The taxmen comethOn 1 Feb 2001 in Personnel Today Previous Article Next Article Payingtax is a fact of life. But who collects the tax if you work in more than onecountry? Rob Outram explains the ins and outs of expat taxationArgentiniansoccer star Diego Maradona returned to Italy, scene of some of his greatesttriumphs, earlier this year. At Rome airport an unusual welcoming committeegreeted him: a party of Italian tax police were there to press a claim for 52bnlire (about £17m or US$25m).Maradonamight well dream of being able to travel the world in his own personal taxhaven, free from such intrusions. A project to make such dreams a reality is,if the backers can gather their next round of capital, about to get under wayin the Central American republic of Honduras. The “Freedom Ship” isthe brainchild of a number of Americans and others operating as ResidenSeaInternational. It has been devised not as a cruise ship but as a floatingcommunity: 4,320 feet long and home to 80,000 or 90,000 people.TheFreedom Ship will have schools, hospitals, offices, a range of duty-free shopsand even an on-board airport. And as it would spend most of the time sailing ininternational waters, it would have no income tax, real estate tax, sales taxor import duties. ResidenSeaare careful, however, to play down any suggestion that the Freedom Ship hasbeen designed primarily as a tax dodge. Marketing spokesman Roger Gooch says,”There are some tax advantages but that is not the mission of the ship.”Thereis not an opportunity for US citizens to save tax. But for some EU citizensthere is an advantage to being offshore. It is their own responsibility to findout what tax benefits they may have. We are not checking out CPAs [accountants]around the world; we are shipbuilders!”Taxsaving or not, there is no doubt that through a project such as the FreedomShip, or simply by being mobile enough, it would be technically possible to beresident nowhere. But whether this represents a tax wheeze or a tax nightmareis another question. John Whiting, a tax partner with PricewaterhouseCoopers inLondon, explains: “Yes, it is possible, if your home was a ship cruisingin international waters. But you do have a residual liability. If I were notresident in the UK but working here, I’d be liable for tax. Different countrieshave different rules, but it’s hard to get out of the system.” Mostcountries will seek to impose tax on income earned within their borders, evenif the employee is only there for part of the time. If your home country andthe host country have a tax treaty, the host country may accept that if you arepaying tax at home you do not have to pay income tax locally on what you earnedduring your short visit. But if you are technically resident nowhere, you willnot be able to rely on such a treaty and you could actually be worse off as aresult. If you are working in a low- or no-tax environment, like Saudi Arabia,that’s not an issue, but such regimes are the exception.Whitingsays: “The question is, if I go to Outer Mongolia, when do I start payingtax? If you go anywhere for more than half of that country’s tax year you arealmost certainly paying tax. It’s quite possible that a country would want totax you if you were there for less than half a year.”Justhow much time is needed before a business visitor becomes a”resident” – the typical rule is 183 days, but this can vary – andhow much of your other income the host country’s tax authorities will belooking to get a slice of, are the key questions. Accordingto Whiting: “There are grey areas and you have to know the quirks of eachcountry. A lot of our work as tax advisers is trying to avoid paying tax two orthree times on the same income. You could easily be in a situation where the UKthinks you are resident here, and Outer Mongolia thinks you are resident there.And if you are a US citizen then you owe Uncle Sam wherever you are.”TheUS government is unusual in demanding tax on all the income its citizens earn,no matter where they are in the world. Americans can only escape a double taxhit on every dollar, yen or euro they earn through a series of tax treaties.Even revoking one’s citizenship would not provide an immediate saving: taxliabilities will continue to apply for another ten years afterwards.ForUS companies, as for others, the number of employees on short-term assignmentsis greater than ever. Daniel Orchant, a partner with the InternationalExecutive Services Group of accountants KPMG in New York, says: “KPMG’sinternational HR survey of 300 top multinational companies found that for 40%,as many as one-third of their international assignees were short-term (ie theassignment was for less than a year).”InEurope, you also have the phenomenon of the ‘Eurocommuters’, living in, say,France or Belgium during the week and in Holland or Germany at weekends.”ForKPMG and its competitors, it’s a growing market. Orchant says, “Ourbusiness in this field has grown by 20-30% each year for the past five years.KPMG looks after the tax affairs of around 20,000 US expats each year.”Expatson short-term assignment are typically paid with a “split payroll”,where some element of their salary and benefits is paid, and taxed, back in thehome country. But some countries do demand that expats come clean about alltheir earnings: India, for example. Elsewhere in Asia, the Japanese and Koreanshave woken up to the fact that many expats get significant stock options andthey are now demanding that the host country gets its share.Manytax regimes are tightening up. For example, the Czech Republic is to withdrawconcessions which previously allowed “foreign experts” to escape taxon their overseas income. And in Hong Kong, proposals are being mooted to forceemployers to collect tax, after the government auditor found that many foreignerssimply leave without paying their tax dues.Someregimes are simply chaotic and expats face the dilemma that they may incurmajor difficulties by filing a tax return and bringing themselves to thetaxman’s attention. In Moscow, accountants Arthur Andersen estimate, fewer than8,000 of the city’s 20,000 expatriates bother to file. And in Indonesia, thegovernment is considering an amnesty for the many foreigners who, like 98% ofthe Indonesian population, do not register for tax.Employerscannot afford to leave tax matters to their employees, says KPMG’s Orchant,because very often the employer will be targeted if the tax authorities suspectwrongdoing. “Penalties vary depending on whether the error is seen asnegligence or outright fraud. They can be harsh, but it’s also a stain on yourcorporate citizenship, which can be very serious.”Underdeclaringincome for tax or social security purposes, or in some cases even movingcurrency out of the country, can be a serious criminal offence. It is importantthat employees accept responsibility for their own tax, but also that they getthe help they need to stay within the rules. Employers often insist that thoseon expat assignments use a reputable firm of advisers to help file returns, andthat relocation and “tax equalisation” (see glossary on page 24)payments made on the employee’s return are subject to their settling up any taxissues with the host country.Theproblem for HR departments is keeping track of short-term assignments. GardinerHempel, partner with the international employment solutions practice ArthurAndersen in New York explains: “You have what we call ‘stealth expats’.They are under the radar and don’t get picked up, often until it is toolate.”Hempelsays: “People presume that there are no tax implications if you areworking abroad for less than 183 days a year under most tax treaties. But notall countries are part of the tax treaty network. For example, Hong Kong isnot, and if you work in Hong Kong for 61 days in any one year you will betaxable.”Buthow does the HR department know when to start the clock ticking? Companies thatuse one travel agent for all their business travel can ask for data which showswho has gone where, if data protection rules allow them to do so, suggestsHempel.Itis all too easy for an employer to break the rules unwittingly. In a tax regimewhere the employer must withhold tax – like the UK’s “pay as youearn” system – penalties can be incurred even if the home country payrolldepartment is not aware that they should be doing so. Ignorance of tax law isno excuse.Taxplanning should be part of preparing for any expat assignment at an earlystage, since the repercussions of any mistakes will be felt by both theemployer and the expat. There are no easy solutions for anyone who hopes tobeat the taxman at his own game.Glossary–Residence – the test of whether or not you are living in a given country. Inany given tax year, an individual could be resident in more than one country.–Domicile – a term in UK tax law indicating an individual’s”permanent” residence. A foreigner resident in the UK but domiciledelsewhere has considerable tax advantages.–Tax treaty – an agreement, usually bilateral, between two states. Tax treatiesexist between most developed countries to ensure that their citizens do notincur a double tax liability when working overseas.–Avoidance- avoiding or reducing tax by legitimate means.–Evasion – tax avoidance by unlawful means.–Tax equalisation – to ensure that an expatriate’s take-home pay is maintainedat the same level it would be at home, an employer makes up for any additionaltax charged by the host country.Taxsans frontieres?Contrastingexamples of tax traps and tipsMrH is a hotels consultant who travels widely in Europe, carrying out projects inhotels for clients. He is a UK national but has no home in the UK and, onaverage, visits the UK for fewer than 91 days per annum over four years, so heis not UK resident. Hevisits numerous overseas countries in the course of his work, includingGermany, Spain and Norway, where he discovers to his surprise that he must paylocal tax on his employment income. If he had been UK resident he would havebeen able to claim relief from local tax under the UK’s double tax treaty witheach of those countries.MrD is a French national. He travels widely in Europe for his employer in thedrinks industry and seeks to minimise his and his employer’s tax and socialsecurity liability in France, where he is currently resident. He thereforemakes his home in Denmark with his wife and children, buys a house there andbecomes Danish resident. Hisvisits to Denmark are for fewer than 42 days in a six-month period and as hedoes not perform any employment duties there, he is not taxed on his worldwideincome in Denmark as a resident (which would be very costly). He is employed bya UK company and performs some duties there, but as he is non-UK resident, theUK income tax payable is minimal. He also has some employment duties in France,but as his employer is registered in the UK, under the European social securityrules, contributions are payable in the UK – at much lower rates than inFrance, where they might amount to 45% for the employer alone on unlimitedincome.Source:PricewaterhouseCoopersPrecautionsand advice –Get professional tax advice for all expatriate assignments.–Don’t leave tax affairs as the responsibility of employees. Mistakes willimpact on your organisation’s corporate reputation and relations with the hostgovernment.–Tax agreements between most developed nations mean that with openness and goodplanning, your staff should not lose out. –Tax havens are a great way to avoid paying tax only so long as that’s where youare earning your money, and nowhere else.Furtherinformation…Formore information on international tax liability, take a look at the followingWeb sites:www.pwcglobal.com www.kpmg.com www.arthurandersen.comCheck out www.personneltoday.com/features for more compensation-related articles. Related posts:No related photos. Comments are closed.
Related posts:No related photos. Fearsof a recession and its effect on staffing levels mean HR professionals may needto re-examine their retention policies. Karen Higginbottom reportsOn22 March, more than £52bn was wiped off share prices on the FTSE-100 index. Itis being called Black Thursday. Correspondingdrops on Wall Street, coupled with the announcement of major job losses bylarge firms, have contributed to gloomy economic forecasts. Theshare collapse was triggered by the news that US giant Procter & Gamble iscutting 9,000 posts. It employs 6,000 staff in the UK. Thelist of companies making redundancies is growing. One of the UK’s biggestengineering group Invensys announced it is shedding 2,000 more workers on topof the previously announced 3,000 redundancies.Furthermore,US telecoms giant Motorola and Walt Disney are is cutting 4,000 jobs each.Employersare getting agitated over whether it signals the onset of a recession, and HRprofessionals are wondering whether they should be drawing up contingencyplans.JohnPhilpott, chief economist at the CIPD, explains that the likely effects arethat UK economic growth will slow but that worries about a recession areunfounded.Hesaid, “There will be no major impact on the UK economy but there will be aknock-on effect on the new economy areas such as the dotcom sectors.”Philpottexpects the labour market to remain tight for the foreseeable future. He said,“There is likely to be levelling-off of the employment market, with falls inunemployment and the rises in job vacancies grinding to a halt.”Theeffects of a levelling-off of the employment market means that HR professionalswill have to re-examine their retention policies, warned Philpott.Hesaid, “Employers will have to make sure that they retain the best staff asthere will be an ongoing turnover of labour. The war for talent will intensifyas competition increases for better workers in certain sectors.”Oneeffect of a tighter labour market will be the need for more sophisticatedreward packages in place in order to retain the more skilled employees.Employerswill have to think about putting benefit packages in place that areindividually tailored to the employee, such as providing sports facilities andoffering flexible working practices, explained Philpott.Heis not buying into the belief that a “sneeze” in the US necessarily results ina “cold” in Europe.“Mymessage to HR is not to panic. At the very worst the jobs market will stabilisewith a remote prospect of rising unemployment,” advised Philpott.Butmany companies are getting worried. Software company ICL believes that arecession is in the offing in the UK. Acompany spokesman said, “Employers may have to cut back on recruitment to avoidredundancies. Although there is a time lag from the US to Europe, the recessionis looming. The markets are overheated with dotcoms.” IanBrinkley, senior economist for the TUC, disagrees. He believes that the USstock market crash will have a limited impact. He is convinced that the labourmarket will continue to be tight in the UK with recruitment and retention atthe forefront of employers’ agendas.Hesaid, “The old ‘hire and fire’ economy has gone. Employers are looking outsidetraditional areas of recruitment, such as the service-sector firms based in London,and going to the Home Counties to seek out labour.”Anothersymptom of the tight labour market is increased investment in employees,according to Brinkley. He said, “Employers are now investing more money intheir employees, especially in the IT, business and public sectors.” Hepoints outs that there is an economic pressure on employers to offer flexibleworking practices to staff as more women with children are entering the labourmarket. BruceWarman, Vauxhall’s HR director, thinks the jury is still out on whether therewill be an economic downturn in the UK.Hesaid, “Let’s not get carried away with the market volatility in the US. It’sjust a correction of high-tech stock prices.”Warman’sadvice to HR directors is not to get carried away with the talk of a recession inthe UK. He thinks the news of an impending recession is premature consideringthat the stock market started to recover after Black Thursday.Hesaid, “My message is to be cautious and don’t do anything rash. Balance yourshort-term decisions with your company’s long-term strategy.”Manufacturers’confidence underminedTotaldemand for manufactured goods fell again and output expectations for the comingfour months have weakened for the second consecutive month, according to theCBI’s March survey of industrial trends. Fifteenper cent of manufacturers said total order books were above normal but 38 percent said they were below. The balance of -23 per cent compares with -16 inFebruary and is the most negative figure reported since July 1999.Exportorder books are still well below normal. The balance figure of -24 is the same as that reported in theFebruary survey. Fallingtotal demand is reflected in output expectations. Over the next four monthsoutput is expected to be little changed. While 26 per cent of people saidvolume of output will increase, 23 per cent said it will fall giving a balanceof +3, the weakest figure since November 2000.Stocksof finished goods have stayed broadly stable over the past month. The balanceof +20 per cent of firms reporting more than adequate costs compares with +19last month, but they stay at their highest level since March 1999 and above thelong-term average.CBIchief economist Kate Barker said, “This survey is further evidence that thetroubles of the UK’s manufacturing sector are far from over. The US slowdownmay have a more serious impact on the UK than first predicted. Higher stocklevels and falling demand are already causing companies to rein back theiroutput plans.” Talent needed to ride stormOn 3 Apr 2001 in Personnel Today Previous Article Next Article Comments are closed.
Voluntary sector organisations have been warned they need to improve pay andworking conditions to retain top managers. A survey by the Association of Chief Executives of Voluntary Organisationsshows there is a 23 per cent difference between the average salary forvoluntary sector chief executives and their counterparts in the private sector.Chief executives in the voluntary sector earn £47,675 a year compared tothose in the private sector who are on £65,914 a year. Stephen Bubb, chief executive of the ACEVO, said, “We are not demandingfat-cat salaries but unless the third sector pays professional salaries forprofessionals, it will always have difficulty in recruiting and retainingstaff.” Gill Lucas, head of public and voluntary sector at KPMG’s search andselection – which sponsored the survey, agrees. “Voluntary sector pay needs to move towards a fairer and more flexiblefuture if it is to retain the talent of its top managers.” The survey also calls on voluntary sector organisations to improve their HRstructure. Seven out of 10 voluntary sector chief executives do not have a specifictraining budget and the median spend on their training is just £600 a year. The report claims a third of chief executives invest their own money intheir professional training and development. Nearly 80 per cent of voluntary organisations do not have work-life balancepolicies and over a third have no formal appraisal system. Fewer than one in 10chief executives receive a bonus. The report polled 419 chief executives. Related posts: Features list 2021 – submitting content to Personnel TodayOn this page you will find details of how to submit content to Personnel Today. We do not publish a… Comments are closed. Previous Article Next Article ‘Third sector’ must improve pay levelsOn 11 Dec 2001 in Third sector, Personnel Today
Fanfare for the futureOn 1 Jan 2002 in Personnel Today Related posts:No related photos. Previous Article Next Article Comments are closed. Trainingand IT experts are about to gather for this year’s Learning Technologies show.Patrick McCurry has a preview of the issues on the table, samples new productsand selects the best of the sessionsKey issues such as how to implement e-learning, whether and how to blendtraining and to what extent outsourcing can relieve the pressure on trainingbudgets will be at the top of the agenda in the latest Learning Technologiesshow. The event, which is aimed at buyers of IT and business skills training,takes place on 30 and 31 January. Conference speakers and exhibitors will befielding some tricky subjects, not least whether the hype surroundinge-learning has been justified. “It’s pretty clear now that some of the wilder claims about e-learningare not holding up and a lot of people are asking what its right role is,”says conference chairman Don Taylor, an independent consultant. “I expect e-learning to exceed the 11 to 14 per cent of training spendthat goes on computer-based training, but it will never reach 50 percent.” He argues that the growing realism about what e-learning can achieve isleading employers to look at blending e-learning with classroom training.”More people are seeing the two as complementary not in competition,”Taylor says. The two keynote speakers are Richard Reeves, head of consultancy at theIndustrial Society, and Nigel Paine, director of Science Year, a Department forEducation and Skills project. Reeves will be speaking on the Industrial Society’s iSociety project[Thursday, 3.30pm]. This is a major three- to five-year examination of therelationship between work, life and information and communications technology(ICT), and is supported by Microsoft. The project was launched last April. One of the main themes in the earlyresearch, to be included in the project’s first annual report in May, has beenhow ICT is influencing the workplace. Reeves says, “Investment in IT often fails to deliver the productivitygains organisations expect because the technical changes are not accompanied bychanges in people management.” For example, companies may invest in web-based or mobile phone technologiesthat increase workplace flexibility but still insist staff clock in and offrigidly, he says. If IT investment is not accompanied by changes in how staff are managed, alack of trust builds up. “Instead of seeing new technology as a liberator,many employees regard it with suspicion, seeing it as a way for their employerto monitor them,” says Reeves. In the opening keynote speech [Wednesday, 10am] Nigel Paine will be arguingthat the way new technology is used in schools will be crucial in determiningthe UK’s future skills base and creativity. “There’s a lot of investment going into technology in schools, whichwill transform the relationship between teachers and pupils,” he says. But for young people to take full advantage of the opportunities offered bycomputer-based and web-based learning the education system will have to shift,Paine argues. “There are two conflicting pulls, one supporting creativity andinnovation through the use of technology and the other focusing on standardsand exam results. “There’s going to be a problem if young people are doing brilliantmultimedia presentations and investigating and analysing data throughtechnology but then have their performance judged on regurgitating receivedopinion in exams.” The conference is split into two streams, learning issues and e-learning. Onthe learning issues side, one of the key debates will be on what 2002 holds. “Training budgets are being cut and there’s a continued trend ofdevolving training spend to line managers,” says Alan Bellinger, salesdirector at Wave Technologies and chairman of the learning issues stream. Training managers are increasingly not choosing what training will bedelivered, he says, but instead being left with the job of implementing it andpicking up the pieces when things go wrong. But trends in 2002 offer some comfort for training managers, he believes,”E-learning is helping organisations deliver training more cheaply andmany providers are cutting prices and offering training in bite-sized chunks,which means staff are off work for less time,” he says. “Also, unlike classroom training, e-learning decisions tend to be morecentralised, which gives training managers more input into what’sselected.” Bellinger also highlights the seminar on blended training. “For ITtraining there’s a growing recognition of the benefits of teaching staff thebasics and principles by e-learning and then giving them hands-on training inthe classroom,” he says. “This approach can cut the total training days needed significantly,while using the best of both approaches, but the problem is, many providersonly offer classroom or e-learning training, so it’s often left up to the userto work out the blend.” Other key seminars in the learning issue stream include outsourcing ITtraining [Wednesday, 3.30pm] and tendering for training [Thursday, 2pm]. Taylor says, “With current pressures on budgets, more people arethinking about outsourcing, but they’re often not sure what should andshouldn’t be contracted out. “On the tendering issue, many people in IT training have never put outa tender for a big contract and so don’t know how to find the right people andhow to run the tender process.” In the e-learning stream is a seminar on avoiding implementation pitfalls[Wednesday, 3.30pm]. Speaker Jonathan Kettleborough, managing director oftechnical training provider Corollis, says the most common error is introducingsystems without preparing staff. “When I speak to people who have implemented e-learning but encounteredproblems they always say if they were doing it again they’d spend far more timeon communicating the changes with staff.” He adds that it is impossible to overestimate the importance of gettingstaff to buy into the idea of e-learning and to establish a receptive culture,rather than imposing a system and expecting it to work from day one. Taylor reinforces the message, saying, “One of the key messages in theconference will be that too much attention has often been paid to thetechnology but without enough thought about how people want to learn.” When and where– Learning Technologies 2002 runsover two days, Wednesday 30 and Thursday 31 January, at the Olympia ConferenceCentre, London (Kensington Olympia tube station).– It is Europe’s largest gathering of IT training ande-learning providers.– The conference consists of two tracks (learning issues ande-learning) with six sessions in each track plus keynote speeches. – It runs from 9.45am to 3.30pm on the first day and from 10amto 3.30pm on the second, with registration on both days from 9am.– The delegate rate for the two days is £795 plus VAT. – Entry to the exhibition is free.– For information or to register visit www.learningtechnologies.co.ukContactsFor more information about thecompanies mentioned in this supplement, contact them on the phone numbers andat the websites below:blueU 01225 483100, www.blueU.comCentra Software 01628 509023, www.centra.comDocent 0118 965 3472 www.docent.comElearnity 020-7917 1870, www.elearnity.comFuturemedia 01243 558553, www.futuremedia.co.ukGlobal Knowledge 0845 304 0044, www.globalknowledge.co.ukKnowledgePool 0800 7831765, www.knowledgepool.comLogilent 01793 644067, www.logilent.comNETg 0800 442285, www.netg.comQA Training 01285 883334, www.qa.comSessions not to miss– Claude Gerbaud, technology training manager at Compaq, willbe presenting his company’s experience of blended learning [Wednesday, 2pm]– Don’t miss Big Bang or Steady Evolution, [Wednesday, 2pm]when David Clarke, founder of Logilent Learning Systems, goes head to head withPeter McClintock, director of e-learning at Global Knowledge– Industry experts give their insights into the future ofe-learning and what tools will be hot this year at Where Next [Thursday, 2pm]– Avoid the pitfalls of e-learning with Richard Monks,e-learning practice manager at accountants KPMG [Wednesday, 3.30pm]– Steve Preston, head of development and training at INGBarings, gives his views on buying IT training from a single source [Wednesday,3.30pm]– Benchmark your IT training and e-learning with Ayesha Okhai,skills group manager at Microsoft UK, and Gill Honey, IT training manager atNew International Newspapers [Thursday, 10am]Big names, new productsThere will be more than 100exhibitors, including most of the big names in e-learning and technology-basedtraining, at the event. Among those launching products at the exhibition are:– Centra Software will demonstrate its web-based virtualclassroom, conference, meeting, knowledge and delivery systems. “We willbe unveiling how a multinational company will implement our technology todeliver real-time courses to train over 10,000 staff in 30 countries,”says a spokeswoman.– Consensus, which supplies training admin systems, willdemonstrate the latest version of its CourseBooker product, aimed atorganisations that need to market, sell and administer courses. – Docent will promote its acquisition of gForce inOctober and, the acquisition of its technology for creating and distributinglearning content. “Their technology allows us to offer an expandedsolution for the delivery of content, learning and information,” says aDocent spokeswoman.– Electric Paper, a Dublin-based e-learning company,will highlight its work in Australia to radically improve the IT skills of over3,000 staff in Queensland’s Office of Child Care. The campaign, carried outwith Skillgate Pty, has been short-listed in the International Training Projectof the Year in the 2002 Institute of IT Training Awards.– Global Knowledge launches what it calls the firstpan-European virtual classroom e-learning programme. It consists of fivecourses so far and will be delivered in five languages.– John Matchett will demonstrate its recently releasedLMS Version 5. The integrated e-learning facility is based on standardtechnology platforms that will fit with customers’ existing infrastructures.– KnowledgePool will launch Talent Solutions, a group oftailored modules, based on web technology, designed to support all aspects ofpersonal development within an organisation.– Logilent Learning Systems, a leading provider ofweb-enabled training for IT professionals, will be making a major announcement.– NETg will showcase its latest products in mobile andblended learning and will unveil its vision for intelligent-learning solutionsas well as its professional development library, NETg Pro-S.
Simon Wilsher looks for people motivators, not boardroom mimicsFor successful entrepreneurs, having vision, keeping focused and maintainingcreativity is second nature. Being at the top of the food chain grants them anescape from their desks and the freedom to take a bird’s-eye view of theirorganisations. But for managers, staying true to who they really are and developing theirpeople, is an endless challenge. Many managers mistakenly think that to be a great businessman, they mustadopt traits associated with renowned entrepreneurs. Business mimicry is commonas many confuse being like a great businessman with actually being a greatbusinessman. They should have the confidence to be themselves, not boardroommimics. Imagine the stress of trying to be someone else in the day-to-day cut andthrust of business life. Such pretence can leave individuals and organisationsburnt out. It is common for people at all levels to lose the freshness,enthusiasm and character that first made them successful. Bright sparks areturned into bureaucrats, teams become demotivated, and fast-track companieslose their distinctiveness and direction. Instead of being regarded as aleader, employees see an apparatchik who tows the line, not a motivationalforce to be reckoned with. When managers lose confidence, it stands to reasonthat their employees will follow suit. Company jewels The biggest knock to employee confidence comes from job uncertainty and‘survivor syndrome’ following redundancies. When times are tough, managersreviewing the balance sheets always find that staff are the biggest outlay, sotalent is always the first cut to be made. The biggest challenge for the modernmanager is holding on to their talented people – the ‘company jewels’ – whilechopping off the dead wood. But, it is talent that will drive your company andset it apart from your competitors, so pruning staff should be the last resort.Retaining good people is a two-way thing. Once you have resolved to keephold of them, it is vital to ensure they actually want to stay. If leftunchecked for too long, problems with team spirit can often arise and ballooninto morale-denting issues. Once this occurs, managers will find itincreasingly difficult to tackle the issue. Managers should see that trying to figure out what makes people tick is nota waste of time, as it will directly impact the bottom line. You can’t make anomelette without breaking eggs, and you can’t make a team without breaking downbarriers. Rather than calling in outsiders to manage change, companies need to look totheir own people to help solve problems. Nobody knows an organisation betterthan those who work for it, and the best solutions will be suggested anddelivered by these people. At the heart of the transformation process is confidence. Managers need tosit down with their teams in a non-confrontational environment and begin towork out their motivation for change. Employees need to be pulled out of theircomfort zones and encouraged to drill down to their raison d’àtre, shruggingoff the day-to-day concerns that have engulfed them. Allowing your team to have input into future plans enables them to aligntheir personal goals with those of the team – team successes are also construedas personal triumphs. During an economic downturn, all the benefits of teambuilding efforts can bewiped out in a flash when redundancies are made, damaging morale andundermining management who frequently claim ‘our people are our greatestasset’. Downturns are an area where drastic short-term change is not the bestpractice. Instead of changing the people, change the culture. Managers need tolook at their budgets as though the organisation were their own business, notan open-ended expense account. To do this, they need to make the operationallink between what they do and resource/cost implications. Take heart, though;some of the best business decisions are made during downturns – they forceorganisations to focus on what their customers truly want. Persuading managers to be themselvesOn 1 Nov 2002 in Personnel Today Comments are closed. Related posts:No related photos. Previous Article Next Article
Public sector pays the priceOn 4 Mar 2003 in Personnel Today Congestion charging is here to stay. It looks like public sector staff willpay the price for working in the capital – but there’s been no sign ofdisruption on or off the roads. Jane Lewis reportsIt has been hailed a triumph by some, and it certainly wasn’t the”bloody day” that Ken Livingstone warned Londoners to expect. But while it is still too early to call the congestion charge a success, itis probably safe to say that anyone who took up William Hill’s 5:1 odds thatthe charge would be scrapped by the end of the year, must have resignedthemselves to taking a hit. Nearly three weeks into the scheme, there has been no sign of the widespreaddisruption, violent public protest, or mass refusal to pay the £5 charge thatso many predicted. Now it’s here, how are we going to live with it? And who will be mostaffected? In the run-up to the launch, the most vociferous opposition came froman unlikely coalition of Smithfield meat-workers and West End theatre staff,who teamed up with solicitors Class Law to mount a High Court challenge onbehalf of all low-paid workers. Taxing the poor Both Livingstone and the company responsible for managing the scheme,Transport for London (TfL), have long maintained that the impact on this groupwould be minimal, claiming that 85 per cent of those on low incomes living inor around central London don’t have cars anyway. This was challenged in some quarters. “Poorer people tend to shift workat unsocial hours when public transport is least available,” claimed theRAC. Nonetheless, the action was quietly dropped after raising just one tenth ofthe £500,000 it needed to bring the case to court. Its sponsors claimed victorybecause Livingstone has given assurances that he would at least considerintroducing a cheaper rate for drivers on low incomes. The controversy still raging, however, relates to key public sector workers.Here the scheme’s devisors appear to have shown remarkable inconsistency. Whilegovernment chauffeurs, police, firefighters and certain NHS staff carryingequipment or drugs are exempt from the charge, the majority of NHS workers,ambulance drivers and teachers are not. “We are already hearing anecdotal evidence that schools in the zone arebeing hit, with some teachers considering resignation,” said a NationalUnion of Teachers spokeswoman. For many, the prospect of spending an extra £1,200 a year just to get towork is a step too far – particularly in the absence of any forthcoming deal tohelp with the costs, “and there’s very little that individual schools cando”. One option under consideration is to raise the London Weighting allowanceto compensate for the charge. But this, as she pointed out, “is a veryblunt instrument”. Staff shortages London Ambulance staff are marginally better off, having struck a deal withemployers that gives those working in the zone £550 per year towards the charge– a move that will cost more than £250,000 a year. This is more likely to put pressure on other NHS chiefs to follow suit –particularly given strong language from unions. “This charge will tip manyon the breadline over the edge,” said Unison’s London spokesman GeoffMartin. The fear is that the charge will only add to the chronic staff shortagesalready gripping the NHS in London, making it even more difficult to recruitand retain doctors, nurses and paramedics. “It will add to the continual dripeffect, making it difficult for people to work in central London. Given thechoice of a job just inside the zone, or one outside, which would youchoose?” added Martin. The strategy HR chiefs in the NHS appear to be taking is to tackle theproblem on a case-by-case basis. Headed by Tim Higginson, personnel director at Guys & St Thomas’, theyhave come together and set up an appeals panel. Given that the charge has sofar provoked just one recorded resignation (a clerical officer at MoorfieldsEye Hospital), this selective approach may well turn out to be the mosteffective. Recruitment and retention is likely to prove less of an issue in the privatesector, said Charles Cotton, adviser on reward and employment conditions at theCIPD. “I don’t think someone is going to move out of central Londonbecause of the congestion charge. Uncertainty about the economy means therewon’t be a large number of people wanting to move job at present,” hesaid. However, he noted, there is still widespread concern that the dire state ofpublic transport could prove the Achilles heel of the congestion charge. “There may well be a lot of complaints from companies that staff arearriving at work stressed and exhausted,” said Cotton. Employers foot the bill Luckily, many staff may not have to worry about the cost. Research by lawfirm Fox Williams shows that 35 per cent of London employers have decided tofoot the bill. But, as employment specialist Helen Monson pointed out, thiscould have complicated implications for tax. While business journeys can be treated as expenses under existing InlandRevenue rules, the same is not true of journeys to and from work. Thus, ifemployers choose to reimburse staff for travelling to work, it will be treatedas a taxable benefit. That could put an extra 40 per cent on the bill for anupper-bracket taxpayer. Employers taking this course of action, she added, could also facechallenges for unfair treatment from staff using public transport. If commuterswho drive to work are reimbursed for their journey, why not them too? Path to flexible working The charge may well have other implications for HR in London. “There is a very real possibility that homeworking and more flexiblehours will become more popular,” said the Institute of Directors,”though this is likely to be confined to larger companies who can affordto accommodate different working patterns rather than small business.” Are we likely to see an extension of the congestion charge elsewhere? Theshort answer is yes. The launch of the scheme has attracted massive support ona global basis, while in the UK, some 35 towns and cities, including Bristol,Edinburgh and Nottingham, have announced an interest in following suit. Indeed, individual congestion schemes may shortly be overtaken by somethingmuch bigger. Sources close to the Government claim that widespread publicacceptance of Livingstone’s scheme – combined with its huge revenue-raisingpotential – means that plans for a national road toll scheme, based oninstalling sophisticated satellite tracking technology in every vehicle in thecountry, “have moved sharply up the political agenda”. Compared with the implications of a New Labour-inspired ‘spy-in-the-skysatellite’ scheme, charging from 3p a mile on quiet roads, to £1.30 a mile incrowded city centres, the London congestion charge will soon seem small beer. www.londontransport.co.ukwww.data.teachers.org.ukwww.unison.org.ukwww.iod.co.uk Previous Article Next Article Related posts:No related photos. Comments are closed.
McDonald’s turns up the heatOn 1 Oct 2003 in Personnel Today Head of training Lynn Phillips explains why the rebranding of foodphenomenon McDonald’s brings a massive skills programme in its wakeWalk into a McDonald’s this month and you should notice a difference. RonaldMcDonald is still going strong and so too are the burgers and fries, but nowcustomers can choose from a menu that includes chicken, fish, a choice ofsalads and possibly low-fat yoghurt. What’s more, it’s all being served with asmile. This rebranding, which comes with the slogan ‘I’m lovin’ it’, is part of aworldwide initiative to get the fast-food giant back on track. At the end of last year and for the first time in its history the firm wentinto the red, hit by food scares and changing tastes in family eating. Soworried was the US firm by its falling sales that it wooed its former companypresident Jim Cantalupo back from retirement to help turn the firm around. In addition to its changing menus, McDonald’s is refurbishing itsrestaurants and has launched a global advertising campaign aimed at winningback customers. But such a massive rebranding campaign can not happen withoutinput from the training and HR function. As a result a massive hospitalitytraining programme is about to sweep through the firm’s 1,231 restaurants inthe UK. This is where head of HR and training Lynn Phillips (right), who has beenwith the firm for more than 20 years, comes in. “The fast food industry isnow a completely different place from when I started working here,” shesays. “The whole pattern of people eating out has changed. Perhaps what wehave seen recently at McDonald’s is the result of us not changing quicklyenough.” Phillips started working as a part-time crew member in her local McDonald’swhile still at school. She continued during her gap year between school anduniversity, rising to a first-line supervisor. When she finished her degree inmodern languages she went back to McDonald’s as a management trainee. “I started out in restaurant management, but I had already said that Iwas interested in moving to personnel. It was a very small department then, butafter three or four years McDonald’s found me a job in the personnel team andI’ve been here ever since.” Phillips moved up the ranks until 1995 when she took over as head of HR. Twoyears later she was given responsibility for customer services as well, andearlier this year she became head of training too, reporting to the UK’s chiefoperating officer. “It’s a fantastic opportunity to work closely with the operations partof the business,” Phillips says. “I know that training is a strengthfor us, but I want to see it translated into business results.” McDonald’s decision to bring HR and training under one person meant Phillipscould be intimately involved with early rebranding plans in the UK. “Thissort of global exercise is a first for us although each country does have theautonomy to adapt the global framework to its own needs,” Phillips says. She and her colleagues worked closely with the communications team in thebuild-up to the rebranding, especially when it came to talking to restaurantmanagers about what was happening. “We’ve helped with the content of thesesessions and made sure they were relevant to the management audience,” shesays. In addition they have been pulling together the hospitality trainingprogramme that, by the end of this year, will have cascaded down to the 68,000crew members working in McDonald’s wholly owned and franchised restaurants inthe UK. According to Phillips, the development work really started a year agowhen McDonald’s began rolling out a training programme for restaurant staffcalled ‘out to make you smile’. “From each restaurant we brought together the core team of managers andkey staff into one of our training centres and went through things like customerprofiles, what customers are looking for and the barriers to good service. “The aim was for all these teams to take this information and developtheir own mission statement to take back to their restaurants and instil it inother crew members.” It has proved a highly successful programme, Phillips says. “We’ve useda mystery shopper exercise to measure it and found that the restaurants thatreceived the training were scoring between 3 and 5 per cent higher on servicethan the national and regional averages.” Next generation On the back of this programme, McDonald’s is now running what Phillipsdescribes as the next generation of hospitality training. Called ‘FriendlinessFirst’, the programme will take restaurant management teams off-site to one ofthe firm’s seven regional training centres. There will of course be a video to bring home the purpose and processes ofthe rebranding, but teams will also be encouraged to thrash out the principlesof hospitality, the importance of how they interact with customers and how bothof these apply to the new face of McDonald’s. They will then return to theirrestaurants with a package of training materials to use with crew members and,by the end of 2003, all restaurant employees will have completed FriendlinessFirst. When it comes to what people see in a restaurant, hospitality training iskey, but it’s not just about reinforcing the rebranding, it’s about ratchetingup McDonald’s level of service overall. “The challenge of continuallyimproving service levels has always been there, but our competitors have gotbetter and we have not moved on as fast,” Phillips says. Hospitality It comes back to changes in the fast food business. McDonald’s has built itssuccess on the back of an emphasis on speed and functionality. But what peoplewant now is hospitality, not just service. Hence the current stress onfriendliness and smiling. As well as restoring the fast-food giant’s fortunes, Phillips is hoping thatthe ‘I’m lovin’ it’ rebranding will finally put paid to snide, clichéd remarksabout ‘McJobs’. It’s not a concept that she has ever recognised or understoodbecause, as far as she is concerned, McDonald’s offers some great careeropportunities. “Fifty per cent of our senior managers have been promoted from withinand 75 per cent of our restaurant managers have come up from crew members. Thisis a better track record than any other restaurant chain in the UK,”Phillips says. What’s more McDonald’s in now 29th in the Times Top 100 Graduate Employers.Graduates come for training but often stay because the career opportunities areso good. “We have never aimed to be the highest payer. Our salaries andbenefits are competitive but beyond that it’s about the work we offer,”Phillips says. She blames the McJobs label on the snobbish UK press. “There’s still abig stigma in this country attached to working in the catering or servicesector,” she says. Research from the Work Foundation earlier this year,backs Phillips’ view. It described McDonald’s as one of the “unsung heavylifters at work in the UK economy… who dig deepest into some of the country’smost difficult and marginalised labour markets.” And it praised the firm’straining and development for taking unskilled workers and turning them intohigh-skilled employees. “We took part in the research because we knew we had good things to sayabout ourselves as an employer. We weren’t surprised by the findings but wewere encouraged to see that what we do is valuable,” Phillips says. She believes the key to McDonald’s training strength lies in the fact thatunit managers are so hands-on. “We say that training is everyone’s job, every day – that’s thetraining department’s mission statement,” Phillips says. Blended approach So as well as delivering most of the initial training for new recruits,managers will be there on the floor ready to provide coaching when it’s needed.More experienced crew members are also encouraged to take on the role of buddyor mentor to new and more junior staff. At the same time there is a form ofcurriculum for crew members. So there are check lists of tasks they mustcomplete and standards they should reach, there are work books to ploughthrough and NVQs to work towards. It’s a blended approach that works well forMcDonald’s. As a result the training department is relatively small with only 30 people,including regional training managers. What is more internal trainers have hadoperational experience with many coming on secondment from the front line for twoor three years. It all adds to the department’s success and credibility.”We want our trainers to be able to speak from a position ofknowledge,” Phillips says. As head of both training and HR she sees her role as one of co-ordinator orfacilitator. In many ways she is the glue between McDonald’s people strategyand operations. “My role is about making sure training is working tosupport the business, working with the regions and with other strategic areas.It’s about co-ordinating people and activities,” she says. After 20 years with the firm she cannot imagine being anywhere else.”The thing about this company is that every time I think I’ve gotsomething under my belt they find me a new challenge.” For the next fewmonths at least, that challenge will be getting managers and crew members inthe restaurants geared up for the rebranding and convincing them that ‘I’mlovin’ it’ is really worth it. rials to use with crew members and, by the end of 2003, all restaurantemployees will have completed Friendliness First. When it comes to what people see in a restaurant, hospitality training iskey, but it’s not just about reinforcing the rebranding, it’s about ratchetingup McDonald’s level of service overall. “The challenge of continuallyimproving service levels has always been there, but our competitors have gotbetter and we have not moved on as fast,” Phillips says. Hospitality It comes back to changes in the fast food business. McDonald’s has built itssuccess on the back of an emphasis on speed and functionality. But what peoplewant now is hospitality, not just service. Hence the current stress onfriendliness and smiling. As well as restoring the fast-food giant’s fortunes, Phillips is hoping thatthe ‘I’m lovin’ it’ rebranding will finally put paid to snide, clichéd remarksabout ‘McJobs’. It’s not a concept that she has ever recognised or understoodbecause, as far as she is concerned, McDonald’s offers some great careeropportunities. “Fifty per cent of our senior managers have been promoted from withinand 75 per cent of our restaurant managers have come up from crew members. Thisis a better track record than any other restaurant chain in the UK,”Phillips says. What’s more McDonald’s in now 29th in the Times Top 100 Graduate Employers.Graduates come for training but often stay because the career opportunities areso good. “We have never aimed to be the highest payer. Our salaries andbenefits are competitive but beyond that it’s about the work we offer,”Phillips says. She blames the McJobs label on the snobbish UK press. “There’s still abig stigma in this country attached to working in the catering or servicesector,” she says. Research from the Work Foundation earlier this year,backs Phillips’ view. It described McDonald’s as one of the “unsung heavylifters at work in the UK economy… who dig deepest into some of the country’smost difficult and marginalised labour markets.” And it praised the firm’straining and development for taking unskilled workers and turning them intohigh-skilled employees. “We took part in the research because we knew we had good things to sayabout ourselves as an employer. We weren’t surprised by the findings but wewere encouraged to see that what we do is valuable,” Phillips says. She believes the key to McDonald’s training strength lies in the fact thatunit managers are so hands-on. “We say that training is everyone’s job, every day – that’s thetraining department’s mission statement,” Phillips says. Blended approach So as well as delivering most of the initial training for new recruits,managers will be there on the floor ready to provide coaching when it’s needed.More experienced crew members are also encouraged to take on the role of buddyor mentor to new and more junior staff. At the same time there is a form ofcurriculum for crew members. So there are check lists of tasks they mustcomplete and standards they should reach, there are work books to ploughthrough and NVQs to work towards. It’s a blended approach that works well forMcDonald’s. As a result the training department is relatively small with only 30 people,including regional training managers. What is more internal trainers have hadoperational experience with many coming on secondment from the front line fortwo or three years. It all adds to the department’s success and credibility.”We want our trainers to be able to speak from a position ofknowledge,” Phillips says. As head of both training and HR she sees her role as one of co-ordinator orfacilitator. In many ways she is the glue between McDonald’s people strategyand operations. “My role is about making sure training is working tosupport the business, working with the regions and with other strategic areas.It’s about co-ordinating people and activities,” she says. After 20 years with the firm she cannot imagine being anywhere else.”The thing about this company is that every time I think I’ve gotsomething under my belt they find me a new challenge.” For the next fewmonths at least, that challenge will be getting managers and crew members inthe restaurants geared up for the rebranding and convincing them that ‘I’mlovin’ it’ is really worth it. CVLynn PhilipsMay 03 Head ofHR and training (and customer services)May 97 Head of HR and customerservicesAug 95 Headof HRApr 94 London HR and trainingmanagerApr 90 Regionalpersonnel managerMar 87 Fieldpersonnel officerOct 83 JoinsMcDonald’s as a graduate trainee manager Comments are closed. Previous Article Next Article Related posts:No related photos.
Comments are closed. Previous Article Next Article This award recognises HR teams who can demonstrate they have achievedgenuine business partner status within their organisations. The judge looked atthe HR team’s own strategy, how this was devised and implemented, theinvolvement of senior staff and what results have so far been achieved.Entrants needed to explain how HR has measured the benefits and how the teamidentified prioritiesCategory judgeBruce Warman joined General Motors in1972. He moved to Detroit in 1979 and took the position as an organisationaldevelopment consultant based in corporate headquarters. On his return to theUK, he held a number of positions, including managing director of a componentsmanufacturing company, before becoming director of personnel at Vauxhall in1988. He retired from that post in March 2003, and currently holds a number ofpositions, including member of the Employment Appeal Tribunal, director of theSecurity Industry Authority and non-executive adviser to an HR consultancy.MotorolaThe teamNo. in HR team 13Staff responsible for 1,600Fionuala Barrie, HR director SPS UKCaroline Stewart, HR associateGerry Travers, HRoperations managerClaire McCormick, HR programs managerNicola Daubney & Jennifer Wojtyna, HR operations managersChris Keane & Ann Brannan HR managersMark McCafferty HR consultantAlison MacDonald, Senior HR associateMoyra Withycombe, HR managerMaureen Crawford, HR associateMotorola SPS IBHRAbout the companyMotorola provides communications solutions and is a globalmanufacturer of two-way radios, mobile phones and other communication systemsThe challengeMotorola’s silicon chip manufacturing facility in EastKilbride, Scotland, faced a high probability of closure in 1999 and as aresult, a major comprehensive improvement strategy was neededWhat the company did– Launched an HR-driven change programme– Made HR alignment to, and partnering of, the business morecrucial– Developed and employed two main strategies: first,implemented global HR initiatives creatively to compliment the local culture,and, second created local initiatives that developed and accelerated thischange strategyBenefits and achievements– HR gained respect and commitment from their business partnersby fully committing to the business goals– Developed creative, innovative and resourceful solutions,while returning significant gains for the business– Encouraged managers to deal directly with staff andtransferred HR keys to the management team– Cost reductionsBruce Warman says: “TheHR team was closely involved with the senior management team and other keystakeholders, including the unions. The strategy developed covered many areasand addressed some difficult issues. There was a clear definition of resultsneeded and rigorous follow-up on performance. It worked – major improvementshappened in key performance measures, the plant stayed open and several newproducts were moved into it from other parts of the world.”Scottish WaterThe teamNo. in HR team 93Staff responsible for 4,758Paul Pagliari, HR directorMorag Holding, HR customer serviceAndrew Walker, General HR managerJulia Stevenson, Head of organisational developmentSusan Campbell, HR relationship managerLorraine Miller, Head of health & safetyScottish Water HR TeamAbout the companyScottish Water was created in April 2002 – replacing East ofScotland Water, North of Scotland Water and West of Scotland Water. It provideshousehold and business water and waste water services to customers across one-thirdof the land area of BritainThe challengeThe firm had to consolidate three businesses and reduce costs,and wanted a company-wide approach to set critical HR objectivesWhat the company did– Set up comprehensive communication processes and communicatedto the whole organisation effectively and consistently– Set up specific strategy initiatives with veryclear metrics– Set clear, measurable goals, through to 2005/06Benefits and achievements– Significant achievements have already been made, including a£30m cut in costs in thefirst year– Greatly improved productivity– Developed a set of values that will help shape the company’semerging culture– Reduced year-on-year costs by 45 per cent– Increased training while cutting budget by more than 50 percentBruce Warman says: “ScottishWater has set a number of specific strategy initiatives with very clear metricslinked directly to business results. It has pursued them quickly andrelentlessly to get some ‘quick wins’. Costs have been cut dramatically (£30min the first year), and the organisation is on course to achieve its goals.”ClarksThe teamNo. in HR retail team 39Staff responsible for 10,400Jill Youds, Head of retail HREmma Webster, Resourcing adviserMel Park, Employee relations adviserCarole Calisgil, HR assistantBobbie House, Reward analystRetail HR TeamAbout the companyClarks is the number one shoe retailer in the UK and is one ofthe largest makers of casual shoes in the worldThe challengeThe company operates across the UK, and faced severe marketpressures and increased competition. It realised retail employees are key tothe success of the businessWhat the company did– Restructured and repositioned the HR team to work inpartnership with retail operations– Focused on people, customers and profit– Developed an HR strategy to maximise the contributionsemployees could make to the retail strategy– Implemented extra training for the senior HR team to promotestrategic thinking– Improved field trainingBenefits and achievements– Internal customer survey now shows 95 per cent believe theretail HR team makes an effective contribution to the retail business– Productivity of workers completing the Shine sellingprogramme is £17.40 per hour higher than the store average– Increased profit in the retail businessBruce Warman says: “Clear, ‘hard nosed’ HRstrategies and initiatives were developed. Implementation of these strategieswas carried right across the business with an extremely comprehensive set ofbusiness metrics that were communicated to the whole business on aregular basis. There have been significant improvements in productivity andcustomer satisfaction.” Rebus HR Award for Best HR Strategy in Line with BusinessOn 21 Oct 2003 in Personnel Today Related posts:No related photos.
Has “normal business hours” become a thing of the past? These days, I rarely meet anyone who almost immediately following waking up in the morning, wont grab their phone from the bedside to check their email, or who considers their nights to be personal or family time, which not so long ago seemed the norm. What is it about modern day issues and work problems that are more important than those that we were facing years ago that can’t wait until the next day? Or is it a simple case that our ability to prioritize is being depleted due to such ease of systems access which allows many organisations’ staff to turn any computer, laptop, tablet or mobile device into a make-shift work station?I’m as guilty as the next person of the late night emails and struggling to switch off but I’m one of the lucky ones who enjoys what I do enough that it doesn’t feel like a chore. What about those who aren’t as lucky and feel like they don’t have the pressure release of being able to go home and un-wind?Human nature dictates that if we get too used to something, it becomes habitual and we begin to expect it. This being the case, if this isn’t carefully managed, how long will it be before being “switched on” at all times is an expected part of a job as opposed to it being a sign of an engaged and happy employee who will strive to go above and beyond any contractual obligations? Don’t get me wrong, the huge emphasis which these days is placed on interoperability and mobility of internal systems of course is a great thing and phenomenal feat in technology advancement but with it comes the potential for more risk, more pressure and more un-happy staff if it is not managed well. Read full article Comments are closed. Previous Article Next Article HR: Does business hours mean all hours?Shared from missc on 9 Dec 2014 in Personnel Today Related posts:No related photos.
Freshly CEO Michael Wystrach and 28 East 28th Street (Photos via Twitter; Google Maps)Meal-delivery company Freshly will be more than quadrupling its office footprint after relocating to north of Madison Square Park.Freshly has signed a 92,306-square-foot lease at 28 East 28th Street, according to a release from the landlord. It will occupy the 12th and 13th floors of the building, which is owned by George Comfort & Sons, Jamestown Properties and Loeb Partners Real Estate.Read moreAfter Facebook passes, CBS signs huge lease at NoMad buildingNew York Life building gets $410M refi Email Address* The terms of the deal weren’t disclosed, but sources said Freshly’s lease runs for 12.5 years, and tenants of the building pay between $85 to $100 per square foot.Nestlè USA acquired Freshly in October 2020. The meal-delivery company will leave its current office at 115 East 23rd Street, where it occupies about 20,000 square feet, following a full buildout of the new space.The building on 28th Street has recently gone through major renovations, including a new lobby. Whole Foods Market is set to occupy the 60,000-square-foot retail space at the property’s base.Other tenants include New York Life and CBS, which, according to the New York Post, inked a 15-year lease renewal for 164,000 square feet in 2019. At one point, Facebook was also eyeing space in the building, but ultimately signed a massive lease for the office redevelopment of the Farley Post Office.Freshly was represented in the transaction by Colliers International’s Eric Ferriello. The owner partnership represented itself in-house by a team led by George Comfort & Sons President and CEO Peter Duncan.Contact Akiko Matsuda Share via Shortlink Full Name* Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlink Message* TagsCommercial Real EstateManhattan Office MarketOffice Leasing