Tag Archives: employment

Take Seven Steps to Improve Employee Performance – Part Two

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Improving the performance of employees is something that all employers should be thinking about on a regular basis. But what happens when someone isn’t performing as well as they could be? What do you do when one person’s performance starts to affect the rest of the team?

There is a simple seven stage process that we recommend you use in these situations. Recently we wrote about the first three steps to look at – holding informal conversations, offering support and carrying out a performance review meeting. Click here to read about them again, or if you missed them.

Here are the next two steps of the process to follow.

Step 4: Make a Decision

Once you’ve carried out the performance review meeting with your employee, you need to make an informed decision about the action you need to take, in order to improve their performance. Take your time in reviewing the situation and don’t be too hasty to make your decision. Consider all the facts and the situation.

It could be that you need to provide your employee with a clearer job description and expectations for what you want them to achieve. They might need training in order to be able to carry out their job to the standard you expect. In the worst cases, you might need to give them a warning about their performance and explain how you want the situation to improve.

Step 5: Inform Your Employee of Your Decision

Make it completely clear what decision you have made, following the meeting with your employee. Telling them face to face is usually the best way to do this, as it allows further discussion. You should also put your decision in writing, so that there is a record of your decision on file, should any issues arise later.

At this stage, it is also vital that you agree the next steps with your employee. What actions do you want them to take and by when? Explain the goals you want them to achieve, or tell them about the training you need them to undertake. Again, make sure everything is in writing.

There are two more steps that you need to follow, in order to fully tackle performance issues. We’ll cover them in a future blog. If you can’t wait until then and you have employee issues that you need to deal with now, don’t leave them to escalate. Contact us on 0118 940 3032 or email sueferguson@optionshr.co.uk for some help and advice.

What is the Role of Employers in the Tax-free Childcare Scheme?

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As an employer, you are not obliged to play a role in the Tax-free Childcare scheme as the scheme will operate directly between parents and the Government. Parents will be able to set up and pay into their own childcare accounts online, which the Government will then top up at the rate of 20%, up to an annual limit of £2,000 per child (or in the case of a disabled child up to £4,000). However, employers can choose to play a voluntary role by providing employees with information on the scheme and/or by paying into employees’ childcare accounts.

However, employers can act as a source of information on the scheme, for example by referring employees to the Government web portal for advice. A useful time to provide this information may be prior to, and on return from periods of family-related leave. This option may appeal if you do not currently offer employer-supported childcare (i.e. childcare vouchers or directly contracted childcare.)

You can also choose to pay into a childcare account for your employees, if you wish to. This could be done by facilitating payment into the childcare account on behalf of the employee. Under this option employers make the payment into the childcare account directly from the employee’s net pay via the payroll system. Alternatively, you may choose to make additional payments into childcare accounts without an employee’s net pay being reduced. In this case, the additional payment you make will be classed as earnings and subject to appropriate tax and national insurance deductions. Instead of making a series of smaller payments, employers will also have the option of making one bulk payment.

Should you choose to take up a payment role within the scheme, you would not be required to take on any wider responsibilities such as checking an employee’s eligibility for Tax-free Childcare. This would remain the Government’s responsibility.

The Government has said that Tax-free Childcare will be introduced in autumn 2015 and we’ll bring you more news when we have it. Do contact us in the meantime, if you would like to discuss this issue in relation to your business.

Improving Performance Through a Probation Period

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Taking on new members of staff for a growing business can be a costly and time consuming process – especially if you get it wrong. Finding the best person for your business is important, and many people think that they can sit back and rest once their new recruit arrives on their first day. But that’s just the start of it!

This blog looks at how to give your new employee the best start with your business.

You worked hard on crafting the best Job Description for your new team member. The adverts went out and the applications came in. You spent time interviewing potential candidates to join your team. Finally you found them – the perfect person to work with you. They even turned up on their start date. What happens next?

If you think you can just sit back and expect your new recruit to get on with their job and perform as you expect them to – with no input from you – you’ll be disappointed.

The first thing to do – even before a new employee joins you – is to decide on the length of their probation period. This could be between three and six months, depending on the type of work being done. The probation period is your chance to start assessing your new recruit; it’s their time to find their feet and get used to their new role. It is a vital tool in measuring the performance of a new employee.

Next you need to plan when you’re going to review their performance, during the probation period. Planning a review halfway through is a good idea – don’t leave it until the end. This allows you to take action if you’re in any doubt about their ability to do the job for which you have employed them. Their performance will only get better if you do something about it. They might not have understood the job that you need them to do, so this is the time to go over what you expect from them. It’s also a good time for them to air any concerns they might have about their future with you.

You should next plan to review the performance of your new recruit before the end of the probation period. This could be after five months, if the probation is six months in length. This gives you time to properly review their performance and plan any action that needs to be taken – such as training or development. This will put you in the best position to be able to confirm whether or not your new recruit will be staying on.

If you decide that they will not remain with you, and your employment contract is correctly worded, the notice period for a new employee is usually less than for someone who successfully completes a probation period. If they have to leave, you can quickly turn your attention to finding a better person to fill their role.

There is no legal requirement for using a probation period at the start of an employment contract. However, it is a very good way of making sure you get the right person for the job, after all the time and effort you put into the recruitment process. Just make sure that your employment contract explains all this and that you discuss the use of the probation period with anyone to whom you offer the job!

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.

Workplace Pensions are Here – Act Now, it’s the Law

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Even if you employ just one person, you must provide a workplace pension.

Small employers are being warned to act now to ensure they are ready to meet their new workplace pension duties which will soon apply to them.

All employers have a legal duty to automatically enrol certain staff into a workplace pension scheme by a deadline that is specific to them. Automatic enrolment is automatic for workers but not for employers.

It applies to all small businesses, even those with only one member of staff – from dry cleaners, to florists, to newsagents and pubs.

Around half of employers who had thought they would be ready to meet their duties on their staging date found that they were underprepared and had a last minute rush to get finished. Research by The Pensions Regulator has shown that 40% of really small employers (those with less than 4 workers) do not know their staging date.

It is vital you do not guess your staging date – use the staging date tool on The Pension Regulator’s website, which only takes a few minutes (you will need your PAYE).

The experience of thousands of employers who have been through the process now is that automatic enrolment takes longer than they expect to prepare for – the regulator recommends making a start 12 months beforehand.

Don’t get caught out. Start your preparation early.

Useful links:

Tools to get you started: www.tpr.gov.uk/employers/beginners-guide-to-auto-enrolment

The essential guide to automatic enrolment: www.tpr.gov.uk/ae-essential-guide

Find out your staging date: www.tpr.gov.uk/staging

Nominate a contact: www.tpr.gov.uk/nominate

Planning tool: www.tpr.gov.uk/planner

6 month checklist: www.tpr.gov.uk/six-month

Subscribe to TPRs news by email: www.tpr.gov.uk/subscribe

Or click here to download a PDF of the The Essential Guide to Automatic Enrolment from the Pensions Regulator.

Family Matters in Your Business

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Many of the recent Employment Law changes have focused on family matters. There are more to come in 2015, so it’s important that you are prepared and know how they might affect your business. Many changes relate to the families of your members of staff. While you might not think you’re directly involved, you could be and you need to know how to handle each situation.

Here are some examples: 

2015 Childcare Scheme. From this autumn, almost 2 million families will be able to make use of the tax-free childcare scheme announced in the last Budget. Eligible families will be able to claim a 20% rebate on their childcare costs up to £2,000 per child. How could this affect your business? Research shows that nearly a quarter of employed mothers would increase their working hours if they could arrange good quality childcare. This could be a good thing for your business, but not every family is eligible and some could end up worse off. Some might need to reduce their working hours, which might not suit your business.

Flexible Working. In the past, only parents with children under the age of 17 and carers could apply for flexible working. Now employees who are not caring for others have the right to make a request and as the employer, you must deal with these requests in a reasonable manner. This means you can no longer only expect your employees with children to request flexible working. Now you need to be prepared in case any of your employees makes the request. Do you know how you would deal with these matters?

Time Off for Dependants. All employees have the right to time off during working hours, to deal with unforeseen matters and emergencies relating to dependants. This is unpaid leave, unless you’re willing to give paid time off. Employees have a right to a reasonable amount of time off – usually 1-2hours rather than days – to deal with emergencies involving a spouse, partner, child, parent or an elderly neighbour. Leave can be taken to deal with a breakdown in childcare, to put longer term care in place for children or elderly relatives, if a dependant falls ill or is taken into hospital or to arrange or attend a funeral. Do you have a plan in place to deal with employees needing to take time off at short notice?

Shared Parental Leave. In the past, mothers could take 52 weeks of maternity leave and receive 39 weeks of statutory maternity pay. Now they can decide to share the leave with their partner. This means that if you are the employer of the partner, you could still find yourself having to give them parental leave, if the mother decides to go back to work early. To make sure your business is prepared for this, know how many of your key members of staff this could affect. Having a contingency plan for what it could cost you.

Antenatal Rights. Pregnant mothers are entitled to time off for antenatal appointments. In addition, partners of mothers-to-be can now take unpaid time off work to go with her to two of these appointments. While you might not have any expectant members of staff, think about the impact on your business of losing a key member of staff for a day – the partner. Can you still hold a Board Meeting with one of your Directors absent?

There have been a number of recent Employment Law changes affecting family matters. However, there are many other legal requirements that you need to be aware of, relating to your employees and their families. For more information the Acas website is always a good place to start.

Employment Law Update Workshop

On 21 May 2015 we’ll be spending the morning at Hennerton Golf Club in Wargrave, Berkshire, going through the latest changes to Employment Law. For individual help with your business and your employees, book your place on the workshop. We’ll talk about how the changes will specifically impact on your business. Click here to book your place for just £15 +VAT.

One of the attendees at a recent workshop said “I thought the workshop would be full of other HR people who knew more than me – but it wasn’t like that at all. I learnt a great deal from the Employment Law update and it was really useful talking to other people to hear how they dealt with similar issues to me.”

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.

Employment Law Changes – What’s New for 2014?

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Twice a year we run an Employment Law update workshop, where we go through all the recent and forthcoming changes. This helps our clients keep up to date on the law, without getting bogged down in all the details.

Here’s what we covered at our workshop in October 2014:

January 2014

  • TUPE – collective redundancy consultations can now be started before the transfer, with a requirement for service provision to be fundamentally the same before and after the transfer
  • The right to be accompanied – workers can now choose any companion to be with them in a meeting, providing they are a work colleague or a trade union representative.

March 2014

  • Employers will face penalties of up to 100% of the unpaid wages and a maximum penalty of £20,000 for not paying the National Minimum Wage
  • Rehabilitation periods have been reduced and fewer convictions now need to be disclosed.

April 2014

  • Early conciliation – Acas must now be contacted before a tribunal application can be made
  • The discrimination questionnaire has been abolished
  • Tribunal financial penalties – tribunals have the power to order penalties for the losing employers, ranging from £100 to £5000 where breach has “one or more aggravating factors”.

June 2014

  • Flexible working – this has been extended to all employees with 26 weeks service
  • Small Business and Enterprise Bill – this includes changes to National Minimum Wage breach penalties and restricting the number of postponements of tribunal hearings.

July 2014

  • TUPE changes – from 31 July businesses, employing less than 10 people are able to consult individually.

October 2014

  • National Minimum Wages were increased
  • Antenatal rights – time off must be given for an employee to accompany a pregnant partner for two appointments.

Watch this space for news of our next Employment Law workshop, which will be held in April or May 2015, when we’ll discuss the next round of changes. These will include changes to parental leave, adoption rights and shared parental leave in April 2015; and a new tax free childcare scheme in the Autumn 2015.

Or subscribe to our email newsletter and you’ll receive details as soon as they’re published.

Three Stages to Getting Recruitment Right – Part Three

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In three blog posts I’m covering some of the basics of getting recruitment right – especially if you’re taking on your first member of staff. First we looked at how to find the best person (click here if you missed that post or would like to read it again.) In Part Two we covered what to do when your new recruits start working for you, which you will find here.

In this blog, the final part of the series, 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 Three – What do you do at the end of their probation?

The first thing to do is to make sure that you have actually agreed a probationary period with your new employee. Three months is the minimum and works well for simple jobs, but this can go very quickly. A six month probationary period is a good length of time for you to decide whether or not you want to keep your new employee within your business.

The next thing to do is to book a meeting with your member of staff, once a week during their probation period. Put something in the diary at the same time every week for a few months, especially if you don’t work closely with them. If you don’t see them every day, then this is a good way to check in with them. It’s your chance to find out how they’re getting on – are they reaching their targets, or are there parts of their role that they’re struggling with?

What happens if they reach the end of their probation and you’re not happy with their progress? You need to take action! You can extend their probation period, to give them time to work the performance issues you’ve identified. If you’d been having regular meetings, you’ll know early on if there’s something wrong and be able to do something about it. Don’t leave it until the end of their probation period to tackle an issue, or spring the surprise on them!

And if you are both happy? Then you’ve got a fully fledged new member of staff on your team. But don’t think that you can just sit back and relax! Being a boss/manager of people is an ongoing job that doesn’t finish at the end of probation. We’ve talked more about useful tools like appraisals, performance plans and setting targets in other blog posts – just use the search box on the front page of this blog to find what you’re looking for.

If you have a specific question about one of your employees, do get in touch for a chat and some advice.

Settlement Agreements used to be called Compromise Agreements. What’s Changed?

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In the UK, a compromise agreement – now known as a Settlement Agreement – is a specific type of contract, regulated by statute, between an employer and its employee (or ex-employee) under which the employee receives payment in exchange for agreeing that he or she will have no further claim against the employer as a result of any breach of a statutory obligation by the employer.

Changes were made (other than just the name) in July 2013. What does this mean to you, as an employer?

A Settlement Agreement is a legally binding contract which can be used to end an employment relationship on agreed terms. Their main feature is that they waive an individual’s right to make a claim to a court or employment tribunal on the matters that are specifically covered in the agreement. Settlement Agreements may be proposed prior to undertaking any other formal process. They usually include some form of payment to the employee by the employer and may also include a reference.

For a settlement agreement to be legal, the following conditions must be met:

  • The agreement must be in writing
  • The agreement must relate to a particular complaint or proceedings
  • The employee must have received advice from a relevant independent adviser on the terms and effect of the proposed agreement and its effect on the employee’s ability to pursue that complaint or proceedings before an employment tribunal
  • The independent adviser must have a current contract of insurance or professional indemnity insurance covering the risk of a claim by the employee in respect of loss arising from that advice
  • The agreement must identify the adviser
  • The agreement must state that the applicable statutory conditions regulating the settlement agreement have been satisfied.

A Settlement Agreement can be proposed by both employers and employees although they will normally be proposed by the employer. A proposal can be made at any stage of an employment relationship.

Acas has produced a comprehensive Code of Practice on Settlement Agreements, which you can download for free here. It is very important to take HR advice before starting a process of discussing a Settlement Agreement with an employee so do get in touch if you have any questions.