Recruitment, Reward & Retention: The three Rs in public sector HR
It’s an interesting time to work in Human Resources. Which is, of course, another way of saying “challenging”.
The official unemployment rate is currently at a record low of 3.9%, with employers ramping up their recruitment, despite Brexit uncertainty. This is good news for the economy and employees, but perhaps a more mixed bag for HR.
Recruiting and retaining talent is regularly reported by HR managers as being the biggest challenge they face.
The challenge for public sector HR in a competitive job market is even greater, given the funding limitations of the past decade. Yes, the pay cap introduced in 2010 was finally lifted last year – but no new money was allocated, forcing departments to pay for any rises out of savings elsewhere.
Meanwhile, there are other major structural changes and trends underway that up the ante. These include personalisation of services, Service transformation and modernisation, increasing consolidation of contracts, evolution of local government organisations from providers to commissioners, the rise of outsourcing and the increased participation of the not-for-profit sector in service provision.
In the midst of all this change in the public sector – as well as increasing competition in the job market – recruiting, retaining and rewarding staff becomes even more imperative.
One of the more successful forms of reward, the Payroll Deduction Car Scheme (also known as Contributory Car Scheme or Salary Sacrifice), has faced changes in the last couple of years. Since 2017 cars taken through such schemes have been subject to Income Tax (for the employee) and National Insurance (for the employer). As of 6 April 2019, other elements packaged in with the car, such as insurance, breakdown and maintenance are also subject to these taxes, increasing a driver’s tax bill by around £100 to £240 per year.
However, there are still benefits to these schemes. The employee gains a new, more efficient car, often at a more competitive price than they could have afforded otherwise and generally with less hassle. Also, Ultra Low Emission Vehicles (ULEVs) are exempt from the new tax provisions.
Given the changes to these schemes, though, it is worth considering other ways of providing cars as a staff benefit.
ALDSelect is one possibility. This is an online, fully digital solution that allows organisations to offer a truly all-employee benefit at no cost to their organisation.
Via the ALDSelect website, employees have access to new cars with attractive pricing and competitive funding rates. ALD Automotive deals directly with employees, allowing them to fund and manage their agreement online, for the entire life of the contract.
This means that organisations can enhance their employee benefits package, as well as meet CSR goals by offering employees access to cleaner, safer vehicles, but without increasing administrative requirements and costs for the employer.
Discover more by visiting the ALDSelect website – https://www.aldautomotive.co.uk/ALDSelect
Meet us at Public Sector Expo:
Bolstering recruitment and retention, while increasing staff morale at no added cost or liability? That could be a useful tool in a challenging HR landscape. Hear from ALD Automotive at 14:10 on Wednesday 26th at the Public Sector Expo and find out how ALDSelect can enhance your staff benefits program
Or visit stand G7