Reward Strategy: Trends and Calendar 2024

An increased emphasis on employee mental health and wellbeing in 2023 meant flexible working, assistive work technology and employee engagement became priorities for employers last year. As new UK legislation affecting payroll and HR processes rolls out in 2024, it appears this new year will witness more cemented integration of these objectives in the workplace. Here are some themes and updates to look out for in 2024:

Pay Fairness and Transparency 

New tax rules from January 2024 ensure anyone with an additional salary from selling items online will meet their tax obligations, with platforms like Etsy, Depop and Vinted now required to record and report the income of their sellers directly to HMRC.

Throughout 2024, equity and transparency will also be a concern for larger companies in the UK, with new legislation urging the allocation of resources to address gender pay gaps through analyses, parental leave, flexible working, and unbiased recruitment. 2024 may also see the beginning of the end of ’competitive salary’ secrecy, thanks to a new pay transparency directive, as per EU law.

From April 1 2024, The National Living Wage will apply to those aged 21, a positive move for younger employees, but one that might also prove challenging for employers during an extended period of high interest rates in the UK. A law ensuring a fair distribution of tips will also come into force in May 2024.

Family and Flexibility

From April 6, 2024, UK employees will gain the right to request flexible working requests from day one of employment, with the limit increasing to two requests annually. April 6 will also introduce of carers leave as well as extended protection from redundancy for 18 months post-childbirth. 

Pensions

In April 2024 the UK state pension will increase by 8.5%, as outlined in the autumn statement with the lifetime allowance set to be abolished from April 6, 2024. While equivalent limits will continue, impacting tax-free cash for registered pension scheme members, tax exemptions remain for deaths before age 75. However, ’lifetime allowance excess’ funds transferred to a qualifying overseas pension scheme will now face taxation.

DEI and AI

2024 could mark a more profound shift in UK workplace wellbeing. From September 2024 there will be a statutory right for casual workers, including agency workers, to request a more predictable working pattern. In the following month in October 2024, a new law will ensure employers must take proactive steps to prevent sexual harassment, applying to all genders.

Supporting these legislations will be the further advancement and adoption of technology and artificial intelligence (AI). AI-driven engagement and wellness platforms, alongside holistic approaches, and cultural shifts within organisations look set to enhance the ability of companies to address physical, mental, emotional, and social well-being and ensure a strong workforce.

The influence of AI is likely to gain traction in 2024 with McKinsey reporting a surge in C-suite executives and boards considering AI for work. Businesses are also moving away from generic, potentially inaccurate data and adopting AI for custom purposes, using datasets to ensure quality. Additionally, in 2024, high-resolution alternative reality, led by Apple’s Vision Pro, will go mainstream, transforming the culture of work and creating an urgency to embrace technology and flexibility to stay competitive, with a new emphasis on ‘when’ one works over ‘where’.

Industry Events 

Supporting these developments and helping individuals stay connected in the industry, Reward Strategy’s Payroll and Reward Conference and Leadership Awards will be held in June 2024, and the Incentive Awards in September 2024. Examining and recognising the industry’s main outcomes and achievements this year, The Reward and Payroll Summit and the Rewards awards will take place in November 2024.

THE REWARD STRATEGY CALENDAR 2024

January 1, 2024

Digital selling platforms are required to collect information about users, to be reported directly to HMRC.

UK Energy Price Cap rise, up 5% from 2023.

January 6, 2024

A reduction in employees’ National Insurance contributions (Class 1) from 12% to 10%.

February 1, 2024

Bank of England base rate decision.

March 3, 2024 

UK Rail fare rise by 4.9%.

March 6, 2024

UK Spring Budget announcement.

April 1, 2024

Working parents of two-year-olds will get 15 hours of free childcare a week.

Legislation permitting rolled-up holiday pay for workers with irregular hours or seasonal work set to be introduced.

Holiday pay will now be calculated at the hourly rate of 12.07% for irregular and part-year workers with a maximum cap of 28 days annually.

April 6, 2024  

Employees gain the right to request flexible working under the Flexible Working Bill from day one of employment, with the limit increasing to two requests annually.

The introduction of Carers Leave Act 2023 allows carers to gain a day-one right to at least a week of unpaid leave annually to provide or arrange care for a dependant.

The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 will allow for the extension of existing redundancy protections while on maternity, adoption or shared parental leave to also cover pregnancy and a period of time after a new parent has returned to work.

May 2024

The Employment (Allocation of Tips) Act 2023 mandates fair and transparent distribution of tips, requiring employers to have a written policy with a 12-month limitation period for related claims.

June 2024

Payroll and Reward Conference 2024

The Leadership Awards 2024

September 2024 

A statutory right for casual workers, including agency workers, to request a more predictable working pattern will be introduced. The qualifying period for this right will be 26 weeks’ service, but workers will not need to have worked continuously.

From September 2024, working parents of children aged nine months to two years will get 15 hours of free childcare a week.

September 2-6, 2024

National Payroll Week

September 16, 2024

September inflation announcement.

September 2024

The Incentive Awards 2024

October 2024

The Worker Protection (Amendment of Equality Act 2010) Act 2023, which will come into force in October 2024, introduces a new positive duty on employers to take reasonable steps to prevent sexual harassment of their employees in the course of their employment.

November 2024

Autumn Statement 2024

The Reward and Payroll Summit 2024

The Rewards 2024