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Gender pay gap reporting has been a legal requirement for many UK employers since 2017, yet it remains a hot topic amongst us HR professionals. With public and organisational scrutiny of pay disparities showing no sign of easing, the responsibility to deliver transparent, accurate, and meaningful reports has never been greater.
In today’s world, the Gender Pay Gap remains a significant barrier to equality. Despite advancements in many areas, discrepancies in pay between genders persist, hindering not just individuals, but organisations and the economy overall. A diverse workforce, where everyone is paid fairly, is a more innovative, creative, and productive one. Hence, addressing the gender pay gap is not just ethically right, it’s a practice we would consider commercially astute too.
As we approach another reporting deadline, are you confident you’re not just meeting the requirements but leveraging the process to make a meaningful impact?
The process of gathering and submitting gender pay gap data is not a simple task. It requires meticulous data collection, sorting, and analysis. Payroll software can support this, but our experience tells us that often the numbers can be more complex to manage than initially expected and shouldn’t be underestimated.
The Gender Pay Gap data must be accurate and submitted on time:
Submitting your data is just the initial, surface-level requirement. The real work lies in interpreting the data and crafting a narrative around what it means for your organisation in practice. This narrative is crucial because it provides context for the numbers and can help explain why the gap exists, what steps are being taken to close it, and how it aligns with the company’s broader diversity and inclusion goals. It’s the most visible part of your submission and is likely to be scrutinised by your employees, investors, competitors, media, and the public. So, getting it right is essential!
Understanding the regulations and publishing your report is just the start. To truly tackle the gender pay gap, HR teams must think strategically. Here are some practical steps to consider:
While the regulations currently apply to organisations with 250 or more employees, there have been calls to lower the threshold, bringing smaller employers into scope. Similarly, there is growing momentum for ethnicity pay gap reporting, which could soon become mandatory. Staying ahead of these changes will require HR teams to adopt a proactive, data-driven approach to pay equity which, whilst a time-consuming task, can help HR professionals drive change in their organisations, and lead to creating more inclusive and diverse workplaces.
Gender pay gap reporting may feel like a compliance exercise, but it’s so much more than that. It’s an opportunity to reflect on your organisation’s culture, policies, and practices. The numbers are important, but what you do with them and how they are communicated give opportunities to bring real benefits to organisations, their internal teams, and when attracting new talent.
As you prepare your next report, take the time to go beyond the legal requirements. Engage with leadership, communicate transparently with employees, and focus on building a workplace where everyone can thrive. If you have any queries about gender pay gap reporting please do not hesitate to get in contact with James Richardson, or your usual AAB People contact.
The impending arrival of the new US Administration brings a President elect who has a history of applying increased tariffs on imports into the US. A reoccurring theme from the presidential election campaign was the continual threat to further increase tariffs on imports.
It is worth noting that UK exports to the USA reached £192b in the four quarters to the end of Q1 2024 and the US remains the UK’s second biggest export market.
Many UK exporters have historically relied on the $800 ‘de minimis’ limit, below which no taxes are paid on imports into the US. With suggestions that this limit may under review, UK exporters will be watching closely to see if this limit is to be scrapped.
This would have a significant impact on UK e-commerce businesses selling goods into the US as customs duty will need to be paid at the US frontier on all imports, regardless of value. This would not only mean an increased tax burden on the US consumer but could mean that delivery times are severely disrupted whilst goods clear customs.
Furthermore, importers into the US would need to consider whether the additional tax burden and the requirement to pay duties either on the doorstep or at the local post office, would put customers off altogether.
The $800 allowance has helped to fuel significant growth in many UK e-commerce platforms who sell low-cost goods to US consumers. In particular, many clothing retailers have benefitted where there continues to be strong demand for UK fashion and the duty on apparel averages 16% on entry into the US. If the $800 de minimis limit was removed, a garment retailing for $500 would potentially cost the US consumer on average $80 more.
During President Trump’s last tenure, a number of Section 301 (US Trade Act 1974) tariffs were implemented which imposed tariffs of up to 25% on a range of products imported from China.
These so called “Trump Tax” tariffs are still in place and regardless of a change in leadership, the US has already indicated that Section 301 tariffs will apply to a further range of products imported from China from 1 January 2025 including medical items and high technology components. It remains to been seen whether the list of affected goods will be increased further.
In addition, President Trump has stated that an additional 10% will be added to the Trump Taxes from his first day in office.
Whilst China may be the obvious choice for cheap products that can be manufactured in volume, the high US tariffs placed on Chinese origin goods imported into the US may force businesses to reconsider their sourcing options. The early-stage savings in the supply chain may be eliminated by the addition of 25-35% tariffs at the point of sale into the US market. Businesses for who the US is a key market should ensure that these tariffs are factored into their supply chain decisions as it may be more economic to source more expensive items originating in other jurisdictions in order to mitigate the Trump Tax impact.
At AAB Customs, we believe that UK businesses who regularly export goods to the US should plan for potential solutions to ensure that they are not hit with unexpected tax increases or worse, the loss of business in a key market.
Whilst these increased tariffs would still be unavoidable were the US go ahead with the abolition of the $800 limit, AAB Customs do have a range of solutions that can assist UK retailers to lower their overall duty spend into the US. These solutions would be available both to goods which currently benefit from the €800 limit and those which are already subject to tariffs.
If you are operating an e-commerce platform or simply export goods to the US and as a business avail yourselves of the $800 limit, now may be a good time to explore what options are available to you.
The AAB Customs team is formed from a number of ex-HMRC employees and other professionals from the freight and shipping industry. The team has extensive experience in the field of customs duty and has helped many businesses reduce their duty bills and increase their compliance profile. If you would like more information about how AAB Customs can assist your business going forward, please don’t hesitate to get in touch for a conversation.
If you have any questions, please don’t hesitate to get in contact with Jon Hicks, or your usual AAB contact.
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We will all remember the horrific photographs and footage of the tragic fire that took 72 lives on 14th June 2017 and had a lasting impact on hundreds more who were affected by it in so many ways.
The Grenfell Tower Fire Public Inquiry has been long and forensic in its undertaking and this week saw the publication of the Part Two Report. Running to seven volumes and thousands of pages, it is not my intention to regurgitate all the learning. Suffice to say there was a catalogue of errors, misjudgements and a culture of complacency and lack of attention to detail that penetrated almost every aspect that the inquiry covered.
There are stark lessons for each of us who work in a compliance, construction, design, management, health and safety or fire safety role. This article aims to provide some food for thought, to highlight some of the key lessons that we have an obligation to understand and to take action where we find similar shortcomings.
There are many points relating to fire safety that will be relevant to any person or organisation who has responsibility for a building, whether used commercially or for residential purposes.
Do you know and understand the fire strategy of the building, the features within the design that protect life and allow occupants to get to a place of safety in the event of a fire, e.g. protected escape routes, fire compartments, smoke vents etc.
Do you maintain the fire safety systems within the building, e.g. firefighting equipment, emergency lighting, fire doors, fire detection and warning systems etc.
“The demands of managing fire safety were viewed by the TMO as an inconvenience rather than an essential aspect of its duty to manage its property carefully.”
“Inspection and maintenance regimes affecting fire prevention systems did not reflect best practice and were inconsistently followed.”
Do you have a current fire risk assessment carried out by a competent fire risk assessor? Does that fire risk assessor have not just the qualifications/knowledge to assess the building, but also have experience of similar buildings? The Inquiry found that the fire risk assessor for Grenfell Tower was “ill qualified to carry out fire risk assessments on buildings of the size and complexity of Grenfell Tower.”
Failing to recognise and act on years of recommendations and concerns about the standard of fire safety in Grenfell Tower was particularly shocking to read. Concerns had been raised formally by independent auditors, London Fire Brigade and the tenants themselves but little or no actions was taken.
Have you read the fire risk assessment report, or just filed it in the “to do” pile for another day? Have you addressed the findings and done so within the recommended timeframe?
“There was no adequate system for ensuring that defects identified in fire risk assessments were remedied effectively in good time.”
Do you know who the vulnerable occupants/users of the building are and how you will evacuate them in the event of a fire. It is important to note that the responsibility to evacuate lies with the duty holder/responsible person, not the fire and rescue service.
“The years between 2009 and 2017 were marked by a persistent indifference to fire safety, particularly the safety of vulnerable people.”
Do you and the occupants of the building know, understand and practice the fire evacuation plan and is that plan relevant and suitable for the building type, occupancy, use etc.
“The emergency plan for Grenfell Tower was out of date and incomplete and did not reflect changes brought about by the refurbishment.”
When you make changes to a building or carry out refurbishments, do you consider the impact of those changes on the fire safety strategy, on the fire risk assessment, on the occupants/users of the building? Do you ensure that these are addressed before, during and after the refurbishment or modification? Are your processes and procedures for the selection and management of contractors robust? Do you understand your responsibilities as defined in the Construction, Design and Management Regulations? Do you have systems in place for monitoring and auditing performance throughout a project?
“A fire safety strategy for the building in its refurbished form was prepared but never completed. None of those responsible for drafting the fire safety strategy visited Grenfell Tower.”
“The client (TMO) failed to take sufficient care in its choice of architect and paid insufficient attention to matters affecting fire safety, including the work of the fire engineer.”
“Everyone involved in the choice of materials to be used in the external wall thought that responsibility for their suitability and safety lay with someone else.”
It’s important now we have the Grenfell Tower Fire Public Inquiry that we are all now incited into action to ask the questions, review the policies and procedures, find the complacency and take meaningful steps to make the improvements that are required to prevent another Grenfell. If you have any questions about fire safety in your organisation please do not hesitate to get in contact with Lee Craig, a member of our H&S team or your usual AAB People contact.
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We frequently hear leaders show frustration using a version of the words “They just aren’t taking responsibility.” And we get it! It can be frustrating to feel like no one else cares as much as you do or that employees are not willing to show the initiative needed to get things done. But why does this happen? It could be for a number of reasons (and is often a combination). This is where Organisational Development (OD) can help—by identifying the underlying barriers to responsibility and implementing strategies to address them, OD fosters a culture that promotes and encourages accountability and initiative.
Here are some of the most common causes for why employees may not be taking ownership and responsibility for their work, along with strategies to address them effectively.
Do employees truly understand the organisation’s strategy and goals in the same way that leaders do? And crucially, has anyone explained the role they personally play in ensuring organisational success? People are far more likely to take responsibility when they understand the direct impact their work has on the bigger picture. When leaders fail to connect the dots between individual contributions and organisational outcomes, employees may struggle to find purpose in their work. Clearly defining and communicating this link not only fosters motivation but also encourages a sense of ownership so employees can see how their work matters.
The term “Performance Management” is one that I feel is largely misunderstood with very negative connotations when really it is all about supporting and developing employees to reach their highest potential and showing them how integral they are to the success of the organisation. Effective performance management focuses on equipping employees with the tools, skills, and support they need to succeed.
When employees feel valued and see how integral they are to the organisation’s success, they are more likely to take initiative. Does your organisation have an effective performance management process in place that supports your employees to perform at their best? Does it celebrate successes, identify opportunities for growth, and provide actionable plans to help employees achieve their goals? By implementing performance management that is a supportive, developmental process, organisations can empower their employees to excel.
While expressing frustration about unmet expectations may be tempting, have you directly communicated those expectations to your team? Are employees aware of any gap between what is expected and what is being delivered? Feedback is a critical component of taking responsibility. Employees can’t be expected to take ownership if they don’t have a clear understanding of where they stand or how to improve. OD incorporates feedback and performance management processes that provide employees with regular and constructive feedback on their performance. Regular feedback not only clarifies expectations but also strengthens trust and collaboration between leaders and their teams.
Responsibility thrives in a culture that values trust, openness, and a willingness to embrace risk. A fear of failure can paralyse employees, making them hesitant to show initiative or take ownership. Leaders play a critical role in fostering a culture where mistakes are viewed as learning opportunities. This doesn’t mean encouraging recklessness; rather, it’s about creating an environment where employees feel safe to experiment, innovate, and grow. Responsibility should be seen not as a burden but as an opportunity for professional and personal development.
Are too many people involved in decision-making, creating confusion and inefficiency? Or, conversely, are responsibilities so ambiguous that things fall through the cracks? A well-defined structure is essential for accountability and efficiency. Employees need to understand exactly what is expected of them and how their roles interact with others. By ensuring a structure where roles and responsibilities are clear, it makes it easier for employees to take ownership and perform effectively.
And this is what OD is all about – it is here to help with all these aspects. Addressing these areas can transform ‘responsibility’ from a ‘dirty word’ into a motivating and empowering force within your organisation- driving both individual and organisational success. Employees who understand their roles, receive the support they need, and work within a culture of trust and accountability are far more likely to take ownership of their work.
Addressing these areas can unlock the potential for greater individual and organisational success. Instead of viewing responsibility as a challenge, leaders can begin to see it as an opportunity to engage their teams, foster growth, and achieve shared goals. With the right approach, responsibility becomes not just an expectation but an integral part of the organisational culture—one that drives long-term success.
If you would like to discuss any aspect of Organisational Development, please contact Anna Phipps, or your usual AAB People contact.
A well-known food manufacturer was recently fined £1.28 million following the tragic death of an employee who was struck by a reversing vehicle while attempting to move a strip curtain on a loading bay. The employee was new to the business, and an investigation by the Health and Safety Executive (HSE) found that “site staff had not been provided with training or instructions to move the curtains and had devised their own methods, which included standing in the yard behind reversing vehicles.” This was the employee’s first lone shift, and the investigation revealed serious management failings, including a lack of risk assessment for new staff and failure to identify the additional risks associated with the task.
Statistics underscore the dangers faced by new employees: new workers are as likely to have an accident in their first six months on the job as they are over the rest of their career. This is largely due to inexperience, lack of familiarity with the job or work environment, and not knowing how to or feeling comfortable with raising concerns. With the festive season approaching and many businesses taking on temporary seasonal workers, these concerns are more pressing than ever.
Here are six simple, yet essential, steps every employer should take to protect new workers in any work environment:
It’s important that you understand a new starters capabilities as this can be fundamental to ensureing their safety. The assessment should cover a variety of factors, including
By assessing these areas, employers can create a safer, more inclusive environment where new employees can feel confident and capable from day one.
A well-structured induction is essential for familiarising new workers with the workplace and ensuring they understand safety protocols. Inductions should include clear, accessible language and, where possible, visual elements such as photos of hazards or diagrams of equipment. Walking through the workplace or site with new employees allows them to see first-hand where the main hazards are, such as areas prone to slips or falls. Induction should be designed to help workers become comfortable in their new environment, identify potential risks, and understand the measures in place to mitigate those risks.
It is essential that control measures—such as risk assessments, safety protocols, and personal protective equipment (PPE)—are not only current but actively enforced. Control measures are there to mitigate the risks identified in the workplace, and it’s the employer’s responsibility to ensure these are followed consistently. Employers should:
Training is not a one-size-fits-all solution. Each new worker should receive tailored information and instructions that address the specific risks they may face and the precautions they need to take. Training sessions should cover not only the tasks at hand but also emergency procedures and protocols for raising concerns. Regular, concise refresher training may be beneficial, especially during busy periods or if employees seem uncertain.
New workers require close supervision, especially during their initial days or weeks on the job. Supervisors play a key role in ensuring that workers feel comfortable asking questions and raising concerns. They should be mindful that new employees, particularly younger workers or those from different cultural backgrounds, may hesitate to speak up if they feel unsure. By actively supervising and engaging with new workers, supervisors can foster a supportive atmosphere that encourages safe behaviour and open communication.
It is not enough to provide information; employers must also confirm that new workers fully understand it. This can be achieved through quizzes, practical demonstrations, or observed practice sessions. Checking understanding helps ensure that safety protocols are not just memorised but applied correctly. Regular check-ins during the first days and weeks on the job can make all the difference in preventing accidents.
Ensuring the safety of new workers requires proactive, structured efforts from employers. By assessing capability, providing a thorough induction, maintaining control measures, offering tailored information and training, supervising attentively, and verifying understanding, employers can significantly reduce the risk of accidents. These six steps are particularly crucial as temporary seasonal workers join the workforce, often facing unfamiliar environments and tasks.
A safe workplace not only benefits employees but also strengthens the business by fostering trust, reducing absenteeism, and avoiding costly incidents. Ultimately, prioritising the safety and well-being of new employees is an investment in a resilient and productive workforce. Through these simple, effective measures, employers have the power to save lives and build safer, more supportive workplaces.
If you have any queries about how to protect new or temporary workers, or any queries about health and safety in your workplace in general please do not hesitate to get in contact with Lee Craig, or a member of our Health and Safety team.
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In the ever-evolving world of employment law, the case of Mohamed Al Fayed, the former Harrods owner, making headlines with allegations of sexual harassment, serves as a stark reminder of the potential risks businesses face if they do not actively combat workplace harassment. His case echoes the new responsibilities that the UK’s Worker Protection Act 2024 places on employers to protect employees from sexual harassment and prevent it before it occurs.
As HR professionals, it’s crucial we understand the legal changes that took effect on 26 October 2024 and implement strategies that ensure compliance. The Worker Protection Act introduced a new preventative duty, adding to the existing protections in the Equality Act 2010. With the new regulations in place, employers must take proactive measures to safeguard employees and third parties from sexual harassment or risk enforcement action from the Equality and Human Rights Commission (EHRC).
The Equality Act 2010 already protects against sexual harassment, defining it under Section 26(2) as unwanted conduct of a sexual nature that either violates a person’s dignity or creates an intimidating, hostile, or offensive environment. It also protects workers from being treated unfavourably for rejecting or submitting to such conduct.
However, concerns that these protections were insufficient have led to the introduction of the Worker Protection Act. This new law takes things further by placing a positive duty on employers to take reasonable steps to prevent sexual harassment from occurring in the first place—whether the harassment involves employees or third parties, such as clients, contractors, or visitors.
Previously, organisations could avoid liability for sexual harassment claims if they could demonstrate that they had taken reasonable steps to prevent the conduct. However, it is now up to businesses themselves to do more than react to incidents that occur, going that step further and actively mitigating the risk of sexual harassment occurring.
As of October 2024, employers now face heightened scrutiny regarding their efforts to prevent sexual harassment in the workplace. Failure to meet the new requirements may lead to action from the EHRC, including investigations, enforcement notices, and legal agreements mandating future compliance.
The most significant change is that employers will be held accountable for harassment by third parties as well as employees. This requires a more comprehensive approach to managing risks.
Here are some steps you can take to achieve compliance:
With the Worker Protection Act in force, it’s essential that you ensure your organisation is taking the necessary steps to protect employees and third parties from sexual harassment. If an employer is found liable for sexual harassment, and it is determined that they failed in their preventative duty, compensation to the affected employee could be increased by up to 25%. By acting now, you can foster a safer, more respectful workplace culture to position ourselves as proactive custodians of workplace well-being and compliance, protecting both your employees and your organisation.
If you have any queries about how to ensure compliance and prevent liability please do not hesitate to get in contact with Julie Hirst, or your usual AAB People contact.
From a people perspective, the 2024 budget has clearly defined a shift in direction, along with reconfirming a strong ambition to ‘Make Work Pay’. From the offset this sets the scene for a transformative approach to employment and the costs associated with it.
We have already experienced a rising expectation in recent months and years over what individuals expect of their employer, and the Autumn budget has firmly set us on a path to see this dynamic continue. Tying in with the proposed overhaul of employment rights introduced into parliament under the Employment Rights Bill earlier this month, on 10 October 2024.
The rising costs of people and retaining talent will now continue to be a significant concern that must be fully considered in all organisations and sectors, all the way from major employers down to small independents and non-profits. Still reeling from coping with the cost-of-living crisis, businesses will now need to contend with competing factors, such as the confirmed increases to the national living wage, national insurance and the proposed overhaul of funding support available.
Whilst this will undoubtedly place strain on budgets and operational priorities, we should also consider the opportunities, and this will require a flexible approach to people with change being a prominent factor.
While some will struggle to align with these changes, this new approach from the budget also presents opportunities for innovation in talent management strategies, fostering a more agile and resilient workforce.
As further details and implications from the budget become available, we will continue to refine our support to ensure alignment with these new directives. Our commitment remains steadfast in supporting you to support your team during what is undoubtedly a transitional time, we invite you to please reach out for support navigating these changes in your business or organisation.
We’ve seen several key highlights announced aimed at driving economic growth through investment by the Chancellor, our tax experts explore the impact of these changes on you and your business in their full guide:
Today, we live and work in a hyperconnected world where technology is at the forefront of everything we do. Technological advancements have entered into workplaces at pace, revolutionising how organisations and employees operate on a day-to-day basis.
The impact of technological advancements in the workplace has been incredible! This new technology has resulted in us being constantly being online and contactable which in turn has created for employees a fear of being offline.
When working from home you might feel a pressure to announce every and all tasks- ones that had you carried them out in the office you wouldn’t have thought twice about them. For example, changing your Microsoft Teams or Slack to let people know you’re in a deep focus on a project or that you’re just going to make a cup of tea. Why do we do this? Because the idea that for those 5-10 minutes when someone might need something and you’re not readily available is unthinkable.
When we think about the fear of being offline in a work sense it manifests itself in an ‘always on’ mentality. Creating a desire in ourselves that we have to prove what we’re doing, prove that we’re being productive. It’s not just that we want to prove we’re being productive all the time it’s also that when we’re not being productive, or people can’t immediately see this we’re giving them reasons for why that is- no matter how small the window of time is.
In recent years the way we live has changed drastically. We went from lengthy commutes to work to working from the couch/ kitchen/ wherever we could. As a result of us being at home constantly we were available at all times- what else would we be doing after all?
The increased use of platforms such as Microsoft Teams, Zoom and Slack have brought us together. We can now easily video call, instant message and share files with colleagues no matter where they are. These platforms enable us to easily work from home without the barriers we used to have- now working from home very closely resembles working in the office. However, they also lead to blurred lines between work and home life.
It’s these platforms that further facilitate the fear for employees with them available on phones and laptops. This increases the expectation they have to always be reachable and responsive no matter what the time or day of the week. It’s this culture that leads to pressure to remain logged on and respond after hours. As a result, some people have found themselves unable to disconnect and unwind at the end of the workday leading to stress and burnout.
Mostly, this manifests with employees overcompensating with their online presence which in turn can cause burnout and a loss of productivity in time. For some people not being logged on will lead to them worrying they fall behind on tasks or let down their colleagues. While for others constantly being online can affect their performance- it can create more difficulty for people to focus and problem-solve. Constantly having emails and notifications can interrupt thinking time leading to them struggling to apply attention to what they’re working on.
As employers, it’s important to have trust In your employees. In a culture where people are your top priority then their wellbeing will be too. As long as your employees are doing the work required and putting in the effort. There’s no reason for them to have to constantly update you and feel micromanaged- after all, sticking on a wash or answering the door for another package isn’t a crime, is it?
In a world where digital advancements are ever-changing and constantly growing in numbers it’s so important for employers to address this complex challenge. Understanding the roots of the fear of being offline in your workplace can help you to address the challenge and work together with your employees to create a workplace where digital well-being is clearly at the forefront.
Our specialists have experience in creating positive work cultures in which people thrive and are proud to work within. By working together to address the issues we can create bespoke workplace policies that eradicate the fear of being offline for your team.
If you have any queries about the fear of being offline or workplace cultures, please do not hesitate to get in contact with Kirsten Bhatti, or your usual AAB People contact.
In our experience assisting property and construction businesses, one recurrent and challenging question is how to retain top talent through equity incentives. While various tax-efficient share schemes exist, such as the Enterprise Management Incentive (EMI), many property businesses find themselves ineligible for EMI and other favourable schemes like the Enterprise Investment Scheme.
This limitation leads to the question: what viable Employee Share Scheme options are available? This is typically a bespoke matter for each business to get the right advice on, but there are a number of things you can think about, and it will in part depend on what you are trying to achieve. Let’s run through some examples for ease:
Imagine you own a valuable family property company, with management who are now running the business on behalf of you and the family. Having found the right team, you really want them to stay and feel part of the business. It’s not likely the company will ever be sold, so what could you do to keep the team incentivised?
There are traditional share options, however a more feasible Employee Share Scheme involves “growth” or “flowering” shares, designed to escalate in value post-issuance without an immediate high tax impact. The tax regime that surrounds employees being awarded shares in their employing company means that if valuable shares are passed to employees, they have an income tax bill to pay – this can even be a PAYE immediate tax charge if the shares are readily convertible assets. So the idea of giving your employees growth shares is that the shares will have limited value on day 1, but they will participate in value created once they own the shares.
There are a number of different ways of creating these growth shares. Usually the focus is on keeping the immediate tax charge to a minimum so the shares don’t have a significant upfront cost to the team you are wanting to incentivise. It’s not as simple as saying the value today is £1m, so the growth shares can participate in everything beyond £1m, as HMRC are likely to say the shares have hope value, so the way the growth shares are created is key to managing the tax position.
As outlined above, crafting such shares demands careful planning to minimise upfront tax liabilities and avoid unexpected future burdens. Our corporate finance team can provide an opinion on what value attaches to growth shares and how to make sure your employees don’t get a nasty tax bill later.
Another scenario we have is a property developer who has brought on junior members of the team who are now becoming experienced in spotting the next deal. There is real risk they may choose to simply go their own way (finances permitting) because they think that they would rather share a slice of the deal profit rather than just getting a regular salary.
Structure is usually key when you are a serial property developer. An effective Employee Share Scheme option in this context involves encouraging your team to bring these deals to the table on the basis that you will use an SPV (special purpose vehicle – usually a separate limited company) for each deal, and they will have a percentage of that SPV. It’s unlikely the company has any value at the start, so the income tax position should be ok (obviously you need to consider each circumstance) but this would give the team member an equity stake in the deal they bring through. This approach can foster loyalty without immediate tax concerns, assuming the initial company valuation is minimal.
The other part of any Employee Share Scheme discussion has to be how do you actually convert shares into cash. Shares can be an incentive, but unless there is a real expectation of either regular dividend payments (which may be one part of it) or a later capital exit event, then it may be a lot of work without achieving the tie in you are looking for.
As with all things tax there are a number of possible exit routes:
It is important to give this some thought, as otherwise you could end up with a really disgruntled person holding the shares wanting an exit and no plan!
The final point to make is that the critical thing with any Employee Share Scheme is having the right sort of legal agreements in place. You need to consider that the person you are wanting to incentivise may leave, so think about good and bad leaver provisions, what would you want to do if they tragically died holding the shares? Do you want to force them to sell if you are selling (yes is the usual answer!). Good legal input is absolutely key, as well as getting the right tax advice.
Employee Share Schemes can be really powerful, but the tax aspects surrounding them are complex and not overly favourable. With good planning and advice it should be possible to create something that works, and this is an area we spend a lot of time advising on, so if you want to chat it through please do not hesitate to get in contact with Kate Naylor, a member of our Corporate Tax team, or your usual AAB Group contact.
Workplace anxiety is becoming more common every day. It’s safe to say it happens to everyone. However, when your team find themselves constantly stressed that can become overwhelming and a barrier to them living their lives the way they want. This could be an anxiety disorder.
Anxiety disorders caused by work are not as uncommon as you might first think. It’s estimated that 12.7% of sickness absences in the UK can be attributed to mental health conditions like anxiety. Given the fast-paced nature of modern work and general life, it’s important that you can identify, address and overcome these issues for your team.
We know feeling anxious is natural, a standard response from our nervous system. We spend a lot of our daily lives in work and Mental Health UK notes that one in five people report being affected by anxiety at work.
People in your team may naturally feel anxious about that big presentation next week, a new person joining their close-knit team, or because of something unrelated to work such as moving house or having a baby. However, when this becomes overwhelming and anxiety around work starts to impact day-to-day life, it can become a detrimental disorder with symptoms which can impact individuals both mentally and physically.
Anxiety can impact team dynamics and productivity. Despite how common workplace anxiety can be, managers often feel ill-equipped to support individuals or have meaningful conversations around this. Which is why it’s important to focus on practical tips to help support individuals and best overcome anxiety in your workplace.
The best scenario for everyone involved is someone who is engaged and in the right headspace to deliver the work you know they can produce. Although you may not have all the answers, initial detection of a potential issue is going to be the first step in getting things back on track.
Managers are a vital support in tackling workplace anxiety, and this means you can play a crucial role by providing a supportive and ‘mentally healthy’ working environment. Here are some practical tips to consider:
Let your team know it’s ok to talk about their mental health, stresses and anxieties without judgment. You can model healthy behaviours by showing that you prioritise your mental health and wellbeing and providing a safe space to actively listen to any worries (for example, open conversations through regular check-ins, surveys, and an open-door policy)
Make sure everyone is aware of what the organisation can provide and, wherever possible, offer resources like Employee Assistance Programmes (EAPs), team-building activities, counselling services, mindfulness workshops and mental health awareness to help employees manage anxiety.
Options like flexible hours, remote work, and job-sharing can reduce pressure and improve work-life balance. Ensure breaks and holidays are utilised properly as important time to recharge.
Ensure your team have clear expectations for their roles and you provide regular, constructive feedback to keep them on track. Anxiety is often fed by a lack of direct feedback.
Celebrate achievements to build a positive and encouraging work atmosphere, no matter how small. You can use positive language to motivate and support team members and encourage others to do the same. The aim is to encourage collaboration, social interactions, and peer support to help build a sense of belonging and reduce feelings of isolation and anxiety.
Consider whether you can introduce programmes or benefits which encourage physical activity, healthy eating, and relaxation techniques. The age-old approach to mind, body and spirit has a proven success rate of supporting positive mental health in the workplace.
Addressing anxiety in the workplace is essential as it can have a huge impact day-to-day on your team. Understanding its relevance and impact on your organisation is invaluable. Creating a supportive environment for team members struggling with anxiety involves fostering a culture of understanding, empathy, and proactive support. Strong managers can readily identify concerns in their team and will have the confidence to provide support and signposting as needed.
If you have any queries about how to support your employees to reduce workplace anxiety, please do not hesitate to get in contact with James Richardson, or your usual AAB People contact.