Why Bother with HR?

What’s the point of HR?  Do you really need someone to spend time (and money) looking at the people in your business? Surely it’s quite simple and something you can do for yourself?

Here are a few ideas to help you decide whether or not to bother with HR.

The cost of getting it wrong.  Without the right HR systems in place, you could end up on the wrong side of the law, with a hefty bill to pay. A majority of employers believe that claims to Employment Tribunals will increase following the increase in the qualifying period of service to claim unfair dismissal from 1 year to 2 years. Part of the reason for the anticipated increase is that there is no system to prevent spurious claims being made to a tribunal. There is no potential downside for a claimant and potential for a financial windfall.  No win no fee solicitors support the disgruntled employee to have a go on the basis that the business will make a settlement to avoid legal costs. The figures of employment tribunal awards in the year 2011/12 have now been released and show that the median of all wards was £4560, the average award was £9133 and the maximum award was £173408. Keeping up to date with the legal issues is vital if you want to avoid unnecessary problems and payments.

The benefits of getting it right.  In order to avoid further claims businesses are making changes to their policies and procedures and making sure their managers are well trained in these procedures because a majority of employers believe that the most important factor behind a decision going against them at tribunal has been the role played by the line manager. In most cases the decision concerns the managers failure to follow their own company’s procedure!  On a far more positive note, good HR can really help to boost the profitability of your business. By putting HR management practices into your organisation, studies have shown that you can reduce employee turnover by 7%, increase sales per employee by 5.2% and increase overall financial performance by 6%.

Do you bother with HR? Do you do it yourself, or bring someone in to help with HR issues? Is it worth it, or just another business expense? Leave a reply below and let us know what you think.

Absence Management

It is estimated that unauthorised absence costs the UK economy around £10bn-£12bn every year with employees failing to come to work for no good reason an average of 8 days each.   With the Olympics just a few short weeks away, and an expected rise is unauthorised absence predicted it important that you plan ahead to avoid unauthorised absence.

To stay on top of unauthorised absence you must put in place thorough absence policy that includes how absence will be managed; states clearly what absence is and is not permitted; details of how absence will be recorded and monitored; reporting lines and disciplinary procedures.

When you suspect an employee is taking an unauthorised day off you should:

  • Make contact on day 1 to establish the reason for the absence
  • If you are not satisfied that the reason for absence is genuine follow up with a letter on day 2
  • If the employee does not make contact and remains absent from work without notice you may have cause to assume resignation and formalise the appropriate procedures
  • If the employee returns to work you should always conduct further investigation in order to prevent a similar absence from occurring in the future and where necessary invoke a formal disciplinary process
  • If an employee takes annual leave despite being previously refused you must contact them immediately in writing and again invoke a formal disciplinary process.

Having in place a robust absence management policy will reap long term rewards by: –

  • Identifying the causes of poor attendance.
  • Providing support.
  • Increasing loyalty and motivation.
  • Deterring casual absence.
  • Identifying problems at work.
  • Improving morale and motivation.
  • Leading to reduction in absence.
  • Improving productivity.

Managing Capability and Conduct Issues Effectively to Avoid Dismissal

When capability and conduct issues come into play it is important to take proactive action to quickly remedy the situation whilst balancing your responsibilities in terms of employee statutory rights.  Here are some tips that can help:

  • When a performance issue arises deal with it there and then, not dealing with a problem in its infancy can lead to a major crisis if left to fester.
  • Give your employee the benefit of the doubt and work  in partnership with them to develop a suitable action plan.
  • Establish the causes of poor performance and pinpoint examples of where performance is lacking.
  • Put a road map in place that includes how you will support your employee, clear performance expectations going forward and any training, coaching programmes necessary  to rectify the situation.
  • Consider alternative employment options.  Whilst you do not have a duty to do this it is a good preventative step to avoid employment tribunal  and unfair dismissal claims.
  • Hold an informal meeting in the first instance to ensure that the employee understands why their behaviour has been deemed unsatisfactory and agree steps to ensure that the behaviour does not recur.
  • If informal warnings have not produced the desired invoke a formal disciplinary procedure including investigation of the facts and written warnings, before heading down the route of dismissal.In the event of an act of gross misconduct you have the right to dismiss the employee, following an investigation and meeting, without notice or pay in lieu of notice.

Bribery Prevention

Do you understand how the Bribery Act 2010 could affect your business and the measures you need to take to prevent you from falling foul of acts of criminal bribery?  Here are a few tips to get you started:

  • Undertake a risk assessment and draft an anti-bribery policy that is relevant to your business operations and your employees
  • Ensure top level commitment to the policy and put in force a zero tolerance approach
  • Communicate your policy to your staff, customers, suppliers and any other parties associated with your company
  • Ensure your employees are trained and understand the implications of the Bribery Act
  • Update your contracts of employment to include acts of bribery in the context of gross misconduct
  • Ensure appropriate approval processes for any payments, gifts or hospitality requests
  • Ensure good record keeping and audit trail – record any incidents where ethical standards may have been breached and how it has been dealt with

How to ensure your employees are performing to the best of their ability

Your people are the heart of your business.  By investing in them you are investing in your success.

Here are our top 10 tips to help you get the most out of your most precious asset, your people!

  1. Provide a vibrant and stimulating working environment and a culture that values the contribution made by each and every individual.
  2. Actively 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 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 and allow your staff 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 required to deal with difficult situations confidently and effectively
  8. Reinforce/reward good performance
  9. Offer a clear career path that 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