made sense when workforces were more homogenous. It makes far less sense now.

Today’s organisations span generations, life stages, geographies and expectations. People join with different motivations, stay for different reasons, and measure value in different ways. Trying to make one message resonate equally with everyone doesn’t create clarity. It creates distance.

The strongest Reward Value Propositions recognise this. They don’t speak to everyone in the same way. They speak to everyone meaningfully.

Difference isn’t a problem. It’s the point.

One of the biggest misconceptions about reward communication is that acknowledging difference fragments your story. In reality, the opposite is true. Different people naturally find meaning in different aspects of the offer.

Early-career talent may be energised by learning, progression and exposure. Working parents may value flexibility, autonomy and trust. Mid-career professionals may prioritise stability, purpose, and the ability to do good work without burning out.

None of these preferences are in conflict. They are different entry points into the same story. A strong RVP doesn’t flatten these differences. It respects them. It recognises that value is personal, and that allowing people to connect with what matters most to them strengthens engagement rather than weakening cohesion.

The goal is not to create multiple reward stories. That way lies confusion. The opportunity is to create one coherent story with multiple resonance points. At the core sits a clear, shared narrative about what the organisation offers and stands for. Around that core, emphasis shifts. Language adapts. Examples change. The truth stays the same, but the lens adjusts.

This is where many organisations hesitate. They worry that tailoring messages means losing consistency. In practice, consistency comes from clarity, not uniformity. When the core proposition is well defined, it becomes easier to express it in ways that feel relevant to different audiences without diluting its meaning.

Making personalisation feel genuine, not gimmicky

Personalisation is often talked about as a technology problem. Tools. Platforms. Data.

Those things help, but they’re not the starting point. The starting point is understanding what different groups genuinely value and why. Not through assumptions, but through listening. Conversations. Insight. Pattern spotting.

Once that understanding exists, personalisation becomes simpler. Communication can emphasise flexibility where it matters, progression where it motivates, and stability where it reassures, all without inventing anything new.

When done well, this feels respectful rather than manufactured. People don’t feel targeted. They feel understood. And in a world shaped by hybrid work, global teams and talent shortages, that feeling matters more than ever.

The role of managers and everyday conversations

No amount of central messaging can replace everyday conversations. Managers are where personalisation becomes real. They translate the organisation’s story into something relevant for the individual in front of them.

They explain how reward applies to you, not just people like you. That only works when managers understand the RVP themselves. When they have language, confidence and clarity. When they know which elements to emphasise and when. This is why one-size-fits-all messaging often fails. It doesn’t equip managers to have meaningful conversations. A flexible, audience-aware RVP does.

It’s tempting to believe that treating everyone the same is the fairest approach. But fairness isn’t sameness. It’s relevance. A Reward Value Proposition that recognises different needs and priorities doesn’t weaken culture. It strengthens it. It signals respect. It shows that the organisation understands the reality of people’s lives and careers. And when people feel seen, they’re more likely to engage, stay and advocate.

Inclusion in practice

The most inclusive reward strategies aren’t the ones that offer identical messages to everyone. They’re the ones that create space for people to connect with what matters to them, without losing sight of the bigger picture. The best RVPs achieve exactly that. One clear story. Many voices. Shared meaning.

Because inclusion isn’t treating everyone the same. It’s making sure everyone feels seen.

Building personalised reward strategy is more important now than ever before, with our multigenerational workforce. Join us at The Reward and Payroll Summit to see our curated sessions, designed to help your reward strategy -Click here for more details

Stop calling it a benefit. Financial stress is already costing you money

Ray Law — Tue, 26 May 2026 09:30:00 GMT

Most reward leaders already understand the importance of financial wellbeing. The issue is not awareness. It is language.

Because as long as financial wellbeing sits in the “benefits” category, it will continue to be treated as optional. Something to fund when times are good and defer when budgets tighten.

That framing is wrong. And it is expensive.

Financial stress is not a perk issue. It is a performance issue. And in most organisations, it is already showing up in productivity loss, absence and avoidable attrition - just not being measured in those terms.

The board doesn’t fund benefits; it funds risk and performance

There is a simple reason financial wellbeing struggles for investment: it is often positioned in HR language, not board language.
But boards do not fund “wellbeing initiatives”. They fund risk reduction and performance improvement.

Reframe the issue, and the conversation changes.

Financial stress is already impacting performance at scale. Research from the Chartered Institute of Personnel and Development shows that 31% of employees say money worries have negatively affected their work performance, including concentration, fatigue and decision-making. That rises to 37% for lower earners.

That is not a marginal wellbeing insight. That is a material productivity issue embedded in your workforce.

This is not a wellbeing programme problem. It is a productivity leak

One of the most persistent strategic errors organisations make is isolating financial wellbeing as a standalone initiative.

It is not.

It sits underneath core operational metrics, such as absence, engagement, performance management, and turnover. The problem is not that it isn’t happening; it’s that it is not being attributed.

Financial stress builds gradually. It does not arrive as a single event. It accumulates in the background until it begins to affect attention, judgement and output.

By the time it appears in absence or resignation data, the cost has already been incurred.

This is why CIPD evidence consistently links poor financial wellbeing to lower productivity, higher absence and weaker engagement.

So the real question is not whether financial wellbeing matters.

It is how much it is already costing you.

Retention is where the board finally listens

Engagement is useful. Retention is decisive.

Because turnover has a price.

Replacing an employee can cost between 50% and 200% of salary depending on role complexity, once recruitment, onboarding and lost productivity are factored in.

So the question reward and HR leaders should be asking is not abstract:

How many resignations are being influenced by financial pressure?

You will not get a perfect dataset. But you do not need one. You need recognition that financial stress is part of the causal mix behind attrition.

And ignoring it does not reduce the cost. It just hides it.

This is already happening across your workforce

Financial stress is not confined to a small segment of employees.

It is widespread, and it cuts across income levels.

It contributes to anxiety, sleep disruption, reduced concentration and lower cognitive performance at work. These effects do not wait for crisis point. They appear long before absence or resignation.

And critically, this is not just a low-income workforce issue.

Rising housing costs, childcare pressures, debt commitments and everyday inflationary pressures mean financial strain is present across much of the workforce, including mid and higher earners.

This is where many organisations misread the issue. They assume it is contained. It is not.

It is systemic.

Stop buying interventions. Start preventing costs.

Most financial wellbeing approaches are still reactive.

Support is offered once employees are already in difficulty. At that point, the impact on performance, absence or retention is often already locked in.

That is not prevention. That is damage limitation.

A more effective model is preventative: reducing financial stress before it becomes a performance issue.

We have already seen this shift in mental health strategies, from crisis response to early intervention.

Financial wellbeing is simply earlier in that same evolution.

If it doesn’t speak the language of the board, it won’t get funded

This is where most financial wellbeing business cases fail.

If it is framed as a benefit, it competes with every other discretionary reward spend.

If it is framed in business terms, it competes on a different playing field entirely:

reduced turnover risk
improved productivity
lower absence
stronger workforce stability
reduced hidden cost leakage

Same intervention. Different framing. Different outcome.

Final thought

Boards do not need convincing that employees matter.

They need clarity that financial stress is already affecting performance in ways the organisation is currently paying for, but not properly identifying.

Once that link is made explicit, financial wellbeing stops being a benefit line.

And becomes what it has always been in practice: a performance and cost issue.

Ensuring your message is presented in the best way for your audience is the key to presenting new ideas, join us at The Reward and Payroll Summit where Nick Day will be leading a session to helping you get the most out of presenting yourself and your data- Click here for more information.

PRIS Takeaways: Neurodiversity in learning

Lukas Montgomery — Fri, 22 May 2026 09:00:00 GMT

Organisations are becoming more aware of neurodiversity in the workplace, but awareness alone is not enough.

Led by Vickie Graham, Managing Director of Reward Strategy, and Dan Bremner, SEND Co-ordinator at MBKB, the session focused on practical ways employers and learning providers can create more inclusive learning environments; not by lowering standards, but by removing barriers.

Neurodiversity is difference, not deficit

One of the strongest themes throughout the discussion was the need to move away from viewing neurodiversity as a weakness.

Dan described neurodiversity as a difference in how people process information, communicate and learn. Rather than expecting every learner to engage in the same way, organisations should recognise that individuals absorb and apply information differently depending on their preferences, circumstances and neurodivergent profile.

Importantly, the discussion highlighted that neurodiversity is not limited to one condition or one type of learner. Profiles such as ADHD, autism and dyslexia can often overlap, and every individual experience will be different.

This reinforces why a rigid, standardised learning model is increasingly ineffective.

As Dan explained, the goal is not to make learning easier, but to create fairness by ensuring people are not disadvantaged by unnecessary barriers.

Flexibility is becoming essential in workplace learning

A recurring message from the session was that traditional learning environments often unintentionally exclude neurodivergent learners.

Long sessions, information-heavy delivery and overly rigid formats can create challenges for individuals who may process information differently or require more time to absorb and organise content.

The discussion explored how small adjustments can have a significant impact, including:

breaking learning into shorter, more manageable segments;
providing information in multiple formats;
offering flexibility in how learners demonstrate understanding;
creating space for reflection and processing time;
and avoiding assumptions about engagement based on traditional behaviours.

These changes are not only beneficial for neurodivergent learners. In many cases, they improve the learning experience for everyone.

The session also highlighted the importance of moving away from “one-size-fits-all” thinking. Organisations that build flexibility into learning design are more likely to improve engagement, retention and outcomes across the workforce.

Strength-based approaches unlock potential

Another key takeaway was the importance of focusing on strengths rather than limitations.

Too often, conversations around neurodiversity centre on challenges. However, the discussion emphasised that neurodivergent individuals frequently bring valuable capabilities to organisations, including creativity, analytical thinking, problem solving and strong verbal communication.

For example, learners with dyslexia may find written tasks more difficult but excel in discussion-based assessments where they can clearly articulate ideas and understanding.

Similarly, some neurodivergent individuals may demonstrate exceptional attention to detail, innovative thinking or the ability to approach problems from entirely different perspectives.

The panel stressed that organisations risk overlooking significant talent if they focus solely on perceived deficits rather than recognising the broader contribution neurodivergent employees can make.

Psychological safety remains critical

The conversation also explored the importance of creating environments where employees feel comfortable discussing support needs.

Many individuals still choose not to disclose neurodivergence at work due to concerns around stigma, misunderstanding or negative career impact.

This creates a challenge for organisations, particularly where support mechanisms rely heavily on formal disclosure.

The session highlighted the need for managers and learning professionals to create psychologically safe environments where conversations about learning preferences and support needs are normalised.

Rather than waiting for disclosure, organisations should consider designing learning experiences that are inclusive by default.

This proactive approach reduces the burden on individuals to request adjustments and helps ensure support is available more consistently.

Inclusion should extend beyond compliance

A wider theme throughout the discussion was the need for organisations to see neuro-inclusion as more than a compliance exercise.

Inclusive learning practices are increasingly linked to broader organisational priorities, including employee experience, retention, wellbeing and performance.

The discussion suggested that organisations taking neurodiversity seriously are often better positioned to:

widen access to development opportunities;
improve learner engagement;
strengthen talent retention;
encourage innovation and different perspectives;
and create more inclusive workplace cultures overall.

As workplace learning continues to evolve, particularly in hybrid and digital environments, organisations that build flexibility and inclusion into learning design from the outset are likely to see long-term benefits.

Final thoughts

The PRIS session reinforced that there is no single approach to supporting neurodiversity in learning.

However, organisations that prioritise flexibility, strengths-based thinking and inclusive design are likely to create better outcomes not only for neurodivergent employees, but for the wider workforce as well.

The discussion also served as a reminder that inclusion is often about removing barriers rather than reducing expectations.

For employers, learning providers and reward professionals alike, the challenge now is turning growing awareness into practical action that enables every employee to engage, develop and succeed in ways that work best for them.

For more insights from the team at MBKB, join us for their career development sessions at The Reward and Payroll Summit- Click here for more details

The Measurement Gap: Why HR Teams That Can’t Quantify Happiness Are Losing Budget Twice as Fast

Chris Britton — Tue, 19 May 2026 08:23:32 GMT

51% of UK employees aren’t happy at work, but only 30% of HR teams have been measuring this. This inability to provide ROI has meant those HR teams are seeing their budget cuts by twice as much.

There is a number in our latest research that every HR and reward leader should put in front of their CFO. Two thirds of UK HR departments had their budgets cut in the past twelve months. Most of us have lived it. What the data reveals next is more uncomfortable: the teams that struggle to prove ROI are seeing cuts roughly twice as large as those that can demonstrate the impact of their work.

This is not primarily a budget conversation. It is a measurement conversation. And the evidence suggests that most HR functions are not measuring the right things.

The gap hiding in plain sight

The Happiness Dividend, published by Reward Gateway | Edenred in partnership with The London School of Economics, surveyed over 2,000 UK employees and 1,000 HR managers alongside a comprehensive review of academic evidence. The findings expose a significant blind spot.

Nearly all businesses - 98% - track at least some form of employee sentiment. Engagement, satisfaction, whether employees feel valued: these have become standard fixtures of the people analytics toolkit. Yet only 30% of HR teams are measuring employee happiness directly. And the distinction matters far more than it might appear.

Happiness, in the research literature, is not simply another word for engagement. It sits upstream of it. It is a leading indicator of the outcomes HR teams are already held accountable for - retention, productivity, absenteeism - not a lagging one. Teams that track engagement but not happiness are, in effect, watching the downstream effects of a problem they have not yet diagnosed.

What is being left on the table

The scale of the opportunity created by this gap is significant. According to the same survey, 51% of UK employees report that they are not frequently happy at work. That figure does not represent a rounding error or a seasonal dip. It represents a substantial portion of the workforce operating below the threshold at which the evidence shows people perform at their best - and in most organisations, nobody is measuring it.

The commercial implications of that are explored in full in the report. What the research makes clear, across multiple levels of analysis, is that the link between employee happiness and business performance is not anecdotal or aspirational. It is consistent, it is measurable, and it is material. The organisations closing this gap are not doing so because it is the right thing to do. They are doing so because it gives them a competitive advantage their peers have not yet priced in.

The strategic case for acting now

For HR and reward leaders, the measurement gap represents both a risk and an opportunity. The risk is familiar: without the ability to connect people investment to business outcomes, the function remains vulnerable to budget pressure and the perception that its work is a cost rather than a driver of value.

The opportunity is less well understood. Employee happiness, as the report sets out, is one of the most overlooked performance levers available to organisations today. The tools to measure it reliably are straightforward and proven. The business case for doing so - when built on the right evidence - is compelling at board level. And most organisations are not yet doing it.

That last point matters. The window to build a measurable, evidenced happiness strategy before it becomes standard practice is still open. The teams that move first will have a more robust ROI story, a clearer picture of what is driving performance, and a stronger position when the next budget conversation arrives.

The question is not whether employee happiness affects business outcomes. The evidence on that is settled. The question is whether your organisation is measuring it - and if not, what that silence is costing you.

Download the full report to explore the evidence, the framework and the practical steps to get started.

In conversation with... Nick Day

Lukas Montgomery — Tue, 21 Jul 2026 10:38:41 GMT

Nick Day, CEO, JGA Recruitment is speaking at the Reward and Payroll Summit 2026! Find out more about Nick and what he’s looking forward to at the Summit below...

What’s the most significant challenges facing payroll professionals today?

The one nobody names is invisibility. Payroll runs the most accurate workforce data in the business, and most leaders never see it. Legislation, automation, integration — these all matter. But the real challenge is that payroll professionals have been trained to stay quiet. And in the AI era, the cost of that silence is enormous.

What excites you most about participating this year?

Connecting with people from across the industry, sharing what’s working, learning from others. It’s where the conversation actually moves the profession forward.

Which session or theme are you most looking forward to?

The sessions on technology and digital transformation. That’s where payroll’s future is being shaped, and where the most interesting debates will happen.

What is a common misconception about "The Payroll Pivot", and how is your session challenging it?

People think payroll is transactional, not strategic. My session challenges that by showing how payroll drives employee trust, supports strategy, and delivers real business value. The bigger story is what’s holding the profession back, and I believe a lot of it comes down to fear. Fear of speaking up. Fear of being wrong in front of finance. Fear of stepping outside the lane. That’s the Fear Tax, and it’s costing payroll its seat at the table.

How does "The Payroll Pivot" connect to broader organisational strategy or a business’ performance?

Payroll sees what HR can’t and what finance won’t. It’s the only function holding verified data on every person, every pay cycle. Connect that to retention, engagement, and risk, and payroll stops being a back-office function. It becomes one of the most strategically valuable functions in the organisation. The challenge is getting others to see it that way.

What do you hope attendees take away from your session?

A practical way to spot the moments where payroll’s voice is needed and isn’t being used. And the courage to step into them.

What are the biggest opportunities for innovation in payroll over the next 2–3 years?

AI and automation for accuracy and efficiency. Better analytics for decision-making. Deeper integration with HR and finance. All of which free up time for payroll professionals to step into strategy and influence.

What is one thing you’re hoping to learn from the other speakers?

Fresh perspectives on the challenges we all share, and new approaches to stakeholder engagement.

Coffee or tea before your big session?

Coffee (black), please.

Find out more about Nick’s session and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

Workplace loyalty shifts as employees seek growth and belonging over stability

Reward Strategy — Thu, 14 May 2026 06:59:00 GMT

Amid economic uncertainty and a decade-low quit rate, organisations are rethinking retention strategies, prioritising growth, autonomy, and fulfilment to keep valuable staff engaged and committed.

Economic uncertainty may make employees think twice about leaving, but that restraint can be temporary. Research from Economist Impact cited by HR Dive suggests that anxiety about stability has pushed many full-time US workers to prioritise security over advancement, helping drive a decade-low quit rate of 2%. Yet that does not necessarily mean loyalty has deepened; it may simply mean decisions to move are being postponed until conditions improve.

Fulfilment is becoming a workplace priority

That matters because retention is increasingly tied to whether organisations can offer more than a pay packet. A recent worldwide survey of 300,000 people, highlighted by the World Economic Forum, found personal fulfilment has become the second-most important workplace priority, even as only 44% of employees say they are thriving at work, down sharply from 66% in 2024. The same research pointed to stronger satisfaction gains among Generation Z, suggesting younger workers are finding a greater sense of belonging than some older cohorts.

Employees want autonomy, purpose and growth

The common thread across the latest commentary is freedom: the freedom to shape how work gets done, where careers go, how openly people can speak and whether they are doing something that feels worthwhile. The Talent Management Institute says flourishing depends on autonomy, support and a real say in decisions, not merely on consultation exercises that never change anything. Deloitte has argued along similar lines, saying that professional growth matters most when it is tied to personal goals and sustained investment in learning throughout a career.

Turnover risks remain beneath the surface

That focus on growth is especially important because many employees still feel stalled. Gallup says 42% of turnover is preventable but often ignored, while also warning that replacing leaders and managers can cost around twice their salary. McKinsey has found that 53% of employers are seeing higher voluntary turnover than before, with 64% expecting the situation to continue or worsen, and that a sizable share of recent leavers quit without another job in hand. Taken together, the message is that mobility has not disappeared; it has become more selective and more values-driven.

Employers are being pushed to create “sticky” workplaces

For employers, the answer is not to tighten control but to become more “sticky” by widening opportunity. That means treating careers as portfolios rather than ladders, encouraging movement across functions, using internal talent marketplaces to make openings visible and reducing barriers that keep some groups from progressing. It also means turning managers into coaches, not gatekeepers, and saying yes more often to growth requests, even when they sit outside formal training menus. Deloitte says building a learning culture and upskilling people at every stage is central to a stronger talent pipeline, while the World Economic Forum’s data suggests fulfilment and belonging are no longer soft extras but core retention issues.

The next wave of turnover may still come

The test of a genuinely sticky workplace is simple enough to describe, even if it is harder to achieve in practice. If people are engaged, contributing discretionary effort, speaking well of the business and not being lured away by competitors, the model is probably working. If certain teams are flat, progression is slowing or valued staff are leaving earlier than expected, those are warning signs that the organisation is not delivering the deal it thinks it is. Acting on that evidence now, while caution still suppresses movement, could leave companies better protected when the next wave of turnover arrives.

Reward Strategy’s say

With a sense of fulfilment being so high on the list of work-place priorities, finding ways to allow you employees a sense of autonomy and demonstrate potential growth is more important now than it ever was. Upskilling is the simplest way to achieve this with direct results for both business and employee. We still don’t know the knock-on effect that EU Transparency laws will have on the UK, based on the research and calls we make, I see a future where international companies standardise their job descriptions, and to keep up the UK based businesses will need to do the same. If this comes to pass then the biggest deciders for applicants won’t be salary ranges, but the additional benefits such as flexible working and proved growth. The companies that are already embracing this will find themselves ahead of the curve and leading, whilst others scramble to keep up.

- Lukas Montgomery

Looking to build a transparent pay package, increase communication and foster that much needed trust? Join us for our PRIS - Click here to find out more

In conversation with... Mirko D'Arcangelo

Lukas Montgomery — Tue, 21 Jul 2026 10:38:30 GMT

Mirko D’Arcangelo, Payroll Director, Mews is speaking at the Reward and Payroll Summit 2026! Find out more about Mirko and what he’s looking forward to at the Summit below...

What’s the most significant challenges facing payroll professionals today?

Two stand out.

First, regulatory complexity is accelerating faster than teams can absorb. Remote work has surfaced cross-border exposures (Permanent Establishment, the 183-day rule, social security coordination, etc.) that used to sit in tax’s lane.

Second, AI: the real challenge isn’t whether it replaces us, but how quickly we learn to use it well, shifting from doing the work to managing the AI agents that do it (we will need to be the manager of the AI agent)

What excites you most about participating this year?

The agenda hits the conversations that actually matter right now: AI in practice, pay transparency ahead of the EU Directive, the global workforce, and payroll education. It’s one of the few rooms where peers compare real experiences openly rather than polished case studies.

Which session or theme are you most looking forward to?

The AI-focused sessions. There’s a lot of noise in the market and not enough honest conversation about what’s actually working in production, where the value is real, where it’s still hype, and how teams are managing the control implications.

What is a common misconception about "The New Rules of Global Payroll", and how is your session challenging it?

The biggest one is that "going global" is solved by picking the right provider. It isn’t. Provider choice is downstream of governance, risk appetite, and the maturity of your in-house function. My session reframes it: the new rules aren’t about outsourcing harder, they’re about owning the strategy and using providers as instruments, not crutches.

How does "The New Rules of Global Payroll" connect to broader organisational strategy or a business’ performance?

Directly. Where you can hire, how fast you can onboard, what your true cost of employment looks like in a given country, these are payroll-adjacent questions that shape commercial decisions. Remote work, regulatory pace, and provider choice now sit upstream of talent strategy, M&A, and geographic expansion. Treating payroll as a back-office cost centre means leaving real strategic value on the table.

What do you hope attendees take away from your session?

A practical lens, not theory on how to address the reality of remote working as it is today. Sharper questions to ask their providers, a clearer view of where their governance gaps are, and the confidence to push back when payroll is being asked to absorb risk that should sit elsewhere. If they leave with one reframed conversation to have with their leadership team, the session has done its job.

What are the biggest opportunities for innovation in payroll over the next 2–3 years?

AI, but the useful kind, spotting errors, handling exceptions, drafting employee comms, sorting queries. The real shift is in our role: payroll professionals will become managers of AI agents rather than processors. The teams that work out how to use AI without losing control will pull ahead. There’s also a challenge for global vendors: build real AI into your systems, not just a label on the box. Right now there’s huge pressure to be the first to say "AI-native," but the basics, integrations, governance, controls, audit trail, are still unsolved. As I’ve said a few times on LinkedIn, there’s a real gap between the people building payroll systems (product owners) and the people running payroll every day (payroll team and leaders).

Closing that gap would make these tools much closer to what customers actually need, rather than what looks good in a demo. Beyond AI, the market is also moving toward fewer, broader platforms that cover more countries in one place, and toward systems where compliance is built in from the start, not added on country by country. That shift will change what "global payroll" really means: today, it’s often one contract sitting on top of a messy reality. The platforms that genuinely deliver one system across many countries will redefine the category.

What is one thing you’re hoping to learn from the other speakers?

Concrete AI stories. Not the vision, the reality. What models peers have actually deployed, where they hit walls, and how they got through. Shared evidence, not slideware.

Coffee or tea before your big session?

Espresso. Always a good single espresso and “ristretto".

Find out more about Mirko’s session and everything else on offer at The Reward and Payroll Summit 2026 - Click here to find out more

Aligning Remuneration with Capability Growth

Mark Bremner — Wed, 13 May 2026 08:29:00 GMT

Strategic pay analysis is often framed as a financial exercise: benchmark salaries, check internal equity, manage budgets, respond to market pressures. All of that matters. But pay strategy becomes truly strategic when it is linked to capability.

Because remuneration does not create value on its own. Capability creates value and pay should signal, reward and sustain that capability.

For HR Directors and People Leaders, the question is not simply “Are we paying competitively?” It’s “Are we building and rewarding a workforce that can deliver our future?” Apprenticeships and structured development provide a powerful bridge between pay philosophy and capability growth and the 4Cs offer a practical structure for making that link explicit.

Clarity: define what progression pays for

When pay progression is opaque, employees fill gaps with assumptions. That breeds dissatisfaction, perceptions of unfairness, and ultimately attrition.

Clarity means being able to explain:

what skills and behaviours are rewarded,
how progression works
and what evidence supports pay decisions.

Competency frameworks and apprenticeship standards help because they define capability in concrete terms. When you can reference a standard, a skill set, or assessed competence, you reduce the “it depends” conversations that undermine trust.

Practical tool: capability-linked pay narrative

For each pay band, define:

core competencies,
critical behaviours
and examples of evidence.

Then align development routes (including apprenticeships) that help employees move bands with confidence.

Confidence: reduce salary pressure through internal progression

In tight labour markets, organisations often feel forced into reactive pay increases to attract talent externally. But external recruitment premiums are often a symptom of internal capability gaps and weak pipelines.

Apprenticeships reduce this pressure by growing talent from within:

building specialist capability (HR, payroll, data),
strengthening leadership pipelines
and reducing the need to buy skills at inflated market rates.

This builds confidence for both employees and the organisation:

employees see a route to progress without leaving,
the organisation sees a route to capability without overpaying externally.

Practical tool: internal mobility heatmap

Map:

roles with high external recruitment costs,
roles with persistent vacancies
and roles with high turnover.

Then build apprenticeship or structured progression routes into those areas. Track cost avoidance over 12–24 months.

Culture: fairness is felt through consistency

Pay fairness is rarely destroyed by one decision; it is eroded by inconsistent decisions.

Culture is shaped by whether people believe the organisation is:

principled,
consistent
and transparent.

When pay progression is linked to demonstrable capability, consistency improves. When learning and evidence are embedded in progression, managers make better and fairer recommendations.

This is also where inclusive pay strategy and DEI meet: transparent standards reduce bias, and structured development creates equitable access to progression.

Practical tool: manager calibration with evidence

Run calibration conversations using:

competency evidence,
development milestones
and outcomes.

Avoid reliance on vague labels like “high potential” without proof.

Creativity: turn the apprenticeship levy into a pay strategy lever

For levy-paying organisations, the apprenticeship levy can become a strategic tool for aligning pay and capability. Rather than treating the levy as an unavoidable tax, creative People Leaders use it to fund structured progression that reduces long-term salary volatility.

For example:

develop supervisors into managers through leadership standards,
grow HR administrators into HR advisors,
develop payroll assistants into payroll specialists
and build digital capability across functions.

As capability rises, the organisation can reward progression sustainably because it is grounded in demonstrable skill and increased value contribution.

Practical tool: “pay + pathway” bundles

For priority roles, create a bundle:

pay band,
apprenticeship pathway,
expected milestones at 3/6/12 months
and the next role.

This turns pay into a progression promise and reduces churn.

The strategic takeaway Pay is not only a cost. It is a signal.

When pay strategy aligns to capability development, it becomes an engine of:

retention,
fairness,
internal mobility
and sustainable workforce planning.

Using the 4Cs:

Clarity defines what pay rewards.
Confidence builds pipelines that reduce market pressure.
Culture ensures fairness through consistency.
Creativity turns development funding into strategic advantage.

That is strategic pay analysis with a workforce confidence lens and it is one of the most practical ways HR can influence both performance and retention.

Want to hear more from Mark? Him and his team are running career development streams throughout this years Reward and Payroll Summit - Click here for more information

Menopause in the workplace: new evidence calls for practical action and culture change

Reward Strategy — Tue, 12 May 2026 14:22:13 GMT

Leading menopause researchers emphasise the need for employers to move from awareness campaigns to practical support measures

Two leading menopause researchers are urging employers to move beyond awareness campaigns and into practical action, as evidence increasingly shows that untreated symptoms can affect performance, attendance and career progression. The central message from Professor Jo Brewis and Professor Carol Atkinson is that menopause should be treated as a workplace issue as well as a personal health matter, especially with new duties for larger employers on the horizon.

The economic and workplace impact

The case for action is not just anecdotal. According to the CIPD, women’s health problems cost the UK economy almost £11 billion a year through absence and lost productivity, with menopause accounting for about £1.5 billion of that total. In a 2023 survey, the CIPD found that 73% of women aged 40 to 60 had experienced menopause-related symptoms and two-thirds said the effect on their work was mostly negative. The same research showed that more than half had been unable to work because of symptoms, while only 24% of organisations had a menopause policy in place.

Career progression and inequality

The impact can be especially sharp for women who already face barriers at work. The CIPD has said that 27% of women experiencing menopause symptoms reported a negative effect on their career progression, rising to 36% among women with disabilities or long-term health conditions and 38% among those from ethnic minority backgrounds. Earlier CIPD findings also showed that 59% of working women aged 45 to 55 with symptoms said their jobs were affected, with many reporting reduced concentration, higher stress and less patience with clients and colleagues.

New research highlights unequal experiences

Professor Brewis’s latest review, backed by the Menopause and Menstruation Friendly Employer Awards 2025, broadens the evidence base further. Drawing on 132 publications, including peer-reviewed studies, official reports and high-quality grey literature, it concludes that menopause is not experienced in the same way by everyone. The findings point to differences linked to race, disability, neurodiversity and gender identity, and also show that workplace conditions such as poor ventilation, heavy uniforms, rigid shifts and sustained pressure can make symptoms harder to manage.

What effective workplace support looks like

The research also reinforces what Acas and NHS Employers have been telling organisations for some time: support works best when it is simple, visible and backed by trained managers. Acas recommends early and regular conversations, health and safety checks and environmental adjustments such as cooler spaces, extra breaks and flexible hours. NHS Employers likewise says menopause should be addressed through a mix of support for organisations, line managers and employees, while the CIPD has highlighted temperature control and flexible working as practical measures that can help.

Policy changes and the direction of travel

For employers, the direction of travel is clear. Under the Employment Rights Bill, larger organisations are expected to be required to publish menopause action plans, and many businesses are already moving ahead of that timetable. The point, researchers say, is not only compliance but culture: a written policy matters only if it is understood, used and reinforced by day-to-day behaviour.

As the evidence base grows, the argument is becoming harder to ignore. Menopause support is not a niche benefit; it is a retention issue, a productivity issue and, increasingly, a test of whether workplaces are designed to keep experienced people in work.

Rewards Response

Awareness is on everyone’s lips but its time we put it into action rather than just bought attention to it, and the numbers seem to agree. With most women experiencing symptoms that will impact their work, it seems only sensible for some measure of accommodation to be put in place to give employees the support they need. Yet it doesn’t need to be about building a whole new system, what you already have can likely be adjusted to help. Flexible working is a common benefit in today’s workplace; regular conversations show an interest in your employee’s future and growth, allowing clearer communication and should be a practice workplaces strive for with all employees.

Putting these things in place now will not only show employees you care, but when the time comes that menopause action plans are a matter of compliance, you’re already a step ahead of the game.

- Lukas Montgomery

We have resources from thought leaders covering a variety of topics as well as menopause - Click here to see more.

The 30-Second Test

Becky Pugh — Mon, 11 May 2026 08:32:00 GMT

Your real employer brand lives in what employees say off-script. The 30-second test reveals if your EVP creates clarity, pride, or confusion.

Every organisation has an employer brand. Whether they’ve shaped it deliberately or not. And the most honest version of it doesn’t live on your careers site, in your EVP deck, or in a carefully crafted LinkedIn post. It lives in conversations you’ll probably never hear. At dinner tables. In group chats. During informal interviews.

When someone asks, “What’s it really like to work there?” the answer they get is your real Reward Value Proposition in action. This is where the 30-second test comes in.

Why employee storytelling matters more than employer messaging

People trust people. Especially when they’re not being asked to sell. No matter how strong your messaging is, candidates will always give more weight to what employees say when there’s nothing to gain. Those unscripted moments shape perception faster and more powerfully than any campaign.

That’s why employee storytelling is such a powerful signal. When people can explain why they work somewhere with clarity and confidence, it suggests they understand the value of what they receive. When they struggle to articulate it, default to vague phrases, or focus only on salary, it often means the story hasn’t landed.

This isn’t about training employees to repeat lines. It’s about whether the organisation has given them a story worth repeating.

The 30-second diagnostic: what to listen for

Imagine giving your employees 30 seconds to describe why they work for you. What would they say?

Strong Reward Value Propositions tend to sound like this:

Clear themes, not scattered details
Meaning, not just money
Pride, not defensiveness

People talk about growth, flexibility, trust, culture, opportunity. They describe how work fits into their lives and futures.

Weaker propositions sound muddled. People hesitate. They fall back on “it’s fine” or “the people are nice” without being able to explain why. Or they focus entirely on pay, often with a hint of apology. This isn’t a judgement. It’s insight.

Those conversations tell you exactly where your story is working and where it isn’t. They highlight what’s resonating, what’s missing, and what needs sharpening.

Turning listening into clarity

Organisations often assume they know how employees experience reward. But the most useful insight comes from listening without trying to correct or defend.

When you pay attention to how people naturally describe working for you, patterns emerge. Certain themes get repeated. Others never appear. Some benefits are valued far more than expected. Others barely register.

This is where the real opportunity sits. When organisations use this insight to refine and clarify their Reward Value Proposition, something powerful happens. Employees don’t need to be “turned into advocates”. Advocacy becomes a by-product of understanding.

People are far more likely to speak confidently about something they genuinely understand and believe in.

Why this is about pride, not performance

The goal of the 30-second test isn’t to catch people out. It’s to understand whether your story gives people a sense of pride. When people can articulate why their organisation is a good place to work, it reinforces their own commitment. It strengthens identity. And it creates alignment between what’s promised and what’s experienced.

When they can’t, it often points to a disconnect. Not because the experience is bad, but because the value hasn’t been clearly defined or communicated. That disconnect matters. In a transparent market, where candidates compare offers quickly and employees reassess their choices more often, clarity becomes a retention tool as much as an attraction one.

From insight to action

The organisations that get this right don’t panic when they hear imperfect answers. They get curious.

They ask:

What are people consistently proud of?
What do they struggle to explain?
Where are we underselling ourselves?
Where are expectations unclear?

Those answers become the raw material for a stronger Reward Value Proposition. One that reflects reality, uses language people recognise, and gives employees something solid to stand behind.

The most powerful employer brands aren’t built through scripts or slogans. They’re built through shared understanding. When your people can tell your story with clarity and pride, you’ve created something that lasts. Something that travels. Something that doesn’t rely on constant reinforcement from the centre.

And if your people can’t tell your story in 30 seconds, that’s not a people problem.

It’s simply a signal that the story needs work. Write a better one, and the conversations will follow.

Engaging with employees is the best way to drive your reputation and retention - Click here for more ways to reach those who work with you

The Changing Shape of Job Architecture: The SME Perspective

Katie Cook — Wed, 03 Jun 2026 14:17:09 GMT

Job architecture is shifting fast, and it’s no longer something only large corporates need to worry about.

As the underlying framework that defines how roles are organised, evaluated, and rewarded, job architecture typically includes elements such as job families, job levels, career paths, role expectations, skills requirements, and the alignment of jobs to pay and benefit structures. A clear job architecture creates a consistent way to describe work, compare roles, and make decisions on pay and progression. This foundation can be just as important for SMEs as it is for large organisations.

As work becomes more fluid and roles stretch across traditional boundaries, organisations are rethinking how they define, group, and value jobs. Technology continues to evolve at pace, and employers need new capabilities sooner and more frequently. Agility is key to success, and many are moving towards more skills-focused models to ensure they have the right capabilities at the right moments, instead of relying on static role definitions that date quickly.

At the same time, pay transparency legislation impacting EU-based companies and rising employee expectations around clarity, fairness, and progression are accelerating this shift. The result is a growing need for clear, modern job architecture across organisations of all sizes - including SMEs, where effects of a poor approach can be more visible and immediate.

SME’s perspective

Whilst smaller organisations are less likely to have the volume of changes and internal HR resources required for large scale systems and processes, SME’s are still having to contend with complex and shifting roles, employee perceptions around fairness and consistency and, in some markets, regulatory pressure around transparency. Their size also means that role clarity, pay decisions, and organisational design issues tend to surface much more quickly and with greater impact making it even more important to put scalable, light-weight structures in place early.

For example:

Scaling SMEs often need to create new roles at pace, many of which are hybrid and require employees to operate across multiple functions, increasing the risk of unclear responsibilities.
Pay compression can emerge rapidly, with new hires joining on higher market-driven salaries while existing employees’ pay remains static, which is highly visible in a smaller workforce.
Global shifts in transparency expectations influence local perceptions, leading employees to expect clarity on pay and progression even where formal structures do not yet exist. They are also more likely to be heavily impacted by poor organisational design and reward decisions within a shorter time frame.

These growing pressures highlight the need for a more intentional approach to job architecture within SMEs — not to add bureaucracy, but to bring clarity, fairness, and agility to how work is structured and rewarded The five points below provide a simple framework to help SMEs take meaningful steps forward.

Prioritise role clarity

Begin by writing role profiles around measurable outcomes and not tasks lists, for instance: outcome = fill critical roles quickly and fairly; tasks = write job ads, schedule interviews. Be clear on accountability and decision making upfront – does the role own the decision or contribute to it? This removes ambiguity between overlapping roles and begins to set a fair basis for progression and pay. Give managers simple tools and training so they can draft job descriptions quickly and focus on the content that matters.

Use job levelling to bring further clarity, consistency, and fairness

Job levelling can be one of the more effective tools SMEs can adopt to address these challenges and a light-weight solution can still be effective without breaking the budget. Job levelling can help create a shared understanding of role scope and impact, making it easier to compare roles and create a simple job titling convention, avoid ad-hoc decisions, and ensure fairness across teams. It also sets the stage for transparent career pathways, something employees increasingly expect even in smaller organisations.

Develop a skills-based approach

Whilst a full skills framework might be too cumbersome for many SMEs, it is just as important for smaller organisations to stay focused on the critical capabilities that will move their strategy forward. Start by identifying the key skills across the organisation, then embed them into job design, recruitment, learning and performance management, and ensure they are recognised in reward decisions. Organising jobs around skills and competencies also enables more flexible career paths and therefore supports greater organisational agility. This targeted approach builds the capabilities you need and helps prevent growing skills gaps.

Take a structured approach to pay

A structured approach to pay is essential for SMEs, where ad-hoc decisions can quickly lead to risk, inconsistency, and tension. Establishing clear pay principles and applying transparent decision-making processes all help to support fairness without adding unnecessary complexity. Building on the foundations of a simple levelling framework, having a formal approach to addressing critical skills shortages and utilising market insights to pre-empt issues before they become costly will help keep pay fair and competitive.

Review roles and pay proactively as the business evolves

Within an SME, change can happen fast and that means it is vitally important that approaches to job architecture and reward remain agile. Plan for regular, light touch reviews of key processes and frameworks to ensure they are still fit for purpose, adjusting as required. Put in place simple governance frameworks which hold individual actions to account and ensure alignment with strategy around role and pay principles. Finally, communicate openly about what is changing and why, so people understand the need to adapt.

Conclusion

Done well, job architecture can be an SME advantage: it brings clarity to hybrid roles, heads off pay compression, focuses the business on critical skills and makes progression credible and fair without adding layers of bureaucracy. We recommend keeping it light with clear job descriptions, simple job levelling, transparent pay practices and a commitment to continual review and reassessment - so the organisation can stay agile as things change.

Gallagher are the Knowledge Partner for the Reward and Payroll Summit 2026! Click here to find out more on how the Summit can help you get the best out of your organisation.

PRIS Takeaways: Beyond Payroll: Supporting Employees’ Life Admin in a Digital World

Lukas Montgomery — Wed, 06 May 2026 07:07:00 GMT

Reward strategy is evolving beyond pay and perks. “Life admin” like moving or mortgages is a hidden drain on wellbeing and productivity; one organisations can’t afford to ignore.

While employers invest heavily in wellbeing initiatives, our latest PRIS session underscored a gap between formal wellbeing support and the practical realities of employees’ lives. Vickie Graham, Managing Director of Reward Strategy, sat down with Laura Hughes, Head of Verifications Data at Experian, and Malc Coton, Data Acquisition Manager at Experian, and discussed how activities like gathering financial documents, verifying income, and navigating complex housing processes are not occasional inconveniences, but are often prolonged, stressful experiences.

These tasks frequently sit in the background, quietly draining employees’ time and mental bandwidth. Unlike visible stressors, such as workload or deadlines, life admin is harder for employers to detect. Yet its impact is tangible: reduced focus, increased anxiety, and lower engagement.

For reward leaders, this signals a need to broaden the definition of wellbeing. Supporting employees is no longer just about offering gym memberships or mental health resources; it’s about recognising and addressing the practical burdens that shape everyday life.

Fragmented processes amplify the problem

A recurring theme from the discussion was the inefficiency of current systems. Processes like income verification or communication with solicitors are often manual, slow, and disjointed. Employees may wait days, or even weeks for responses, all while juggling work responsibilities.

This fragmentation creates a compounding effect:

Delays increase stress
Repetition of tasks wastes time
Lack of transparency fuels uncertainty

From an organisational perspective, these inefficiencies don’t just affect the individual, they ripple into the workplace. Employees distracted by unresolved personal admin are less able to perform at their best.

The takeaway is clear: the issue isn’t just the existence of life admin, but the outdated systems that make it unnecessarily difficult.

Employers are often in the dark

One of the more striking insights was how little visibility employers have into these challenges. Unlike sickness absence or parental leave, life admin doesn’t come with formal signals. Employees rarely inform their manager that they are in the middle of a mortgage application or dealing with a difficult landlord.

As a result, organisations are left reacting to the symptoms such as missed deadlines and reduced productivity, rather than addressing root causes.

This lack of visibility presents both a challenge and an opportunity. While it may not be practical (or appropriate) to track personal life events, organisations can design reward strategies that anticipate these needs proactively. By embedding support into everyday systems, employers can help employees without requiring them to self-identify or ask for help.

Work-life boundaries are increasingly blurred

Another key theme was the erosion of traditional work-life boundaries. Many life admin tasks must be completed during standard business hours. This creates a direct conflict with employees’ working day.

The result is a trade-off:

Employees either step away from work to manage personal tasks
Or delay important life admin, prolonging stress

Neither outcome is ideal. Over time, this tension can lead to disengagement, presenteeism or burnout.

For reward professionals, this reinforces the importance of flexibility and autonomy. While flexible working policies are now widespread, the seminar highlighted the need to go further, ensuring that employees have the tools and support to manage life admin efficiently, not just the permission to do so.

Digital integration offers a path forward

Encouragingly, there is a clear direction for improvement: digital, integrated solutions. By connecting systems, particularly payroll, with external services, organisations can streamline processes that are currently manual and time-intensive.

For example, automated income verification could remove the need for employees to gather and submit multiple documents. Secure data sharing could reduce delays and eliminate repetitive requests. Partnerships with organisations like Experian demonstrate how technology can simplify complex workflows.

The key advantage of this approach is that it delivers support without increasing internal workload. Payroll and reward teams, often already stretched, can enable better employee experiences through integration rather than additional administration.

Implications

So what does this mean in practice?

First, reward strategies should evolve to recognise time and simplicity as valuable benefits. Reducing friction in employees’ lives can be as impactful as financial incentives.

Second, organisations should explore partnerships and technologies that embed support into existing systems. The goal is not to create new programmes, but to enhance the ones already in place.

Finally, there is an opportunity to position life admin support as part of a broader employee value proposition. In a competitive talent market, organisations that make everyday life easier will stand out.

A shift in perspective

Ultimately, the seminar challenges reward leaders to rethink their approach. Life admin may sit outside the traditional boundaries of HR, but its impact is firmly within them.

By acknowledging and addressing these hidden pressures, organisations can unlock meaningful gains in productivity, engagement, and wellbeing. More importantly, they can demonstrate a deeper understanding of what employees truly need: not just at work, but in life.

As the workplace continues to evolve, this more holistic perspective on reward may prove to be not just beneficial, but essential.

Missed out on the discussion? Click here to watch the On Demand recording

New Appointments in Reward, Payroll and Benefits - April 2026

Lukas Montgomery — Mon, 04 May 2026 09:36:00 GMT

The reward, payroll, and benefits profession continues to see exciting career moves across the industry

Melissa Allen

Vice President, Payroll & HCM Operations

Fidelity Building Services Group

Melissa Allen has been appointed Vice President, Payroll & HCM Operations. She brings more than 25 years’ experience in payroll transformation, compliance and leading multi-jurisdiction teams, strengthening capability in operational excellence and governance.

Randeep Sandhu

HR Director

Rock Group

Randeep Sandhu has taken up the role of HR Director, with a track record in organisational development and aligning people strategy to business growth.

Aakash Pathak

Global Payroll Lead

Natwest

Aakash Pathak has joined in a strategic people role, bringing a data-led approach to workforce insight and performance.

Victoria Evans

Head of Benefits, Wellbeing & Recognition

Boots UK

Victoria Evans has been appointed to support wellbeing strategy, with expertise in workplace nutrition and employee engagement.

Timo Quallington

Executive Reward Director

dentsu

Timo Quallington has joined, bringing experience in reward strategy and organisational transformation.

Yvan Bodnar

Director, Global Compensation

Expedia Group

Yvan Bodnar joins with experience in international reward, supporting cross-border workforce strategy.

Francine Parciasepe Carroll

Senior Director, Payroll

QXO

Francine Parciasepe Carroll has been appointed to a senior advisory role, bringing extensive experience in employee relations and organisational development.

Kirsty Caudle

Head of Global Payroll

Mountain Warehouse

Kirsty Caudle has joined, adding specialist expertise in payroll compliance and operations.

Sangeetha Eswaran

Head of Payroll

Sangeetha Eswaran has been appointed to strengthen HR capability across operations and people strategy.

Andrew Gould

Global Head of Payroll

Howden

Andrew Gould has joined in a senior people strategy role, with experience aligning workforce strategy to commercial objectives.

Keep up to date with the latest changes in Payroll and Reward- Click here to visit our Knowledge Hub

One-third of managers lack confidence in neurodiversity adjustments

Reward Strategy — Tue, 05 May 2026 12:21:00 GMT

According to employment-law analysis, tribunal claims involving neurodiversity have shot up sharply in recent years

Managers are often the first port of call when an employee needs adjustments, so their tone and confidence shape the whole experience. A manager who sounds uncertain can make a worker feel like a burden; a calm, practical approach makes the conversation feel safe, private and useful.

The gap partly reflects how organisations measure success. Many tick the “neurodiversity-friendly” box because a policy exists, not because adjustments are actually being used. That’s why HR needs to see beyond documents and into day-to-day interactions.

What good training actually does, not just awareness, but muscle memory

A one-off webinar raises awareness, but it rarely changes behaviour. Practical training shows managers how to open a conversation, carry out a basic needs assessment and agree review points. VinciWorks and other compliance providers warn that repeated exposure and practice build the kind of confidence managers need.

So look for programmes that include role-play, scenario work and short refreshers. Embed learning into existing manager development rather than treating it as a stand-alone box-check.

Practical steps HR can implement this quarter

Start small and measure impact. First, run a short audit of who’s received neurodiversity training and whether it’s ongoing. Then introduce simple tools: a conversation checklist, a one-page needs-assessment form and a three-month review reminder in the manager’s diary. Pair new guidance with quick manager clinics where HR coaches sit in on mock conversations.

These tweaks are low-cost but highly visible, and they create the evidence employers will need if a tribunal asks how support was provided in practice.

Legal context and why evidence beats intention

Employment-law firms report a near doubling of tribunal cases tied to neurodiversity over five years. That trend changes the incentives: tribunals look for proof that policy translated into action. According to legal commentary, firms that treat neurodiversity as a live, measurable workplace issue are better placed to defend decisions and show genuine support.

HR shouldn’t panic, but it should act. Document conversations, record agreed adjustments and keep a simple review log. Those records help individuals and protect organisations.

Building a culture that supports neurodivergent staff every day

Training and tools are the scaffolding, but culture is the foundation. Regular communications that normalise adjustments, visible leadership endorsement and accessible routes to specialist support all make a difference. Invite neurodivergent employees to co-design resources; their input makes guidance practical and credible.

Over time, small changes , clearer meeting agendas, quieter workspaces, flexible hours , add up. Your managers will notice the difference, and so will your teams.

It’s a small change that can make every conversation and every adjustment safer and more useful.

Rewards Response

Ensuring a culture that is supportive of neurodivergence is key in the current climate, and it’s your managers that are the heralds of your company culture. One bad experience can alienate an employee and word of mouth will do the rest, this is why its so important to ensure that managers are trained in how to understand and support employees coming forwards in search of support.

My own views on this are not only is it important to allow your employees to feel supported, but with the right accommodations, neurodivergence can work to enhance an employees skills and efficiency. Something as simple as a check-in or the ability to drop in with their manager can open new levels of communication and stability at work.

- Lukas Montgomery

Employee engagement: Why development, not perks, drives retention

Mark Bremner — Wed, 29 Apr 2026 15:34:25 GMT

Employee engagement is often treated as a communications challenge: improve surveys, refresh wellbeing initiatives, launch another internal campaign. These tools have their place but they rarely address the root cause of disengagement.

When people cannot see progress, motivation declines. When development is informal, inconsistent, or reserved for a select few, engagement becomes fragile. And when managers are not equipped to coach, the workplace becomes transactional rather than developmental.

For HR Directors and People Leaders, the opportunity is to reposition engagement as a capability strategy. Apprenticeships and structured learning pathways provide an operational mechanism to do exactly that and they align naturally with the 4Cs.

Clarity: make progress visible People don’t disengage because work is hard. They disengage because effort feels directionless.

Clarity means employees can answer:

“What am I building?”
“What’s the next step?"
“What skills will take me there?”

Apprenticeships create a built-in progression narrative: learning outcomes, milestones, assessment points, and tangible achievement. That transforms development from occasional training to an ongoing journey.

Practical tool: the “progress pathway” one-pager

For your top 10 roles, create a one-page progression map:

what good looks like

what skills matter
what development options exist (including apprenticeships)
and what the next role could be.

If employees can’t see pathways, they can’t commit to them.

Confidence: build competence through coaching rhythms Engagement rises when people feel capable. Capability grows fastest when learning is applied, supported and recognised.

Structured programmes create a rhythm that many organisations lack:

regular coaching conversations
reflection on real work
feedback loops
and evidence of progress

This rhythm is particularly valuable for early-career staff and career changers groups that often disengage when they feel lost or unsupported.

For managers, structured programmes also provide scaffolding: they don’t need to “invent” development; they support a framework. That reduces managerial inconsistency and strengthens the employee experience across teams.

Practical tool: manager coaching prompts

Give managers three consistent prompts for monthly check-ins:

“What have you learned this month that you’ve already applied?”
“Where do you feel stuck or less confident?”
“What’s one stretch task that would build your capability?”

These simple questions make development real, not theoretical.

Culture: shift from retention efforts to growth environments Retention strategies often chase symptoms: resignation spikes, salary pressures, competitor poaching. A growth culture changes the conversation before those symptoms appear.

In a growth culture:

learning is protected

development is normalised

and progression is a shared objective.

Apprenticeships embed this cultural expectation because they formalise learning time and provide external validation. They communicate: “We don’t just employ people we build people.”

That message drives engagement, particularly in sectors where teams feel stretched. When workloads are heavy, development is often the first thing to disappear — yet that is precisely when it matters most.

Practical tool: protect learning time like you protect meetings

Make off-the-job learning visible in diaries. Treat it as non-negotiable. If learning is repeatedly cancelled, your culture is telling employees development is optional and engagement will follow.

Creativity: reframe engagement as professional pride

One of the most underused engagement levers is professional identity. People want to feel proud of what they do and they want to feel their organisation helps them become better at it.

Structured programmes create that pride:

recognised qualifications
evidence of competence
progress narratives that employees can share internally and externally.

Creative People Leaders also use apprenticeship journeys as storytelling:

celebrating milestones
showcasing learner achievements
highlighting internal progression

This strengthens engagement not only for learners, but for colleagues who see what’s possible

Practical tool: “progress moments” communications

Each month, spotlight one learner story:

what they’ve learned
how it improved outcomes
and what’s next?

Small stories build big belief.

The strategic takeaway

Engagement isn’t a survey score. It’s a system outcome.

When people see progress, feel invested in, and experience a culture that protects learning, engagement becomes durable even in pressured environments.

Using the 4Cs:

Clarity makes progression visible.

Confidence builds capability through rhythm and support.

Culture turns learning into a shared norm.

Creativity turns development into pride and momentum.

That’s workforce confidence in action and it’s one of the strongest retention strategies available.

Want to hear more from Mark and his team? Check out their Insight Sessions at the Reward and Payroll Summit- Click here to find out more

Is the Minimum Wage floor becoming a career ceiling?

Jeni Morris — Wed, 29 Apr 2026 15:32:25 GMT

The Minimum Wage floor is becoming a career ceiling, and the data proves it.

As someone who finds themselves constantly drawn to the inner workings of National Minimum Wage (NMW) legislation, I’ve often argued that the Low Pay Commission (LPC) reports are more than just year-end summaries, they are a vital crystal ball for the future of UK employment law. Their latest February 2026 report, Worker Experiences, is particularly illuminating for payroll and HR professionals. It suggests we are at a critical crossroads where the National Living Wage (NLW) floor is increasingly being perceived by workers as a permanent ceiling.

The Promotion Deficit

The data that immediately jumped out at me during my deep dive was the collapse in internal progression. Only 12% of Minimum Wage workers report ever being promoted by their current employer. This is a staggering decline from the 20% recorded just two years ago in 2023.

This isn’t merely a lack of open roles; there is a profound optimism gap at play. Approximately 88% of Minimum Wage workers believe it is unlikely they will be offered a promotion in the coming year. Perhaps most telling is that even when opportunities arise, these workers are less likely than their higher-paid counterparts to accept them. The reason could be seen as a calculated responsibility-to-reward ratio, where the marginal pay increase is seen as insufficient to compensate for added stress, increased workload, or the loss of cherished flexibility.

The Stability Gap:

For those of us managing payroll and workforce planning, the stability gap is a major takeaway. Minimum Wage workers are significantly more likely to face variable hours and days compared to those in higher wage bands.

The most critical insight here involves notice periods. The report finds that 37% of these workers receive one week or less of notice for their work patterns. This lack of predictability is a massive barrier to career growth, when you don’t know your schedule more than seven days in advance, it becomes nearly impossible to commit to the training or education required to move up the ladder. This creates a progression trap where the lack of stability keeps workers stuck at the floor.

Financial Resilience and the Overtime Survival Cycle

Despite the National Living Wage increases in recent years, many workers remain under intense financial pressure. Satisfaction with pay is notably lower among Minimum Wage workers compared to higher earners, with many reporting they can only just afford their essentials.

What’s fascinating is how these workers respond to financial difficulty. Unlike medium-paid workers who might focus solely on cutting back spending, those closer to the Minimum Wage are considerably more likely to respond by working more hours or taking on extra shifts. While 77% of Minimum Wage workers work overtime, the report clarifies that for many, this is a reactive survival strategy rather than a proactive choice for career development.

The Legislative Horizon:

My interest in these reports stems from how they signal future legislative shifts, such as the Employment Rights Act. The research shows that workers, particularly younger staff and those with disabilities see reforms regarding shift notice and sick pay as vital to their day-to-day quality of life. For instance, 68% of workers with disabilities believe ensuring all workers qualify for sick pay would make a positive difference.

As payroll professionals and employers, we must recognise that meeting the statutory NLW is merely the starting point. To break the career ceiling, we need to advocate for predictable scheduling and meaningful progression pathways that ensure a promotion offers a genuine step up in quality of life, not just more stress for marginal gains. If we don’t address these structural issues, we risk a permanent class of workers who are stuck at the floor, unable to move up and too fearful of the risks to move out.

Want to hear more from Jeni? Click here to see her Reward and Payroll Summit session.

Employers prioritise wellbeing and development perks to attract and retain graduates in a competitive market

Reward Strategy — Tue, 28 Apr 2026 12:18:28 GMT

As flexible working, health cover, and development support become key differentiators, companies are increasingly tailoring benefits packages to meet the evolving needs of recent graduates, boosting engagement and loyalty.

For graduates entering the workplace, the difference between a job that merely pays and one that actually holds their attention often lies in the benefits package. Salary remains important, but the most valued perks are increasingly the ones that support balance, development and financial resilience. Graduate Coach argues that employers who get this right are more likely to keep young staff engaged for longer, and broader evidence suggests that view is well founded.

Flexible working as a baseline expectation

Flexible working is now close to a baseline expectation rather than a novelty. Flexa Careers says it can improve work-life balance, reduce stress and burnout, and widen the talent pool by making jobs accessible to more people. Indeed similarly notes that flexibility can increase job satisfaction, productivity and retention, while Robert Half says businesses also benefit from lower costs and stronger appeal to candidates. The CIPD has likewise linked flexible arrangements with better recruitment, retention, engagement and diversity.

Why flexibility matters for early-career employees

That matters especially for graduates, who may be trying to manage commuting costs, study debt, housing pressure and the shift into full-time work at the same time. A policy that allows compressed hours, hybrid schedules or occasional home working can give early-career employees a sense of control that extends beyond convenience. It can also signal that an employer trusts staff to manage their responsibilities without requiring presenteeism.

The value of health and wellbeing support

Health cover is another perk that can carry real weight, particularly where employees are waiting for treatment or need faster access to support services. Graduate Coach points out that supplementary private medical insurance can be tailored to budget, and providers increasingly bundle in mental health help or physiotherapy. For younger workers, that kind of support can be more meaningful than office-level extras, because it speaks directly to wellbeing and recovery.

Time off and long-term support

Time off is equally important. Extra annual leave, whether through added holiday days, birthday leave or long-service rewards, can make a role more attractive and help prevent burnout in demanding sectors. Enhanced parental leave can also send a strong message about what kind of employer a company wants to be. Even modest improvements above the statutory minimum may matter to graduates who are thinking about long-term stability, family life and whether a workplace will support them through major milestones.

Financial wellbeing and career development

Financial wellbeing support and learning budgets round out the kind of package that tends to resonate most with younger staff. Graduate Coach highlights practical help such as pension contributions, emergency support, salary advances and cycle-to-work schemes, all of which can ease pressure at a time when many workers are still building financial confidence. Development funding can be just as influential: money for courses, conferences or books tells graduates that progression is not limited to a ladder inside the business. It also reinforces a simple but powerful idea , that the best workplace perks are not gimmicks, but tools that help people build a sustainable career.

Reward’s Response:

This isn’t a shock to me. From the conversations I have across the industry —as well as my own preferences and experience— money is just not the biggest draw anymore. The reality is that a £500 season ticket is the equivalent to a £6000 pay rise to the job hunter. Suddenly £24,000 and £30,000 are equally financially rewarding.

With the increase in cost-of-living, employee assisted saving allows for a greater stability. Pension contributions, salary advances and learning budgets are all tools employees can use to help increase their stability. This not only assists the employee but allows them security within their role and places a greater trust in the employer.

-Lukas Montgomery

If you want to do more to help out your employees, check out this weeks PRIS on the burden on life admin - Click here to see more

Data protection shifts from compliance to strategic imperative

Reward Strategy — Thu, 23 Apr 2026 08:59:00 GMT

As cyber threats grow and AI adds risks, data protection is now a board priority, with regulation seen as a baseline, not true security.

Data protection is no longer a narrow compliance issue; it is now a board-level concern that sits at the centre of business continuity, customer trust and operational resilience. Cyber threats have become a constant rather than an exception, with government survey data showing that 43% of UK businesses and 30% of charities experienced a cyber breach or attack in the past year, while Beaming reported that UK companies faced more than 2,000 attacks a day on average in 2025. Against that backdrop, the message behind Data Protection Day is less ceremonial than urgent.

Cyber threats become the norm

The scale of the threat is also changing. The National Cyber Security Centre said it dealt with 204 nationally significant attacks in the 12 months to August 2025, sharply higher than the previous year. The National Crime Agency has separately identified ransomware as the main cybercrime threat facing the UK, even as law enforcement pressure has disrupted some major gangs. Together, those findings suggest that attackers are not only more active but also more capable, forcing organisations to think beyond simple perimeter defence.

AI: double-edged sword for security

Artificial intelligence is adding a further layer of complexity. In the source article, security leaders warned that AI can help defenders work faster and more precisely while also giving criminals better tools. They also highlighted the rise of shadow AI, where staff use unapproved AI applications that can create leakage risks and governance blind spots. The broader point is that organisations now have to secure not only the data they hold, but also the ways employees create, move and analyse it.

Compliance is only the starting point

Regulation still matters, but it is increasingly clear that compliance alone is not enough. The article argues that GDPR should be treated as a floor, not a finish line, because formal rules do not automatically prevent breaches or restore confidence after exposure. That view aligns with the wider security landscape: industries such as manufacturing, where ESET found 78% of UK firms had suffered a cyber incident in the past year, show how quickly financial damage can follow weak visibility and reactive planning. For many businesses, the challenge is to turn policy into everyday discipline.

Rethinking infrastructure for resilience

Infrastructure choices are becoming part of the answer. The article points to a shift towards on-premises, regional and sovereign models, with advocates arguing that keeping sensitive data closer to where it is generated can improve visibility, control and response times. It also notes that recovery planning must extend beyond backups to identity systems and applications, which are often the hardest parts to restore after an incident. In a market where the UK cyber security sector generated £13.2 billion in revenue in 2025, according to government figures, the economics increasingly favour organisations that can combine innovation with resilience.

Understanding Compliance is the most important aspect of an ever-changing business environment- Click here to see our custom curated sessions for The Reward and Payroll Summit to help you remain compliant

Job fears shift from AI to economic instability

Reward Strategy — Thu, 23 Apr 2026 07:51:33 GMT

A new survey reveals that British workers now fear economic downturns and rising unemployment more than technological disruptions, signalling a cautious shift in workplace sentiment for 2026.

A new survey suggests that British workers are no longer chiefly preoccupied with artificial intelligence when it comes to job losses. Instead, the dominant concern is the economy. MyPerfectCV’s UK Job Security Report 2026 found that 79% of workers are worried about their careers, while 69% said they feel more anxious about their job security than they did a year ago.

Workforce braced for potential layoffs

The report points to a workforce braced for a difficult year ahead. More than four in five respondents said they expect layoffs at their own employer within the next 12 months, with a large share describing that outcome as highly likely. Looking beyond individual companies, 63% believe redundancies across the UK will rise in 2026, and 77% expect unemployment to increase. MyPerfectCV’s career expert, Dr Jasmine Escalera, said concerns about redundancies, a weaker labour market and the wider economic outlook were shaping how employees judged their stability at work.

Cost of living drives anxiety

The anxiety appears to be rooted in day-to-day financial pressure. Nearly three in five workers said they fear their pay will fail to keep pace with rising costs, and a similar proportion cited the cost of living as one of their biggest worries. Recession fears are also widespread, with 92% saying they are concerned about the UK entering recession this year. Workers are not only thinking about whether they could lose their jobs, but also whether they could find another one quickly enough if they did.

Signs of strain in the labour market

That unease is being reinforced by a labour market that is already showing strain. The Guardian reported in January that the collapse of so-called zombie companies could push unemployment higher as firms struggle with elevated borrowing costs, energy bills and wage pressures. More recently, the Workers Union said hiring has slowed sharply, while other market commentary has pointed to fewer vacancies and tougher competition for each role. In that environment, a job loss feels less like a temporary setback and more like a potentially prolonged financial shock.

A more cautious and risk-averse workforce

The result is a workforce becoming more cautious. Workers appear more likely to delay moving jobs, stay put for security and take fewer risks as concerns about burnout, limited progression and broader uncertainty pile up. MyPerfectCV’s findings suggest that, for many employees, the biggest threat to job confidence in 2026 is not technological disruption, but the state of the economy itself.

Join us at the Reward and Payroll Summit for our custom curated sessions on how you can make the most of technology in your organisation- Click here to find out more

The hidden workload affecting your people (and your payroll)

Lukas Montgomery — Wed, 22 Apr 2026 08:31:54 GMT

There is a workload most organisations don’t track but HR and payroll teams feel the impact of it every day.

There is a workload most organisations don’t track but HR and payroll teams feel the impact of it every day.

Life admin.

Sorting bills, chasing appointments, managing finances… it doesn’t stop when the working day starts. And over time, it chips away at focus, productivity and wellbeing.

Experian and Great Place To Work® have been speaking to 2,400 UK employees and the data is pretty striking:

Only 57% of employees say they get support with life admin today
Those who do are 3× more likely to have a good work–life balance
And organisations that support it see productivity jump by up to 38 percentage points

This isn’t just a wellbeing issue. It’s a performance one.

And when that support isn’t there, it often shows up elsewhere: absence, distraction, financial stress… all things that land with HR and payroll to manage.

The full findings are together in this short report, Permission to Thrive, explores how leading organisations are

Reducing admin friction to boost focus and performance
Building high-trust cultures that unlock productivity
Embedding practical, scalable support strategies for employees

If you’re thinking about retention, wellbeing, or just making the working day run a bit smoother it’s worth a look.

Want to hear more? Join us for our next PRIS where we will discuss how you can support your employees in a digital world, with key insights from Experian- Click here to find out more

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 — Tue, 21 Jul 2026 10:35:03 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.

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.

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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.

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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.

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