Showing posts with label Recruitment News. Show all posts
Showing posts with label Recruitment News. Show all posts

Thursday, 17 July 2014

Construction sales and marketing recruitment growing at its fastest rate since 2007

Companies in the UK's construction industry are hiring staff at their fastest ever rate to cope with a sharp rise in house building activity. This was revealed by the figures in the latest Markit/CIPS construction PMI survey released at the start of July.  

However, job creation in the construction industry as a whole is also on the increase with manufacturers and merchants of construction products and building materials also seemingly recruiting at their fastest rate since 2007.


The trigger to this is bigger workloads encouraging companies to take on construction workers and building contractors to meet demand due to the increase in construction projects. Tim Moore, senior economist at Markit, said the record job creation represented "a remarkable yardstick of progress as the sector looks to recover the ground lost over the past seven years".

Moore continued: "A key recent development across the construction sector has been the return to pre-recession rates of job creation, following a prolonged period of falling payroll numbers and cuts to operating capacity."


It is this job creation which is reflected in the increase of vacancies being advertised through Pinnacle Consulting, leading sales and marketing construction recruitment specialists for the UK building and construction industry.

Pinnacle Consulting has seen the largest amount of vacancies on their books since the Spring of 2007 and the largest number of potential candidates contacting them with the confidence it is the time to progress their careers within construction sales and marketing.


Steve Rogan, Managing Director of Pinnacle Consulting said: "The message is now loud and clear from our clients that there is a real need to react to the increase in demand for building products. The general feeling is it is time to exploit and maximise potential sales by ensuring their products get stocked, specified and purchased by the industry, rather than their competitors. However, human resource is required to service the demand."

Steve also said: "Many companies just had to survive during the dark days of the recession and their careful recruitment management strategies have now enabled many of our clients to be in healthy position to start recruiting for growth. Specification selling jobs and construction marketing jobs seem to be two areas where the major increases have been seen."

www.pinnaceconsulting.co.uk

Monday, 9 June 2014

NHBC is the latest in the building industry to have a significant recruitment drive

To underline the increase in production of new houses and the real urgency for these projects to be completed as quickly as possible, the need to have both quality and quantity in staff and workers throughout all areas of the industry is a primary concern. The NHBC has acted to try and address this issue.

We are already aware of the lack of contractors available in the industry and also the fact that many manufacturers of building products cannot produce the supply to meet the demand. There has also been a noticeable increase in more jobs for construction and building products sales professionals, as companies look to recruit to exploit the upturn in the market. And now we learn that the NHBC (National Housebuilders Council) has launched its biggest recruitment campaign in 30 years.

The UK warranty and insurance provider for new homes will create more than 100 frontline technical jobs to help support housebuilders as they increase volumes in response to the improving market.

The recruitment drive will see NHBC recruit 80 new building inspectors and create new management roles, as well as take on more surveyors, engineers and special project managers.

NHBC will also assemble a Mobile Quality team for housebuilders who need extra inspection assistance. The team will cover areas of high demand and those with more complex projects.

“As production ramps up across the country, the industry is faced with a new set of challenges,” said NHBC’s operations director Ian Davis. “Builders up and down the country have told NHBC what they need to move forward and we have responded by launching one of the biggest recruitment drives in our history.

“By upscaling our technical and inspection services we will be able to provide extra support to the industry and builder customers at this crucial time.”

It is encouraging news that companies and organisations are realising the market is in sustained growth and it must not be allowed to collapse for reasons which are controllable.  

If you are a manufacturer or supplier of building products looking to recruit for sales or marketing staff, contact Pinnacle Consulting, specialist in recruitment for the sector. Call 01480 405225 or visit www.pinnacleconsulting.co.uk


Monday, 27 January 2014

Great news for Job Seekers: 2014 is the year of the candidate says new report

The Reed Job Index for December has revealed that - for the first time in five years - new job opportunities are outstripping applicants. This trend is set to continue through 2014 as employers finally start to recruit, after, understandably, being cautious in recent years.

New job opportunities were reported to be 28% up year-on-year, and there was yet more encouraging news for job seekers with salaries rising for the third consecutive month - albeit slowly. 

It is, however, a fantastic time to start searching for a new job and also equally as good a time for employers to find candidates to help their companies grow, especially in the sector which is the leading light of the recovery: construction.

According to the report, the number of job vacancies available in the UK has increased across all industry sectors during the last 12 months but construction and property has been the standout one. Government initiatives to boost house building and infrastructure projects has resulted in a 74% rise in new construction related jobs, and this can only be good news for manufacturers and distributors of building and construction products. At Pinnacle Consulting, we have seen a large increase in construction sales and marketing jobs being, being advertised, especially since the Christmas break.

Why work in the construction industry? Download our guide on why it is the best industry in the world!

As mentioned, The Reed Job Index, which is compiled every month, now stands 28% higher than in December 2012. And, for the third consecutive month, each of the 33 industry sectors listed on the index is showing year-on-year growth in jobs and 11 out of 12 UK regions are showing growth compared to last year. Growth in salaries is slow, but positive, at just 2% over the year.  Overall, the Job Index now stands at 172, up from 138 at the start of 2013.

Commenting on the latest figures, James Reed, chairman of reed.co.uk, says: 
“2013 has been a positive year for the jobs market, with continued growth and new jobs reaching a five year high in the autumn.

“Most significantly, the latest data shows a shift towards a candidate-led market. This is good news for jobseekers and will present a growing challenge to employers as they compete to attract the best talent. 

“What’s more, after such a long period of salary stagnation, candidates will have a stronger negotiating position when it comes to pay, so employers will need to be prepared for a growing wage bill in 2014. 

“The signs indicate a strong 2014. Growth is likely to come from the industries that have shown the biggest increases in the last few months: construction and property; retail; manufacturing; automotive.”

The Reed Job Index is compiled by reed.co.uk, through analysis of job vacancies from over 10,000 recruiters throughout the UK tracked against a baseline of 100 established in December 2009. It is the largest monthly measure of conditions and trends in employment in the UK. Reed.co.uk is the UK’s largest jobs board, receiving a total of over 120 million visits in the last 12 months and 24 million job applications. 

Sunday, 6 October 2013

Job in Focus for October - Superb Managing Director's role for innovative eco-friendly washroom product


Our latest Job In Focus is a truly exceptional Managing Director's role, your brief would be to develop the strategy and market for a new and innovative commercial eco-friendly 
product for the commercial bathroom and washroom sector. This role requires a hands-on approach and someone with a good mix of sales, team-building and technical skills. 


Each month Job in Focus takes a more detailed look at one of the many fantastic construction, building products, and interiors' products vacancies currently on our books. Job in Focus is also featured on the 'new look' home page of our website. Take a look at www.pinnacleconsulting.co.uk


Job Title: Managing Director
Job Ref: J3611
Product: Bathroom Products
Location: London
Salary: £110k


EMPLOYER: Our client is a small and relatively new business that manufacture a new and very innovative eco friendly product within the commercial bathroom and washroom market. They have now attained all the relevant approvals and received rave reviews from the marketplace. Typically a technical inventor my client now requires an MD/CEO to head up and drive the company's sales nad commercial activities. 


JOB DESCRIPTION: You will head up the commercial activities of the business. Developing strategies for sales, marketing, logistics and operations you will work closely with the owner to deliver startegic growth. You will identify and develop sales channels within the Commercial Washroom/Bathroom sector - typically targetting Key End User clients such as Supermarkets, Leisure, Education and Offices, Specifiers, M&E Consultants and Contractors. 

LOCATION: Head Office based in the South East - North of London. 

CANDIDATE: We are looking for an experienced and hands on MD who has a strong sales bias ideally within a technical product. You will already be experienced with running a small business and even better if you have been involved in a start up business before. You will be a strategic thinker who is able to lead and motivate a new team whilst sharing a passion for "green" and eco friendly innovations. 

PACKAGE: c£100k-£110k basic plus executive package and share options. 

For further information or to discuss your career options contact Steve Rogan on 01480 405225 or apply online via our website.

Monday, 30 September 2013

New initiative supports construction and building industry charities when you recruit

News from Pinnacle Consulting:  We have launched a unique joint initiative which benefits one of two leading construction industry charities each time we successfully place a candidate with one of our clients. The scheme is designed to provide long-term support and awareness of the charities’ good work. 

As a leading sales and marketing recruitment specialists to the UK construction and building products sector, we feel it is important to give something back to the whole industry, and this is why we have chosen as our partners: CRASH, and Lighthouse Club - the Construction Industry Charity. 

The initiative is very simple: from 1st October 2013 when a vacancy is filled, a donation is made by ourselves to the preferred charity of our client (the employer) who are also given the opportunity to donate. Then on a quarterly basis our charity partners will be presented with the funds generated during that period and the clients who helped us raise the money will be also be thanked for their support.

Register your vacancy today and help others tomorrow >>>

Managing Director of Pinnacle Consulting, Steve Rogan commented, “It is vital the building industry recognises that to succeed everyone has a key role to play. It is also important the industry uses its knowledge and expertise to support those less fortunate than ourselves. This is the basis on which we have carefully selected our two beneficiaries - their causes should be close to our clients’ hearts and they are something they can be actively involved with too.”

Established in 1956, Lighthouse Club, the construction industry charity, gives financial help to construction workers’ families, plunged into financial crisis when they lose their breadwinner’s income through illness, injury or death. 

Bill Hill, Chief Executive, of Lighthouse Club said of the initiative “We are delighted that Pinnacle Consulting has chosen the Lighthouse Club as one of their charity partners. The funds raised by this programme will make a profound difference to the individuals and families within the construction industry that we support. It is initiatives like this that demonstrate that our industry has a “big heart” and cares for its people.“

For more information on Lighthouse Club please visit www.lighthouseclub.org
CRASH is the construction and property industry’s charity for homeless men and women. It is a unique, practical charity, which works to address issues of homelessness by harnessing the skills, products and goodwill of the construction and property industry. 

Kate Marsh, Development Manager of CRASH is delighted with the support received from Pinnacle and their clients, “CRASH relies on the generosity of companies within the construction and property sector, to continue to help homeless men and women. All the money CRASH receives through this fundraising initiative will go directly to help homelessness projects across the UK. We are so grateful to Pinnacle Consulting for all their support and generosity.”

For more information on CRASH, please visit www.crash.org.uk

Pinnacle Consulting specialise in sales, marketing, management and executive appointments for manufacturers, merchants and distributors across the whole building, construction and interior products and materials spectrum. 

If you would like Pinnacle Consulting to fill your vacancy and help others at the same time, contact our team of expert industry consultants on 01480 405225 or visit www.pinnacleconsulting.co.uk to find out more.


Wednesday, 14 August 2013

Employment confidence is building every day

Coming on the back of last weeks’ news that construction is the leading sector showing growth in the jobs market, Pin Board is pleased to bring yet more encouraging news, as a new survey from the Recruitment & Employment Confederation (REC) indicates that over 56% of employers will hire more permanent staff during the next three months.  

This news confirms the feedback we have been receiving from our clients since Easter, and it finally seems the whole labour market is now feeling confident enough to start recruiting for growth. 

The latest JobsOutlook survey from the REC is based on the responses of 600 employees from the public, private and non-profit sectors and from a range of industries and organisation sizes. The survey also revealed that 49% of employers plan to increase their permanent workforce over the next four to twelve months.

REC director Tom Hadley says the survey shows that businesses “are more optimistic about the future than they were 12 months ago”.

The jobs market in England was given a further boost from the findings in the inaugural Job Confidence Index, commissioned by the National Careers Service. The results based on a study of more than 4,000 people in England, carried out by ICM Research, gives an overall job confidence score of 51.8 out of 100 (50 indicates neutral job sentiment). 

It seems that everywhere you look the balance is leaning towards a positive future, rather than the negative outlook shown earlier in the year.

Employees have understandably been concerned about the lack of stability in their current roles, and have also been reluctant to take the plunge and look for a new job. However, this feeling is beginning to change. 

The survey reveals that 74% have become more confident or maintained the same level of confidence in their ability to keep their current role or find a new job over the next three months.

Even more encouraging is that three-fifths of employed people feel that it would take them fewer than six months to find a new job that they wanted if they were made redundant, with 38% feeling they would need no more than three months.

The construction industry was also given a boost in the latest Markit/CIPS Construction Purchasing Managers’ Index which showed that the construction industry was in its third consecutive month of increased orders, and showing it highest level of activity for over three years.

The construction industry has felt the full impact of the recession over the last 5-6 years, and really deserves to reap the benefit of a sustained recovery. 

Pinnacle Consulting is a specialist construction sales and marketing recruitment agency, that actively supports manufacturers, merchants and distributors of building products and materials to find them high quality employees. If you are looking to add to your team, or if you are ready to start the next stage of your career development, contact us today on 01480 405225.





Image courtesy of adamr / FreeDigitalPhotos.net

Friday, 31 May 2013

Six reasons why you should consider a career in recruitment

If you are thinking of changing your career, then recruitment is definitely worth considering. It is a career that many overlook, but it is exciting, challenging and interesting, as well as personally and financially rewarding. 

It is a major industry sector
The recruitment industry has an annual UK turnover of over £20 billion and employs almost 100,000 people, therefore contributes significantly to the UK economy. However, its real value is actually much more... 

Help shape the economy of the UK
A recruitment agency helps shape the future of the whole economy by providing a range of professional services to people and companies across many job functions and industry sectors.

Your aim as a recruitment consultant is to successfully guide individuals through their career and assist companies to add real value to their business. In summary, your placements help to deliver a successful UK economy by enabling other sectors to generate income, through the right people being placed in the right roles to allow companies to benefit.

Become a unique talent scout in a diverse and challenging environment 
The job is arguably one of the most diverse within the business world. It is fast paced, exciting, competitive, challenging and very rewarding. Your role is that of a talent scout, trying to identify and uncover qualities and potential in people to flourish in the right environment.

Help enhance peoples’ lives and companies to grow 
A recruitment consultant comes with a high degree of responsibility as you directly influence futures - you have the opportunity to change lives for the better. We all like to help others; it brings a great sense of satisfaction to guide an individual in their career path, or a company to that next level – placing the right person in the right job is a job well done. 

Develop your interpersonal and professional skills 
You are the vital link between the candidate and the client; you will need to have (and learn to enhance) a wide range of skills to succeed.  Most important is the ability to build professional relationships with your clients. 

You need to be comfortable operating under pressure and should be ambitious and confident. It is also vital that you can multi-task and be able to apply a high level of integrity to your decision-making.

Personally and financially rewarding with superb career development opportunities 
Recruitment consultants can be very well rewarded – and if you are good at your job - the performance related bonuses or commission levels are very attractive. 

There is also excellent career progression in recruitment - if you’re new to the industry you would normally start as trainee consultant, progressing to a senior consultant and then depending on the company size, a branch manager or regional manager.

So for your next job, why not consider a career in helping other people find rewarding jobs and companies to flourish with ideal employees.  Interested? Why not work for Pinnacle Consulting...


Four facts about Pinnacle Consulting

We offer expert industry-specific recruitment services
We are a specialist sales and marketing recruitment agency operating exclusively in the UK construction products and building materials industry. This means our knowledge and advice is based on a true understanding of our customers’ needs.

Our Consultants manage projects from cradle to grave 
You would manage relationships with a broad range of clients from multi-national distributors and manufacturers of building products to small independent ones.

You would be responsible for the whole recruitment process - this includes sourcing and qualifying new sales and marketing vacancies, sourcing interviewing and screening candidates and then matching candidates to vacancies.

We consider integrity as being vital to our philosophy
Our mission is to build long-term relationships for long-term gain. It is not just about filling a vacancy for us and getting a placement - that would be the easy fix and not fair on either the candidate or the client. 

This is where our philosophy of integrity and professionalism plays a vital role and makes us different from many others. We do this by really getting to know our clients and candidates, so we intuitively know what they need, resulting in confidential advice that is invaluable and hard to find elsewhere.

We encourage the development of our own talent too
Although previous recruitment experience is beneficial – it is not essential. It is just as important to have a naturally positive outlook combined with a professional and well-organised work ethic. 

Our current team are from a combination of internal telephone based sales and customer service type backgrounds. Most importantly they share a common grounding within challenging and targeted environments where there is the need to deliver. 

If you have experience of selling products or services, dealing with decision makers and working to measurable targets or business objectives then the role of recruitment consultant at Pinnacle Consulting could be right for you.

Still interested? We offer a negotiable basic salary depending on experience plus uncapped commission giving first year earnings of £40k-£50k. Call Steve Rogan today on 01480 405225 to discuss further.  

Leaders in construction products and building industry sales recruitment.
We are currently recruiting...

Image "Recruitment" by Vichaya Kiatying-Angsulee from http://www.freedigitalphotos.ne

Wednesday, 24 April 2013

Jobs market: 8% growth in new opportunities during Q1 2013 compared to 2012

The Reed Job Index provides an excellent indication of the overall demand for jobs throughout the country.

Pin Board is pleased to learn that figures released for March 2013 show a 10% rise in new job opportunities compared to the same month in 2012, with the Reed Job Index achieving a record 156 points, its highest level since the index began in December 2009.


The first quarter of 2013 saw an 8% rise in vacancies available compared with the same quarter in 2012. This is very encouraging news.


Job demand
Overall demand for staff increased in March, with a one point rise across the UK compared to February. The index now stands at 156, 10% higher than March 2012 and one point higher than the previous best month, February 2013.

Sectors
This positive trend is apparent across a significant majority of sectors, with 28 of the 34 industries analysed showing positive year-on-year growth. Sectors with relevance to jobs in the construction and building materials industry and sales & marketing professionals are all showing good to excellent signs of growth.

Regions
The Reed Job Index grew in 11 out of the 12 areas analysed on an annual basis. Scotland recorded the strongest growth year on year growth, followed by the West Midlands and the North West.

Comment
James Reed, Chairman of Reed, says:
“Commentators could be forgiven for expecting the jobs market to fall back slightly after
taking such a significant and encouraging upward turn in February, but our March figures
show there has been a clear and continuing trend for growth throughout the first quarter of
2013. There has been a very significant 10% increase in the number of jobs available
compared with this time last year.

“The employment allowance announced in the budget is an additional fillip that will
hopefully encourage still more employers to hire.”

Steve Rogan, Managing Director of Pinnacle Consulting, commented:

"We are delighted that the Reed Job Index is indicating growth across many sectors, including the construction industry and for sales and marketing professionals. The building materials industry is beginning to look more positive, confirmed by recent industry market research and feedback from many of our clients, who are feeling more confident to invest in hiring for new positions.

"However, with the market far from stable, it is even more important that companies find the right person when they recruit and those looking for a new job make the right move for their career".


Download the full report here.

If you are currently looking to recruit or need a new challenge, please contact us to discuss your needs on 01480 405225. We promise to provide you with expert advice on the best way to address your requirements and to avoid recruitment mistakes being made.


Image courtesy of Ambro / FreeDigitalPhotos.net

Thursday, 14 February 2013

Longevity in a job: What can we learn from Alex Ferguson & Arsene Wenger?

Longevity in a job is now less prevalent and one of the reasons is that it’s difficult to achieve continued success and have a fresh approach over a prolonged period of time with the same employer.

People who excel at their jobs will either thrive with their existing employer or develop their career at another company. However if you do stay with the same employer, how can you ensure sustained success?

Football can provide us with valuable analogies, so let’s take a look at two of the longest serving managers in the game: Arsene Wenger and Alex Ferguson. Despite both being very successful over a long period of time, one has maintained success to the present day and one is living on his past successes. What can we learn from them? 

Our guide to achieve sustained success:

Change and evolve
Don’t think you’ve cracked it and that what you do will always work - it won’t. Make sure you are open to new systems, technology and thinking. In football this might be training, diet, formations, fitness analysis and backroom team structure. In business, this might be information technology, sales methods, market focus, product development/range, promotional activity or packaging, literature and support services. How many times have you heard someone ask the question: “Why do we do that?” and the answer is “We’ve always done it.” Make sure you know what you’re trying to achieve.

You need to find time to discover new ideas and concepts to avoid being locked in a photograph of better times. You also need to accept that others can help in the areas you’re weak or offer fresh thinking - eg for Arsenal’s defensive strategy and personnel. You could also compare the coaching staff set-up to highlight this point:  the strategy of Ferguson to change his coach every few years keeps things fresh and people motivated, as well as bringing in new ideas. It should not be a revolving door, but a sensible introduction of new team members or change of focus to add value to your business. 

Ferguson spoke recently to academics from the Harvard Business School where he accepted he has had to change and adapt himself to ensure maximum response.

“Players these days have lived more sheltered lives, so they are much more fragile now than 25 years ago. I was very aggressive all those years ago. I am passionate and want to win all the time. But today I’m more mellowed - age does that to you. And I can better handle those more fragile players now.”

Don’t rest on your laurels
Success ends the second you have succeeded. However success and longevity in a job will buy you some credit when things start to slide - if anyone other than Wenger had not won anything in 8 years they would not be in the job - but ultimately it will end in failure if you do not continue to look forward.

Once the spiral starts, your supporters or team lose faith and ignore your vision. The company/department will act as a disparate team, leading to stagnation or failure and your hard work counts for nothing.

Alex Ferguson has always had the attitude that once success has been achieved, enjoy it that day and the next day focus on the next success. You need to ensure others do not catch up with you and it is easier to grow when you are successful. Wenger is finding it hard playing catch-up to attract players to his squad or to encourage them to stay. Clubs are also losing the fear factor when visiting the Emirates.

Ferguson said: “We look at the training sessions as opportunities to learn and improve. The players may think ‘Here we go again’ but it helps to win. The message is simple: we cannot sit still.”

Keep your mind and thinking focused
Don’t find yourself looking over your shoulder, making your thinking unfocused and allowing your position to weaken; it might affect your ability to move in the future.

If something is not working then change it to ensure that it does. It is vital that your thinking is not clouded or stubborn just to make a point, when everyone else can see what’s wrong. Perhaps Wenger’s transfer policy is an example of this: if he had shown more flexibility the team would be much stronger. So, learn from your mistakes with an uncluttered mind that allows sound decision-making.

Above all, make sure you have plans with defined end-goals. However don’t forget that the way to achieve your goals can change.

Demand hard work and excellence from your team
It is vital to show strength and command respect from your team and colleagues. If members of your team develop and succeed it will mean you and your company will too. You will also maximise your team’s potential and your colleagues will respond accordingly and up their game. However, don't be afraid to delegate - I am sure Steve Bould at Arsenal would appreciate having the autonomy to exert his influence and being allowed to flourish in his role as first team coach.

If you show weakness or become complacent this can spread through your team and the extra 10% that keeps you at the top will disappear. If there is a problem, deal with it, don’t let it fester and do damage.

For a manager who is infamous for his “hairdryer” treatment to players, Ferguson knows that it is not all about losing his temper but knows that his authority can’t be undermined: “You can’t always come in shouting and screaming,” he said. “That doesn’t work. No one likes to get criticised.”

“But in the football dressing room, it’s necessary that you point out your players’ mistakes. I do it right after the game. I don’t wait until Monday, I do it, and it’s finished. I’m onto the next match. There is no point in criticising a player forever.

“You can’t ever lose control - not when you are dealing with 30 top professionals who are millionaires. If they misbehave, we fine them, but we keep it indoors. And if anyone steps out of my control, that’s them dead.” (Note: it is not a good idea to kill your employees!).

A team needs support and encouragement, so make sure you do this when they deserve it - it will make them inspired to achieve more. In business this could mean greater sales, resulting in more commission or promotion and in football this could mean more silverware or a better contract. If a team does not show continuous improvement then the consequences could be disastrous. You rely on your team so make sure they perform for you and know that only the best will do. 

Ferguson covered this with the students: “There is no room for criticism on the training field. For a player - and for any human being - there is nothing better than hearing ‘well done’. Those are the two best words ever invented in sports. You don’t need to use superlatives.”

Knowing when the full-time whistle is due
Much of the above begs the question: when is a good time to leave for your career? This is very difficult to get right and it does not often work out how you want it to. 

You might be asked to leave, you might leave when your earning potential is not at its peak, you may have missed opportunities that you should have taken, you might want to achieve more at your current company and stay, or you might want to leave when you could achieve more but go elsewhere for a different kind of challenge. It’s different for everyone, but it is also important to remember that after every failure is a success, even Ferguson has failures. Thank you Marc Overmars!

Very few manage to reach retirement still achieving sustained success at the same company. “Arsene knows” fans used to say, but it looks like he no longer does and his time is coming to an end. Whereas ‘Fergie time’ looks to continue until he decides to blow his own whistle. Whatever happens these extraordinary men should be an inspiration for us all to achieve our objectives in our professional lives.

As a passionate Arsenal fan it is difficult to admit that Arsene’s judgment is off and a good percentage is of his own making. Perhaps ‘Le Professeur’ is intelligent enough to stop the rot and learn from his mistakes - we will see if he can achieve his greatest success – effective management of himself.

Pinnacle Consulting can provide assistance and career guidance to those looking to develop their career with their existing employer or a new employer. Why not attend one of our PinBuild Career Development Clinics and let us help you map out a career path and stay on the ball in your particular field of expertise. You don’t want to have a relegation year ahead...

Call us on 01480 405225, email us via recruit@pinnacleconsulting.co.uk or look at our website www.pinnacleconsulting.co.uk

Wednesday, 3 October 2012

The biggest change in work place pensions for over 100 years

The biggest change in pensions since the last full Liberal Government over 100 years ago took effect this week with the introduction of the new workplace pension scheme. The workplace pension is designed to supplement the current state pension to try and give millions of low and middle-income earning employees the chance of a better retirement.

These changes will have a great impact on employers and employees over the next few years.

It has been introduced due to the decline in workers’ pension provision as a growing number of employers are not providing or offering anything to their employees and also to recognise that fact that the meager state pension is not enough on its own.

Official figures show that the number of private sector workers paying into a pension is at its lowest since records began in 1953 – in 2011 only 2.9 million private sector workers put money into schemes.

The new workplace pension is being viewed as a step forward to ensure that workers at least have a chance of a stable retirement, although some critics have warned that the new scheme has not gone far enough.

It will affect millions of UK employees. The National Association of Pension Funds (NAPF), said its research shows that only a quarter (24%) of workers earning £14,000 or less save into a workplace pension. The new reform will reach those who have no pension: the young, the low-paid and those working for small businesses.

TUC general secretary Brendan Barber said: "With this Government and the last helping ensure a wide consensus around the reform package, we have some certainty that we are now at the beginning of a pensions new deal. Of course it can and should be made better, but we now have what should be a stable framework."

A simple guide to the new system
The system is expected to work due to its simplicity. The company that you work for chooses a simple pension and they put money in and you put money in – although you do have the option to opt out.

The process started with the biggest employers on 1 October 2012 and will then be staggered over the next few years until 2018. The smallest employers begin auto-enrolment for their staff in January 2015. To see the full auto-enrolment timetable please click here.

Workers will either join their existing employer's scheme, or one of the new group schemes that employers can use e.g. National Employment Savings Trust (NEST).

  • Must be aged 22 to the state pension age
  • Workers not already in a company pension scheme will be enrolled
  • Workers must be earning at least £8,105 a year
  • The contribution they, and their employers, make will be based on their wage - the first £5,564 a year they earn will not be taken into account. Any earnings above £42,475 will also be ignored. Therefore, anything between £5,564 and £42,475 is known as their pensionable pay
  • Staff can opt out

Contributions gradually rise over time - this is to assist both workers and employees in the initial stages of the scheme. The starting figure for staff is a minimum of only 0.8% of their pensionable earnings and on top of that employers will have to pay in 1% of their employees' pensionable earnings, with tax relief contributing another 0.2%.

The levels will eventually rise to 4% from the employee, 3% from their employer and 1% in tax relief, giving a total of 8%.

The contributions will be invested and then when the employee retires, the earliest currently being 55. They will have to buy an annual pension, or annuity, with their accumulated pot.

Full details can be found here
http://www.dwp.gov.uk/policy/pensions-reform/workplace-pension-reforms/