Getting Started with Performance Appraisals

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Here are some things to think about, before you carry out your annual staff appraisals, to make them less daunting and more effective. We’ll go into more details on these tips and what to actually in the appraisal meeting, at our forthcoming workshop on 11 September 2013.

Prepare. A good appraisal form will provide a natural order for proceedings, so use one. If you don’t have a standard appraisal form then find one online – there are plenty of templates available. Organize your paperwork to reflect the order of the appraisal and write down the sequence of items to be covered. If the appraisal form includes a self assessment section and/or feedback section, make sure you give this to each member of staff in plenty of time, allowing them to complete it before the meeting.

Part of your preparation should also consider ‘whole-person’ development, beyond and outside the job skill-set. Many people are not particularly interested in job skills training, but will be interested and motivated by other learning and development experiences. Get to know what your people are good at outside of their work. Appraisals are not just about job performance and job skills training. Appraisals should focus on helping the ‘whole person’ to grow and attain fulfilment.

Inform. Let your staff know when and where their appraisal will be held. Give them the chance to assemble any data and relevant performance and achievement records they need.

Venue. Plan a suitable venue that’s private and free from interruptions. Privacy is absolutely essential.

Layout.  Room layout and seating are important elements as they have huge influence on atmosphere and mood. Irrespective of content, the atmosphere and mood must be relaxed and informal. Remove barriers – don’t sit across the desk from your staff member; use a meeting table or easy chairs and sit at an angle to each other.

Introduction. Relax your member of staff by opening with a positive statement. Smile, be warm and friendly to create a calm and non-threatening atmosphere. Set the scene by explaining what will happen and encourage a discussion and as much input as possible from them

When you spend some time thinking about how you’ll carry out your annual appraisals, they’ll be much more effective for both you and your members of staff.

For more information, come to our workshop on 11 September 2013 for just  £12 +VAT. Click here for the details and online booking.

Human Resources for Small Businesses

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What are the basics that you need to know about, when you’re running a small business and taking on staff? Here are a few of the issues you need to consider.

Employment contracts – The contract of employment is the most important HR document you’ll have in your business. You’re legally obliged to provide every employee with a written statement of their terms and conditions of employment within two months of starting.

National Minimum Wage – Almost all workers in the UK aged 16 or over are legally entitled to be paid a minimum amount per hour. The rate is reviewed every year and the next increase takes place in October 2013. Click here for the full details.

Holiday entitlement – All employees are entitled to a minimum amount of time off per year. For full time employees this is capped at 28 days. You can find all the calculations you need to work out your employee’s holiday entitlement by clicking here. Some companies like to give their staff an extra day off on their birthday, if it falls on a working day.

Equality Act – In 2010, existing discrimination legislation was brought together into one Equality Act. All employers must comply with this not doing so can lead to unlimited fines at tribunal. Click here to read the guidelines.

Maternity law – This provides protection for pregnant and adopting women and those on maternity leave. You need to find out how these rules can help employers plan ahead and manage leave and pay, and how to claim back pay.

Pensions – Due to changes, from July 2012 you will need to provide eligible employees with a qualifying pension scheme and make minimum levels of contributions to it. Talk to pension providers to find out when you need to set up a scheme.

Statutory Sick Pay – When an employee is absent from work due to sickness for more than three continuous working days, they become entitled by law to receive Statutory Sick Pay.

Discipline and grievance process – When dealing with disciplinary and grievance situations in the workplace, you should follow the Acas Code of Practice.

Dismissal procedure and tribunals – Dismissing an employee is fraught with risks for employers, so you should make sure that you follow the correct procedure and take advice.

If you need more advice on any of these specific topics, please get in touch. Don’t leave it until a small issue becomes a big problem!

Seven Steps for Dealing with Poor Performance in a Growing Business – Part One

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Poor employee performance must be tackled if your business is to thrive. Here are the first of seven steps you can take to tackle poor performance. I’ll bring you the next steps in another blog next month.

When you’re trying to reach a higher level in your business, you’re only as strong as your weakest member. Dealing with somebody in your team who doesn’t live up to the standards you require is difficult, both legally and ethically. Before you show an employee the red card, be sure you have tried everything that is expected from you, the employer, to guide them and push their performance to a higher level. To deal with the matter correctly, there are a few steps to follow:

Step 1: Informal conversations

Your starting point for resolving issues should be to deal with them early and informally. Sit down and discuss your concerns with your employee. Use these meetings to encourage and develop the behaviour and performance you want.

Never automatically assume that the employee is at fault. Investigate the causes of poor performance before deciding what action to take. Your aim should always be to help your employee bring their performance up to standard.

Step 2: Offer support

Where your conversation reveals a cause that’s not the fault of your employee, your initial response should be to offer help and support. Regularly monitor performance, referencing the objectives and timescales agreed, where appropriate. You should offer ongoing support, even after the discussion; and keep records and notes of all informal discussions.

Step 3: Performance review meeting

If, following informal discussion and support, and from monitoring your employee’s performance, you don’t feel improvements have been made, you’ll need to follow a formal capability procedure. This procedure provides for a series of performance review meetings with the employee following which formal warnings may be issued.

You must give your employee at least 48 hours’ notice of a performance review meeting and ensure the arrangements are handled with discretion and confidentiality.

Make sure you’re accompanied at the meeting by a colleague or HR representative. Their role is to support you and take accurate notes of the meeting, enabling you to focus on handling the session fairly and appropriately.

There’s a lot to take in here, so I’ll write about the next stages to follow in a blog next month. If you need to deal with a poor performance issue, this will give you time to carry out steps 1, 2 and 3.

Should You Bother with Appraisals

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Should You Bother with Appraisals

Why should you bother with appraisals? Because you don’t know if you don’t ask.

Essentially a conversation, appraisals are a very useful conversation when you want to get the best out of your employees and see your business grow. Useful for finding out information and giving feedback, appraisals are also a great opportunity for employees to reflect on their goals, objectives and contributions. Well conducted appraisals result in a better understanding of your team, allow positive changes and increase morale.

What you can find out from an appraisal:

  • There may be expertise or knowledge within your team that you didn’t know about
  • Some employees may feel dissatisfied with their role or may be struggling with their work
  • You may find some gaps in the knowledge of your employees
  • Maybe they are really happy and performing well!

What do you do with this information?

This knowledge allows you to sort out problems and make sure individual employees are the right people for the right roles. If someone is more suited to a different role, re-structuring will make a more effective use of the people you have.

You can organise training that is required to increase efficiency and encourage staff to share expertise with their colleagues.

When misunderstandings and communication problems surface, you can organise regular team meetings to keep everyone in the loop.

Getting your employees’ views allows you to find out what they need and gives them a sense of being in control of their job. Without talking to the people you work with you remain oblivious to problems that may be hindering productivity, motivation and ultimately the success of your business.

What can you tell your employees?

An appraisal is your chance to say “well done” or ask the questions to find out why an individual is not be performing at their best. Money is not always the best way to reward people for good work; recognition is extremely motivational. Appreciation and praise encourages loyalty and focus. Individuals who have received positive feedback about their work are more likely to give 110%.

So why bother?

Because regular appraisals make sure your team remains highly motivated and satisfied at work which ultimately increases productivity, reduces absenteeism and staff turnover. Carried out professionally and sensitively, they are an essential component of success in business.

To find out about how to carry out effective appraisals, book you place on the workshop I’m running in Henley on Thames on 11 September 2013. Click here to book your place online for just £12 +VAT.

What Do Employees Want from Appraisals?

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Many people have had bad experiences of appraisals, so many employers don’t enjoy carrying them out. However, for your business and your staff to progress, some form of regular appraisal is essential.

If you put yourself in the shoes of your members of staff, you can both get more from your time together. There are five things that your employees need to know at their appraisal:

  • Tell me what’s expected of me – talk to me about goals and expectations so that I can work towards them.
  • Give me the opportunity to perform – give me the chance to take responsibility and let me show you how good I am.
  • Tell me how I’m getting on – if you like what I’m doing, tell me; if you’re concerned about my progress, I need to know that too.
  • Give me support guidance and development – help me to grow and develop by giving me what I need to reach my goals.
  • Recognise my contribution – say thank you to show that you’re grateful for all the hard work I put in.

When you can meet these five needs, you’ll be able to carry out a much more effective appraisal, both for you and your employees. On 11 September I’m running a short workshop to help you carry them out even more smoothly. To book your place online, click here.

Legal HR Update July 2013

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In June 2013 a number of changes were made to employment law. Here’s a summary of what you need to know.

1. Qualifying period for unfair dismissal claims over political opinions removed

From 25 June 2013, the two year qualifying period for unfair dismissal claims does not apply where the alleged reason for dismissal is, or relates to, the employee’s political opinions or affiliations.

This means that any member of staff who thinks they have been unfairly dismissed due to their political beliefs does not have to have worked for you for at least two years before they can make such a claim.

2. Public interest disclosures no longer required to be in good faith

From 25 June 2013, a disclosure is not protected unless it is, in the reasonable belief of the worker making the disclosure, ‘in the public interest’. Accordingly, an employee who ‘blows the whistle’ about breaches to his or her own employment contract will not normally be protected. The requirement that a protected disclosure must be made in good faith was removed on the same date.

3. Update Service launched by Disclosure and Barring Service (DBS)

From 17 June 2013, the DBS Update Service allows employers to check the status of criminal record checks online.

This means that you can look up the records of potential employees and current employees too.

If you need to talk about any of these changes in more detail, if you think they affect you, give me a call on 0118 940 3032.

Setting Objectives for Your Staff

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Setting objectives for your members of staff to reach is a great way to stretch them and to help them to grow and develop their careers. Encouraging them to achieve more is also great for your business. But what’s the best way to set objectives? Should they really be SMART? How do you find a suitable objective for someone who does the same thing every day or has worked for you for 20 years and needs to carry on doing the same? Do you treat new employees the same as long serving ones the same?

What is a work objective? It is a mutually understood agreement about a specific work outcome that a staff member is expected to achieve by a certain deadline. It is not a list of all the activities that member of staff should carry out.

Why set work objectives? Setting objectives allows your employees to understand exactly where their role fits within your company and what their responsibilities are. It helps them gain a better understanding of the value and contributions they bring to the company. Objectives focus on outcomes rather than activities and allow both staff and employer to measure success.

What is the right mix of goals? There are a number of different types of objectives that you can set and you need the right combination for each member of your team.

  • Essence of the job objectives – ones that clearly define tasks that are required to complete the job. These objectives should be very personalised to each individual position and employee. For a long term member of staff, these objectives may remain the same over time.
  • Project objectives – ones that your employee should pursue with a clearly defined beginning and end. New members of staff may need shorter projects when they first join the company.
  • Professional development objectives – what an employee will learn in the next six months or a year that will help their professional growth. It’s important to think beyond skill improvement and consider objectives that develop each employee and help your organization as a whole. New members of staff may meet development objectives quickly; more established members of your team may need more encouragement to think about their growth and development, if they do the same work every day over time.
  • Performance objectives – very basic, but what time your employees should start work, what they wear and how they should behave. New employees may need these goals specifically outlined when they start working for you.

Once you’ve set objectives with each member of your team, you’ll need to review them regularly, when you carry out formal appraisals or less formal ‘job chats’. Work with all your employees and you’ll be able to develop them and your company.

Want to know more about Appraisals? Come to the workshop I’m running on 11 September 2013. To book your place online, click here.

Dealing with Gross Misconduct – How do You do it?

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Gross misconduct is behaviour so bad that it destroys the relationship between you and your employee and it usually results in dismissal. But what exactly can be considered gross misconduct? It’s important to know, so that you can avoid unfair dismissal claims.

Here’s how to identify and manage gross misconduct.

What is gross misconduct?

Gross misconduct is a serious breach of contract and includes any misconduct which, in your opinion, causes serious damage to your business, or irreparably breaks down trust and relationships.

There is no exhaustive list, but it can include theft, physical violence, bullying, damage to property, accessing pornographic sites, damaging your firm’s reputation, inability to work due to alcohol or drugs, breaching health and safety rules, failing to obey instructions, or serious neglect of duty. Repeated minor misconduct, such as being late to work, is not gross misconduct, although it can lead to dismissal after previous unexpired warnings.

Should my staff handbook include examples of gross misconduct?
Include a list of examples of what usually counts as gross misconduct, but state that it is non-exhaustive as you cannot provide for every eventuality. Each case should be looked at individually and consideration should be given to all the circumstances.

What procedure should I go through if someone has committed gross misconduct? When disciplining an employee you should follow your own disciplinary procedure and the Acas Code of Practice. If you don’t follow the Code it may render a dismissal unfair and could increase the amount of compensation an employment tribunal awards against you.

If you believe an employee has committed gross misconduct, you may need to suspend them to allow a full investigation to take place. This won’t be necessary in all cases, but it will usually be appropriate in cases of serious misconduct. If an employee is suspended it should be on full pay.

Carry out a fair and balanced investigation. At the end of it you may decide that no further action is necessary. However, if matters are to be taken further the employee should be invited to a disciplinary hearing where they will be given the opportunity to state their case and respond to the allegations against them. The hearing should then be adjourned for you to make your decision. You should notify the employee of your decision in writing and inform them of their right of appeal.

How can I decide if something counts as gross misconduct or not?  
If you’re unsure, get legal advice. In any case, if an incident is not obviously gross misconduct, it’s always better to go for the lesser sanction than to dismiss someone as such a dismissal may be held unfair. The current maximum compensation for unfair dismissal is £74,200.

If you need any more advice about identifying or dealing with gross misconduct, please do get in touch, to make sure you can avoid and tricky situations.

How Can I Sack Someone Legally?

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This is a question I’ve been asked recently. It’s easy to fire someone, but not so easy to do it without getting into trouble, so here are some tips for sacking staff legally.

1. When you fire an employee, remember the three essential steps

First, invite the employee to a meeting with you. Make sure they realise it’s a disciplinary meeting, not a chat about the weather. Second, let them have their say. Take notes and record how long it lasts so you can prove it wasn’t rushed. Third, ask a senior manager to review your initial decision – you need an impartial opinion. If you fail to follow any of these steps, the dismissal is unfair and could go to a tribunal.

2. Fire employees consistently

Last year, you discovered that someone in your sales department had been colluding with a rival. You gave him a warning. A few months ago, you found out that another salesman was doing the same thing. You sacked her. Watch out – if you behave inconsistently, you won’t have a leg to stand on in court.

3. Take your time and don’t rush into firing anyone

Don’t ambush a member of staff with an allegation and fire them on the spot. Notice of a disciplinary hearing must be given at least 24 hours before the meeting.

4. Be wary of sexual discrimination

Dismissing or demoting a pregnant employee (or woman on maternity leave) can lead to problems. It can be considered as sexual discrimination, even if you believe you have a strong case for sacking her. Make sure you get the legal issues right.

5. – and other minority groups

Regardless of length of service, i’?s unlawful to dismiss an employee on these grounds: sex or marital status; colour; race; nationality or ethnic origins; physical or mental disability; sexual orientation; religion.

6. Record everything

Companies get into legal hot water by forgetting to record things like verbal warnings. Make employees sign a form to say that they’re aware of the action taken against them and agree that it’s fair. Don’t let anything slip by undocumented.

If you need to sack someone, follow these steps carefully. Get some advice before you rush into doing anything and you’ll avoid costly problems.

How to Improve Employee Retention

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Employee retention is about keeping the great staff you have, once you’ve found them.  There are a number of factors that have an impact on improving staff retention, including:

  • Improving communication processes
  • Staff involvement
  • Confident senior and line managers with strategic direction for your organisation
  • Providing training and development opportunities
  • Market-aligned pay and benefits
  • Fair and effective management of staff by managers
  • Competence of line management.

Focus on improving these areas and you will be able to improve your employee retention. But don’t get complacent – there are many threats to retention. What might cause your employees to leave? They include:

  • Re-organisation of your company – particularly if staff are not consulted
  • Redundancies – people can lose morale when others leave
  • Recruitment freezes – this could be a sign that the business is not going places
  • Lack of confidence in management – if you people don’t have confidence in their managers they may not stay
  • Line manager incompetence ‘ your line managers may not have the skills to keep your staff!

What’s the biggest threat to employee retention? It is poor employee engagement. Work on improving your employee engagement and high employee retention will follow.

For more on employee retention, click here to watch a short video.