Lack of engagement from employees is having a major affect on businesses!

Research conducted by gallup.com showed that 15% of workers in Germany are disengaged in their jobs. A more worrying report by Gallup reported only 13% of employees are actively engaged in the US. Disengagement is not as simple as saying someone is unhappy at work, disengaged employees take less pride in their work, have less loyalty to their company and take more time off, thus costing businesses billions every year! 

Disengaged workers costs the German economy 73 billion to 95 billion euros annually in lost productivity. Each day when someone is away from work in Germany it costs a business 252 Euros! Disengagement costs the US $2,246 per disengaged employee per year!

Seeing those figures should surely make any company sit up and be more aware of their employees. So why are people feeling disengaged? 

Employee disengagement is primarily driven by how supervisors - from team leaders to line managers - manage people. Given the state of employee engagement in Germany today, it's evident that most managers aren't creating environments in which employees feel motivated. 

The main reasons for disengagement as reported by staff were; 

• Stress and isolation, 
• Lack of training,
• Skills and accomplishments going unrewarded. 
• No raise or financial incentives,
• Lack of respect,
• Lack of communication within the company.
• Too many restrictions and rules. 

You might think staff leaving and moving on might be a good thing if they are disengaged. However, the cost of staff training and the fact that employees have desirable skills and knowledge, is enough reason to keep staff within your company.  If you don't take full advantage of your employees another company or competitor will! 

Word of mouth and social media all play a part on how staff express their disengagement with a company. If customers are considering a service or product, they will take recommendations from their friends, family, media and digital technology. If they are seeing negative feedback about a company that will affect their decision. 

So can companies really afford not to take employee disengagement seriously?

Overtime should count towards Holiday Pay rules Tribunal!

Yesterday, the Employment Appeal Tribunal ruled that overtime should count towards an employee’s holiday pay. This could see up to 5 million employees claiming back holiday pay!

In August, Kubo blogged about the differences in annual leave across the world and discovered that it varies greatly from country to country. More surprisingly, America had no official rule on holiday and it was down to the individual companies Annual Leave policy.

In the UK, it is a minimum requirement that a worker receives 5.6 weeks annual leave, so with an average working week of 5 days, that is 28 days a year (which can include bank holidays). Workers that are required to work overtime as a regular part of their job argue that they should receive extra holiday pay for the overtime time worked.

The ruling may be referred to the Court of Appeal, which means it could be years until a final decision is made. The firms involved in yesterday’s judgement have been given permission to appeal the decision at the Court of Appeal. When asked if they are going to appeal a spokesman for the firms said they are "considering their options".

After the hearing, Business Secretary Vince Cable said "Government will review the judgment in detail as a matter of urgency. To properly understand the financial exposure employers’ face, we have set up a taskforce of representatives from Government and business, to discuss how we can limit the impact on business. The group will convene shortly to discuss the judgment"

What was the tribunal about?

Yesterday’s ruling followed an appeal by Bear Scotland, a road construction and maintenance firm, against an earlier decision by an employment tribunal. The tribunal found Bear Scotland had made unauthorised deductions from the wages of two employees, David Fulton and Douglas Baxter, by failing to include overtime and other payments associated with their work in calculating the holiday pay they were entitled to.

Two separate companies, Hertel and Amec, also appealed a decision stating they had made unauthorised deductions from wages of employees working on a construction site at West Burton in England, by failing to include overtime when calculating holiday pay. As the cases raised the same issues, they were heard together at the Employment Appeals Tribunal.

All three cases centred on the right to paid holiday under the Working Time Regulations 1998, now the Working Time Directive 2003, which states: "A worker is entitled to be paid in respect of any period of annual leave to which he is entitled, at the rate of a week's pay in respect of each week of leave."

Back dated claims

There were concerns that the business sector could be crippled by pay outs on back dated claims from employees. As a result, backdated claims have been limited. The tribunal ruled that employees cannot claim more than three months after the last incorrect payment. This still means that businesses could suffer a real blow and potential job losses could occur as a result, as 23% of men and 12% of women working full time regularly work overtime.

Kate Hodgkiss, partner at DLA Piper Scotland LLP, which represented the firms said, “Those carrying out non-guaranteed overtime, which is offered by an employer on a contractual basis, are more likely to have an entitlement claim as they could argue this is normal remuneration. However, those who perform overtime on an ad hoc basis are under no obligation to do this, meaning it's not part of the normal remuneration package, therefore, they're less likely to have an entitlement to claim." 

What do you think? If your job requires you to work beyond your contracted hours should this be taken into consideration when your holiday pay is calculated? After all, if you take holiday on a day where you would normally work overtime, you would lose out on the overtime pay for that day, if it is not included in your holiday pay. Or do you think that you should see overtime as a bonus and not as part of your basic pay?

Kubo would love to hear your thoughts on this, so get in touch!

Skype interviews, How to succeed!

A latest survey by Right Management shows that 82% of hiring managers have used Skype and 18% of candidates have experienced a Skype interview, so as Skype interviews become more and more popular there are a few things you need to know before you make that Skype video call and potentially risk your chances of securing that new role! 

Skype interviews have their advantages, for example you don't need to go into work suited and booted and have everyone asking you awkward questions like "oh you look very dressed up for work today, doing anything nice?". You can communicate across countries without the cost and hassle of travelling and for more local interviews you don't have the stress or worry of getting stuck in traffic and running late. There is also the advantage that a Skype interview is a good way of you getting to know the company and the employer getting to know you a little before you have a face to face interview, but even though this isn't the formal interview there are still a few pit falls that could stop you getting to that next stage!


Look and dress the part!
Even though you are behind a computer screen you still need to act as if you are meeting face to face. The interviewer may only be able to see your top half and unless you stood up wouldn't be able to see your Mickey- Mouse PJ bottoms, but to help you get in the right frame of mind always dress smartly and professionally. It is also recommended not to wear too much patterned or striped clothing as this may be distorted and come across badly on the camera. 


Have a look at what they can see!
If you are conducting the interview at home or in a public place like a coffee shop, always have a look at what the interview can see. If you are sitting in your kitchen or home office make sure it is tidy. Have a look at what is behind you, is this what you want the employer to see? This is the first insight a company will get into who you are, so by presenting your surroundings professionally they will see you as a professional they can picture in their company. 

Technical issues
We all have them from time to time and sometimes no matter what you do, you just can't get your computer to do what you want. If this does happen then you should be honest and open about the problem, tell the interviewer if you are having trouble hearing them and if things really are not working suggest the call is rescheduled when you have resolved the problem. To alleviate these issues arising, make sure Skype is up and working before the call and try a test call with a friend first. This way you know that you have done everything to make sure you are ready for the call.

Timing
Sometimes when you are talking to someone over the internet there can be a time delay. Make sure that you don't talk over your interviewer and let them finish before you start to answer. It may feel awkward at first if there is a slight silence, but use the time to think about your answer. Better that than everyone talking at once.


Eye Contact and body language!
Its always awkward at first when you talk to someone over Skype because you are sat on your own in a room talking ever so slightly louder than normal to make sure the other person can hear you clearly, but remember this is their first impression of you, so eye contact and body language is everything! I know it doesn't always feel right and it can be tempting to look at your image on screen or down at your notes, but by looking straight into the camera and sitting up straight you are making eye contact and your body language is strong.

Use Skype to your advantage!
The fact that you are behind a computer screen doesn't have to be a bad thing. You can keep notes on the company or notes on what you want to say handy without the interviewer seeing them! Obviously you don't want to be reading your notes out like a robot word for word or looking down at them all the time, but it is good to have them there to jog your memory every now and again if required. Another bonus of a Skype interview is that you can easily attach your CV or files of previous work during your call, so there is no risk of you forgetting to bring that important file as everything is on your computer!

It looks like Skype interviews are becoming the new way for employers to speed up the interview process and are here to stay, so by making sure you have prepared yourself and your surroundings all you have to do now is win them over with your knowledge and experience! Oh and don't forget to smile!

Part 1 Annual leave- How do Holiday entitlements vary across the globe?

We all enjoy taking time off to spend time with our family and friends for the odd day or a couple of weeks at a time, but how does the holiday entitlement vary between countries and how does it affect how people use their holiday?

 

 

 Finland, Brazil, France and Germany are at the top, guaranteeing six weeks of time off including some bank holidays, with most other European countries enjoying 4-5 weeks holiday off a year.

In Hong Kong the entitlement is only 7 days for your first 2 years of service and India and Japan the entitlement on average is 10-12 days a year!

What I found most surprising was America have 0 yes that's ZERO days statutory minimum! It is left to the employers to offer paid holiday as part of the benefits package. Larger companies will typically offer between 10 and 20 working days, depending on the company and years of service. In addition to this some may offer a number of paid public holidays, typically 6-8, although smaller employers may offer no holiday at all! The average number of paid holiday days offered by private employers is 10 days after 1 year of service, 14 days after 5 years, 17 days after 10 years, and 19 days after 20 years!

So how does this affect how people take their holiday entitlement?
Some U.S. companies don't like employees taking off more than one week at a time. Others expect them to be on call or check their e-mail even when they're lounging on the beach or taking a hike in the mountains. In Europe its common for people to take off 3 consecutive weeks during the summer. Having said that some companies in Europe still have the summer shut down during the hot months and employees are told when to take time off.

The way America views annual leave and the way Europe sees it poses lots of questions. Is it healthier for staff to take a break and relax for a couple of weeks and come back refreshed, or is it better to take odd days here and there and avoid the build up in work (and therefore stress) that awaits you when you arrive back in the office after 2 weeks away?

The other question that springs to mind when thinking about the way people take holiday, is that if you are constantly thinking about work and not taking genuine time off, does your home life suffer? Or are you more likely to burn out quickly professionally?

In part 2 of my blog I will be investigating how different people across the world choose to spend that precious annual leave.

www.kuborecruitment.com