The Great Risk Transfer: employment and financial wellbeing
New research investigating the Great Risk Transfer and the changed relationship between employers and employees. What are the implications for financial wellbeing?
20th August 2024
This research examines the impact of the Great Risk Transfer on individuals and society through the changing relationship between employer and employees.
What are the implications on productivity and aspirations for economic growth?
The report shows that a third of employers only provide the bare minimum when it comes to sick pay and pensions.
It also highlights how staff in hospitality, retail and social care are the most financially vulnerable and that over a quarter of Scots lose sleep over money worries.
The research finds:
more than two-thirds of employers (70 per cent) are concerned over the impact of financial strain on their employees and their productivity, citing increased stress on managers and other staff (35 per cent) and a rise in absenteeism due to poor health (28 per cent)
But
a third of employers (33 per cent) in Scotland do not offer any enhanced benefits as part of their employee benefits package
more than half (56 per cent) do not currently include financial wellbeing in strategies to support employees.
The Great Risk Transfer report recommends the need to:
Recognise employers’ power to drive change. Employers should recognise the connection between financial wellbeing and productivity and how their actions might alleviate employee’s pressures
Increase understanding of Living Pensions: Government and employers should work together to increase understanding of the need for Living Pensions and that employees on auto-enrolment minimums are not currently likely to be saving enough to live well in retirement
Complete the Pension Provision Review. The review of pensions provision signalled by the Labour Party before the 2024 election should go ahead and include a specific focus on potential improvements and innovations in workplace pensions.
This is the second piece of research the David Hume Institute has produced in partnership with the Institute and Faculty of Actuaries about the Great Risk Transfer.
David Hume Institute commissioned the Diffley Partnership, to investigate employer attitudes to the Great Risk Transfer as part of this research. The survey was conducted in May and June 2024 and is based on responses from 550 businesses. The full survey results were published as an appendix to the main report.
Read more:
Press release - Bare minimum from many employers driving poor productivity.
Watch the event launch recording here.
Understanding Scotland Economy Tracker - May 2023
The most recent data from the David Hume Institute and Diffley Partnership’s regular economy tracker reveals a mixed picture of public opinion on the economy: 62% of Scots think general economic conditions will be worse in a years’ time and 45% think their personal financial situation will be worse in a years’ time.
The most recent data from the David Hume Institute and Diffley Partnership’s regular economy tracker reveals a mixed picture of public opinion on the economy.
The economic outlook from Scots remains bleak with 62% thinking that general economic conditions will be worse in a years’ time (although this is down very slightly from 66% in February) and 45% think their personal financial situation will be worse in a years’ time (down from 48% in February).
However, while we have seen a reduction in the number of people thinking that things will be worse, optimism is not rising. Many Scots think that the economic outlook will remain the same over the next 12 months suggesting that they think that the costs and challenges they face are here to stay.
Is this a sign of people adjusting to a new normal?
In order to meet increased costs, many Scots are running down their savings, turning to credit and stopping paying into pensions:
4 in 10 Scots (42%) report having taken money out of their savings to
cover higher costs1 in 4 have used a credit card to make for purchases that they wouldn’t
usually1 in % have used ‘buy now pay later’ schemes to cover everyday
spendingA small but increasing number of Scots have stopped contributing to a
pension (7%)
Turning to high-cost borrowing options for everyday essentials can cause the accumulation of substantial debt which will affect people’s lives for many years to come.
The Understanding Scotland: economy tracker is produced in partnership between the David Hume Institute and the Diffley Partnership. The survey gathers economic attitudes and insights from more than 2,000 members of the Scottish adult population every 3 months to track changes over time.
Read more:
Press release - The cost of living is driving difficult choices.
Blog by Shona McCarthy - Budgeting to save a global asset.
Watch the event recording here.
Is trust an undervalued ingredient for a thriving economy?
When governments talk of increasing productivity and economic growth, are they focusing sufficiently on the challenges posed by an unhappy workforce or the hours lost in contract disputes? This new discussion paper argues that, although improving levels of trust can take time, it is time well spent as it saves resources in the long term.
Discussion paper by Charlie Woods
Published May 2023
Labour market disputes, concerns about public contracts and declining trust in government and institutions have risen up the news agenda in recent times. All of these things impact on our economy but the importance of trust in building thriving economies, as an issue in its own right, feels under-explored.
When governments talk of increasing productivity and economic growth, are they focusing sufficiently on the challenges posed by an unhappy workforce or the hours lost in contract disputes? This paper argues that, although improving levels of trust can take time, it is time well spent as it saves resources in the long term.
This paper aims to stimulate discussion about the role that trust and more collaborative relationships can play in strengthening the economy. It is written from the perspective of experience in working to stimulate economic development, help resolve commercial conflicts, facilitate dialogue and develop more effective relationships.
This paper builds on previous David Hume Institute work on the labour market including the 2020 briefing paper on the Danish model of Flexicurity.
About the Author
Charlie Woods has wide-ranging experience of industry, commerce, and public and private sector organisations, ranging from SMEs to government. He was previously Director of Strategy and Chief Economist at Scottish Enterprise and is now executive director of the Scottish Universities Insight Institute and Vice-Chair of the Economic Development Association Scotland (EDAS).
Charlie is an Associate of Core Solutions and has extensive mediation and facilitation experience in a wide range of fields including planning, family business, management, PPP contracts, transport infrastructure, government policy and professional services.
Scotland's land information system: what is it and why does it matter
A new commissioned paper in partnership with Built Environment Forum Scotland, written by Andy Wightman, discusses Scotland’s land information system and why it is a key piece of critical infrastructure.
A new report, written by land reform expert Andy Wightman, commissioned jointly by the David Hume Institute and Built Environment Forum Scotland, says the lack of a fully functioning land and building information system is holding Scotland back.
The paper discusses Scotland’s land information service - what it is and why it matters - and what still needs to be done to fulfil a 2015 Scottish Government commitment in 2015 to deliver a comprehensive Scottish Land Information Service (SCOTLIS).
Information about land and buildings is used everyday by businesses, policy-makers, academics and ordinary citizens. This information ranges from land ownership to valuation, from energy efficiency ratings to building types and from vegetation cover to flood risks.
All of this information exists in some form, however much of it is not easily available and virtually none of it is made available in an integrated form. As the impacts of climate change intensify, there is even greater need for more timely, more comprehensive and more accessible information about land and buildings in Scotland.
This briefing originated from conversations as part of our largest piece of research to date, the Action Project and also connects to our work with Open Data Scotland on the potential of open data and our briefing on levelling up access to high speed broadband.
Read the press release.
About the author:
Andy Wightman is a writer and researcher focussing on land governance, land ownership and community land rights. He is the author of publications including Who Owns Scotland (1996), Scotland: Land and Power (1999), Community Land Rights: A Citizen’s Guide (2009) and The Poor Had No Lawyers (2010). He runs the Who Owns Scotland project. From 2016 to 2021, Andy was a Member of the Scottish Parliament. Andy was a Specialist Adviser to the House of Commons Scottish Affairs Committee Inquiry on Land Reform 2013-15 and was a member of the Commission on Local Tax Reform in 2015.
Briefing paper: The Future Generations Act in Wales and beyond
In 2015 the Welsh Assembly Government passed the Well-being of Future Generations Act and appointed Sophie Howe as the first Future Generations Commissioner for Wales in 2016.
A cross party campaign has now been launched, led by Lord Bird, proposing a UK version of the Bill.
In 2015 the Welsh Assembly Government passed the Well-being of Future Generations Act and appointed Sophie Howe as the first Future Generations Commissioner for Wales in 2016.
The Commissioner is ‘the guardian of the interests of future generations in Wales’. Her remit is outlined in the 2015 Act and embedded in Welsh law. It aims to improve the social, economic, environmental and cultural well-being of the people of Wales and ensure that the decisions of today will benefit the future generations of Wales.
A cross party campaign has now been launched, led by Lord Bird, proposing a UK version of the Bill.
Image credit: sharing thumbnail image of hands by Cristofer Maximilian free licence from Unsplash 3.12.24
Briefing paper: Understanding the Danish Flexicurity Model
Who will do the jobs? examined the labour market in Scotland and mentioned the recommendation from the Sustainable Growth Commission, that Scotland could learn from the approach Denmark has taken to its labour market. This briefing examines the Danish labour market and their model of Flexicurity in more detail.
In September 2019, the Institute published a report “Who will do the jobs?” which examined the labour market in Scotland. This report mentioned the recommendation from the Sustainable Growth Commission, that Scotland could learn from the approach Denmark has taken to its labour market. This briefing examines the Danish labour market and their model of Flexicurity in more detail.
Introduction
Denmark combines high levels of social protection, low levels of unemployment and strong coordination between highly representative trade union and employer confederations.
However, Denmark’s economic development has been very different from Scotland’s not least in the management of the labour market. Denmark’s modern labour market is the result of numerous policy interventions since the 1960s. Significant institutional changes would likely be required for Scotland to attempt to replicate the Danish model, regardless of the constitutional position.
The David Hume Institute would like to thank the following people for their contribution to the production of this briefing:
Stephen Boyle
Martin McCluskey
Mark Mitchell
Image credit: sharing thumbnail image of the Danish flag by Markus Winkler free from Unsplash 3.12.24
Scotland’s Currency Options
HOP 101. Jeremy Peat
What are the options for Scotland with regard to currency in the event of a “yes” vote in the September 2014 referendum?
HOP 101. Scotland’s Currency Options
Jeremy Peat
A paper setting out the options for Scotland with regard to currency in the event of a “yes” vote in the September 2014 referendum.
Energy Policy and Consumers in Scotland
Research Paper No. 10 Trisha McAuley, Andrew Faulk
ESRC Conversation 3 – ”The Scottish Energy Sector: in the Context of Possible Constitutional Change in Scotland”.
Research Paper 10. Energy Policy and Consumers in Scotland
Trisha McAuley, Andrew Faulk
ESRC Conversation 3 – ”The Scottish Energy Sector: in the Context of Possible Constitutional Change in Scotland”
On 7 May 2013 the DHI held a seminar for the third of the four ‘conversations’ on topics related to constitutional change in Scotland. This third topic relates to the energy sector and we have commissioned a number of papers.
Professor Mark Schaffer and colleagues at Heriot Watt cover the rapidly evolving and complex external/global energy environment and its implications for Scotland; Professors John Paterson and Greg Gordon from Aberdeen considers the oil-related issues; and Professor Kim Swales and colleagues from Strathclyde University examine the electricity issue. We also have a paper by Trisha McAuley (Director, Consumer Focus) on consumer related issues and an over-arching paper prepared by SCDI.
Independence and the Market for Electricity in Scotland
Research Paper 8/2013 Independence and the Market for Electricity in Scotland
Grant Allan, Peter McGregor, Kim Swales
2013
ESRC Conversation 3– “The Scottish Energy Sector: in the Context of Possible Constitutional Change in Scotland”. On 7 May 2013 the DHI held a seminar for the third of the four ‘conversations’ on topics related to constitutional change in Scotland. This third topic relates to the energy sector and we have commissioned a number of papers. Professor Mark Schaffer and colleagues at Heriot Watt cover the rapidly evolving and complex external/global energy environment and its implications for Scotland; Professors John Paterson and Greg Gordon from Aberdeen considers the oil-related issues; and Professor Kim Swales and colleagues from Strathclyde University examine the electricity issue. We also have a paper by Trisha McAuley (Director, Consumer Focus) on consumer related issues and an over-arching paper prepared by SCDI.
Social Protection in Scotland
Social Protection in Scotland
David Bell
2013
ESRC Conversation 2 – “Delivering Social Security: Options in Scotland’s Constitutional Debate” On 18 February 2013 the DHI held a seminar for the second of the four ‘conversations’ on topics related to constitutional change in Scotland. This second topic relates to how we guarantee welfare through social security and other measures and is one of the most disputed issues in Scottish and UK politics. Papers have been prepared by Professor David Bell, University of Stirling, Professor Bea Cantillon, University of Antwerp, Professor Derek Birrell, University of Ulster, Dr. Nicola McEwen, University of Edinburgh, Professor Ailsa McKay, Glasgow Caledonian University and Jeremy Purvis of the Devo-Plus Group.