Business Harmonisation Task and Finish Group · PDF fileBusiness Harmonisation Task and Finish Group . Meeting Agenda . ... Oonagh Neenan (video – NISRA) NISRA Mark Herniman (Secretariat)

Business Harmonisation Task and Finish Group Meeting Agenda

Friday 7th April 2017 at 11:00 to 1230 hrs

Meeting Room 3, at ONS, 1 Drummond Gate, London, SW1V 2QQ

Timing Agenda Item Paper No Presenter 1 1100 –

1110 hrs Welcome and Introductions Charlie Wroth-Smith,

ONS 2 1110 –

1120 hrs Review of Previous Minutes and Actions

BHTFG (17:1) 04 Charlie Wroth-Smith, ONS

3 1120 – 1130 hrs

Update on Progress of Total Turnover, Number of Employees

Presentation BHTFG (17:2) 05a BHTFG (17:2) 05b

Ian Sidney, ONS

4 1130-1145

Approve ‘Number of Hours worked’ variables

Presentation BHTFG (17:2) 06

BHTFG (17:2) 06 – Annex A

Ian Sidney, ONS and BHTFG

5 1145 – 1200 hrs

Presentation and discussion on next 12 months work plan

Presentation BHTFG (17:2) 07

Ian Sidney, ONS and BHTFG

6 1200 – 1215 hrs

Update on ONS Data Collection Transformation Programme

Presentation Alison Pritchard, ONS

7 1215-12.25 hrs

Dissemination of Harmonised Definitions

Verbal Update Charlie Wroth-Smith, ONS

8 12.25 – 12.30 hrs

AOB / Next Meeting Charlie Wroth-Smith, ONS

BHTFG (17:1) 04

Minutes of the Business Harmonisation Task & Finish Group (BHTFG) Meeting 3rd February 2017 1100 to 1300 hrs

ONS, 1 Drummond Gate, London, SW1V 2QQ Attendees: Apologies: Gareth James - Chair (video – ONS Newport) Adam Douglas (video – ONS Titchfield) ONS Becki Aquilina ONS Alison Pritchard (video – ONS Newport) ONS Debra Leaker ONS Andreas Mastrosavvas (video – ONS Newport) ONS Marina Curran Scot Gov Arlene Connolly (video – NISRA) NISRA Mark Williams ONS Caroline Anderson (video – NISRA) NISRA Richard Batterham HMRC Charlie Wroth-Smith ONS Richard Vale GDS Craiger Solomons (audio – Welsh Gov) Welsh Gov Roger Smith ONS Daniel Harrison (audio – Scot Gov) Scot Gov Stephen Jobling NHS Ian Sidney (video – ONS Newport) ONS Steve Dempsey BEIS Judith Baker (video – NISRA) NISRA Kate Thorsteinsson (audio - home) ONS Lynda Kennedy (video – NISRA) NISRA Paul Downey GDS Robin Griffith (video – NISRA) NISRA Selina Matthews (audio – DEFRA) DEFRA Sian Wilson (video – ONS Newport) ONS Sophie John (video – ONS Newport) ONS Oonagh Neenan (video – NISRA) NISRA Mark Herniman (Secretariat) ONS 1.0 Welcome and Introduction – Gareth James

The Chair welcomed members to the second meeting of the Business Harmonisation Task and Finish Group (BHTFG).

2.0 Review of Previous Minutes and Actions – Gareth James

The minutes from the last BHTFG were discussed: • there were no comments arising from the minutes from the 5th December 2016 meeting and

these were accepted as a true reflection of that meeting • regarding action 2, the additional sentence covering discussion of sensitive matters has

now been added to the BHTFG Terms of Reference • regarding action 3, it was suggested we explore using ‘Google Docs’ to share links to

respective department’s business surveys ACTION 1 – Ian Sidney to consider using ‘Google Docs’ to share links to respective department’s business surveys 3.0 BHTFG (16:1) 01 A-C, Agree the Need and Approve Turnover Definitions – Ian Sidney

The papers were presented and the following points discussed for each one: BHTFG (17:1) 01A – Agree the need to Harmonise Total Turnover 1

BHTFG (17:1) 04

• the need to harmonise total turnover was agreed • it was thought this covered what we can collect from businesses but there may be

an opportunity to influence other data definitions • as well as ensuring that the scope covers GSS survey collection, administrative

data could be included •

BHTFG (17:1) 01B – Agree the Harmonised Definition for Total Turnover

• it was discussed whether each nuanced definition of turnover should or would be a new variable in its own right

• although it was agreed there is a need to harmonise the definition for turnover it was felt some more work on this is required before it can be agreed

• members were asked to provide any observations, comments and suggestions to the Harmonisation Team

ACTION 2 – BHTFG members to provide observations, comments or suggestions on the proposed harmonised definition for turnover to [email protected] no later than 27 Feb 17 ACTION 3 – Harmonisation Team to make a summary of all observations, comments and suggestions received and report back to the group ACTION 4 – Harmonisation Team to organise a meeting to discuss the proposed harmonised definition with ONS, NISRA and the Scottish Government (at least) BHTFG (17:1) 01C – Agree the need to Harmonise for Retail Turnover

• NI collect total turnover (excluding VAT) from businesses in the retail sector’, whereas ONS collects ‘retail turnover (including VAT)’ from businesses in the retail sector

• NI do not disaggregate turnover but are looking to produce an index • it was recognised there were differences in what was collected by different

government departments • There may also be some differences between Annual Business Survey (ABS) and

Retail Sales Index (RSI) definitions • the need for having harmonised definitions for retail turnover was agreed

4.0 BHTFG (16:1) 02 A-C, Agree the Need and Approve Employment Definitions – Ian Sidney

The papers were presented and the following points discussed for each one:

BHTFG (17:1) 02A – Agree the Need to Harmonise ‘Number of Employees’ and ‘Hours worked and Full Time Equivalent’

• Social Survey Division (SSD) within ONS are working on self-employment and it is worth liaising with them to co-ordinate activities

ACTION 5 – Ian Sidney to liaise with SSD to co-ordinate harmonisation work on ‘self-employment’

• It was thought that more work is required to consider the implications of harmonising these definitions, particularly where external regulations exist that need to be complied with

• there was recognition the definitions may need to change in the future to take account of legal and other requirements

• the need for harmonised employment definitions was agreed 2

mailto:[email protected]

BHTFG (17:1) 04

BHTFG (17:1) 02B – Agree the Harmonised Definition ‘Number of Employees and Number of Self-employed Persons’

• it was thought there was more work to do on the definition of ‘part-time hours’ • a harmonised version of the definition should be drawn up by consensus • some government departments are talking about ‘informal’ employment and self-

employment and this should be considered • some surveys ask for an average over a certain period while others ask for numbers

on a specific date • using PAYE (HMRC) real-time information data could make the point-in-time

definition of employment difficult to implement • it was thought because of issues like ‘Claimant Count’ and the need to identify

numbers at a particular point in time, it is likely a definition will still be required • members were asked to discuss the proposed definition with departmental

colleagues and feedback any comments ACTION 6 – BHTFG members to provide any comments on a harmonised definition of number of employees/self-employed persons, to [email protected] no later than 27 Feb 17 BHTFG (17:1) 02C – ‘Employment Variables – Hours Worked and Full Time Equivalents’

• members were asked to discuss the proposed variables with departmental colleagues and feedback any comments

ACTION 7 – BHTFG members to provide any comments on the proposed harmonised definition of ‘hours worked and full-time equivalent’, to [email protected] no later than 20 March 17

• a couple of key departments were not able to be at the meeting and it is important their views are considered

ACTION 8 – Harmonisation Team to contact departments not represented at the meeting to ensure their views on the proposed harmonised definition for ‘hours worked and full-time equivalent’ are considered 5.0 BHTFG (17:1) 03 and Presentation, Future Definitions/Variables – Ian Sidney

Following the presentation and the paper, the additional points were discussed: • the definitions of agency workers, zero hours contracts and contractors, and umbrella

companies are difficult concepts and need to be discussed further • it was agreed that there was a need to harmonised variables across a range of business

topic areas 6.0 Round Table Discussion – OGDs Definitions and Variables of Interest

A discussion took place around which definitions and variables were of interest to other government departments. The main elements were:

• it is important this group has a good understanding of the variables across the GSS that need to be harmonised

• it may be worth looking first at the differences at a higher level across the different countries in the UK, to get the work started

ACTION 9 – BHTFG members are to report back to [email protected] no later than 27 Feb 17, on any variables/definitions that are known to differ across the countries so these can be looked at 3




BHTFG (17:1) 04

• the definition of a ‘business’ needs to be considered • it was recognised the term ‘business’ is contextual and could cover any type of business • in ONS the term ‘business’ is used in a generic way, and includes sole traders,

partnerships, private and public limited companies, multi-nationals, charities and other such organisations from all sectors of the economy.

• it is important to decide what the definition is going to capture, going forward as all department’s definitions have different needs

ACTION 10 – Harmonisation Team to produce a complete list with priorities of variables/definitions identified at Action 9 7.0 Discussion – Dissemination of Harmonised Definitions – Charlie Wroth-Smith

A discussion took place around how the ratified harmonised definitions and principles are disseminated so the work is not wasted. The main elements were:

• all harmonisation of social survey questions has been going on for about 20 years and the ratified harmonised principles are published on the GSS website and a depository of survey data called the Variable and Question Bank (VQB)

• the business definitions/variables will be published on the GSS website as a minimum but there may be other forums out there, to encourage their initial use

• the BHTFG reports to the GSS Statistical Standards and Policy Committee (GSS SPSC) and the members of this group who are mainly Statistical Heads of Profession (HoPs) would be encouraged to promote the ratified definitions and variables

• going direct to the HoPs could also be used, to disseminate to their respective departments (as they are already involved in the harmonisation process)

• the GSS induction course and the Statistical Foundation Course should also be considered • it is important to remember dissemination should not just be limited to the GSS

ACTION 11 – Charlie to draft a dissemination plan for harmonised business definitions and principles once ratified, ready for one of the next meetings 8.0 Any Other Business

• No matters were raised under AOB 9.0 Next Meetings The date of the next meeting is:

• Friday 7th April 2017, 1030 to 1230 hrs at ONS Drummond Gate, Meeting Room 3 Annexes:

A. List of Actions B. Presentation Slides – Future Definitions/Variables for Harmonisation

4

BHTFG (17:1) 04

ANNEX A

ACTIONS FROM THE BHTFG MEETING – 3rd February 2017

Action

No Para Action Responsible Status

1 2 Ian Sidney to consider using ‘Google Docs’ to share links to respective department’s business surveys

Ian Sidney Complete

2 3 BHTFG members to provide observations, comments or suggestions on the proposed harmonised definition for turnover to [email protected] no later than 27 Feb 17

BHTFG Members

Complete

3 3 Harmonisation Team to make a summary of all observations, comments and suggestions received and report back to the group

Harmonisation Team

Complete

4 3 Harmonisation Team to organise a meeting to discuss the proposed harmonised definition with ONS, NISRA and the Scottish Government (at least)

Harmonisation Team

Complete

5 4 Ian Sidney to liaise with SSD to co-ordinate harmonisation work on ‘self-employment’

Ian Sidney

On-going

6 4 BHTFG members to provide any comments on a harmonised definition of number of employees/self-employed persons, to [email protected] no later than 27 Feb 17

BHTFG Members

Complete

7 4 BHTFG members to provide any comments on the proposed harmonised definition of ‘hours worked and full-time equivalent’, to [email protected] no later than 20 March 17

BHTFG Members

On-going

8 4 Harmonisation Team to contact departments not represented at the meeting to ensure their views on the proposed harmonised definition for ‘hours worked and full-time equivalent’ are considered

Harmonisation Team

Complete

9 6 BHTFG members are to report back to [email protected] no later than 27 Feb 17, on any variables/definitions that are known to differ across the countries so these can be looked at

BHTFG Members

Complete

10 6 Harmonisation Team to produce a complete list with priorities of variables/definitions identified at Action 9

Harmonisation Team

Complete

11 7 Charlie Wroth-Smith to draft a dissemination plan for harmonised business definitions and principles once ratified, ready for one of the next meetings

Charlie Wroth-Smith

On-going

5





BHTFG (17:2) 05a

Business Harmonisation Task and Finish Group Harmonised Concepts and Questions for Business Data Turnover Variables – Total Turnover – For Short Term indicators

This document is part of the set of Harmonised Principles for Business Data Sources. The harmonised versions of these variables are designed to meet best practice across the GSS, and adhere to national and international regulations in the collection and reporting of National and Official statistics

This document details the Total Turnover variable for use on short term surveys ( Monthly and Quarterly);

1. Total Turnover (excluding VAT) The approaches detailed in this document aim to:

• harmonise statistical inputs, processes and outputs across the Government Statistical Service • facilitate clearer and more robust comparison between data sources • improve data quality and maintain or ideally reduce respondent burden

Note: Definition of variables

The definition and guidance to the respondent has primarily been derived from two European Commission Standards (Commission Regulation No 1503/2006 and Directorate G: Global Business Statistics FRIBS TF/27 February 2014/Doc.02) and current practice within Office for National Statistics and Northern Ireland Statistics and Research Agency.

1. Total Turnover (for Short Term Indicators)

Definition of Turnover

Turnover comprises the totals invoiced during the reference period, and this corresponds to market sales of goods or services supplied to third parties. Turnover also includes all other charges (transport, packaging etc.) passed on to the customer, even if these charges are listed separately in the invoice.

Further explanations to the definition

Turnover excludes VAT and other similar deductable taxes directly linked to turnover as well as all duties and taxes on the goods or services invoiced by the unit.

1 Version v1.0 April 2017

BHTFG (17:2) 05a

Reduction in prices, rebates and discounts as well as the value of returned packing must be deducted. Price reductions, rebates and bonuses conceded later to clients, for example at the end of the year, are not taken into account.

Income classified as other operating income, financial income and extraordinary income in company accounts is excluded from turnover.

Question: Total Turnover (excluding VAT)

For the reporting period (DD/MM/YYYY – DD/MM/YYYY or Month / Year), what was this business's total turnover excluding VAT?

Guidance to respondent

Guidance should be given to the respondent to enable them to supply the required data. Wherever practicable the guidance should be placed as close to the question as possible.

Include Exclude • total sales of goods and services • VAT • sale of goods purchased for resale • Excise duty • costs incurred and passed on to

customers • gains on sales of fixed capital assets

• payments for work in progress • grants and subsidies • income from subcontract activities • insurance claims • commission and fees • interest received • revenue earned from other parts of the

business, not named at the top of this page (please supply at fair value)

Note: The question wording outlined in the following section is the suggested way to ask these questions. To preserve harmonisation and minimise respondent burden we suggested that all question should have a harmonised form similar to that presented here, which includes the reporting date or period, the variable being collected and a reference to the business for which the data is being collected. It is also expected that variations in question wording and layout may be required based on the mode of collection.

Note: For Non-profit making organisations i.e. Churches / Charities / Schools that may not have a financially defined turnover further guidance or questions may be required to collect the value of grants, donations and legacies. For example NISRA include the following statement on their Index of Services form type directly below the includes and excludes guidance:

‘Non profit making organisation i.e. Churches / Charities may not have a financially defined turnover. Please therefore include the value of grants, donations, legacies, investment income and any other general funding received.’


BHTFG (17:2) 05a

Visual example of the layout of a question asking for Total Turnover

For the reporting period (1 January 2017 to 31 January 2017), what was this business's total turnover excluding VAT?

Include Exclude • total sales of goods and services • VAT • sale of goods purchased for resale • Excise duty • costs incurred and passed on to

customers • gains on sales of fixed capital assets

• payments for work in progress • grants and subsidies • income from subcontract activities • insurance claims • commission and fees • interest received • revenue earned from other parts of the

business, not named at the top of this page (please supply at fair value)

£ ‘000’s

£ and sub

0 0 0 ,


BHTFG (17:2) 05b

Business Harmonisation Task and Group

Employment Variables: ‘Numbers of Employees and Number of Self-employed Persons’

Harmonised Concepts and Questions for Business Data

Employment Variables – Number of employees and Self-employed persons

This document is part of the set of Harmonised Principles for Business Data Sources. The harmonised versions of these variables are designed to meet best practice across the GSS, and adhere to national and international regulations in the collection and reporting of National and Official Statistics

This document details 7 discrete employment variables;

1. Number of Employees 1.1. Disaggregation of Number of Employees 2. Number of self-employed persons 3. Number of employees and self-employed persons (Number of persons employed)

The approaches detailed in this document aim to:

• harmonise statistical inputs, processes and outputs across the Government Statistical Service • facilitate clearer and more robust comparison between data sources • improve data quality and maintain or ideally reduce respondent burden

1. Number of Employees

Definition of Number of Employees

This variable represents the average number of persons who were, at some time during the reference period, employees of the statistical unit.


While the employment relationship, which qualifies the parties (into employee and employer), is defined in specific legislation or a contract, the term “employee” usually means a person hired to provide services on a regular basis, in exchange for benefits and where the services provided are not part of an independent business. An employee is anyone aged 16 years or over that an organisation directly pays from its payroll(s), in return for carrying out a full-time or part -time job or being on a training scheme. For the sake of clarity, apprentices, if hired under such conditions, are


BHTFG (17:2) 05b

considered employees. (Directorate G: Global Business Statistics FRIBS TF/27 February 2014/Doc.02).

The average should be calculated as the arithmetic mean of the number of employees over the shortest time periods of equal length fitting into the reference period, for which regular observations are practicable (e.g. daily, weekly, monthly, quarterly, etc.). For ease of collection and reducing respondent burden it is recommended that businesses are asked to supply this variable for a specific date.

Note: The question wording outlined in the following section is the suggested ways to ask these questions. To preserve harmonisation and minimise respondent burden we suggested that all question should have a harmonised form similar to that presented here, which includes the reporting date, the variable being collected and a reference to the business for which the data is being collected. It is also expected that variations in layout may be required based on the mode of collection. Question(s): Number of Employees On (Specific Date) what was the number of employees for the business?



Include Exclude • all workers paid directly from this

business's payroll(s) • working owners who are not paid via

PAYE. • those temporarily absent but still being

paid, for example on maternity leave • voluntary workers

• former employees only receiving a pension • self-employed workers • agency workers paid directly from the

agency payroll (to avoid confusion remove if the respondent is an employment agency)

• subcontractors

The guidance to the respondent has primarily been derived from two European Commission Standards (Commission Regulation No 1503/2006 and Directorate G: Global Business Statistics FRIBS TF/27 February 2014/Doc.02) and current practice within Office for National Statistics

Note: The term ‘business’ in the question and guidance may be replaced by a more appropriate descriptions depending on the Standard Industrial Classification (SIC 2007), for example if the respondent is a Registered Charity or Government Department, ‘organisation’ maybe a more appropriate term to use than ‘business’.


BHTFG (17:2) 05b

1.1. Disaggregation of Number of Employees Definition of part – time work

There is no formal definition of part-time working although the OECD recommends that for international comparison ‘part-time’ should be defined as; “Part-time employment is defined as people in employment (whether employees or self-employed) who usually work less than 30 hours per week in their main job.”(OECD)

However, there are also a number of other definitions used, for example www.gov.uk/part-time-worker-rights define a part-time worker as; “someone who works fewer hours than a full-time worker. There is no specific number of hours that makes someone full or part-time, but a full-time worker will usually work 35 hours or more a week.”

For the collection of Business Data and for Census 2011, Office for National Statistics use the definition of part-time to be “30 hours of less”. This is the definition that we recommend for business statistics. Question(s): Number of Employees with 30 hours or less / more than 30 hours per week split and male/female splits On (Specific Date) what was the number of employees for the business?

What was the number of:

a. Male employees working more than 30 hours per week? b. Male employees working 30 hours or less per week? c. Female employees working more than 30 hours per week? d. Female employees working 30 hours or less per week? e. Total Employees ? (this should be the sum of (a) to (d) above)

2. Number of self-employed persons

Definition of Number of self-employed persons

The number of self-employed persons is the average number of persons who were at some time during the reference period the sole owners or joint owners of the statistical unit in which they work. Family workers and outworkers whose income is a function of the value of the outputs of the statistical unit are also included.


The average should be calculated as described in the further explanations to the definition of the variable Number of employees.

An outworker is a person who agrees to work for or to supply a certain quantity of goods or services to a particular statistical unit, by prior arrangement or contract with said statistical unit, but whose


http://www.gov.uk/part-time-worker-rights

http://www.gov.uk/part-time-worker-rights

BHTFG (17:2) 05b

place of work is not within any of the establishments which make up that statistical unit. The statistical unit neither controls the time spent at work by an outworker, nor assumes responsibility for the conditions in which that work is carried out. (Directorate G: Global Business Statistics FRIBS TF/27 February 2014/Doc.02).

Question(s): Number of self - employed persons

On (Specific Date) what was the number of self – employed persons for the business?



Include Exclude • partners, directors or working owners in

this business who receive drawings and / or a share of profits, but are not paid via PAYE

• all employees paid directly from this business's payroll(s) including directors and working owners paid via PAYE.

• unpaid family workers • agency workers paid directly from the agency payroll

• sole traders not paid via PAYE • sole proprietors not paid via PAYE • outworkers not paid via PAYE

3. Number of employees and self-employed persons

Definition of Number of employees and self-employed persons

The number of employees and self-employed persons is the sum of the variables “Number of employees” and “Number of self-employed persons”. This is the same as the “Number of persons employed”

Note:

Number of persons employed = Number of employees + Number of self-employed persons

The number of employees is often used as a temporary approximation of the number of persons employed. However the distinction is important and when a business has a sizable proportion of working owners/proprietors or sole traders working in the business the variance between number of persons employed and number of employees can be significant.

This definition is consistent with the Short Term Statistics Definition of Variable: 210 “Number of persons employed” (Commission Regulation (EC) 1503/2006).

This variable can also be collected directly.


BHTFG (17:2) 05b

Question: Number of persons employees and self employed persons

On (Specific Date) what was the number of employees and self – employed persons for the business?



Include Exclude • all employees paid directly from this

business's payroll(s) including directors and working owners paid via PAYE

• agency workers paid directly from the agency payroll

• partners, directors or working owners in this business who receive drawings and / or a share of profits, but are not paid via PAYE

• voluntary workers

• those temporarily absent but still being paid, for example on maternity leave

• unpaid family workers

List of Annexes

A. Visual example/ layout of Number of Employees with 30 hours or less / more than 30 hours per week split and male/female splits


BHTFG (17:2) 05b

ANNEX A

Visual example/ layout of Number of Employees with 30 hours or less / more than 30 hours per week split and male/female splits

On 12 June 2015 what was the number of employees for the business? An employee is anyone aged 16 years or over that an organisation directly pays from its payroll(s), in return for carrying out a full-time or part -time job or being on a training scheme

Include Exclude • all workers paid directly from this

business's payroll(s) • working owners who are not paid via

PAYE. • those temporarily absent but still being

paid, for example on maternity leave • voluntary workers

• former employees only receiving apension

• self-employed workers• agency workers paid directly from the

agency payroll)• subcontractors

What was the number of:

a. Male employees working more than 30 hours per week?........

b. Male employees working 30 hours or less per week?.............

c. Female employees working more than 30 hours per week?....

d. Female employees working 30 hours or less per week?..........

e. Employees ? (this should be the sum of (a) to (d) above)……………


BHTFG (17:2) 06

National Statistics Harmonisation Group

Employment Variables: ‘Hours worked and Full Time Equivalent (FTE)’

Request for NSHG to Approve the Harmonised Definition

Reasons for the Proposed Harmonisation of Topic

There are currently no harmonised principles for Employment variables – ‘Hours worked and FTE’. These employment variables collected, monthly and annually on a variety of collection instruments across a range of UK(SIC 2007).

Employment results give an early indication of what is happening in the economy and contribute to a number of important economic measures. The figures also form the basis of productivity by industry. These variables are a key component in the measure of Work Force Jobs.

Due to the different definitions currently being used across a range of collection instruments, respondents may have difficulty in understanding the specific data they are required to submit. This could lead to users being unable to compare different outputs with each other and a lack of congruence between different data sets and outputs. This could lead to misinterpretation as different outputs give different figures causing confusion and misunderstandings.

Benefits the proposed Harmonisation will Bring

• compliance with UK Statistics and Registration Service Act 2007 and Code of Practice• harmonise statistical inputs, processes and outputs across the Government Statistical

Service• facilitate clearer and more robust comparison between data sources• improve data quality and maintain or ideally reduce respondent burden• reduce questionnaire and survey development costs• aid in the development of the next generation of rationalised and harmonised collection

instruments being developed at ONS within the Data Collection TransformationProgramme (DCTP).

Benefits over Cost

There is minimal cost associated with changes to variable definition and questions as these are currently being undertaken as part of wider programmes to meet the requirements of Framework Regulation Integrating Business Statistics (FRIBS) and the DCTP within ONS.

There is clear benefit in reducing development cost across GSS if a harmonised concept and question exists.

It is anticipated that there may be a reduction in the burden to businesses as the guidance they are given across collection instruments will be consistent.

1

BHTFG (17:2) 06

Consultation conducted with Stakeholders

Consultation has been ongoing with producers and users of Employment Variables: ‘Numbers of Employees’ business data across the GSS.

Desk research was undertaken to determine that this proposal met the requirements of current and proposed legislation.

The proposed harmonised definition for Employment Variables: ‘Numbers of Employees’ was first presented to the BHFTG on the 3rd February 2017

A number of departments were consulted;

OGD / Devolved Administrations Method of Consultation BEIS Cabinet Office DEFRA DFPNI HMRC NISRA Scottish Government Welsh Government

• Through representation on BHTFG, andfeedback to colleagues at their office.

•Correspondence for feedback

ONS •Regular meetings of the HarmonisationWorking Group

•Workshops• Through representation on BHTFG, and

feedback to colleagues of their office.

The definition has been agreed across the GSS and the harmonised definition adheres to proposed legislation changes imparted by FRIBS regulations

Issues to Overcome

The main issues to overcome have been the agreement of various stakeholders in the exact wording of questions and guidance. The exact wording of the question has been addressed by acknowledging that slight variations in wording (and question layout) may be required depending of the mode and context of collection.

Testing Conducted and further Consultation

Work to develop the proposed harmonised principles has already been completed. The outline guidance and question example contained in this document is consistent with current procedure within ONS. Considerable research has been undertaken to determine that this definition meets the existing and proposed (FRIBS and ESA) legislation. A harmonisation working Group within ONS was established to address the harmonisation of these variables and consultation has been undertaken with OGD through BHTFG. It is expected that this will have little or no implications for current inputs or statistical output which use this variable.

The following proposals outlined in Annex A are a result of these consultations.

2

BHTFG (17:2) 06

Next Steps Request to the BHTFG for approval of the proposed Employment -‘Hours worked and FTE’ harmonised variables.

Send to NSH SG for endorsement

Name: Ian Sidney Department: ONS Date: 07/04/2017

List of Annexes:

A. Harmonised Concepts and Questions for Business Data; Employment Variables: ‘Hours worked and Full Time Equivalent (FTE)’

3

ANNEX A TO BHTFG (17:2) 06

Business Harmonisation Task and Finish Group

Harmonised Concepts and Questions for Business Data

Employment Variables – Hours worked and full-time equivalents (FTE)

This document is part of the set of Harmonised Principles for Business Data Sources. The harmonised versions of these variables are designed to meet best practice across the GSS, and adhere to national and international regulations in the collection and reporting of National and Official Statistics

This document details seven employment variables;

1. Total hours worked by employees2. Total hours worked by self-employed persons3. Total hours worked by employees and self-employed persons4. Number of employees and self-employed persons full-time equivalents units

The approaches detailed in this document aim to:

• harmonise statistical inputs, processes and outputs across the Government Statistical Service• facilitate clearer and more robust comparison between data sources• improve data quality and maintain or ideally reduce respondent burden

Note: The question wording outlined in the following section is the suggested ways to ask these questions. To preserve harmonisation and minimise respondent burden we suggested that all question should have a harmonised form similar to that presented here, which includes the reporting date or period, the variable being collected and a reference to the business for which the data is being collected. It is also expected that variations in question wording and layout may be required based on the mode of collection.

1. Total hours worked by employees

Definition of Total hours worked by employees

Total hours worked by employees represents the number of hours actually worked by employees, for the output of the statistical unit during the reference period. Total hours worked may be approximated by hours worked by employees, at least in industry (Appendix C, Commission Regulation (EC) 1503/2006).

Time spent on adjacent work, indirectly contributing to the output (e.g. planning, preparation, administrative and alike), as well as time spent without actual work, but deemed and remunerated as such by the statistical unit (e.g. short breaks, short disruptions due to slack in production, trainings and alike) is included.



Remunerated time spent without actual work and not deemed as such by the statistical unit (e.g. annual leave, sick leave, maternity leave, official holidays, longer breaks, meal breaks, strikes, commuting and alike) is excluded. Further explanations to the definition

The term “employees” has the same meaning as in the definition of the variable “Number of employees”. See Harmonised Concepts and Questions for Business Data: Employment Variables – number of employees and self-employed persons.

Question(s): Total hours worked by employees

During the reporting period (DD/MM/YYYY – DD/MM/YYYY specific dates / specific period Month / Year) what was the number of hours worked by employees for the business?



Include Exclude • the total amount of all hours actually

worked: o during regular working hours, o overtime, whether paid or

unpaid o during nights, Sundays or public

holidays,

• hours paid but not worked due to annual leave, sickness, maternity leave, official holidays, longer breaks, strikes, lock outs etc.

• the time spent on tasks such as work preparation, preparing, maintaining and cleaning tools and machines and writing up work cards and reports,

• time spent for meal breaks,

• time spent at the place of work during which no work is done owing to, for example, machine stoppages, accidents or occasional lack of work but for which payment is made in accordance with the employment contract,

• commuting between home and work.

• short rest periods at the place of work, including tea and coffee breaks

If the exact number of hours actually worked is not known, it may be estimated on the basis of the normal number of working hours and the average rate of absences (sickness, maternity, etc.).

Further guidance may be given on the definition of “employee” if this question is asked in isolation from the “Number of employees” variable. The appropriate guidance can be taken from the variable “Number of employees”. See Harmonised Concepts and Questions for Business Data: Employment Variables – number of employees and self-employed persons.



2. Total hours worked by self-employed persons Definition of Total hours worked by self-employed persons Total hours worked by self-employed persons represents the number of hours actually worked by self-employed persons, for the output of the statistical unit during the reference period. Further explanations to the definition

The term “number of hours actually worked” has the same meaning as in the definition of the variable “Total hours worked by employees”.

The term “self-employed person” has the same meaning as in the definition of the variable “Number of self-employed persons”.

Question(s): Total hours worked by self – employed persons

During the reporting period (DD/MM/YYYY – DD/MM/YYYY specific dates / specific period Month / Year) what was the number of hours worked by self – employed persons for the business?



The guidance given to the respondent to report this variable “Total hours worked by self – employed persons” variable should be consistent with that supplied for the variable “Total hours worked by employees”.

However, further guidance may be given on the definition of “self - employed” if this question is asked in isolation from the “number of self - employed” variable. The appropriate guidance can be taken from the variable “Number of self-employed persons”. See Harmonised Concepts and Questions for Business Data: Employment Variables – number of employees and self-employed persons. LINK 3. Total hours worked by employees and self-employed persons (Output only)

Total hours worked by employees and self-employed persons

Definition

The “Total hours worked by employees and self-employed persons” is the sum of the variables “Total hours worked by employees” and “Total hours worked by self-employed persons”. Further explanations to the definition

The variable “Total hours worked by employees and self-employed persons” corresponds to the concept “Total hours worked” in National Accounts (Regulation No 549/2013 of the European Parliament and of the Council on the European system of national and regional accounts in the EU (ESA 2010) paragraph 11.27).



4. Number of employees and self-employed persons full-time equivalents units

Definition

A “full-time equivalent unit”, sometimes abbreviated as FTE, is a unit to measure employed persons in a way that makes them comparable although they may work a different number of hours per week.

The unit is obtained by comparing an employee's average number of hours worked to the average number of hours of a full-time worker. A full-time person is therefore counted as one FTE, while a part-time worker gets a score in proportion to the hours he or she works. For example, a part-time worker employed for 20 hours a week where full-time work consists of 40 hours, is counted as 0.5 FTE.

Question(s): Number of employees and self-employed persons full-time equivalents units

During the reporting period (DD/MM/YYYY – DD/MM/YYYY specific dates / specific period Month / Year) what was the number of full-time equivalents for the business?



Please convert part-time employees’ hours into those worked by full-time employees. For example, if a part-time employee works 10 hours per week and the full-time working week in your organisation is 37 hours, the part-time employee would equate to 0.27 full-time equivalents (10 divided by 37). Include Exclude

• full-time employees, counted as 1 full-time equivalent

• paid and unpaid overtime from full-time equivalent calculations.

Note: The term ‘business’ in the question and guidance may be replaced by a more appropriate descriptions depending on the Standard Industrial Classification (SIC 2007), for example if the respondent is a Registered Charity or Government Department, ‘organisation’ maybe a more appropriate term to use than ‘business’


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National Statistics Harmonisation Group - BHTFG

Work plan to address the harmonisation of business variables

Introduction This document presents an outline of the work to be completed during the first 18-24 months of the Business Harmonisation Task and Finish Group (BHTFG). The BHTFG had its inaugural meeting on the 3rd December 2016 and was set up to address that there are currently no harmonised principles for Business Variables. The purpose of this group is to lead the development of common definitions, inputs and outputs for business statistics across the Government Statistical Service (GSS) and Devolved Administrations. Within this, where appropriate, to provide options which recognise the requirements of different modes of collection, different data needs and the differing requirements across the four UK nations. BHTFG will aim to raise the profile and impetus of Harmonisation across the GSS to improve comparability of National Statistics and to comply with the Statistical and Registration Services Act 2007 and the UK Statistics Authority Code of Practice In relation to the development of GSS Harmonised Business Principles and communication of GSS

harmonisation work, the BHTFG will:

Identify, plan, develop and maintain new/revised harmonised business principles in accordance with the harmonisation process model

ensure an evidence based and collaborate approach to harmonised business principles, based on a high level of engagement between producers, users and other key stakeholders of statistics

ensure harmonised business principles and guidelines take account of differing needs across the four UK nations with an overall aim of producing coherent and harmonised statistics across the administrations

promote and monitor the use of harmonised business principles via the GSS website and National Statistics (NS) Harmonisation web-pages, the UK Data Service Variable and Question Bank, StatsUserNet and cross-government meetings, committees and conferences

champion harmonisation widely within members' Departments across the GSS and Devolved Administrations, ensuring information is disseminated to business areas

Expected Benefits the proposed Harmonisation will bring

compliance with UK Statistics and Registration Service Act 2007 and Code of Practice

harmonise statistical inputs, processes and outputs across the Government Statistical

Service

facilitate clearer and more robust comparison between data sources

improve data quality and maintain or ideally reduce respondent burden

reduce questionnaire and survey development costs

aid in the development of the next generation of rationalised and harmonised collection

instruments being developed at Office for National Statistics (ONS) within the Data Collection

Transformation Programme (DCTP)

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meet the required legislation requirements of Framework Regulation Integrating Business

Statistics (FRIBS) and ESA10

Review of Business Variables

To determine a priority list for the harmonisation of business variables various research activities were carried out along with a number of consultations with users and other stakeholders. These included;

extensive consultation within ONS and within key programmes across the office; including DCTP

reviewing the requirements of FRIBS and through consultation with key stakeholders addressing the key variables that required harmonisation to meet this new legislation

establishing the use of key variables across Government and key users

consultation across the GSS and devolved administrations Early research identified ‘number of employees’ and ‘turnover’ as variables (topic groups) that were cross cutting across a large number of collection instruments used at ONS Figure 1. Number of existing surveys containing topics by businesses sampled per annum

R&D

Employment

Turnover

Stocks

Hours/Pay

Income

Business Structure

Prices /Costs

0

100

200

300

400

500

600

700

0 5 10 15 20 25

Number of Business Contacts 000's

No. of Surveys

BHTFG (17:2) 07

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Consultation with stakeholders identified 20 individual variables that may be impacted by implementing FRIBS The outcome of this review was to propose a number of business topic areas that if harmonised would deliver a number of the benefits previously outlined.

1. Total Turnover 2. Disaggregation of total turnover 3. Reporting Period 4. Number of Employees 5. Hrs Worked 6. Gross investment in tangible and non-tangible assets – acquisitions and disposals 7. Personnel costs / Employee costs 8. Changes in stocks of goods and services 9. Total purchases of goods and services

These were presented to the BHTFG and the ONS DCTP to meet the requirements of the FRIBS working group. It is proposed that these business topic areas will be reviewed regularly to determine if they are still priority areas or have others become more relevant across GSS. The following project plan and timescales are based on this initial research and reflection and lessons learnt from the initial progress we have made to date.

Methodology Underpinning the high level methodology for this work is the formation of the BHTFG within the GSS Governance structure and the revised harmonisation process model. Further detail on both of these can be found at https://gss.civilservice.gov.uk/statistics/methodology-2/harmonisation/introduction-to-harmonisation/ At a working level a number of processes have been identified as crucial to the successful development of this programme of work.

1. Initial Research (similar to the discovery phase in an agile programme) As the business topics have already been identified further discovery work will be undertaken to understand the range of variables in each topic group.

Consultation o Across GSS / OGD o Devolved Administrations o Users o BHTFG

Desk Research o Identifying collection instruments using variables in this topic area o Source legislative (and other) definitions of these variables o Determine where administrative data may collect these variables

Outcomes

Full list of variables within the topic area

https://gss.civilservice.gov.uk/statistics/methodology-2/harmonisation/introduction-to-harmonisation/

https://gss.civilservice.gov.uk/statistics/methodology-2/harmonisation/introduction-to-harmonisation/

BHTFG (17:2) 07

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Understand where variables are collected and used across GSS and Devolved Administration and other key users.

Identify ‘expert’ individual or departments

Understand user requirements

Output specification

2. Mapping and Analysis

Map o Bring together all information on the use of the variable to identifying

question wording / guidance o Identify which SIC’s are sampled o Consider other admin sources

Analysis o Identify and understand where differences occur between collection

instruments and any legislative requirements o Understand reasons behind differences

Dissemination / Consultation o Disseminate initial analysis/findings with BHTFG and other ‘experts’

Outcomes

All variables in the Topic group fully mapped

Differences between current collection instruments ( including admin) identified and understood

Draft proposed harmonised versions / papers for BHTFG

3. Consultation / Workshops

o Consult with ‘expert’ individual and groups o Consult with BHTFG

Outcomes

Revised drafts of harmonised definitions and guidance

Final version of harmonised definitions and guidance to present to BHTFG for agreement

Papers for NSH SG for ratification

Subsequent stages including dissemination and reviews would be carried out in line with the harmonisation process model Timescale and Resources A generic project plan for a variable topic group is illustrated in Figure 2. The timescale for each sprint are illustrative only and it is expected that these would be compressed or expanded dependent on the complexity of the group of variables. However the anticipated stages in the process would remain similar.

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It is anticipated that a number of variables can be worked on in parallel with an aim of completing the majority of the variables within the lifetime of the BHTFG. The proposed timeline for the work in this document is presented below in Figure 3. Figure 3. Proposed Timeline for the Harmonisation of Business Variables

Ian Sidney Office for National Statistics April 2017

Documents

Business Harmonisation Task and Finish Group · PDF fileBusiness Harmonisation Task and Finish Group . Meeting Agenda . ... Oonagh Neenan (video – NISRA) NISRA Mark Herniman (Secretariat)