How to Improve Employee Retention

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.

Happy Staff are Healthy Staff

Well being and staff engagement are very closely linked. When your staff are happy and engaged with their work, they will be less stressed and therefore healthier. When your staff are less stressed and healthier, they will find it easier to be engaged with their work. And engaged, happy staff are far productive than unhappy staff.

Employee well being is about being healthy, self confident, having emotional resilience, having a sense of purpose, an active open mind and a supportive network of relationships.

When you can look after the physical and emotional well being of your staff, and pay attention their personal development and their values, your business will benefit, as this diagram shows.

 

Source: ‘What’s happening with well-being at work?’ CIPD May 2007

So look after your staff and you will see your business prosper!

How do you make sure your staff are happy and healthy?

Unfair Dismissal Claims – Q and A

Here are some common questions about unfair dismissal and my answers to them.

Q – What is unfair dismissal?

A – Dismissals are classed as ‘automatically unfair’, regardless of the reasonableness, if an employee is exercising their rights related to the following:

  • Pregnancy, including all reasons relating to maternity
  • Family reasons, including parental leave, paternity leave, adoption leave or time off for dependants
  • Representative and trade union membership grounds and union recognition
  • Discrimination on the grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation
  • Pay and working hours, including the Working Time Regulations, annual leave and the National Minimum Wage.

Q – When is a dismissal fair?

A – Dismissal is normally fair if an employer can show that it is for one of the following reasons:

  • A reason related to an employee’s conduct
  • A reason related to an employee’s capability or qualifications for the job
  • Because of a redundancy
  • Because a statutory duty or restriction prohibited the employment being continued
  • Some other substantial reason of a kind which justifies the dismissal.

Q – How do you dismiss employees?

A – The key points to remember are:

    • Dismissing employees should be the last resort and employers should carry out necessary investigations without unreasonable delay to establish the facts
    • Employers should use a fair and consistent procedure when dismissing employees
    • It’s always best to try to resolve any issues informally first
    • Employees have the right not to be unfairly dismissed
    • Set out in writing your rules and procedures for handling disciplinary procedures
    • Make sure employees and managers understand the rules and procedures for disciplinary issues.

Q – When can an employee make a claim about unfair dismissal?

A – In most circumstances employees will need to qualify before they can make a complaint to an employment tribunal. They need:

  • At least one year’s continuous service for employees in employment before 6th April 2012
  • Two years for employees starting employment on or after 6th April 2012.

Q – How do you avoid costly mistakes?

A – Before thinking about dismissing an employee, stop and think – are you doing the right thing? To make sure that you comply with the law and don’t make any costly mistakes, whether you’re an employee or an employer, get the right advice.

Can You Serve an Unfair Dismissal Claim While on ‘Garden Leave’?

‘Garden leave’ is a period of time after you’ve been asked to leave your job or you’ve been made redundant, when your employer carries on paying you, but when they don’t want you to continue coming to work. During this time, you’re still employed so you can’t take another job with a different employer.

So can you serve an unfair dismissal claim while on garden leave? Can you appeal against being asked to leave your job?

To serve an unfair dismissal claim, you need to complete the form ET1 to send to the employment tribunal. You can only submit this form after you have been dismissed and worked your notice. ‘Garden leave’ is notice without having to do the work you’re being paid for. If you’re thinking about a tribunal application then you must do this within three months of your termination date. If you’re on ‘garden leave’ then you are still employed, even though you’re not working. This means that if you want to make a claim for unfair dismissal, you can’t do it during a period of garden leave – you have to wait until you actually finish working for that employer and they are no longer paying you.

Your contract of employment will tell you what else you can and can’t do while on garden leave and what your employer will expect from you during that time.

In addition, if you were employed after 6 April 2012, you need to have worked for the company for two years, to be able to claim unfair dismissal. If you started work before 6 April 2012 you have to have completed one year’s service to be able to claim unfair dismissal. (This means that at the time of writing this blog in March 2013, no one will actually be able to claim that they have been unfairly dismissed until 6 April 2014.)

There is more information on all this, including a short video that explains it all, on my website. Click here to watch the video.

Can My Employer Insist I Use My Holiday to do Jury Service?

As an employer, can you insist that your employees use their holiday allowance if they’re asked to do jury service? This was a question I was asked recently, so here is the answer.

An employer can’t insist that holiday is used for jury service, but they must give members of staff time off to complete the jury service. They are not allowed to refuse to give employees time off when summoned.

The employer may think that it is not a good time for that member of staff to be away from the business and on jury service – if there’s a heavy workload in the business, or if a number of other people are on holiday or off sick, leaving the company short staffed. In these cases, the employee can ask for a deferment of the jury service, but their employee will be called again, normally with 12 months. This may allow time to plan their time away from the business and make other arrangements for cover.

How are employees paid while on jury service? The employer does not have to pay their staff while away from the business. While employees will not be paid for jury service, they will be reimbursed subject to a maximum daily amount if absence from work causes them to lose earnings, have to pay a substitute to do their job or incur any other necessary expense, such as a childminder. People called for jury service can also claim travelling expenses, a subsistence allowance for food and drink and for any loss of National Insurance contributions they may have incurred.

As an employee, if you’re called for jury service, you could decide to use your holiday entitlement for the time that you’re away, so that you are paid for the time by your employer, rather than relying on the court subsidy. However, that is a choice you have to make, about whether or not you want to use your holiday entitlement.

I’ve made a short video about this topic ? click here to watch it and learn more about jury service.

Are You Up To Date with Recent Legal Changes in HR?

The law is always changing around people issues. To help you keep up to date, here are a few of the recent and forthcoming changes that you need to be aware of.

1. Statutory benefit increases – standard rates for statutory maternity pay, paternity pay and adoption pay will increase with effect from 7 April 2013 to £136.78. Statutory sick pay will increase with effect from 6 April 2013 to £86.70.

2. Compensation limits – annual rises for compensation limits have been announced for all dismissals which take effect from 1 February 2013. The cap on a week’s pay rises to £450 and the maximum unfair dismissal basic award rises to £13,500. The maximum compensatory award rises to £74,200.

3. Sickness benefits – from December 2012, people on sickness benefits are being offered work experience to help them back into a job. Short periods of work experience at an appropriate employer will help people with limited employment history get a flavour of the workplace environment, gain new skills and boost their confidence. People who fail to carry out any agreed work related activity without good reason may face sanctions.

4. Fuel rates and car allowances – HMRC has published new advisory fuel rates for company cars with effect from 1 December 2012. The rates are to be used only where employers either reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel. The next review will be 1 March 2013.

5. Criminal record checks – the Home Office has announced a new service whereby employees and volunteers requiring criminal records checks will be able to make one application and have access to an online certificate check rather than have to make new applications for each job they apply for.  The service will be free for volunteers.  The new system will be launched by the disclosure and barring services on 1 March 2013.

If you need to know more about any of these changes and how they affect your particular business, leave a comment here, email me your question or pick up the phone and we can talk about it.

Winter Sick Leave and How Best to Manage it

How are you and your staff coping with the winter weather and the cold and flu bugs that always do the rounds at this time of year? Most people will need a bit of time off at some point during the year, to recover from an illness, so this post looks at the benefits of managing absence in a proactive way.

Both long and short term absences can cost a huge amount – both financially and in terms of manpower. It’s never an easy conversation to have with your employees and it can be difficult to keep up with what action is lawful to take. The bottom line is this – do nothing and the problem won’t go away, but could get worse. Finding out early on what’s going on with an employee who is absent can make a significant difference to your relationship and absence levels in the future. Talking to them allows you to get to the root of the problem and provide the support that they need. By focusing in on the absence it may also deter casual absenteeism – days off here and there.

Dealing with Short Term Absence

You should have a procedure in place that requires the employee to talk to a named person rather than leaving a message when reporting their absence. A standard form should then be completed recording the date, time, reason given and predicted time of absence, to make sure the relevant facts are gathered consistently for each absence.

Discussing the problem is essential especially when an employee is taking recurrent short term absences. Maybe there is a work issue which you can help them deal with and solve. Providing the support they need results in improved working relationships, morale and reduced absence.

You should always speak to a member of staff when they return to work, irrespective of how long they’ve been away. It shows you’re taking the situation seriously and acts as a deterrent for people who shouldn’t really be taking time off. Asking how someone is feeling after they’ve been off for even one day also shows that you care about them. Keep the conversation informal but take it seriously. Ensure confidentiality, have a clear structure, record what’s said and above all remain positive and supportive. You can ask them if they visited their GP, how they are feeling now and if there anything you can do to support them. Don’t ask any intrusive medical questions!

Communicating with your employees improves productivity and decreases absence, so follow these simple guidelines when dealing with short term sick leave. We’ll cover long term absence in another post in a few weeks time.

How do you deal with short term absence in your business?

Promotion – Are They Really Ready for It?

You’ve got a great salesman working for you. He’s been with your business for some time and knows the company inside out. He knows all about your products and services and does a great job selling them. You have other members of the sales team who aren’t doing as well and who could learn a lot from this person. So you decide to promote him to Sales Manager. This way, he can lead the rest of the sales team, sharing his knowledge and experience with them. He can inspire them and help create a great sales department.

However, a few months after his promotion, you notice that things are not quite going to plan. Why is this? It is something that’s seen over and over again in companies where someone has been promoted because they’re good at what they do. They end up managing other people and not doing a very good of it. This is often because they have had no management training; they don’t know how to manage other people who are doing what they used to do.

Great salesmen – and many other professions – are good at the technical side of their jobs. They’re not necessarily natural people people.

So what do you do if it goes wrong?

Always start with a probationary period, to give you the chance to review the performance of your new manager

If it’s still not working out:

  • Give them a full opportunity to any discuss problems with their job
  • You’re under no obligation to give them their old job back, but you can discuss it, if it’s still vacant
  • Consider an alternative position before dismissal; tribunals will want you to consider all alternatives before you let someone go.

Before you promote someone to management level, take the time to find out if they are really ready for it. If not, what do you need to do to make them ready to make them into great managers?

To find out more, click here to watch a short video that?s on my website.

Are your people ready for promotion?

Getting the Best from Your Staff – Some Ideas from our Latest Workshop

At the end of November 2012 we ran another of our very popular workshops, where we focused on how to get the best from your staff. After a short talk on issues to be considered, we opened up the floor to the delegates, to give them a chance to ask specific questions about their businesses and their staff.

Here are some of the topics that came up in the discussions, along with some of the solutions that were proposed.

Top tips for getting the best from your staff:

  • Appraisals are very effective for learning where your members of staff are at with their jobs. It gives you both a chance to talk about what’s expected and how people are performing against those expectations. Not carrying out regular appraisals can allow small issues to grow into major problems, if they’re not dealt with promptly.
  • Job Chats are a more informal way of talking to members of staff about how things are going. You might have a job chat over a cup of coffee rather than in a meeting or with agenda. You can do them more frequently than appraisals and they are a great way of picking up small issues that need to be discussed.
  • There are many ways of rewarding your staff that don’t involve money. Reward them by making them feel part of your business; if they can see how they have an influence on the growth of the business, they will get a great sense of achievement and feel important and needed.

And here are some of the topics we discussed:

Question: “One of my staff members works hard during office hours and takes work home, so we don’t mind if he’s a bit late in the morning. Another member of staff doesn’t seem to work as hard and is checked when he’s late. He’s complained about this. What can I do to keep both of them happy and working hard?”

Answer: “Talk to the second staff member to explain why you’re more flexible with his colleague. He may not be aware how hard his colleague is working or that he takes work home with him.”

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An idea: “We introduced an efficiency percentage report for our staff, based on the speed of finishing a project, completing it properly and the size of the project. The report is great for showing who is doing what within the business. Some staff didn’t like the idea when we introduced it, until we realised that they’re the ones who aren’t very busy. They’re finishing a project and not letting me know that they need more work to be getting on with! Now we know who is working efficiently, we can work on improving that across the whole business.”

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An issue: “A couple of members of staff asked me if they could work late and do some overtime and I agreed. I’m not often in the office and at the end of the first week, my general manager asked why they were working late. When I explained, he told me that these two members of staff were always late in the morning! Did they ask me instead of their manager because they knew what I’d say?”

A solution: Make sure you’re clear about what you agree with your staff and find out why they want to change their hours. Consider all the angles and speak to their managers before making a decision.

We’ll be running another workshop in the spring which you can attend if you have any issues to discuss. If you have anything you need help with now, please do get in touch by calling 0118 940 3032 or emailing sueferguson@optionshr.co.uk.

How to Be a Great Boss

It can be tough at the top. Here are some top tips to improve your personal success as well as the success of the people working for you.

  • Lead by example. Provide guidance and support and set the benchmark for team cohesiveness and performance.
  • Understand yourself and work on bettering yourself. What are the things you do well and what can you improve? How effective is your management style? By investing time in developing your individual skills you will drive your business forward and reap the rewards in terms of how successfully you lead your team.
  • Be a good all-rounder and play to all your strengths. Technical skills are important but so are soft skills such as people management skills. Do not neglect one in favour of the other.
  • Learn to delegate effectively. You can’t do it all! By relinquishing responsibility to others you are not only ensuring that your efforts are always directed to best effect but also that the people around you feel empowered to make decisions and improve the business.
  • Build a team that can work without you. A team that falls apart when you are on leave or away from the office is not good business.
  • Maintain boundaries: Whilst it is good to develop a good personal relationship with your colleagues, you must establish appropriate boundaries. This will be important during times when you have to make tough decisions that may not always be welcome by others.

What do you do to make sure that you’re a good boss? Share your tips (or mistakes!) with us by leaving a comment here.