Category Archives: Performance

What’s the Difference Between Informal and Formal Appraisals?

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This is a question I’m often asked by managers, so I thought I would answer it here.

A performance appraisal can occur in two ways – informally or more formally (or systematically.) Informal appraisals can be carried out whenever the supervisor feels it is necessary. The day-to-day working relationship between a manager and an employee offers an opportunity for the employee’s performance to be assessed. This assessment is communicated through conversation on the job, over coffee, or by on-the-spot examination of a particular piece of work. Informal appraisals are especially appropriate when time is an issue. The longer feedback is delayed, the less likely it is to encourage a change in behaviour. Frequent informal feedback to employees can also prevent surprises when the formal evaluation is communicated. However, you should make sure that they don’t become too informal – don’t be tempted to discuss an appraisal in the pub!

Although informal appraisals are useful, they should not take the place of formal appraisals. These are used when the contact between a manager and an employee is more formal. This could be when they don’t see each other on a daily, or even weekly basis. It requires a system to be in place to report managerial impressions and observations on employee performance.

When Should You Carry out Appraisals?

Appraisals typically are conducted once or twice a year, most often annually, near the anniversary of the employee’s start date. For new employees, common timing is to conduct an appraisal 90 days after employment, again at six months and annually after that. ‘Probationary’ or new employees, or those who are new and in a trial period, should be evaluated frequently—perhaps weekly for the first month and monthly thereafter until the end of the introductory period for new employees. After that, annual reviews may be sufficient.

Some managers prefer to meet with their employees more frequently. Some companies in high-technology fields are promising accelerated appraisals— six months instead of a year—so that employees receive more frequent raises. The result for some companies has been a reduction in turnover among these very turnover-prone employees.

A regular time interval is a feature of formal, systematic appraisals that distinguishes them from informal appraisals. Both employees and managers are aware that performance will be reviewed on a regular basis and they can plan for performance discussions. In addition, informal appraisals should be conducted whenever a manager feels they are desirable.

Should We Talk About Pay As Well?

Many experts say that the timing of performance appraisals and pay discussions should be different. The major reason for this view is that employees often focus more on the pay amount than on what they have done well or need to improve. Sometimes managers may manipulate performance appraisal ratings to justify the desired pay treatment for a given individual.

However you carry out appraisals – whether informally or formally – take some time to think about the pros and cons of the different options. This will help you implement the best process for the development of your business and your employees.

Employment Law Changes for Spring 2015

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Employment Law is constantly changing. To make sure you stay on the right side of the law, and do the right thing by your employees, here are some of the issues you need to know about.

Shared Parental Leave – this will allow eligible mothers, fathers, partners and adopters to choose how to share time off work after their child is born or placed for adoption. Employed mothers will still be entitled to 52 weeks of maternity leave and 39 weeks of statutory maternity pay or maternity allowance. If she chooses, an eligible mother can end her maternity leave early and, with her partner or the child’s father, opt for Shared Parental Leave instead of Maternity Leave. If they both meet the qualifying requirements, they will need to decide how they want to divide their Shared Parental Leave and Pay entitlement.

Antenatal Rights – from 1 October 2014, the partner of a pregnant woman has been allowed to take unpaid time off work to attend antenatal appointments with her. Partners are allowed time off for up to two antenatal appointments, capped at 6.5 hours per appointment. Confusion might arise because in some cases, the partner might not be the biological father of the child. They could be the mother’s spouse, civil partner, or partner in an enduring relationship. It could also be the parents of a child in a surrogacy arrangement.

Fit for Work – this service helps employees stay in, or return to work. It provides an occupational health assessment and general health and work advice to employees, employers and GPs. It will not replace, but will complement existing occupational health services provided by employers. There will be a phased roll out of the referral service taking place over a period of months during 2015.

Every time a change is made to Employment Law, your Staff Handbook will become out of date. You don’t need to update it every month, but you do need to be aware of the legal changes and how they affect your employees and your business. If your Handbook has not been updated for a couple of years, it’s best to get up to date information on any specific issue, before you take action.

To help keep your business up to date, book your place on our next Employment Law Update Workshop. On 21 May 2015 we’ll be spending the morning at Hennerton Golf Club in Wargrave, Berkshire, going through the changes. We’ll talk about how they will specifically impact on your business and what you need to be aware of, in order to stay on the right side of the law. Click here to book your place for just £15 +VAT.

Communication is the Most Powerful HR Tool

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Communicating on a regular basis with your employees is one of the most powerful HR tools available to you. Talking to your staff can help prevent small issues from turning into more complex, potentially expensive ones, such as grievances or disciplinary problems. Finding out what your employees are thinking can even help you encourage them to work harder for your business.

How do you do this?

One of my clients called me in to help them sort out some problems recently. The management had noticed that their staff were complaining about not being told what was going on in the business. There was actually nothing happening for them to worry about, but because the management didn’t tell them anything, they started to think that the management was hiding something. A regular open forum was held at their quarterly staff meetings, giving employees the chance to speak up and ask questions; but no one ever did. So the managers assumed that everyone was happy.

To find out more, I arranged a meeting with a cross section of the staff, to ask them how they really felt about the communication in the business and how it could improve. One thing they told me was that no one liked asking questions in the open forum. No had had the courage to stand up in front the whole business to speak out!

Next I had a meeting with the directors of the business, to report back what I had found out. There was another staff meeting coming up, so instead of expecting employees to voice their concerns at the open forum, we came up with an alternative. Before the staff meeting, we would split the employees into a number of smaller groups, each with one of the directors. They would ask their group how they would like to be communicated with. One person from each group would then bring forward the ideas from their group to present to the whole business. This allowed people who were brave enough to stand up in front of the colleagues the opportunity to do so.

At the very next staff meeting, a whole range of issues where brought up in front of the whole business in this way. It gave the employees a real chance to tell the management what they thought. There was an opportunity to really discuss, openly, what was going on in the business (and what wasn’t going on!) Concerns were aired and fears where allayed. The end result was a very happy staff – and happy management too.

This is just one example of how communication can be used to improve a business. This solution worked for this business – what is important is that you work with your staff to find out what will be the most appropriate for them.

When you have regular and open lines of communication with your employees, you can help to prevent negative issues from arising and build a happy, engaged and productive team for your business.

Can Santa Get the Sack?

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Santa

Can Santa get the sack?

Christmas is coming, the goose is getting fat … but so is Santa! He’s now too big to fit down the chimney; the elves think they have man flu; and Rudolf says the roads are blocked with snow so he can’t get to work!

You might think that Christmas runs smoothly at the North Pole – after all, they have all year to plan it. However, this year there are a few problems for the Head Reindeer (HR) department to sort out.

Father Christmas is too big to fit down the chimney. All year Santa has been relaxing at the North Pole and as a result, his girth has expanded somewhat. The Head Reindeer is worried that he won’t be able to do his job properly – after all, he is supposed to climb down chimneys in order to deliver presents. Can he get the sack for not being able to carry out the work in his job description? If Santa is morbidly obese and can’t carry out his daily tasks, he could be classed as disabled. This means that sacking him because of his girth may be discrimination – something the Head Reindeer would like to avoid!

The elves think they have ‘man flu’. They’re sneezing and coughing and their noses are running, so they’re really like to stay in bed – especially during December when work gets really busy. Are they allowed to take time off sick, when Father Christmas thinks they just have colds? Staff taking time off for sickness usually increases over the winter months, so the Head Reindeer will need to speak to each of the elves and find out what’s actually wrong with them and make sure they have the right evidence to support the reasons for their absence. Keeping in contact with sick staff is always a good idea. After all, how can Christmas carry on without the elves?

Rudolf says the roads are blocked with snow. He says he can’t get to the office because of the weather conditions. He can’t really work from home, although for some staff, it’s worth setting up remote access, so that they can still work, even if they’re not in the office. The Head Reindeer needs to make sure that the Staff Handbook is up to date, to cover issues like bad weather. And he needs to find out how else to get Rudolf to work, if there is snow on the road, or Christmas might have to be cancelled.

With a little bit of forward planning (and perhaps some advice from an expert) the Head Reindeer (HR) manager will be able to make sure that everything goes to plan for a great Christmas. At least he can let all the elves take time off together, once the festive period is over!

Three Stages to Getting Recruitment Right – Part One

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Three Stages to Getting Recruitment Right – Part One

In three blog posts I’m going to cover some of the basics of getting recruitment right – especially if you’re taking on your first member of staff.

First we’ll look at how to find the best person, then we’ll look at what to do when they start working for you and in the third blog, I’ll talk about what to do at the end of their probation. This three stage process will help you find and keep hold of the best people for your business – and avoid some costly pitfalls!

Part One – How do you find the right person?

So your business is growing and you’re getting busier and busier. You’re working longer hours, just to keep up with the work and the demands of your clients. You don’t want to turn business away, so you keep working all the hours you can, including evenings, weekends and holidays. Eventually, when your friends and family are really fed up of not seeing you and you’re completely exhausted, you decide it’s time to take on your first member staff.

But you’re too tired to think about it properly and you certainly don’t want to spend your hard earned cash having someone else do the recruitment. So you put the word out among your contacts and network that you need some help in your business. You’re not quite sure what the job would involve, how many hours it will be, or how long you’ll need them. But that doesn’t really matter does it? You just need someone to ease the burden – and quickly!

A number of people respond to your plea for help and you chat to a few of them. One of them seems quite nice and can start straight away, so you meet up to talk a bit more and then offer them the job.

Sounds easy doesn’t it?! Until you find out that your brand new team member doesn’t actually like doing some of the tasks you need them to do. But never mind, there’s plenty of other work to keep them busy. And then they ask about taking some time off for a holiday and one of your clients complains that some of their work hasn’t been done. Before long, you find yourself working longer hours than before you hired someone, just to check up on their work and correct their mistakes. The atmosphere in the office changes and you don’t look forward to going there in the morning.

That wasn’t supposed to happen – it’s your business and you’re supposed to enjoy what you do!

So how do you avoid all these problems? Do some planning! Think really carefully about the sort of person you want working with you and what they will do. Create a solid job description that includes the hours they will work. You can always start someone on part-time hours if you want to try them out. Most importantly, don’t leave recruitment until you’re desperate for help, as this will make you more likely to take on the first person who comes along, who you think will ‘do’. They probably won’t! If you have any doubts about a potential employee, deal with those doubts and take your time to find the best person for your business.

In Part Two of this series we’ll look at what to do when your new recruit (who really is the right person) starts working with you.

How Do You Make Sure Your Employees are Performing to the Best of their Ability?

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How Do You Make Sure Your Employees are Performing to the Best of their Ability?

Your people are the key to the success of your business. By investing in them you are investing in your success. But how do you make sure they are working as hard as they can, to bring about that success?

Here are our top 10 tips to help you get the most from your people:

1. Provide a vibrant and stimulating working environment and a culture that values the contribution made by each person

2. Embrace the diverse range of skills, expertise, experience, attitudes and backgrounds of all your staff

3. Encourage your staff to reach their full potential. Provide them with opportunities to develop their expertise, both in terms of technical and soft skills

4. Provide formal and informal performance reviews on a regular basis

5. Set clear objectives and achievable targets with your staff and allow them to air their concerns within an environment of trust and honesty

6. Deal with issues as soon as they arise. Don’t wait for them to become a significant problem

7. Equip your managers with the skills they need to deal with difficult situations confidently and effectively

8. Reinforce and reward good performance. Provide incentives and rewards that motivate each individual member of staff

9. Offer a clear career path to incentivise employees to be the best they can be

10.Conduct regular employee questionnaires to highlight areas for concern and ensure staff feel that you value their opinions.

Managing staff is often the hardest part of any manager’s job. Follow these simple tips and you’ll find it easier to encourage your staff to put their best efforts into working with you.

How Will Changes to Flexible Working Affect Your Business?

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How Will Changes to Flexible Working Affect Your Business?

In November 2012, the Government published its consultation on modern workplaces and said that from 2014 it would extend the right to request flexible working to all employees. This will have a huge impact on some businesses; do you know how it will affect yours? Do you know how to implement the changes so that you stay on the right side of the law?

Flexible working is seen as a benefit to many people, allowing them to achieve a better work-life balance. For many, this actually makes them more productive at work. Many small businesses have allowed flexible working as it helps them recruit good staff. However, for some businesses, the changes could have different effects. If you don’t fully understand how to use flexible working, your business or your employees could suffer.

The right to request flexible working is currently restricted to parents of children under the age of 17 and carers. This will be extended to all employees from 30 June 2014. It will:

  • remove the requirement for the employee to be a carer to qualify for the right to make a request
  • place a duty on employers to deal with requests in a reasonable manner
  • require you to notify the employee of your decision within three months of the application, or longer if this is agreed with the employee.

The provisions that implement the new rights will get rid of the statutory procedure for considering flexible working requests and replace this with a requirement to “deal with the application in a reasonable manner.”

The 26 week qualifying period for employees to make a request for flexible working will be retained and an employee can still only make one flexible working request in any 12 month period.

Acas has published some guidelines which say that as an employer, you should do the following:

  • Arrange to talk to your employee as soon as possible after receiving his or her written request (unless the intention is to approve the request)
  • Allow your employee to be accompanied by a work colleague at any discussion
  • Discuss you employee’s request with him or her, where possible in private
  • Consider requests “carefully looking at the benefits of the requested changes in working conditions for the employee and the business and weighing these against any adverse business impact of implementing the changes.”
  • Inform your employee of the decision, in writing as soon as possible
  • If your employee’s request is granted, or granted with modifications, discuss with them how and when the changes might best be implemented
  • If your employee’s request is rejected, ensure that the rejection is for one of the business reasons permitted by legislation and allow the employee to appeal it
  • Consider and decide on all requests, including any appeals, within a period of three months from initial receipt, unless an extension is agreed with you employee.

This means that you can’t just deny a request for flexible working because you don’t understand it, or think it will have a negative impact on your business! Acas has produced a guide that provides good practice advice for employers, which you can download by clicking here.

Changes to Employment Law – Can You Keep Up?

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Changes to Employment Law – Can You Keep Up?

Twice a year, in April and October, changes are made to UK employment law. There’s a lot that you need to know, so to help you keep abreast of the changes, I’m running one of my very popular workshops to discuss and simplify the changes. It will be held on 1 May 2014 and Hennerton Golf Club, Wargrave, Berkshire. Click here to book your place.

Here’s a summary of some of the proposed changes to due to take place this spring:

  • Power of Employment Tribunal to impose Financial Penalties on employers. The Employment Tribunal will have the power to order an employer who has lost a case to pay a financial penalty, to the Secretary of State, of between £100 and £5,000. The penalty will be imposed where the employer has breached any of the worker’s rights. Tribunal Financial Penalties apply from 6 April 2014.
  • Early conciliation to come into force. Before lodging a claim to the Tribunal, all claimants will need to notify Acas first, where conciliation will be offered. If conciliation is unsuccessful within the set period the claimant can proceed to lodge a tribunal claim. This comes into force on 6 May 2014.
  • Statutory maternity, paternity and adoption pay increase. The rate of statutory maternity, paternity and adoption rate will increase to £138.18.

In addition, there is this change, to be brought in by the end of 2014:

Managing sickness absence. A health and work assessment and advisory service is to be introduced, offering fee occupational health assistance for employees, employers and GPs. The service can provide an occupational health assessment after four weeks of sickness absence.

To keep your business fully updated, why not book your place on our workshop? The cost is just £10 +VAT, so to reserve your seat, just click here to book online.

How Do You Manage Absence in Your Business?

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How Do You Manage Absence in Your Business?

The cost of absence to your business could be huge. While it’s not always avoidable, you can reduce the cost and impact by managing it effectively. Here are some of the things you need to do:

Monitor it: You won’t have an idea of the problem if you don’t keep a record of the days and dates of absence. You need to know the frequency or length of absence to decide on the next steps.

Reporting absence: You must have rules about reporting absence and you must make sure these are followed.  If you don’t do this everyone will ignore them because they can.

Discuss the problem with your employee: There’s a legal requirement to consult with employees. They need your support and you need to know how to plan their work while they are away and make arrangements for their return.

Getting the payments right: Check the contract of employment to make sure you make the correct payments. As a minimum, employees are entitled to Statutory Sick Pay and they may also be entitled to be paid for holidays.

Return to work interview: These are key tool in deterring absence and making sure that you know what’s going on with your staff. They’re a great opportunity to nip problems in the bud.

Keeping in touch: Contact is vital if an employee is away for a long period. It helps you to provide support to them and at the same time understand how the situation may develop so that you can plan your business.

Phased return to work: This may be required after a long illness and may be suggested by the GP in a fit note.  You should consider these suggestions and discuss them with the employee before you make a decision.

What if you need to dismiss a member of staff due to long term absence? What are the benefits of managing absence? You can find out more from our free fact sheet – download it here.

(HR) Human Resources for Small Businesses

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When you run a small business, taking on and managing staff can be one of the hardest things to get your head around. Here are a few of the basics that you need to get right.

Employment contracts – This 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 the terms and conditions of their employment within two months of them starting with you.

National Minimum Wage – Almost all workers in the UK aged 16 or over are legally entitled to be paid a minimum hourly amount. The rate is reviewed every year and usually increases in October. Click here for the current rates.

Holidays – All employees are entitled to a minimum amount of time off per year. For full time employees the maximum is 28 days. You can 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.

Pensions – Since July 2012 changes have been brought in. Every business will have to provide eligible employees with a qualifying pension scheme and make minimum levels of contributions into it. Talk to pension providers to find out when you need to set up your 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 risk for employers, so you should make sure that you follow the correct procedure and take advice.

These are just a few of the things you need to know. It’s best to deal with issues before they become big problems, so if you need any more advice, please do get in touch.