Paydata highlights four key challenges facing Housing Associations

The future impact of National Living Wage increases

23 per cent of participants are concerned about the future effect of the National Living Wage (NLW) increases. Confidence in future increases drops, with specific concerns about the NLW eroding lower end salary scales. With the NLW set to reach £9 per hour by 2020, we asked what participants had done to minimise the cost implications. Some had focused on consolidating allowances to accommodate the increase in base pay, alongside paying other employees smaller pay increases. Other responses included reducing the workforce and increasing productivity.

In line with 2018 responses, 87 per cent are not anticipating an immediate issue with the 2019 rise, with a number already paying the Living Wage.

Increasing market consolidation

A significant degree of consolidation in the sector is expected. 14 per cent of respondents anticipate going through a merger or acquisition in the coming years. One third of respondents had experienced a merger or acquisition and identified the key challenge of consolidating and harmonising employee terms and conditions. Other issues quoted were around the management of a multi-tiered workforce and the impact of different employment cultures merging.

Promoting diversity and inclusion

Figures suggest that the gender pay gap figures have remained steady, with many delegates correctly feeling that the sector figures would be lower than the national average of 11 per cent. Half of respondents indicated that they have already started looking at the ethnicity pay gap. Diversity and inclusion initiatives already adopted by participants include women’s network group, LGBT groups, supporting gender balance in recruitment and progression and encouraging female ambition.

Recruitment and retention challenges

Recruitment is a greater challenge than retention. Whilst delegates at the event echoed this feeling, it was also backed up by our report. Two thirds of respondents have experienced difficulties recruiting people, with half having had to offer new recruits salaries which conflict with those paid to existing employees. Nearly a third of respondents have experienced retention difficulties over the last 12 months, with a similar number anticipating retention problems over the next 12 months.