first_img Comments are closed. Previous Article Next Article GuruOn 30 Oct 2001 in Personnel Today Thisweek’s guruMaternityrules apply in House, but not at homeTheGovernment is making strenuous efforts to get new mothers to retain links withtheir employers and return to work after maternity leave. It’s an issue whichhas been very close to home.Healthminister Yvette Cooper was the first to go on maternity leave earlier thisyear. GordonBrown’s encouragement of this practice will probably be a bit muted over thecoming months.SarahBrown, the Chancellor’s wife, who is expecting a baby in February, is toabandon her high-flying PR career to raise their child.Shebecomes one of the official figures that suggests that despite improvements inmaternity leave and pay, the number of working-age women opting for economicinactivity is increasing. Babytalk can’t win the caseGuru has been inundated with examples of outrageous tribunal applicationssince he called on disciples to tell him their worst experiences.Thefavourite so far is from a female HR manager whose educational organisationunfortunately had to make an employee redundant. Theyfollowed all the correct procedures, but were notified three months later thatthe former member of staff had lodged a tribunal application for unfairdismissal on the grounds of sexual discrimination.Theemployer was baffled until the applicant explained that her last day of servicewas the first day of a new pregnancy – strangely, the application didn’tprogress.Hownot to get ahead in HRDiscipleshave also been helping Guru to while away the hours with their top five ways tofail in HR. Hethinks the following list is sure to have you working as a freelance interim inweeks.1Launch a compulsory, team-building programme based on theatre skills2Constantly criticise a member of the HR team to the point where they breakdown, resign, claim constructive dismissal on discriminatory grounds and win asix-figure compensation payout3Attend all available HR conferences, especially those held abroad or on ships,to the extent that even the MD realises you’re never in4Set up a working group to specify, select and implement a new HRIS.5Commission a professionally designed logo for the HR team, incorporating thewords “best asset management”.Ofcourse, none of Guru’s readers would fall into these traps. Got any more toavoid?Aircrew ready for bake-offFlightcrew working for Kendell Airlines in Australia are making their owncontribution towards maintaining the quality of service to passengers after thecompany’s catering budget was slashed in the wake of 11 September.Pilotsand flight attendants have responded by making their own home-made in-flightrefreshments.Blueberry,chocolate, banana and apple cinnamon muffins are being baked and served oninternal flights between Albury-Wodonga and Sydney.Allsix flight captains, four first officers and five flight attendants havecontributed in some way.Guruis impressed with their loyalty and dedication to service, but hopes that thepilots restrict their baking to times when they are not sidetracked bydistractions such as take-offs and landings. Related posts:No related photos.last_img read more

I want to move on before it’s too late

first_imgI want to move on before it’s too lateOn 29 Jan 2002 in Personnel Today Icame to England from South Africa in March 2000. Although I managed to get anHR job when I arrived, I took a big drop in salary and position. I knew when Icame to England I would have to serve some time getting back to my previouslevel. Although I have now got to grips with UK labour legislation, I find I amnot even getting interviews for the jobs I apply for. Although I have a lot ofhigh-level qualifications, I don’t have a CIPD qualification. Is this theproblem? What would you advise?PeterWilford, consultant, ChiumentoWhilethe lack of a CIPD qualification is probably not held against you, it wouldcertainly be something UK companies would recognise. So in that sense it mightmake your job search and the recruitment process easier. Youshould talk to the CIPD and consider which avenues are available to you toobtain the CIPD qualification and which methods of study are appropriate. Youmight be able to study part-time which would allow you to work at the sametime, for example.Makesure your CV properly reflects what you have achieved in your previous HRroles. In your case you should perhaps not go for a conventional chronologicalCV, but start with a summary of key experiences and skills instead. Thisapproach will allow you to focus more specifically on your achievements ratherthan qualifications. Employers are interested in what you have delivered andwhether you could do it for them.Doobtain feedback on why you weren’t selected for interview – there’s no harm inasking and it could provide useful information. You should contact thoseorganisations you have applied to and ask them for feedback to help you in yourcareer development. Youshould also contact specialist HR recruitment consultancies to obtain feedbackand ideas on your CV, as well as how marketable you are in the UK HR sector.They will also be able to give you their opinion on whether not being CIPDqualified is an issue.LouiseWhite, consultant, EJ Human ResourcesBuildand use contacts rather than agencies which might struggle to place you in thisdepressed market. If someone knows you and can back up your application, itwill greatly improve your chances. Have you considered targeting organisationswith a presence in South Africa? If part of your experience is of immediatebenefit, then an employer may be willing to give you time and training todevelop in other areas. Notall employers will recognise the relevance of your domestic qualifications, soI suggest you contact the CIPD. It may not require as much work as you think tohave your experience and qualifications accredited.CliveSussams, recruitment consultant, Malpas Flexible LearningIam very sympathetic to your problem of achieving recognition for your HR skillsand qualifications gained in South Africa. Thisis a very common frustration of many professionals who come to live in theUK.  You can now appreciate I am sure,how competitive the HR recruitment market is in this country and how tight theperson specifications are with many employers. Itis certainly desirable for you to become a member of the CIPD, as this willgive potential employers confidence in your UK HR knowledge as well as highacademic background. Previous Article Next Article Comments are closed. Related posts:No related photos.last_img read more

Pressure to perform

first_imgRelated posts:No related photos. Comments are closed. Previous Article Next Article Pressure to performOn 1 Apr 2002 in Personnel Today Stress can be a difficult topic to deal with effectively despite the recentguidance from the Court of Appeal. Jonathan Maude outlines the right proceduresfor achieving a fair resolution for all concernedNon-disclosurePeter applies for a position as manager at Logg & Co, a freightlogistics company. Logg & Co anticipates winning a contract that is likelyto increase the work coming into its depot by 50 per cent and has decided torecruit someone to perform the managerial function at a local level. Peter’sapplication form and CV show he has a fair amount of experience. The answers hegives on the medical questionnaire do not disclose any significant medicalcondition. In fact, he has suffered from stress-related illness in the past.Following interview it is decided to offer him the position as it appears hewill need minimal guidance in undertaking the role. Is it wise to offer him thejob without further medical investigation or discussion? Jonathan Maude comments : Logg & Co has considered Peter’sapplication on the basis of his experience and his interview. In addition,Peter has completed a medical questionnaire that does not highlight anypre-existing issues that should concern HR. On 5 February 2002 the Court of Appeal, in the decision of Hatton vSutherland and others, considered four cases on appeal from four separatecounty courts. Each concerned awards of damages against employers after thelitigants concerned had stopped working due to stress-induced psychiatricillness. In essence, for the employer to be liable for negligence, the employeeneeds to show that the employer has breached a duty of care that it owes toemployees by allowing a practice to continue when it was reasonably foreseeableit would cause injury. The employer is obliged to provide a safe system ofwork; this amounts to an obligation to provide reasonable support to theemployee to perform his or her duties in a way that will avoid causingpsychological injury. This recent decision follows a number of cases in which employers have beenheld liable for psychiatric injury since the landmark case of Walker vNorthumberland County Council [1995] 1 All ER 737. The Court of Appeal used theHatton decision to give useful “practical propositions” that areintended to enable courts to consider claims in the future. One such “practicalproposition” is that an employer is entitled to take the informationbefore it at face value and is not required to investigate any medical issuesfurther unless it is put on notice that there is an issue that warrants furtherinvestigation. Logg & Co is therefore entitled to rely on the informationgiven by Peter. If Peter had disclosed he had suffered from stress-related illness, it wouldhave been necessary for HR to consider obtaining further details about thecircumstances that caused it. It would also have needed to ascertain whetherthere were steps it should take to reduce the possibility that Peter wouldsuffer a recurrence. This would also go some way to discharging any duty tomake reasonable adjustments that Logg & Co may owe to Peter under theDisability Discrimination Act 1995. AbsenteeismPeter has been in his job for six months. He has not complained to Logg& Co about any work-related stress, but there has been a noticeableincrease in his intermittent sickness absences during the past two months.Peter has now informed Logg & Co that he will be absent for two weekshaving been certified as suffering from stress-related depression by hisdoctor. What action should HR take? JM comments: HR will need to meet with Peter to discuss the absenceand the reasons for it. It would also be advantageous to obtain independentmedical evidence as to his condition and to consider steps the company mighttake when he returns to his position to alleviate factors that may beattributing to the condition. The important point to bear in mind is that Logg & Co will only beliable for breaching the duty to provide a safe system of work if the companycan be shown to have caused or materially contributed to any harm suffered byPeter. The Court of Appeal in Hatton suggested that if Logg & Co can show ithas taken steps to avoid breaching its duty it is unlikely to be found to havebreached it. If HR obtains independent medical advice about Peter’s problems and offerscounselling or other assistance, the company is unlikely to be found to beacting in breach of its duty. It must ensure that its contractual documentationprovides Logg & Co with the right to request independent medical advice ona specific employee. Clearly, if Peter refused to co-operate with any suchexamination it would not assist him in any subsequent claim brought againstLogg & Co. Other issues HR may need to discuss with Peter include the redistribution ofduties or demotion. Logg & Co will not be in breach of its duty if Peterwants to stay in the job rather than face demotion even if he subsequentlysuffers from illness through the pressures of the job. This is one of the majorissues to have come out of the Hatton decision: both employer and employee bearthe risk, so the employee needs to decide whether to risk any psychologicalbreakdown by staying in the job or consider dismissal or demotion. If Logg & Co took the view that a redistribution of duties or demotionwas not appropriate, it might be in a position to consider dismissal as thecourt would consider the size and scope of Logg & Co’s operation, togetherwith the demands faced by the company, to decide what is reasonable. Again, this is an interesting point to come out of the Hatton decision, asthe court considered practical issues that may benefit smaller employers.Previously, the courts have not been particularly sympathetic to arguments thatcost or lack of resources prohibited making certain adjustments. Reduced roleThe medical examination and discussions with Peter reveal that in hisprevious job he suffered from occupational stress and that he eventually lefthis former employer as a result of it. Logg & Co decides that as the volumeof work from the new contract is not as great as it originally anticipated,some of the managerial responsibilities will be run centrally and Peter willreturn to a non-managerial position. What are the issues HR now needs to consider? JM comments: It is for Logg & Co and Peter to agree his return toa non-managerial position. HR needs to be aware that it cannot simply imposechanges unless it has the contractual right to do so. As a result, it would besensible to ensure all discussions about Peter’s return are noted and anychange in status is agreed, in writing, with Peter. This will amount to a variation to Peter’s contract of employment and Logg& Co will not simply be able to allege, in defending a constructivedismissal claim for example, that it was acting in Peter’s best interests andin a way so as not to breach the duty of care it owed him. Logg & Co is now aware of the previous condition and that Peter did notdisclose it. Despite the fact it may be in a position to take action as aresult of this non-disclosure, it is aware of the condition and, accordingly,will need to ensure regular discussions take place with Peter to monitor hisprogress. If it becomes apparent that Peter is unable to undertake even the reducedrole then Logg & Co will need to consider alternatives with him and thismay include terminating his employment. If it does take the step of terminating the contract of employment, subjectto obligations that it may owe in connection with unfair dismissal rights andpossibly claims under the Disability Discrimination Act 1995, it is unlikely tobe found to be in breach of the duty of care. If Peter was successful in any claim against Logg & Co, the Court ofAppeal has indicated that any damages would take account of the pre-existingdisorder or vulnerability and of the possibility that Peter would havesuccumbed to a stress-related order in any event. In addition, Logg & Co would only pay for the proportion of harmsuffered as a direct result of its wrongdoing. In this event, the level ofcompensation should be reduced fairly dramatically. Jonathan Maude is a partner in Manches Employment PracticeKey points– The employer is obliged to providea safe system of work; this amounts to an obligation to provide reasonablesupport to the employee to perform his or her duties in a way that will avoidpsychological injury.– If an employee wishes to stay in a stressful job, bothemployer and employee bear the risk, so the employee needs to decide whether torisk any psychological breakdown by staying in the job or consider dismissal ordemotion.– If a person is unable to undertake even a reduced role andthe company takes the step of terminating the contract of employment, subjectto obligations that it may owe in connection with unfair dismissal rights andpossibly claims under the Disability Discrimination Act 1995, it is unlikely tobe found to be in breach of its duty of care.– In the event of a claim for constructive dismissal, damageswould take account of the pre-existing disorder or vulnerability and of thepossibility a person would have succumbed to a stress-related order in anyevent.last_img read more

Management is key as pay gap keeps growing

first_imgEarly warning signs show the pay gap between low and high earners is toincrease, making people management, rather than pay, key to recruiting andretaining workers of the future. Trends in the financial sector are widely believed to be an indicator ofchanges across the economy. Last week, salary and bonus packages paid tospecialist UK-based bankers were higher than their US counterparts for thefirst time in 20 years. According to Napier Scott’s annual Salary and Bonus Awards Survey, the bigpay-offs mean there is an increasing gap between remuneration for high-fliers,known as ‘Rainmakers’, and lesser performers. Economists fear that other sectors will follow suit, leaving a growingdisparity between the top and the bottom. John Philpott, chief economist at the Chartered Institute of Personnel andDevelopment, said: “People management will become more important as peopletake a more sophisticated approach to reward, including work-life balance andworking conditions,” Management is key as pay gap keeps growingOn 6 Apr 2004 in Personnel Today Comments are closed. Previous Article Next Article Related posts:No related photos.last_img read more

Fill in our survey and fill up your wine cellar

first_imgFill in our survey and fill up your wine cellarOn 9 Sep 2004 in Personnel Today Previous Article Next Article Fillin our recruitment survey and you could win a case of champagne or a secondprize of three bottles of wine.TheRecruitment Confidence Index (RCI) is a quarterly survey which tracks predictedtrends in recruitment confidence and associated employment areas, and thefindings, which have recently been featured on BBC News, are highly soughtafter by the recruitment community and the business world.Asan HR and recruitment professional, we need your views to help us predict thefuture for recruitment by telling us what’s happening in your own business.Simply visit and answer the brief questionnaire. Thisshould take no more than 15 minutes.Yourreplies will be treated as completely confidential and the published data willbe aggregated and reported without the names of persons or organisations.Inexchange for your support, you will be entered the prize draw. All respondentswill also receive a complimentary copy of the RCI report, which is available tonon-participants at a cost of £50. TheRCI  is produced by the Cranfield School of Management and the Daily Telegraph inassociation with Personnel Today, and a detailed report on the RCI findings isavailable in Personnel Today’s essential guide to the recruitment climate,Recruitment Trends & Forecasts, which is available on subscription(enquiries: 020 8652 8803). For further information on the RCI contact Emma Parry on 01234754808 ([email protected] GO TO Comments are closed. Related posts:No related photos.last_img read more

Why occupational health has a pivotal role in tackling mental ill health

first_imgWhy occupational health has a pivotal role in tackling mental ill healthOn 5 Oct 2018 in Stress, Mental health conditions, Return to work and rehabilitation, Occupational Health, Wellbeing and health promotion, Personnel Today No comments yet. Leave a Reply Click here to cancel reply.Comment Name (required) Email (will not be published) (required) Website Talking about my generations – why mental health support needs to be for all agesWith workplaces becoming increasingly multi-generational, it is important employers recognise that managing mental ill health requires strategies and interventions tailored… Brett Hill explains why he believes occupational health managers have a pivotal role to play in improving mental health, and the practical steps that employers can take.Managing health and safety in the workplace used to be all about trip hazards and fire marshals, but there is growing awareness that health, and mental health in particular, needs more focus. I’m encouraged to see more forward-thinking managers who are responsible for occupational health taking a closer look at this critical aspect of their role, but more still needs to be done to tackle this issue.Why is mental health a more pressing issue now?The cost of mental ill-health is significant by any measure. The mental health charity Mind has estimated that a quarter of us will experience a mental health issue each year, and the Government estimates that the UK economy is negatively affected by £33bn to £42bn annually.About the authorBrett Hill is managing director of The Health Insurance GroupAt its worst, mental ill-health can be life threatening. Again according to Mind, although the rates of mental health issues haven’t changed significantly in recent years, our ability to cope is diminishing. Suicide remains the biggest killer of men under 45 and rates of suicide among women are also rising, and are now at the highest rate in a decade. We have many clients in the construction industry; it’s staggering to consider that employees in this sector are more likely to die from suicide than falls.Although high-profile awareness campaigns are working towards removing the stigma, mental ill-health, and particularly suicide, is still a taboo. In last year’s Government-commissioned Stevenson/Farmer Thriving at Work review of mental health, eight out of 10 employers reported no cases of employees disclosing mental health conditions. This is backed up by Mind’s research, which found that 30% of employees wouldn’t feel able to talk openly with a line manager if they were feeling stressed. It’s a depressing picture, but one that I believe managers can help to turn around.Why it is critical for managers to engage with mental healthI believe employers have an obligation, both morally and as a part of their duty of care, to tackle this issue. The culture of silence must be addressed, and employees need to be offered mental health support as standard.The good news is there are lots of measures employers can put in place to support good mental health, and I believe employers with a responsibility for health and wellbeing have a pivotal role to play in ensuring that staff get the support they need.The Government review did acknowledge that green shoots of good practice are emerging in UK workplaces, and we are certainly seeing some managers doing more to improve mental health in their workplaces.From what I see in the industry, employers need to be more aware of the mental health support that is available in the market and to encourage employees to make more use of it.What support is available?There is a range of effective solutions available which offer support for a broad array of issues that can influence mental health, including stress management, encouraging fitness, and debt counselling. It is worth getting up-to-date advice on what is available on the market, as products are constantly evolving. Talking to specialist advisers on a regular basis will help to ensure you have the best services for your needs.Many employee assistance programmes (EAPs) will provide mental health support through 24/7 helplines, and many offer enhanced support through the provision of face-to-face counselling. Some EAPs even offer specific modules for managers that offer tailored advice for the challenges faced in a managerial role. Some will also offer whistleblowing support. Group risk protection benefits and private medical insurance can also include mental health support.What, then, managers should be doing? I suggest five things.1) Understand the current situationIn the first instance, managers that have a responsibility for the wellbeing of their staff should seek to understand their current culture around mental health so they can work out what support they need to put in place.This may include identifying potential high-risk areas, roles or locations, or particular issues their staff struggle with. Some of our clients have used targeted employee surveys really effectively to do this. It’s a solid starting point which can help to identify what the next steps should be.2) Talk to specialistsOnce you know the current situation in your organisation, it’s worth seeking advice on the best way to meet the needs of the organisation. There are so many products on the market and some have services that overlap, so it is worth getting advice to ensure you’re not paying twice for support and to decide what will be most effective for your specific workplace.3) Look at existing policiesIt is also important to review the mental health support already available in existing employee benefits packages. It may be that the support you need is already available but isn’t being used effectively.Employees might not be aware of the mental health support that they can access, or they may be worried about the potential consequences of using it. In order to promote its use and overcome some of the stigma it’s a good idea for managers to signpost employees to the most relevant type of support. For example, if an employee’s mental health is being affected by money worries, a manager can direct them to debt counselling.4) Train, train, trainProviding specific mental health training is another option I have seen used to great effect. By training managers and team leaders, companies equip their front-line staff to recognise potential issues and know what to do when an employee has a mental health issue.Just getting managers talking about mental health more openly can also help to break down the culture of silence. The proactive approach training can create makes early intervention more likely, which helps stop issues from escalating. Good training helps managers feel confident to deal with any issues when they arise.5) Communicate and promote.Finally, consider your communication and promotion of wellbeing in the workplace. One of the most effective practices I see is to run a calendar of activities throughout the year to continuously engage staff, encourage healthy behaviours and remind employees that help is available and how to access it.If reluctance to access the support is an issue, it is worth reminding employees that many services can be accessed confidentially.Managers play an important role in the provision of better mental health support, I hope these ideas will serve as an encouragement to anyone who is trying to improve mental wellbeing in their workplace.References at Work, The Stevenson/Farmer review of mental health and employers, October 2017, Previous Article Next Articlecenter_img Related posts: Together alone: staying well as OH practitioners in challenging timesDr Nerina Ramlakhan explains how occupational health professionals can balance supporting the health needs of employers and employees while, at… Managing Covid-19 ‘clusters’ set to be a key challenge for occupational healthA recent SOM/Royal College of Nursing webinar offered occupational health practitioners valuable advice on how to manage Covid-19 outbreaks as…last_img read more

Shaquille O’Neal’s Orlando megamansion in contract

first_imgThe megamansion has been on the market since Septmeber. (Getty, Atlas Team/Compass) UPDATED, Feb. 2 2021, 10:50 a.m.: Basketball legend Shaquille O’Neal may be parting ways with his Shaq-sized estate in Orlando, Florida.The NBA Hall-of-Famer’s 35,000-square-foot mansion is in contract, according to the New York Post. It was last listed for $16.5 million. He paid just $4 million for the property in 1993, his rookie year with the Orlando Magic.The home has been on the market since September, when it was listed for nearly $20 million, but that wasn’t his first time trying to sell. Shaq first listed the property in 2018 for $28 million; by that year’s end he’d dropped the price to $21.9 million.The estate is every bit as over-the-top as one might imagine from the charismatic big man. Not long after buying it, O’Neal expanded the mansion from 23,000 square feet to its current size. It now has 12 bedrooms, 11.5 bathrooms, and a 6,000-square-foot indoor basketball court.The main bedroom suite alone totals 1,000 square feet, and has an oversized circular bed prominently featuring the Superman logo that he’s identified with for years. The logo appears elsewhere in the house as well.Other amenities include a wine storage room, three fireplaces, a 95-foot-long swimming pool and an outdoor kitchen. The home comes with 700 feet of lake frontage and a dock with two slips. The garage is more of a showroom and has room for 17 vehicles. The property is listed with Tiffany Pantozzi, a Side partner agent.O’Neal also recently sold a small (by comparison) home in Bell Canyon, California, for $1.85 million, a few hundred thousand dollars more than what he paid for it in 2018.[NYP] — Dennis LynchCORRECTION: An earlier version of this story stated that Shaquille O’Neal’s Orlando home had already sold. It is in contract, and has not yet sold.  Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlink Share via Shortlinkcenter_img TagsCelebrity Real EstateFloridalast_img read more

Gap settles Midtown rent dispute with Axel Stawski

first_imgThe lawsuit between Gap and Alex Stawski was settled on February 2. (Google Maps, Getty) Following a battle over unpaid rent at its Midtown Manhattan location, Gap has reached a settlement with the landlord.The apparel brand had withheld $530,334 in charges — including water and snow removal fees — incurred by its 1212 Sixth Avenue store, according to a complaint filed in the Southern District of New York by the landlord, an LLC registered to under-the-radar real estate mogul Axel Stawski of Manhattan-based Stawski Partners.Read morePayment Gap: Landlord sues retail giant for withholding rent at Midtown locationLandlords increasingly turn to lawsuits against nonpaying retailersInside the hardball legal tactics retail landlords are using against tenants In its response to the lawsuit, Gap used the “frustration of purpose” defense, saying the pandemic had made the lease untenable and forced it to lay off employees at the location.As a result, Gap argued that it should receive a refund and that the lease be terminated or modified.Instead, the case was settled Feb. 2, according to newly available court records. Terms were not released.Neither attorneys for Gap nor the landlord responded to requests for comment.Stawski was described by a 2016 Bloomberg News story as a billionaire developer who owns six Manhattan buildings, including the 30-story 565 Fifth Avenue. Stawski, a 70-year-old son of Holocaust survivors, is known for boutique, aesthetics-oriented commercial and residential buildings, according to the story.Gap has also been involved in lawsuits with some of its other landlords, including Simon Property Group and Brookfield Property Partners.The pandemic has triggered thousands of rent disputes between retailers and their landlords. Stores, many of which have been shut down for periods of time, typically argue that their leases are void.However, few cases have been decided, leaving landlords and retailers to determine what to do in the meantime.Contact Sasha Jones Tags Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlink Email Address* Share via Shortlink Message* Full Name* gapReal Estate LawsuitsRetaillast_img read more

WeWork lost $3B in 2020: report

first_img Co-workingCoronavirusIPOWeWork Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlink Tags The pitch to investors — called “Project Windmill,” according to the report — comes ahead of WeWork’s possible IPO later this year. The company reportedly wants to go public via a special-purpose acquisition company, and is in talks with BowX Acquisition Corp, a blank-check firm led by Tibco founder Vivek Ranadivé that raised $420 million in August.WeWork failed spectacularly in its last attempt to raise money on the public market, after its IPO filings revealed huge losses and millions of dollars in personal loans issued to its executives. In its latest pitch the company is touting itself as a technology platform, according to the Financial Times.But the pitch to investors is quite ambitious: The company projects that occupancy will hit 90 percent by the end of 2022, and revenue will hit $7 billion by 2024, per the report.[Financial Times] — Keith Larsencenter_img WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)Investors betting on WeWork’s second act just got a wake-up call.The co-working company lost $3.2 billion last year as the Covid-19 health crisis slashed the demand for flexible office spaces, the Financial Times reported, citing documents shown to possible investors.The pandemic caused WeWork’s occupancy rates to fall 47 percent in 2020, down from 72 percent at the beginning of the year, according to the documents reviewed by the publication. Its losses shrunk from $3.5 billion in 2019 as the firm reduced capital expenditure from $2.2 billion in 2019 to $49 million in 2020.Read moreWework in talks to public via spacHuluunveilstrailerforneweworkdocumentaryWeWork dumps several Manhattan locations Share via Shortlinklast_img read more

Home values are up, but just try getting a line of credit

first_img Email Address* Message* Tags Lenders are being stingy about granting home equity lines of credit. (iStock)Remember the financial crisis? Banks do.Lenders are being stingy about granting home equity lines of credit even as home values have soared, the Wall Street Journal reported.Blame the pandemic and memories of the late 2000s, when millions of homes went into foreclosure.Citibank stopped accepting new applications for home equity lines of credit, or helocs, on March 3, because of “market conditions,” according to the Journal.J.P. Morgan Chase and Wells Fargo halted helocs a year ago as the U.S. economy shut down for Covid. Wells Fargo cited “market risks and prudent balance-sheet management.”ADVERTISEMENTBank of America did continue extending home equity lines of credit, although it tightened standards briefly during the pandemic.Unlike cash-out refinancing, which amends an original mortgage loan, helocs constitute a second mortgage, payable only after the first mortgage is satisfied — if enough equity is left over. Lines of credit are also different from home equity loans, in which a single chunk of cash is borrowed against a home’s value.Home values have skyrocketed in the past year, but the scars of the financial crisis and Great Recession run deep among lenders and homeowners.“Homeowner psychology has changed a bit,” said Mike Fratantoni, chief economist of the Mortgage Bankers Association. “Customers seem a little more hesitant about tapping their home equity.”Contact Orion Jones Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlinkcenter_img Full Name* Share via Shortlink Bank of AmericaHome EquityHome PricesJP Morgan ChaseMortgageswells fargolast_img read more