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Tuesday, 12 April 2011
HR Tips for the Successful Expansion of Your Business
So here we go…..Here are my top HR tips for expanding your business successfully.
Recruit Carefully:
Whether you’re a small business starting out or a multi-million pound company, every business can make recruitment errors. And yet, employees are usually a business’ biggest cost. A survey from leadership organisation the Chartered Institute of Personnel and Development (CIPD) found that the average cost of filling a vacancy could be as much as £6,125. Having to fork out twice because you’ve made a bad decision could seriously damage your business. Targeted advertising of vacancies and tried and tested interview techniques will help you to recruit right first time round.
Stay on Top of Employment Law:
Did you know that every employee must legally receive a contract of employment within two months of starting a role? Are you aware of current employment legislation? Whether you tackle employment legislation yourself or get an external HR service, like The HR Experts, to advise you on this, making sure you conduct your business within the legal requirements is essential. With the rapid rise of employment tribunals you do not want to risk hefty compensation claims due to employment errors.
Invest in Training and Development:
With the ‘one job for life’ attitude no longer being the norm, keeping quality employees can be vital to maintaining your skill set and avoiding frequent recruitment drives. Employees need to be able to continue learning and adapting their capabilities. By looking ahead and initiating effective learning interventions in good time, you can stay ahead of the game.
Finally, communication, communication, communication:
I am sure you have heard this before but communicating with your employees really does work. Communication can often fall by the wayside when you are busy expanding your business. It is essential, however, to make time to communicate with your staff. Have an open door policy and clear lines of communication. Your staff will feel valued and involved, increasing their commitment which will increase your profit. Let’s not forget that that is the imperative factor in expanding your business!
If you have any questions on this or any other HR issue contact The HR Experts at info@thehrexperts.co.uk
Thursday, 24 March 2011
All I've got's a sunny afternoon?
Monday, 21 March 2011
Work Experience? Internships? Apprenticeships? Is this really also unpaid labour or could this add value to your business?
Generally, the term 'work experience' refers to a limited period of time that an individual spends with an organisation. This gives an opportunity to learn directly about the work that the company does and is also known as a placement or an internship. Today, all young people have to consider work experience. However, there are implications for this as to whether ‘work experience’ needs to be ‘paid work experience’?
National Minimum Wage - (£5.93)
There can be laws on being paid when it comes down to work experience. National minimum wage (NMW) legislation ensures that almost all workers in the UK who are over compulsory school leaving age are entitled to be paid at least the National Minimum Wage. 'Worker' has a legal definition and depends upon the existence of a contract of employment or a contract to personally perform work or services. These contracts can be written, oral or implied.
However, with high competition in gaining a job, working unpaid could be a thing of the future. With competition for graduate jobs at a high, employers are looking for more than just a good degree from their graduate recruits. Employers, particularly small and medium sized businesses, recruit for “real” positions and expect new graduates to be able to quickly adapt into their role. Employers frequently look for work experience as evidence of your skills, commitment and understanding of the career. Without experience, particularly in some sectors such as HR, media, advertising, etc, it is very difficult to compete and for many employers, it provides a route in.
The Governments Plans
Jackie Orme, Chief Executive at the Chartered Institute of Personnel and Development (CIPD) expressed that young people have suffered in the recent recession. Research shows employers are reluctant to hire from groups where they feel basic job skills are lacking. Work experience is a perfect way to break the vicious circle of no experience and give young people an opportunity to develop and demonstrate the skills and commitment employers need.
The Benefits for Organisations
Some tips for businesses may include:
· Planning ahead – think about forthcoming projects or staff holidays where a young person could provide essential resource.
· Setting expectations – brief the young person in advance rather than once they arrive to save time in the long run
· Giving responsibility – give young people projects that help your business complete work you may not have been able to deliver.
Friday, 4 March 2011
Who’s holding the baby?! The due date for additional paternity leave approaches…..
Who is eligible?
§ you are the father of a child due on or after 3 April 2011
§ your wife, partner or civil partner is pregnant and due to give birth to a child on or after 3 April 2011
§ you and your partner receive notification that you are matched with a child for adoption on or after 3 April 2011
§ your wife, partner or civil partner is adopting a child from overseas and the child enters Great Britain on or after 3 April 2011
§ the child's mother is entitled to statutory maternity leave, maternity pay or allowance or statutory adoption leave or pay
What will additional paternity leave entitle you to?
§ between 2 and 26 weeks’ APL, if the mother has returned to work. This is in addition to 2 weeks’ ordinary paternity leave. APL can only start 20 weeks after the child is born; and
§ be entitled to receive additional statutory paternity pay if the mother has not exhausted her statutory maternity pay when she returns to work. He also has the right to maintain the same terms and conditions (other than pay) as if he had been at work;
§ have the right to return to work in the same job and on the same conditions.
How does this impact on you the employer?
Some employers, however, have voiced apprehension over the new legislation. Elaine McIlroy notes that in a recent survey of HR professionals, 45% expressed concern over its introduction, citing anxieties over managing the new policy.
What can you put in place to manage the change?
Employers should have existing policies in place to manage maternity, paternity and adoption leave and, in many respects; these can be adjusted or extended to make provision for APL
Ensure line managers are briefed and trained on the new employee rights to reduce the risk of discrimination against employees who are eligible for APL. Consider issuing a Q&A on the qualification and notification requirements for APL.
Consider whether any enhanced benefits offered to mothers on additional maternity leave (such as enhanced maternity pay) should be offered to fathers on APL. We are not sure how the law will develop on this one and the Government does not believe that a failure to replicate such benefits will give men grounds for a claim, but it is arguable that treating men and women differently through this period could give rise to discrimination.
In addition, employers will have to update redundancy policies and guidelines to ensure they record that fathers on APL, like mothers on ordinary maternity leave, are entitled to be offered any suitable alternative vacancies, if their role is made redundant.
However, like every new piece of legislation that is put in place it is a waiting game to see what impact it will have and how the law develops. Nevertheless, by being aware of a few adjustments that can be made now this should enable the implimentation to be a smooth one.
Monday, 21 February 2011
Pre-Wedding Jitters??...Confusion Surrounding the Royal Wedding
The bank-holiday season is nearly upon us! Are you prepared?
The recent announcement of the Royal Wedding on 29th April has left many employers confused. Uncertainty surrounds whether employers have to grant employees this extra day off and if so, whether this leave is paid or unpaid. Equally, many employees may be confused or misguided as to whether they have an automatic right to take this additional day off.
Entitlement
Under the Working Time Regulations 1998 the statutory minimum holiday entitlement currently stands at 5.6 weeks a year. For most full time employees this equates to 20 days plus the standard 8 days annual public holidays. (The addition of the 29th April as a bank holiday brings the total number of bank holidays in 2011 to 9 days.)
An employee’s contractual position however may be different. For example if the employment contract states an entitlement to 20 days’ paid leave per annum plus bank/public holidays then this year they would be entitled to 29 days’ paid leave. However, if the employment contract states that they are entitled to 28 days per annum including any bank/public holidays then an employee’s entitlement would not increase with the additional public holiday. Employees on this contract would still be able to take the day off however this would be taken from their annual entitlement.
Part-time employees
Issues are likely to occur where part-time employees have their holiday entitlement rounded up to allow for their pro-rate bank holiday entitlement. For example, part-time employees who work three days a week and get the pro-rata equivalent (16.8 days inclusive of their bank holiday entitlement) will have to use some of their rounded up entitlement to take the time off as there will be no increase in entitlement for the wedding.
Most full-time staff have arrangements whereby bank/public holidays are on top of their annual entitlement. This may lead to part-time staff feeling they are being treated less favourably and may decide to claim against the employer. To avoid this, employers should offer a pro-rata increase to part-time employees too.
To pay or not to pay?
Many employers will be happy to give staff the day off with pay irrespective of their contracts. There are some companies however that have already informed their employees that the 29th April is just a normal working day and if they wish to have the day off they need to take it out of their annual entitlement. Be careful though: this should only happen if the contract of employment permits it.
How about those employees who do work on the day of the wedding, should they receive additional payment?
As with any bank holiday there is no statutory right to additional pay or time off in lieu so again the answer lies in the wording of their contract. If the contract states that bank holidays are in addition to their annual leave entitlement and an agreement is in place for pay increments when working bank holidays, you should apply this as normal.
Making your decision
When deciding whether to grant this additional holiday you need to weigh up your options and decide what’s best for you and your company. Offering the wedding day as an extra holiday is a gesture of goodwill and a positive move for employee engagement. Conversely, in such times of economic downturn and with each bank holiday costing the economy £6 billion, it is not a viable option for all businesses. Individual companies (especially smaller businesses or those just starting out) need to seriously assess whether or not they can afford this.
Planning & preparation
If you do decide to take this day as a public bank holiday, remember employees will need only to book the three days off (26th-28th April) to have an 11-day break. It is highly likely that demand for time off over that period will be high so you need to ensure that you manage those requests effectively! Whatever you decide, ensure that you communicate your intentions to your employees; they may not know what their entitlements are.
The best advice for businesses and employers is to be prepared and to check the employee contracts thoroughly before addressing your employees!!
As ever, if you have any questions on this or any other HR issue contact The HR Experts at info@thehrexperts.co.uk
Tuesday, 8 February 2011
Staking a Claim
With Tribunal claims rising, the UK coalition government is reviewing employment laws. Employers are often unclear about what they can and can’t do, with scare stories about Tribunal claims leaving them feeling backed into a corner. The Employer’s Charter helps clear up some common myths about the balance between business need and individuals’ rights.
Employer lobby groups have raised concerns that Tribunal claims are too onerous and costly, particularly for smaller organisations. As a result, ways to speed up the Tribunal process and attempts to reduce ‘weak or vexatious claims’ will be considered. Prime Minister David Cameron has stated that the change will help support business growth.
The emphasis on reform appears to be in favour of businesses, which has received support from some quarters. The key proposals include increasing the minimum service for an unfair dismissal claim from one to two years and encouraging conciliation rather than Tribunal. This is aimed at reducing the number of claims brought against employers, however fines may also be imposed for employers who are in breach of employment rights to encourage compliance. Brendan Barber, of the TUC, has hit back at the proposals, stating that “if firms treated their staff fairly, few would ever find themselves taken to court”.
A separate consultation is under way to consider the introduction of a fee to bring a claim, although it is unclear what that cost could be. This has been met with disapproval by law firms who believe it could ‘impede access to justice’. However, the rising cost of the Employment Tribunal is obviously a key concern for the government and this may also result in payment of expenses being removed.
Thursday, 27 January 2011
New Year's Resolutions......
So what HR resolutions did you make and have they pushed aside with that cabbage soup detox diet?!
Will 2011 be the year when you get the best out of your people? Will it be the year when you review all your policies and procedures? What HR resolutions can you make?
· Give regular feedback?
Does feedback necessarily have to be in the form of a yearly appraisal? We don’t think so.
Why not try to give regular feedback in the form of 1 to 1’s with your staff. This doesn’t have to be lengthy or formal process it can be an informal chat about progress or any issues that have arisen in the day to day performance of an employee or it can just be a pat on the back for a job well done. Sharing your thoughts with an employee about their progress, giving then constructive criticism or a simple well done can have a significant impact on staff morale and improve performance.
– Manage poorly performing staff?
Whilst we are not promoting the Alan Sugar ‘you’re fired’ effect. Managing poorly performing employee’s should not be avoided. Have you got performance management procedures in place? Are you tackling situations as they arise to prevent them turning into issues? With Unfair dismissal claims continuing to rise, 56% in 2010, caution in this area is understandable. However, to ignore performance issues can cause real problems for your business in the long run and can have implications for the efficiency and morale of your team.
– Keep up to date with Employment Law?
Employment legislation does continue to change. However, are you aware of the key dates for 2011? Get these in your diary-
January 1
– Expenses for travel to temporary workplaces can no longer be counted towards the National Minimum Wage.
– Scheme for naming employers that breach national minimum wage legislation introduced. Those found to be in breach of legislation will be given three months to address the problem.
April 3
– Fathers can claim up to six months' of the mother's maternity leave provided she returns to work, under new Additional Paternity Leave arrangements. The new right is granted to fathers of children due on or after 3 April 2011. The extra leave is in addition to the current two weeks’ paternity leave entitlement.
April 4
– Single Equality Duty for public bodies comes into force, replacing the current separate duties for race, disability and gender, and including other grounds such as sexual orientation and religious belief.
April 6
– Default retirement age set to be abolished. Employers no longer able to issue notifications for compulsory retirement using the DRA procedure. Some employers may be able to objectively justify why certain workers should retire, such as those in the police force or construction industry.
– Personal allowance for income tax for basic rate tax payers under the age of 65 will be increased by £1,000.
– Employers' national insurance contributions increased by 1pc to 13.8pc. National Insurance Contributions will also be increase by 1pc for employees, and the primary threshold increased by £570. Threshold at which employers pay National Insurance raised by £21 per week.
– Employees of companies with fewer than 250 employees are granted statutory right to request time off for training or study. Already in place for businesses with more than 250 employees, the change means employers have to seriously consider any training requests received.
Also in April (date TBC)
– Right to request flexible working extended to parents with children under 18, one year older than present. Employees must be employed by the same business for 26 weeks or more before they are eligible.
– Bribery Act 2010 comes into force, introducing a new corporate offence of failure to prevent bribery by employees, agents, or other "associated persons" working on behalf of a business. This is unless a business can show that it has adequate anti-bribery procedures in place.
October 1
The Agency Workers Regulations 2010 will give agency workers the same basic employment conditions as permanent employees after just 12 weeks on an assignment. This will relate to pay, holidays and other conditions of employment.
– Manage sickness absence
According to CIPD's research employee absence is a significant cost to businesses. Whilst many employers are tackling absence and have systems in place to monitor absence more can still be done to ensure that short term sickness is not having an impact on your business. In the latest CIPD absence survey fewer than half of employers monitor the cost of absence, just under half of organisations have set a target for reducing absence and just over one third of organisations benchmark themselves against other employers.
Have a look at how you monitor sickness? We advise using the Bradford Index as this is a great tool for monitoring sickness absence and triggers points can be used to highlight any issues with employees who have recurring incidents of short term sickness.
We would also advise conducting Return-to-work interviews as they can help identify short-term absence problems at an early stage. They also provide managers with an opportunity to have a chat with staff about underlying issues which might be causing the absence which could ideally knock the problem on its head before it has an impact on your business.
Finally……. If you need any advice or have any questions why not make it one of your resolutions to contact The HR Experts at info@thehrexperts.co.uk