A time for change

Jennifer Marsden, HR Manager at The HR Experts gives her take on managing in the current climate

Headline-grabbing industrial action doesn’t just put pressure on the government – it also affects the organisations that employ striking workers, and in turn, the quality of service they provide. However, the effects on productivity don’t end there.

“We all know that people resist change,” says Sharon Swift, Managing Director at The HR Experts. “Managers often complain to us that maintaining business-as-usual at times of instability poses a huge challenge to them. Employees see through thinly-veiled attempts to raise moral, but thankfully there are many other strategies you can employ.”

Many workers are being told they have to work longer before they retire and contribute more to their pensions. What is more, in the public sector outsourcing is looming large and workers are being transferred across to the private sector where expectations can be entirely different.

The combined worry of redundancies and the sense of betrayal that comes with changes to terms and conditions can cause inertia for some. For others, energy is directed at conflict rather than co-operation. The psychological contract runs deep for employees – particularly where they have long service with organisations. Their sense of entitlement is based on years of familiar patterns; which means that they are experiencing change in both practical and psychological terms.

Everyone knows that having vision to lead through change is key, so we regularly coach senior managers on leadership styles. The type of approach differs with the level and scope of change. For example, where there is wide scale organisational change, a directive style of leadership is most effective.

However, communication is the lynch pin in overcoming resistance. Middle managers are essential to success in this area. Within both the public and private sector, we are used to advising managers how to provide a degree of stability and calm during transformation. It’s our view that, when faced with the difficult role of gate-keeper, some middle managers side with employees while others steadfastly tow the leadership line. Most, however, opt for the painful option of sitting on the fence. However, we show managers that being piggy-in-the-middle doesn’t have to be painful – or disingenuous.

We tell our clients that the best option is a simple approach which rests on effective consultation. Good managers ensure employees understand what is happening, listen carefully to their views and present the management case. Once opinions and suggestions are gathered, a proper response can be formulated giving the rationale for decisions. It is essential that this is conducted by experienced professionals who understand employment law and change management.

“Another benefit of meaningful consultation is the appreciation of attitudes it provides”, says HR expert Sharon. “It helps managers to assess the best way to implement changes and identify areas of resistance. Conflict can be managed by ensuring employees feel heard and avoiding the urge to be derisive or pass judgement.”

Having clearly communicated milestones has a hugely beneficial influence as they help provide order and stability for employees. Outlining each stage of the project and associated timescales means fewer surprises around the corner. Knowing when something will happen is not quite the same as knowing what will happen, but it does help provide a greater sense of security.

Finally, action mustn’t simply stop once you are at the end of the change process. Like most people, we recognise that change can be an opportunity to look at your successes and where you can improve. Take the time to audit and reflect on the change process. Future projects can benefit by identifying opportunities to learn and develop. Also, continue to gather employee opinion and seek opportunities for improvement. This can help organisations begin to identify and address any residual employee dissatisfaction.

Change management checklist:
 Adopt the most appropriate leadership style
 Develop a robust project plan with clear milestones
 Inform and consult employees at all stages
 Plan for resistance and try to reduce pressure points
 Reflect and develop on the process for next time

The HR Experts are a UK-based HR provider offering outsourced support and offer free initial consultations to public sector organisations. Email info@thehrexperts.co.uk for more information or telephone (01709) 328864.

HR Tips for the Successful Expansion of Your Business

In this tough climate anyone looking to expand their business faces a variety of challenges and considering HR may not be on your list of priorities. However, by making sure you have the right people in the right roles, ticking all the employment law boxes and managing your staff effectively you can save time and money in the long run, increasing your bottom line. Can your business afford not to consider HR?

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

All I've got's a sunny afternoon?

BBC Radio 2's Simon Mayo saw fit to play The Kinks' Sunny Afternoon yesterday. And appropriately so - it was unseasonably warm and George 'babyface' Osborne realised this Spring's budget. In this blog, we look at what effect these most recent announcements have on employers.

NICs

Some employers, and many accountants, may welcome the move towards integrating NICs and income tax into one system. However, for now, the government are continuing with the current system. Employers (and employees alike) will see an additional 1% being added to NICs. That said, the rate at which they become payable has now been moved to £136/week.

Petrol allowance

After April 6th, the 40p rate on business mileage increases to 45p. If employers pay less than 45p per mile then the employee can claim it back from the tax man. This applies only for the first 10,000 miles on cars, vans, motorcycles and bikes. A further 5p in the mile can be claimed back for passengers.

Company cars

Drivers of low emission vehicles (between 95gm/km and 220gm/km) will see the tax they pay on company cars drop by 1%, but this isn't effective until April 2012. Other vehicles will remain at the current rates.

Tax avoidance

The government plans to introduce legislation to crack down on employers avoiding paying NICs by offering other benefits or so-called 'disguised remuneration'. The plan is that PAYE and NICs become payable on loans or rewards made in connection with employee's employment. This can be backdated to 9th December 2010. However, Mr Osborne did indicate that they would focus on schemes designed to avoid tax, limiting the impact on genuine arrangements.

Enterprise Zones

Under the Tories, we see a re-introduction of Enterprise Zones. This incentivises businesses to move into the identified zones by offering discounted business rates. Whilst these are aimed at creating prosperity in key geographical areas, critics describe this as economical musical chairs - moving jobs rather than creating new ones.

Childcare vouchers

The tax-free limit of £55 / week is changing for new scheme members from 6th April. From this date, the tax relief will take into account the person's tax allowance, which is most likely to affect higher rate tax payers. Essentially, higher rate taxpayers will be limited to £28 per week and top rate taxpayers earning over £150,000 will be entitled to just £22 per week of tax relief.

Apprenticeships

The Chancellor has confirmed 50,000 new apprenticeships, aimed at reducing youth unemployment. Funding for a further 80,000 work experience placements has also been announced. Together with tax breaks on corporation tax, it is hoped that this will offer the stimulus to encourage businesses to recruit.

For further information on the budget and how it affects other areas of your business, see the full announcement on the HMRC website.

Work Experience? Internships? Apprenticeships? Is this really also unpaid labour or could this add value to your business?

Today, unemployment is at its highest with the latest unemployment figure of almost a million 16-25 year olds known to be sat at home twiddling their thumbs. This clearly shows that young people are finding it harder and harder to find a job. Even those with a degree and a master’s degree struggle as ‘work experience’ is considered to be as valuable as going to University.
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.

Who’s holding the baby?! The due date for additional paternity leave approaches…..

In an effort to promote equality and good parenting a new right to additional paternity leave (APL) is to be introduced from the 6th of April this year. The reforms are intended to give parents greater flexibility in the way in which they share childcare responsibilities in the first year of their child's life. The regulations will be welcomed by many couples, who for financial or social reasons might prefer to adopt a shared approach to parenting in the early stages of their child’s life.

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.

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 29^th 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 29^th 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 29^th 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-28^th 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

Staking a Claim

Whether or not you agree with Boris Johnson about Employment Tribunal's being barmy, you can have your say on their future by going to the BIS website.

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.