Time for the return of Robin Hood

The CEO of RBS, Stephen Hester, has finally decided to waive his bonus worth almost a million pounds ($1.6 million), the bank said on Sunday, after the handout angered millions of people who are having to bear the brunt of the government austerity measures.

A spokesman for the partly state-owned bank (83%) said Mr Hester would “no longer be taking the bonus”, which was awarded at a time when most workers are suffering wage freezes, sub-inflation rises or worse.

Gareth Osborne said: “Under pressure the bank has been ‘forced’ to waive the payment but no-one has yet said what will happen to the equivalent value (in shares or cash) which the bank could clearly afford to make available.”

“In an earlier [small] business, when times were hard, we invoked a ‘Robin Hood’ bonus scheme We calculated a total payment pot and then divided it so that junior staff received a 10% bonus and senior staff received just 1%; taking from the richer and giving to the poorer. It worked, it attracted considerable goodwill amongst the team and motivation soared. It’s a shame that high paid bankers can’t remember what its like to have to grovel for a loan!

APA

Better off than Europe

UK CEOs are more optimistic about their companies’ fortunes than their European counterparts, finds research. Almost 80% are upbeat about revenue growth in the next year compared with 64% across Europe, according to PricewaterhouseCooper’s annual global survey of more than 1,200 companies. While only 29% are ‘very confident’ of growth in the next 12 months, 46% are very confident over the next three years and at least 92% ‘somewhat confident’ of growth over three years.

Overall, UK business leaders say the outlook for global economic conditions remains challenging, with 89% of UK CEOs believing they will not improve, or decline further in 2012.

Ian Powell PwC

Ian Powell, PwC chairman says: “Our prognosis is that CEOs should expect the current pattern of volatile financial markets and relatively slow growth in western economics to continue. The challenge for the UK CEO is ensuring that their companies remain flexible, maintain cost controls and restructure to adapt to this slower growth environment.’

UK CEOs say their best chance for growth in the next 12 months is more likely to come from increasing their share in existing markets, with less than a quarter (22 per cent) looking for growth from new products or services, and 18 per cent from new geographic markets.

Powell adds: “Growth opportunities still exist, particularly in faster growing emerging market economies and where new technology is opening up possibilities – in areas as diverse as online retailing and low carbon energy. The challenge now is to ensure that the experience of slower growth in traditional markets and the uncertainty created by more volatility does not prevent them taking advantage of these areas of new opportunity.”

APA

Taxing times ....

UK small business owners could lose £40 million on 1 February by failing to complete their tax returns on time (31 January deadline) says APA. The warning comes as businesses many are struggling ahead of the final deadline for submitting tax returns.

A recent survey of 500 small businesses found that one in ten business owners admitted to missing tax return deadlines. With 4.5 million small businesses in the UK this means that 450,000 small business owners are likely to miss their tax return deadline at the end of this month and incur a fine starting £100 for being just one day late and escalating as the lateness grows.

Gareth Osborne says, ‘I find it truly astonishing that in today’s tough climate so many people still miss the deadline. As a former small businesses owner myself, I understand the pressures faced, yet adding another financial burden by missing a deadline and incurring a penalty is just crazy and it really isn’t that difficult; any half decent business owner should be able to do it themselves or, if all else fails, engage their accountant.'

And remember the US maxim, ‘If the bullet don’t get ya, the taxman will!’ or in our case … HMRC.

APA

New Leeds PA Professionals

PA training has returned to the North in early 2012 with the first ‘PA Professional’ course being delivered by Gareth Osborne at the Park Plaza Hotel in Leeds this week.

As Module 1 towards the highly regarded PA Diploma (DipPA) and accruing points towards the PA Degree (BA Business Administration for Personal Assistants- Middlesex University) the PA Professional programme teaches a host of up-to-date tools and techniques invaluable for the modern PA looking to develop their career potential or the established PA looking to upgrade their knowledge-base.

Gareth Osborne said: “Again we saw an excellent group of PAs looking to enhance their career pathways and supplement the value of support they bring to the organisation’s senior executives. As often happens they threw themselves into the programme and shared and discussed current issues and best practice. Early feedback indicates that everyone found the course of value. ”

Pictured (L-R): Mollie van der Gucht, Jennifer Cleaver, Vicky Kershaw and Emily Woodcock.

APA

Share and share alike

Wow, wouldn’t we all like the opportunity to receive a bonus of nearly £1 million? Well I have to say that RBS has done a great job of ‘shooting itself in the foot’ and a time when it is working hard to regain its credibility sfter bad judgements in the past and pay back some of the £43 billion it owes to its public taxpayer investors for bailing it out.

The news today that RBS will pay Chief Executive Stephen Hester £963K in shares as a bonus does little to abate the anger of those of us who still believe that all bankers should wear sackcloth and ashes for a long time to come. And this is on top of Mr Hester’s basic salary of £1.2 million per annum. The same bank has made over 30,000 people redundant.

We all know it’s a tough (and probably thankless) role and I doubt there are many people qualified and capable of doing it but isn’t it time we got things into perspective and stopped over-paying executives. Perhaps we should tackle footballers in the same breath.

 
APA

Mystic Mug

In June 2009 (30 months ago) serial entrepreneur and Dragons’ Den investor Peter Jones suggested that UK businesses had seen the worst of the economic crash.

In a presentation to the BT Experience 2009 conference Jones said: ‘We are out of the recession. People will say we remain in a recession over the next 12 to 18 months but what we will be seeing from now on are just the consequences of hitting the bottom of the recession.’

I wonder what he thinks now. Hardly a day goes by when we hear about more staff being made redundant and it is not helpful when pseudo-celebrities like Jones try and avoid the inevitable; UK business is in a mess and desperately needs help.

Jones went onto suggest: ‘We lack the mindset of entrepreneurialism in this country. It requires forward thinking, clarity and self-belief and these [skills] need to be encouraged.’

I assume he means by supporting them, guiding them and backing them. Something he would do well to practice on Dragons’ Den.

Gareth Osborne, APA

2012 training sets sail

 

The first training courses for 2012 have started well with full attendance and happy faces. APA has offered its full suite of professional qualification courses from PA Apprentice, PA Professional, PA as a Manager and Module 1 of the Diploma in Personal Assistance this week in Southampton.

Presenters Gareth Osborne and Phil Taylor hosted over 25 PAs from the south coast on the 4 course and reported excellent progress and results. Gareth said: “In this tough financial climate I am glad that both the private and public sectors are investing in their staff and assuring them a careerpath for the future. The PAs reported being busier than ever with increased pressure coming from extra workload; especially management duties, where colleagues have been made redundant. None of them had seen extra reward and three had seen jobs rationalised and pay reduced. Everybody agreed it's tough out there!”

APA training moves to Leeds this week.

APA

Shown (L-R) are 'PA Professional' delegates: Anna Jones, Emma Bloomston, Kirsty McAndrew, Hannah Daly, Maureen Gwyer and Susie Wright-Thomas.

Unemployment still growing

UK unemployment rose by 118,000 in the three months to November to 2.685 million, official figures show.

The Office for National Statistics (ONS) said the unemployment rate also rose to 8.4% from 8.3%, the highest since January 1996. The number of people claiming Jobseeker's Allowance in December rose by 1,200 to 1.6 million. The number of young people looking for work hit a new record of 1.043m, taking the rate for 16-24 year-olds to 22.3%.

However the number of people in employment rose slightly in the three months to November by 18,000 to 29.119 million.

APA is encouraging Government to focus its efforts on support for business and the creation of new, long-term jobs.

APA

Pay Stats 2011

The majority of company staff saw their pay packets remain static or shrink in 2011. Some 48% say that their pay was frozen and 5% suffered a pay cut, with just 18% receiving a cash bonus, according to CIPD.

51% of private sector employees have had a pay rise since the start of 2011 compared to 45% in the not-for-profit sector, but just 24% of those in the public sector have received an increase. Public sector employees (70%) are most likely to have seen their pay frozen in 2011, followed by those in the not-for-profit sector (48%) and the private sector (42%).

Among those who did receive a pay rise in 2011, satisfaction levels have dipped slightly since last year, but net satisfaction remains strongly positive (+56 in 2011 compared to +61 in 2010).

APA is about to launch its own ‘profession specific’ pay and attitudes survey and expects similar results. APA Director General, Gareth Osborne said: “PA still seem to be fairing well in the marketplace and receiving additional reward as the job becomes more challenging and as other staff, including senior managers, are released.”

APA

PAs of the future

APA has welcomed government plans to improve how IT is taught in UK schools to better prepare young people for work.

The Education Secretary, The Rt Hon Michael Gove MP, has announced plans to invigorate the way the subject is taught across England and Wales, describing the current teaching as ‘harmful' and ‘dull'. The drive is to increase take-up of the subject by ‘capturing pupils interest’ earlier in their school career.

APA believes employers are keen for education providers to teach youngsters the right skills demanded in the workplace, and has applauded the government's intervention as a step in the right direction.

Gareth Osborne said: “There has always been a gap between what is taught and what is valuable to the individual as an employee. If the private sector is to drive and grow the economy of the future, then well-educated kids with innovative and entrepreneurial talents; especially in the field of IT, are needed.”

"If Britain is going to move towards a knowledge-based, high-tech economy as the government has suggested previously, we need to see more specific tailoring of the education system for the needs of employers.”

APA

It pays not to earn in the UK

Chancellor George Osborne has said child benefit for higher rate taxpayers will be removed, after ministers' hints the policy could be made "fairer". But he has said he would set out in the next months how the policy would be "implemented". It was acknowledged there was an issue with the £42,475-a-year threshold - amid criticism the changes unfairly hit single earner families.

Child benefit is available for every child in the UK below the age of 16 and is one of the few remaining non-means tested benefits. It is worth £20.30 every week for a first-born child and £13.40 for each subsequent child. It is paid to the parent directly responsible for care of the youngster - in practice it is most often claimed by the mother. In October 2010, Mr Osborne announced plans to scrap child benefit for any household with a parent above the 40% tax threshold - currently about just over £42,400.

APA has previously criticised Government for unfairly hitting single earner families and mid-range joint earners - just over the threshold - while a couple both earning just under £44,000 a year each would keep the benefit.

APA said: “We are awaiting news on how government intends to implement the planned cuts.” Members' views are welcomed. 

APA

Easing inflation

The UK economy stands on the precipice of contraction, with businesses’ turnover expectations falling further in December. However, easing inflationary pressures may help prevent the UK from falling back into recession, despite lowered revenue expectations, research finds. According to Audit, accounting and business services firm, BDO.

BDO’s Output Index, which measures turnover expectations three months ahead, has now remained below the crucial 95.0 mark that indicates growth since July 2011. However, while the outlook is gloomy, the accountancy firm's Inflation Index came down for the fifth consecutive month. The decrease in the Inflation Index is welcome news for consumers, who are expected to feel less of a squeeze in 2012.

APA joins others and urges the Bank of England to consider a further round of quantitative easing, and also wants to see the banks continue to step up their lending to UK businesses; especially those that employ more people. APA also wants to see the government introducing measures in 2012 that encourage private sector investment in long-term infrastructure developments like HS2.

APA

The Big Freeze

The majority of company staff saw their pay packets remain static or shrink in 2011. Some 48 per cent say that their pay was frozen and 5 per cent suffered a pay cut, with just 18 per cent receiving a cash bonus, according to the annual ‘Employee Attitudes to Pay’ survey by the Chartered Institute of Personnel and Development (CIPD).

Around half (51 per cent) of private sector employees have had a pay rise since the start of 2011 compared to 45 per cent in the not-for-profit sector, but just 24 per cent of those in the public sector have received an increase.

Public sector employees (70 per cent) are most likely to have seen their pay frozen in 2011, followed by those in the not-for-profit sector (48 per cent) and the private sector (42 per cent).

As a consequence of stagnant pay, the net satisfaction score among those who received a pay freeze is -41, down on the -26 posted in 2010 and the -23 in 2009. Among those who did receive a pay rise in 2011, satisfaction levels have dipped slightly since last year, but net satisfaction remains strongly positive (+56 in 2011 compared to +61 in 2010).

Gareth Osborne agrees with CIPD’s assertion that employers must try harder to explain how they will reward and recognise employee performance. “If not, levels of motivation and productivity could fall, perpetuating a vicious circle that could hold back both organisational performance and wider hopes of economic recovery,” he says.

APA

More hurdles for small businesses

HM Revenue & Customs (HMRC) is threatening tens of thousands of small businesses with fines if they fail spot checks on their paperwork. The crackdown comes despite a government pledge to cut red tape and regulation for small businesses. Companies that are found to have failed to keep or preserve records ‘in real time’ can be fined up to £3,000.

HMRC reportedly plans to expand the checks, as many as 20,000 small businesses will face demands to show receipts for income and expenditure. Those who are unable to do so will face penalties, which business leaders warn could push some into bankruptcy and hit the economic recovery.

Gareth Osborne of APA says: “The Business Records Checks initiative simply increases pressure on the UK small business community at a time when many are being forced to take pay cuts to secure the future of their companies. The actions of HMRC are in direct contrast to the government's stated commitment to support UK SMEs by cutting red tape. If small businesses are indeed the engine room to drive the UK's economic recovery, they must be provided with conditions for growth, rather than increased regulation and costly bureaucratic processes; they may however create some new jobs for HMRC staff facing redundancy.”

Despite receiving widespread criticism from small business groups, including APA, it is unacceptable that HMRC will continue to push ahead with the programme until at least the end of the financial year.

APA

Jobs in 2012

“Not a great year ahead for employment,” says Gareth Osborne, Director General of APA on the first day in the office for 2012.

“For PAs this is going to be a difficult year. I strongly recommend staying in their job and only moving when the next one is secure and the contract signed; frankly this is not a time for being too brave. For those who are experiencing difficult times with their current employer, market yourself mercilessly to others and use the team at APA to help. “

“For those currently job hunting: Perfect your CV, modify it specifically for every employer you approach and make sure you say things that inspire. Remember, few great jobs make it to the agency or job board. Real employers have people who talent spot for them (just like football scouts hunting for players) and these people seek out and track talent they want to employ; or would like to employ, when the role becomes vacant. Look out people you would like to work for, write to them and tell them why; sell yourself, you are the best product you have at your disposal.”

“If you register with an agency then make sure they are PA specific and interview them. In this tight market they need to present the best candidates to clients; you need to know you are seen as valuable to them and not just another CV. Remember it is a buyers market.”

“APA members should remember that the organisation is there to help them and people often call us when they are looking for a great PA. Those PAs who are looking for jobs or just interested to shop around should let us know.”

APA

May 2012 bring you great success

APA wishes a Happy New Year to all of our existing and future Members and hopes 2012, despite being an economically challenging period, gives you new hope, happiness and good fortune.

APA