Fair Dismissal Can Prevent Tribunal Troubles

Did you know that since the fees for tribunals were waived in July 2017, there has been a 90% increase in employment tribunal claims?

To protect yourself from risk of being taken to court for unfair dismissal, it’s important to know the difference between ‘fair’ and ‘unfair’ dismissal, as well as ‘wrongful’ and ‘constructive’ dismissal.

Do you know the differences? What about the relevant laws, and codes of practice? If you’re unsure of any of these and don’t want to risk paying thousands of pounds in compensation to employees taking you to tribunal, this blog will help.

What is Fair?

When you need to carry out a dismissal, it’s important to ensure that it’s fair on the employee not only for them, but also for the reputation and integrity of your organisation.

One of the first things you, as an employer, must understand is the differences between ‘fair’ and ‘unfair’ dismissals. ‘Unfair’ dismissal is usually where an employee was dismissed, for example, because of pregnancy; a family situation such as time off for dependents; or in contravention of the Working Times Regulations. These are just three examples of many that could end with you in a tribunal court if they weren’t handled correctly.

For a dismissal to be deemed ‘fair’ as stated under Section 98 of the Employment Rights Act 1996, it would need to be carried out for one of these five reasons:

  1. Capability or performance
  2. Conduct
  3. Redundancy
  4. Contravention of a statutory duty or restriction
  5. “Some other substantial reason of a kind such as to justify the dismissal of an employee holding a position which the employee held.” (This is a direct quote from the Employment Rights Act 1996.)

Let’s delve into each point a little further:

  1. Capability or performance

An employee can be dismissed if:

  • They do not have the capabilities to do the job duties they were employed for
  • They have the capabilities, but are unwilling to do the job properly

However, you should still have a process of looking further into each point to find out more about their situation, especially as poor performance could be down to health issues, or because of stress. Read more about that here.

  1. Conduct

When there’s clear evidence of misconduct, such as persistent lateness or unauthorised absence from work, action should be taken to try to understand why the misconduct is happening, and to give your staff member a chance to improve. For more information on this, read my blog on Managing Capability and Conduct Issues Effectively to Avoid Dismissal.

If gross misconduct is evident, this must also be handled carefully and within the legal parameters of employment law. For more on this, click here.

  1. Redundancy

Making people redundant is always difficult, but may be necessary if the business is changing in some way, moving location, or even closing down. To genuinely make someone redundant, you must demonstrate that the employee’s job will no longer exist. Of course, the employee has certain rights throughout the redundancy process, such as needing time off to look for a new job, and they may be entitled to redundancy pay. Read more on this subject here.

  1. Contravention of a statutory duty or restriction

One example of this is of employees not having the right to work in the UK anymore, or not having proof of their immigration status. Other examples can include undertaking Trade Union duties, or not providing relevant work evidence to support their employment.

  1. Some other substantial reason

If none of the above four reasons for dismissal apply, then the phrase “some other substantial reason of a kind such as to justify the dismissal of an employee holding a position which the employee held” becomes admissible. Examples include:

  • Non-renewal of the fixed-term contract of an employee recruited as maternity leave cover
  • Dismissal and re-engagement of an employee to impose new contractual terms and conditions that the employee has refused to agree
  • A personality clash between employees makes working together impossible
  • Where there are concerns relating to the safeguarding of children or vulnerable adults, but there are no grounds for a misconduct dismissal

I have covered this last point in more detail in other blogs that you can read here.

Even where a dismissal is potentially fair for “some other substantial reason”, it’s important that you follow a fair procedure and act reasonably in dismissing the employee, taking into account all the circumstances.

Being such a minefield, it’s important to get expert help when you need to dismiss someone to reduce the risk of being taken to court.

Before you dismiss any member of staff, for whatever reason, it is best to seek professional HR advice. You can call me on 0118 940 3032 for a confidential chat or click here to email me.

How to Give Effective Criticism Without Sounding Critical!

How to Give Effective Criticism Without Sounding Critical!

Everyone needs feedback – good or otherwise – to ensure they’re doing the best for their customers. From a restaurant on the quality of their food and waiting staff, to an airline on their service, such as ease of booking, checking-in, and the helpfulness of the airline staff. The whole experience, in fact.

This is also true of your employees. Good feedback, including the giving of constructive criticism, is essential to an employee’s development. After all, they cannot learn from their mistakes and improve if they’re not aware they’ve made any.

Providing feedback is a fundamental element of effective appraisal interviews. But do remember to offer your employees regular feedback throughout the year, not just at the time of the appraisal interview.

Key Rules for Giving Constructive Criticism

The key rules for making criticism constructive are to concentrate on the person’s actions or behaviour, not his or her personality. You should also look to the future and not the past. The aim is to correct, not punish.

Crucial points to remember when giving criticism:

  • give criticism promptly after the event to which it relates. This is important, as it ensures that the facts are still fresh in both of your minds;
  • make sure that the criticism is clear and specific;
  • avoid generalisations;
  • use specific examples;
  • remember to ask for the employee’s input and be prepared to listen without prejudging;
  • it’s important to deliver criticism objectively and unemotionally, ensuring that no annoyance or disapproval is implied;
  • make sure that the employee understands what he or she has done wrong, why it is wrong, and how he or she should do it next time;
  • explain the effects of the employee’s actions or behaviour on colleagues, the department and/or the organisation as a whole;
  • encourage the employee to take full responsibility for his or her actions;
  • make it clear that you want to work with and support your employee to seek solutions to any problem areas;
  • let the employee know if, in your opinion, they are capable of improvement;
  • since receiving criticism is difficult for most people, and there is a high chance that misunderstandings may arise, check after giving criticism that it has been fully understood;
  • end the conversation with a positive statement. For example, you could state your confidence in the employee’s overall competence to perform the job; and
  • where possible, use praise to cushion criticism.

Using the more positive statements should help your employee to accept what you’re saying without getting upset, and help them to see that you are, in fact, simply trying to help them develop and do well. There are some other interesting tips in this article, published in the Reader’s Digest, that you may find helpful.

If you would like to discuss this subject further, do call me on 0118 940 3032 or click here to email me

What Do You Do When a Member of Staff Becomes Disabled?

This guest blog has been written by Roland Chesters from Luminate, a Disability Development Consultant.

Despite the high number of people living with disabilities in the UK, many organisations have still little experience of working with someone with a disability. Too many people just don’t know what to do when a member of staff becomes disabled. They don’t know how to work with and look after that person, or how to meet their legal obligations as an employer.

While every situation will be different, depending on the person and their disability, there are some basic guidelines that you need to follow. I want to share them with you in this post.

Without wanting to sound too obvious, the first thing that needs to done is talk to the member of staff who has become disabled. After all, it’s they who know best how the disability will affect them and their work. Their manager will need to have as many confidential, confidence building conversations as they need, about how to help them to get back to full productivity as soon as possible. Line managers should resist the urge to rush to the internet to find out as much as they can about the disability; the only thing they need to do at this stage is to ask the person with the disability what they need.

The next stage of the process is for the manager to liaise with your HR department, or an Occupational Health specialist, about any adjustments that are needed to help the disabled member of staff to perform at their best. Some of these adjustments might be visible, such as different working hours or equipment that is needed, which can cause other members of staff to start asking questions. “Why is that person coming in later than everyone else?” or “Why does she have a new chair?” Remember that line managers are not allowed to talk to other members of staff about this particular person’s disability – it is up to them to discuss it with their work colleagues, if they want.

#Tip: For SMEs that don’t have Occupational Health advisers or who can’t afford them, the Fit for Work service is a free resource. The service offers free health and work advice through its website and telephone advice line, to help employers with absence prevention. It also provides free referrals for an occupational health assessment for employees who have reached, or whose GP expects them to reach, four weeks’ sickness absence.

It’s really important that managers keep communication channels open with someone who has a disability, to make sure that future adjustments can be made if they are needed. Situations change and people adapt to living with disabilities, so managers need to remain supportive and aware of how a disabled member of staff is performing and managing.

How do managers answer questions from their staff about the visible changes to working conditions that they can see? Since managers are not allowed to discuss the details of the disability with other people, the best way to handle it is to just let them know that it’s a confidential matter that has been agreed between the line manager and the individual member of staff.

When someone at work becomes disabled, the organisation needs to assess the impact of the cost of making changes to accommodate that person and the cost of the functioning of the business. They also need to be aware of their legal obligations. However, it’s just as important that managers remember that at the end of the day, they’re dealing with a real person, who has thoughts and feelings. Talking to them about their disability is the best way to find the right solution for everyone, to make sure that they can carry on doing their best for the business.

What is a disability?

The Equality Act 2010 legally protects people from discrimination where they work, as well as in the wider society in which they live. It protects people from discrimination against them, on many grounds (such as age, sex and race), as well as disability. According to the Act, a person has a disability if they have a physical or mental impairment, and the impairment has a substantial and long-term adverse effect on their ability to carry out normal day-to-day activities.

The Act states that employers are legally bound to make reasonable adjustments for employees with disabilities.  You can find out more about the Act and your legal obligations here.

#Tip: If you have a disability, remember that your employers cannot make adjustments for you until you tell them about your disability. Your boss is not a mind reader!

What are reasonable adjustments?

The average cost of reasonable adjustments per individual is about £75. In many cases these adjustments are simple and inexpensive or even free. What may seem like little changes can have a profound impact in allowing your employees to maintain productive working lives.

Examples of possible reasonable adjustments are:

  • Providing flexible work hours or a phased return to work (flexible, part-time hours)
  • Allocating a ground floor workstation to an employee who uses a wheelchair, or providing a lift or ramp
  • Providing equipment which is suited to the individual, such as a louder phone for an employee with a hearing impairment, or a special keyboard for an employee with arthritis
  • Allowing an employee with social anxiety disorder to work at a designated desk, rather than hot-desking
  • If an employee has a particular phobia, removing such items from the work area
  • Consider job sharing to help reduce the workload.

Factors which may affect what is considered a ‘reasonable adjustment’ include:

  • the extent to which taking the step would prevent the effect in question
  • the extent to which it is practicable for the employer to make the change
  • the financial and other costs which would be incurred by the employer in making the change
  • the extent to which making the change would disrupt any of the employer’s activities
  • the extent of the employer’s financial and other resources
  • the availability to the employer of financial or other assistance with respect to making the adjustment
  • the size and type of business.

#Tip: In situations where an individual requires assistance which is beyond reasonable for the employer to provide, you may consider getting support from Access to Work. This is a government-run programme which helps disabled people to get into or retain employment. The programme provides advice and practical help in assessing the disability needs of a person in the workplace. It may offer financial support towards any costs which are beyond the reasonable adjustments that the company is obliged to provide.

If one of your members of staff has a disability and you think that you might need to make adjustments for them, do get in touch and we can talk about it. Click here to email Roland or call him on 07752 518 925.

Preparing for an Appraisal Interview

While you might not look forward to carrying out appraisals with your employees or members of your team, they are a very good way to keep track of performance and to make sure that staff are working happily and productively.

If appraisals are to be successful in motivating employees and enhancing job performance, it’s essential that you plan and conduct effective appraisal interviews.

Preparation for an appraisal interview is one of the most important stages of the appraisal process.

Keeping the Necessary Records

You must have the necessary facts about your employee’s performance before you when you carry out an appraisal interview. Since they are generally conducted once a year, and no manager has a perfect memory, you should make records throughout the year of instances when your employees have performed well, adequately or badly.

Doing so will provide specific, factual examples of job performance for you to discuss with each employee during the appraisal interview. Without such evidence, the appraisal interview may turn into a haphazard chat based on generalisations – which is neither meaningful or constructive.

Having specific examples will be particularly important if you need to discuss aspects of an employee’s performance that are not wholly satisfactory. This will act as a starting point for discussion on why performance was not satisfactory in the particular area and what can be done to achieve an improvement in the future. Without concrete examples, your employee may not accept your claim that their performance was unsatisfactory and they may become defensive.

Checklist for Appraisal Interview Preparation

If you fail to prepare properly for an appraisal interview, the employee being interviewed will quickly sense and resent this.

Dos and don’ts:

  • Do review the job description and the previous year’s appraisal report to check the job duties and responsibilities and what was said at the previous year’s appraisal.
  • Do talk to other managers or supervisors – and peers where appropriate – with whom the employee has been working during the year to obtain factual feedback on performance.
  • Do think through what aspects of the employee’s performance are to be discussed and identify specific examples of both good and not-so-good performance.
  • Do be prepared to back up any criticism with facts and examples.
  • Do consider what points the employee may wish to raise and think through how any delicate areas can best be handled.
  • Do agree the date, time and place for the interview at least two weeks in advance, taking into account the employee’s preferences. Part-time employees should be appraised at times that fall within their normal working hours.
  • Don’t underestimate the time necessary for the interview. There is no ideal length of time for an appraisal interview, but it useful to schedule more time than you think you will need to avoid having to cut a discussion short.
  • Don’t forget to brief each employee well in advance about the purpose and scope of the appraisal interview.
  • Don’t be tempted to complete the appraisal form until after the interview, although you should review the appraisal form and make some provisional notes.
  • Don’t allow interruptions during the interview and make sure that there are no distractions from mobile phones and other electronic devices.
  • Don’t overlook the importance of taking into account the personality and temperament of each employee. Any likely reactions should be identified beforehand and an appropriate response planned. Different styles of interview may be needed to cater for individual needs. A relatively insecure employee may, for example, need a lot of reassurance.

Advance Briefing

Employees should be properly briefed before their appraisal interview on what the interview is for, how it will be conducted and what they should expect to gain from it. These briefings can be done on a group basis. However, it is also important for you to make sure that each individual has the opportunity to raise questions about the purpose and process of appraisal and to have any doubts or concerns dealt with.

The briefings can be carried out at the same time as the self-appraisal forms are issued.

If you’re planning your annual appraisals and you need any help or advice with getting the best from them, you can listen to the free webinar that we held last year. Just click here to find it. If you have any specific questions, please do get in touch by calling 0118 940 3032 or emailing me here.

How Do You Manage Employee Probation Periods? Part One

By setting a probationary period, as an employer, you can let newly recruited employees know that their performance will be under continuous review during the first weeks and months of employment. It also lets them know that their continued employment is subject to them completing the probationary period. This can help you to manage the employee’s expectations and their relationship with you, as their employer.

Length of Probationary Period

The length of a probationary period will depend on the position and your requirements. A role requiring a high degree of skill and responsibility is likely to need a longer probationary period than one with limited skills or responsibility. Probationary periods are typically between three and six months.

You should set out in writing to your employee that the position is subject to satisfactory completion of a probationary period. You should also specify the length of the probationary period, how progress will be monitored and reviewed and that the probationary period may be extended.

It is important for you to set out employees’ roles and responsibilities at the outset and to go through a comprehensive induction process.

It is advisable for you to hold frequent review meetings or one-to-ones with your new employees to provide progress updates, encouragement and support and to identify training needs. If performance issues are identified during the probationary period, you should consider whether or not extra training or coaching would be appropriate, rather than leaving it to the end of the probationary period before addressing performance issues.

Statutory Employment Rights

Probationary periods have no legal status and an employee who is on probation has the same statutory employment rights as other employees. It is the length of continuous service that defines an employee’s statutory employment rights, including his or her rights in the event of dismissal.

Probationers are entitled to:

  • the national minimum wage
  • statutory sick pay
  • rights under the Working Time Regulations
  • annual leave entitlement
  • family-related rights in the same way as other staff.

Dealing with Disciplinary Issues

Employers often don’t apply their formal disciplinary procedure to employees on probation. To avoid ambiguity, where you do not want to follow your full procedure, you should make clear, in writing, in the contract and/or disciplinary procedure, that there is no contractual obligation for you to do so.

As probationers do not normally have sufficient service to claim unfair dismissal, they cannot challenge the procedural fairness of a dismissal in the employment tribunal.

However, a probationer could claim that a dismissal was for an automatically unfair reason or for reasons that amount to unlawful discrimination. Therefore, where an employee on probation is suspected of misconduct, you should investigate further before taking action. If you prejudge the situation and dismiss the employee without going through your disciplinary process and giving the employee the opportunity to explain his or her version of events, this could increase the risk of a claim of unlawful discrimination or automatically unfair dismissal. You will be in a better position to argue that the reason for dismissal was the employee’s misconduct if you investigated the matter and can show reasons behind its decision to dismiss.

Extending the Probationary Period

Where an employee has not reached the required standard of performance by the end of the probationary period but you recognise that there is potential for improvement, you might choose to extend the probationary period. The right for an employer to extend the probationary period should be set out in the contract or offer letter, which should also make clear the terms and conditions that will apply during the extension period.

The extension should be for a reasonable period, taking into account how long it might take him or her to complete an improvement plan. You should discuss your employee’s performance and why you are extending the probationary period with him or her and allow the employee to put forward any explanation for the performance issues.

The extension should be agreed and arranged before the original probationary period ends.

Sickness Absence

Sickness absence during a probationary period will need to be monitored and managed in the usual way. Where the absence is frequent and/or long term, this may make it difficult for you to assess the employee’s performance during the course of the probationary period because of their reduced attendance.

You will need to consider whether to: terminate the contract due to the employee’s failure to complete the probationary period satisfactorily; extend the probationary period to give the employee more time to demonstrate his or her suitability for the job; or confirm the employee in post regardless of the absence.

You should investigate the sickness absence to find out if it is due to a disability under the Equality Act 2010. If it is, but you dismiss the employee for failing to complete the probationary period satisfactorily, they may have grounds to bring a disability discrimination claim. You would need to be able to justify your actions.

In part two of this series of blogs, we’ll look at what to do if all goes well through the probation period and you decide to keep your new employee on. If you need any advice now about how to handle probation periods, get in touch by emailing sueferguson@optionshr.co.uk or calling me on 0118 940 3032.

Performance Management – How to Get the Best from Your Team

In May I delivered a free webinar that covered a number of aspects of performance management and how to get the best from your team.

We talked about the success factors of performance management and what effective performance management requires. We discussed the differences between formal and informal performance management and the day-to-day issues that need to be covered. We also looked at Personal Development Plans and how you can use them to get the best from your employees.

If you missed the webinar and you would like to listen to it, you can hear it here. You need to register by putting your contact details into the form on the page and then you’ll be able to download the webinar and listen to it as many times as you like.

If you have any questions about how to improve the performance of your team, do get in touch. You can call me on 0118 940 3032 or email me at sueferguson@optionshr.co.uk.

How to Deal with an Employee’s Difficult Attitude

Sometimes, as a Manager, you might have to deliver some bad news to one of your employees. You may have to tell someone that their job is redundant, or discuss some poor performance or unacceptable behaviour. The topic under discussion may be a sensitive issue. Some employees could react negatively, by becoming upset, angry or verbally abusive. There are several things that you can do, as their manager, to ensure that the meeting remains productive.

Remain calm. It is your responsibility to achieve a successful outcome to the meeting and this can be done only if you remain calm and refrain from bringing your own feelings into play.

Let the employee ‘vent’. It is important that the employee calms down. However, allowing the employee some time to vent his or her anger or frustration, gives them space and a feeling of being listened to. They may also reveal information that may help in finding a resolution to the problem.

Remember the reason for the meeting. It is easy for the employee to veer into other topics if he or she feels uncomfortable, or is looking for excuses for his or her behaviour. To get back on track, you should remind them of the reason for the meeting and the ideal outcome.

Remember that the issue needs to be dealt with. When faced with a difficult attitude, you might be tempted to postpone the meeting in the hope that the employee will calm down. However, this can make both parties lose sight of the issue. Don’t postpone the meeting simply because the employee is not being receptive.

Inform the employee that his or her attitude does not assist the organisation as a whole. If the issue being discussed is the employee’s misconduct, you could explain to the employee that his or her difficult attitude in the meeting mirrors his or her behaviour in the workplace. This may help the employee to reflect on his or her behaviour and calm down.

Following the Meeting

After the conversation, you should keep the momentum going. Achieving a successful outcome is an ongoing, building process. Failing to keep on top of the issue may undo all the good work and may leave you having to deal with the issue from the beginning. To ensure momentum is not lost, there are several things that you can do:

  • Make sure that the employee feels supported. If the employee knows that a manager is there to support and help him or her, this will be invaluable in achieving a successful outcome to the conversation.
  • Have regular informal chats with the individual and less regular formal discussions, including a further meeting to review the outcomes or first step.
  • Ensure that what was said and agreed in the meeting is well documented. Both parties should agree that the contents of the document reflect what was agreed and thereafter refer to it if there is confusion or disagreement.
  • Monitor how the agreed actions are being implemented by the employee.
  • Comply with your obligations as to follow-up, for example providing agreed training.

Dealing with a difficult attitude or an angry or upset employee is not something that you have to handle every day, as a manager. However, if you’re prepared, if and when the situation does arrive, you’ll be in a better position to handle it. If you have a difficult conversation to have with a client and you’d like some help getting the best outcome for everyone, call me on 0118 940 3032 or email sueferguson@optionshr.co.uk and I can give you some advice and pointers.

The 12 Days of Christmas

On the first day of Christmas, my HR Consultant gave to me, a Contract in a pear tree. Make sure that you have up to date contracts for all your employees.

 

 

 

 

 

On the second day of Christmas, my HR Consultant gave to me, two boxing gloves. Don’t go picking a fight with your employees just because they don’t do what you want them to do. Learn to manage them properly!

 

 

 

 

On the third day of Christmas, my HR Consultant gave to me, three French Hens. If you have employees from Europe, keep an eye on our blog for news of how Brexit could affect your employees and your business.

 

 

 

 

On the fourth day of Christmas, my HR Consultant gave to me, four dreaded words. “You have been fired!” Before you rush to sack anyone, check to make sure you have a good reason and make sure you do it properly.

 

 

 

 

 

On the fifth day of Christmas, my HR Consultant gave to me, five golden things. Here are the five stages of HR that your business will go through.

 

 

 

 

 

On the sixth day of Christmas, my HR Consultant gave to me, six staff-a-laying. Keep your employees delivering all those golden eggs, to the best of their ability, by looking for ways to develop them and their performance.

 

 

 

 

On the seventh day of Christmas, my HR Consultant gave to me, seven swans-a-swimming. If, like a swan, you’re all grace and elegance above water, while below you’re frantically paddling to keep afloat of all things HR, just get in touch to see how we can help.

 

 

 

 

On the eighth day of Christmas, my HR Consultant gave to me, eight maids-a-milking. Except that these days, you have to let the men do the milking too, if they want to! You’re not allowed to discriminate. Acas can help you create a fair workplace.

 

 

 

 

On the ninth day of Christmas, my HR Consultant gave to me, nine ladies dancing. And the men can dance too!

 

 

 

 

 

On the tenth day of Christmas, my HR Consultant gave to me, ten lords (and ladies) leaping at the Christmas party. Make sure you lay down a few rules for proper behaviour, so that things don’t get out of hand.

 

 

 

 

On the eleventh day of Christmas, my HR Consultant gave to me, eleven pipers piping. Make a big noise when your staff do a great job. Look for the best way to reward them.

 

 

 

 

 

On the twelfth day of Christmas, my HR Consultant gave to me, twelve drummers drumming. I keep drumming good HR practices into my clients’ businesses, to help them grow successful companies that are great places to work.

 

 

 

Merry Christmas …

And have a stress free New Year with lots of happy, productive employees!

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3 Steps to Get You Through Those Dreaded Appraisals!

With the end of the year approaching fast, now is a really good time for you to be thinking about annual appraisals. It is ideal if you can complete them all by the end of the year, as they give you a good opportunity to review the performance of your staff this year; and to plan what you want them to achieve next year.

Many managers approach appraisals with fear and trepidation. However, if you put some time into preparing for them, they can be a very useful tool for developing your people and improving performance across your business. Read on to find out how to this simply and efficiently!

It seems that many managers, whether relatively new to the job, or with many years of experience, would rather not spend more time than is absolutely necessary on annual appraisals. They have bad press as being a waste of everyone’s time. This is quite possible, if you approach them at the last minute, with no preparation. Here are three steps that will help you and your employees to find them much easier to get through and actually get the best from your time.

  1. Preparation

This is one of the most important stages of the appraisal process and is often missed or skipped over too quickly. You need to have facts about each employee’s performance and evidence of instances in which they have performed well or badly. This will make the appraisal constructive and meaningful.

Throughout the year, track each employee’s performance and keep a log of memorable incidents or projects they’re involved in. Look back at previous appraisal information and job descriptions to make sure they are meeting their agreed objectives.

Make sure that your employees are prepared too. Agree the date, time and place for the meeting at least two weeks in advance; brief them on the importance and scope of the meeting and what you expect from them. Ask them to spend some time thinking about what they’d like to discuss at the meeting too. Click here for an example of a form that you can ask each employee to complete before the appraisal.. If an employee also works for someone else in the business, ask them to be involved too.

  1. The Meeting

Once the preparation is done, here’s how to carry out the meeting:

  • Ask open and probing questions, giving your employees the opportunity to decide how to answer; encourage them to talk freely
  • Listen to what they say without interrupting. Also watch their body language for messages
  • Evaluate performance, not personality. Focus on how well the employee does their job rather than personal characteristics
  • Give feedback based on facts not subjective opinion. Use feedback to positively reinforce the good. In the case of underperformance, use it to help the employee understand the impact of their actions or behaviour and the corrective action required
  • Set SMART objectives for the future and set a timeline for improvement if an employee is underperforming. Look also for development opportunities to help your employees reach their potential.

Document each appraisal. Write a summary of the discussion, what was agreed and any action to be taken while it’s fresh in your mind.

  1. Follow Up

Don’t just walk away at the end of the meeting, breathing a sigh of relief and forgetting about it all until next year!

Do what you say you will do. Fulfilling your promises reflects well on you and your business. If you’ve set deadlines for performance reviews, follow up on them. Check on progress that you discussed in the meeting.

Not following up with appraisals means that the whole process will be a waste of time and something that neither you nor your employees look forward to or find useful. Spend some time planning and preparing and you’ll find them really useful and productive.

If you need help with appraisals, why not use our Appraisal Service? We will help you to hold meetings that actually work for you, your staff and your business. Click here to find out more.

Is it Cheaper to Look After Your Staff or Cheaper to Replace Them When They Leave?

How can the loss of key staff members be prevented when so many employers are not interested in managing retention?

Many employers don’t attempt to manage retention of their staff. Those that do so seldom evaluate the impact of their measures, and often base them on unreliable assumptions about the reasons why employees resign.

Several research studies have shown that retention is linked to employee engagement, which in turn is linked to profitability, customer service and other important business metrics. So is it better to focus on improving engagement, rather than retention. Or should you not worry and just bear the cost of replacing people when they leave?

Despite all the evidence that staff attrition costs money, many businesses take no active steps to control their staff turnover. Research has shown that action is most likely to be taken after the event: when turnover has already become a problem and damage is being done to organisational efficiency.

Studies also consistently show that employers tend to mishandle their efforts to manage retention, focusing on issues that they believe are linked to resignations rather than those that actually motivate staff to leave. Pay in particular is often used to encourage employees to stay, yet it is much less of a deciding factor in employees’ own decision-making than being offered career opportunities, being kept informed and consulted and having faith in the business’s leadership.

What is ‘employee engagement’?

It embraces the older concepts of job satisfaction, motivation and attachment that described individual employees’ attitudes to their employer, but goes beyond them to provide a complete model of the psychological relationship between individuals and organisations. It is a two-way process in which employers and employees interact and respond to each other, unlike the more static concept of job satisfaction.

Employee engagement involves two issues:

  • personal satisfaction in the individual’s job or role (“I like my work and do it well”); and
  • the individual’s contribution to their employer’s success (“I help achieve the goals of my organisation”).

Staff retention can be used as a measure of employee engagement, with many companies now believing that employee engagement is one of the keys to managing performance and retaining talent. Initiatives to improve employee engagement are much more likely to gain the interest and active support of senior management than those focused narrowly on increasing staff retention. Employee engagement has much broader business benefits, including:

  • increased profitability
  • faster revenue growth
  • improved organisational efficiency
  • better attendance levels
  • heightened customer focus.

Look after your staff and they are more likely to look after you and the future of your business. If you need some advice or ideas on employee engagement, email us at sueferguson@optionshr.co.uk or call 0118 940 3032.