So, what has Europe ever done for us…?

Karen has returned to France for the summer and here is her first blog of the season… Thoughts of how she felt before the referendum. It’s still a hot topic and will be for some time…

It’s a strange time to be back living and working in France, with the EU referendum result.  Up until last week it was always a given that, as a citizen of a fellow European Union country, that I am welcome and able to live and work here on equal terms.  How will that change after 23 June 2016?

I am not alone as a UK citizen living and working in another EU country.  In Spain alone there are over 1 million UK citizens doing something similar, many of whom have retired there.  For many people this ability to live and work in another country may not be of interest and not something that you ever see yourself doing.  But there are other working life benefits that have come from being part of the EU, some of which may feel more relevant to you.

So what am I referring to?  Let me give you a few examples………….

  • Paid paternity leave, and now shared parental leave (which is paid, rather than unpaid). Both partners / parents can now have time off to spend with their new born or adopted child, not just the mother.
  • The right not to be discriminated against because you are a parent (expectant mother, a maternity leave returner, a working parent etc).
  • Guaranteed paid holiday of at least 30 days per year (including bank holidays). Depending on your age, you may remember the days when there was no such thing or certainly a lot less paid holiday.
  • The right to be part of a trade union, should you want to be.
  • Your employer has to provide you with a safe working environment, with the personal protective equipment (PPE) to keep you safe and allow you regular rest breaks.

There are lots more examples I could cite that we take for granted, and that any good employer would do anyway to keep their employees motivated, healthy and safe, without “Europe telling them to”.

Don’t necessarily believe that all employment legislation that comes out of Europe is “bureaucratic” or Europe “interfering”.  A lot of what current UK workers, not just employees, take for granted happened thanks to Europe.

Perhaps this is something to ponder as the holiday season approaches, when you may be enjoying some paid time off in the Mediterranean sun somewhere (without the need to get an entry visa) …..

Eu exit and the implications for your business

Following the unexpected confirmation of a “leave” vote, many businesses will already be turning their attention to what happens next?

The most important message is that the referendum result does not trigger any automatic legal changes; neither does the UK’s formal notification that it will be withdrawing from the EU.

The UK will continue to be a member of the EU for the time being, and the status and effect of all UK and EU law remains unchanged for now, and possibly for some time in the future.

Beyond that, however, much remains to be debated and negotiated – such as the shape of trading agreements between the UK and the EU, the status of EU-derived law, thorny issues such as acquired rights, and the UK’s relationships with non-EU states.

It’s still business as usual for a while – no immediate changes

Neither the referendum result nor the UK’s formal notification to the EU has any immediate legal effect. From a legal perspective, it will be ‘business as usual’, probably for some time to come.

  • The next step is for the UK to give formal notification to the EU of it’s intention to leave. This will start the withdrawal process, which must be concluded within two years unless an extension can be agreed (which requires the consent of all twenty-seven remaining Member States).
  • The future trading relationship between the UK and the EU could take one of a number of different forms; which form it takes will have significant implications in terms of the movement of goods, services, people and capital.
  • The UK will also need to undergo a major legislative project to identify which areas of EU-derived law will stay, which will be modified and which will no longer have effect in the UK.

Each of these processes is likely to involve much consultation with the UK public and industry. Businesses have an important part to play in shaping the environment that they will be trading in, domestically and cross-border.

Employment implications of Brexit for your business

UK employers are unlikely to see any large-scale changes to current employment law in the short-term as a result of the UK leaving the EU.  The UK’s on-going relationship with EU Member States, as well as our own workplace culture, is likely to demand that the UK retains many of the EU-derived laws that have already been incorporated into domestic legislation.

Free movement of workers within the EU

Now we’ve voted to leave the EU, the free movement of workers will certainly be affected. However, changes to legislation are likely to be gradual rather than immediate.

While in theory citizens of EU member states no longer enjoy the automatic right to work in the UK (and vice versa), this will form part of negotiations to establish the UK’s new trading relationship with the EU.

EU nationals already employed in the UK may already have acquired rights under UK legislation, depending on how long they’ve been here. It’s likely that many will be permitted to stay in return for a similar agreement for UK nationals currently employed in EU member states.

For prospective employees, however, it may be a different story. While it will still be possible to employ personnel from EU member states, there may be extra administrative costs to be factored in, such as visa applications. An EU employee’s capacity to remain long-term in the UK may also be affected.

There may also be limitations on the type of workers that will be allowed to seek employment in the UK. If we choose to follow a model more like the US or Australia, visas may only be granted for those in professions identified as having a particular need.

Other employment legislation changes

We also expect some piecemeal reform to specific areas of employment law, such as:

  • Clarification of the rules for calculating holiday pay and how holiday accrues during periods of long term sick leave, under the Working Time Regulations (WTR)1998.
  • There is on-going litigation regarding inconsistencies between the WTR and the EU Working Time Directive (which the WTR implements in the UK), creating wide-spread confusion for UK businesses and potentially significant accrued and on-going liabilities.
  • Whilst the UK government is unlikely to repeal current working time rules, it may well take the opportunity to clarify the rules around holiday pay and provide much needed guidance for employers.
  • Pro-business reform of agency worker rights, given the additional costs and complexities of engaging agency workers since the introduction of the Agency Workers Regulations 2010, which implement the Temporary Agency Work Directive.

Whilst the AWR gives agency workers limited equal treatment rights with comparable permanent employees from day one, following a 12-week period, an agency worker has a right to equal pay, working time and holiday with a comparable permanent employee. The extent of any reforms in this area will depend on the exit terms the government is able to negotiate.

KEY THINGS TO CONSIDER NOW

Understand the profile of your workforce. How many are EU citizens? How long have they lived in the UK? Do any have the right to a British passport that you can support?

If you are in a sector recruiting lots of EU nationals or likely to, consider accelerating any planned recruitment before changes are announced to the process. Much more likely that any existing arrangements will be allowed rather than unpicked.

If you are planning to expand into areas of Europe, familiarise yourself with local employment legislation and understand any opportunities to second staff from UK and vice versa.

If you would like to speak to an experienced employment advisor, please contact us.

www.amelore.com

 

Part 2 of our predictions for HR in 2016

In the second part of the ‘Key predictions for HR for HR in 2016 we continue with Bersin of Deloitte predictions for global HR in 2016, additional commentary by Amelore.

the chariotWe have already covered Digital HR; the rush to replace outdated HR systems; the Global rush to replace and re-engineer performance management; engagement, retention and culture as top priorities and the continuing mobility of career and talent and the investment in coaching and mentoring. Moving on we have…

  1. New models for learning

It’s all about the Four “E’s”

Education (formal training)

Experiences (developmental assingments and projects)

Environment (a culture and work environment that facilitate learning)

Exposure (connections and relationships with great people).

70/20/10 model – 70% through on the job experience and practice, 20% through other people by exposure to coaching, feedback and networking and 10% through formal education-based learning interventions.

  • Traditional LMS replaced by highly interactive, curated and recommendation approach to learning.
  • L&D professionals focussing on becoming ‘learning experience designers’ as opposed to ‘instructional designers’.
  • Employees leave organisations that do not develop them or provide appealing learning experiences.

Organisations are increasingly paring down their L&D team and using external expertise if they want to run face to face sessions.  Coaching is used more as is e-learning. Many organisations have developed a strong e-learning suite but enhance this with external providers.

  1. Diversity and Inclusion – merge with key business strategies to move well beyond compliance and become a strategic part of business.

This has been part of HR for 30yrs. But little impact. Now on Global CEO’s agenda due to global workforce. Lots of press about issue – unconscious bias etc

Deloitte studied talent practices of 1,400-plus companies with a focus on Asia. After nearly 2 years of research finding point conclusively that the highest performing companies with a far superior cash flow embed inclusion into talent practices everywhere.

In the UK last year, 2015, 75% of graduates were female.  Over a third of British households are now led by a woman earning more than her male partner or as the sole earner. House husbands are on the rise although support for men getting back into the workplace.  In the same way workplaces are geared towards supporting women working in part-time roles as secondary breadwinners but missing that many women are fulltime. Not always from choice (career women) but necessity. Just people with careers.

Organisations still have lots to do to truly embrace equality in the workplace. All male boards are all male boards.  They can’t hope to represent the workforce in the way a more balanced team would.  Likewise Unconscious Bias is alive and rampant in many recruitment practices. In many workplaces. PWC actually have a policy that women who work as receptionists have to wear 2-4inch heels. In 2016!

  1. People Analytics accelerate its growth

Companies are hiring head of people analytics, building teams and replacing HR platforms with a singular goal of creating a meaningful and useful database of information about their people.

New function is critically important. Just as Marketing can analyse the result of campaigns, create personas and segments of customer population and understand the drivers of market share success so companies are starting to be able to do for employees.

Emergence of behavioural economics leading to the application of ‘choice architecture.  Allowing employees to choose next steps – ie choice of 2/3 new jobs.  Turning traditional practices on their head.

HR teams are now becoming very data driven and the world of analytics is sweeping forward.

Many HR teams are led by people that don’t have these skills and consequently don’t set this as an area of focus.  Organisations are too used to poor quality data coming from the HR team that there is a failure to invest. In better technology. In staff with the skills to produce meaningful reports. So many businesses still have appraisal systems requiring manual interpretation by the HR team. This reflects an approach and a period of time long gone by.

  1. New breed of HR leaders enter the stage

HR profession is going through a true reinvention. Younger leaders starting to take over, heavy investment in technology, organisations sharing their creative solutions openly and critically the alignment of HR with the business is improving dramatically. Innovation is key and the function of HR is becoming increasingly important to companies.

Yet many still have Administrators or Policemen in charge with old fashioned or paper driven systems, under trained teams, organisation structures that appear bloated and misaligned and many have not figured out how to do analytics yet.

It is obvious that companies with talented HR leaders will be more competitive. Sharper. More focussed.

How can companies with the wrong HR support ever truly compete on the global stage?

We find many companies are unaware of how HR is changing and either have no-one supporting them or have the wrong level of support.

Conducting a review of your HR needs is a sensible action for any CEO.  Outsourcing HR needs, enhancing internal support, in-housing (hiring internally when you have had HR outsourcing support) and HR enhancement (additional services to compliment existing HR support) are all possibilities for fast growing and ambitious businesses.

Summarised from Predictions for 2016 – A bold new world of Talent, Learning, Leadership and HR Technology ahead. Bersin by Deloitte with commentary by Amelore.

 

Job evaluation scheme and gender pay audits

With the new requirements for organisations with 250+ staff to conduct a gender pay audit and publish results from 2018, many organisations are reviewing or implementing their job evaluation schemes.

Employers operate job evaluation schemes for a range of reasons, including the development of clear and orderly pay and grading structures and to help counter equal pay claims, as well to assist with market pricing where required.

A single job evaluation may be implemented to cover the whole workforce or employers may operate different schemes for varying groups of employees. The former approach is often favoured as this is likely to help counter any potential equal pay issues.

Types of job evaluation

There are two main types of job evaluation: analytical schemes, where jobs are broken down into their core components, and non-analytical schemes, where jobs are viewed as a whole. The use of analytical schemes is more popular because of the capacity to help provide a defence against equal pay claims.

Analytical schemes

These offer greater objectivity in assessment as the jobs are broken down in detail.

Examples of analytical schemes include ‘points rating’ and ‘factor comparison’ approaches.

Points rating – the key elements of each job, which are known as ‘factors’, are identified by the organisation and then broken down into components which may also be weighted. Each factor is assessed separately and points allocated according to the level needed for the job. The more demanding the job, the higher the points value.

Examples of factors commonly assessed include:

  • knowledge and skills
  • people management responsibility
  • communication and networking
  • decision-making
  • working environment
  • impact and influence
  • financial responsibility.

Factor comparison is also based on an assessment of factors, though no points are allocated. Use of this method is less widespread than ‘points rating’ systems as the latter approach enables a large number of jobs to be ranked at the time.

Non-analytical schemes

These are less objective than analytical schemes, but are often simpler and cheaper to introduce. Methods include job ranking, paired comparisons and job classification.

Job ranking -puts jobs in an organisation in order of their importance, or the level of difficulty involved in performing them or their value to the organisation.

Paired comparisons – compares each job in turn with another in an organisation. This takes longer than job ranking as each job is considered separately.

Job classification, also known as job grading. Before classification, an agreed number of grades are determined, usually between four and eight, based on tasks performed, skills, competencies, experience, initiative and responsibility. Clear distinctions are made between grades. The jobs in the organisation are then allocated to the pre-determined grades.

Developing job evaluation schemes

Whether adopting an analytical or a non-analytical approach, organisations have three main options over scheme design and development:

  • a scheme may be developed in-house
  • a consultancy’s off-the-shelf package may be purchased
  • a consultancy may tailor its package to suit the organisation’s needs.

The system selected will depend on the size of the organisation and the aim of the job evaluation exercise. The Hay Group’s Guide Chart-Profile Method is the most widely used scheme.

Other factors to consider

Job evaluation is a complex and time-consuming task and many organisations draw on the expertise of external organisations to help. The key issues to consider include:

  • The process is often as important as the results.
  • Job evaluation is an ongoing process.
  • An appeals procedure should be established before the evaluation begins.
  • Clear, detailed and up-to-date job descriptions have to be drawn up.
  • The more complex the scheme, the more detailed the job description needed.
  • Accurate records of decisions have to be kept.
  • The results have to be checked to see if there are any pay anomalies.
  • Effective communications are essential, as employees may have concerns over their future job grading and pay.

Operational considerations

Many organisations don’t have the skills in-house to conduct a Gender Pay audit or review or implement job evaluation schemes. The latter can be a big piece of work and organisations should not under estimate the time and cost implications.  Given we are half way through 2016 and first set of published results will be April 2018 time is tight to really get your house in order though still possible. 

Any company Job evaluation (and market pricing exercises) schemes need to be reviewed regularly to ensure such approaches continue to meet changing business needs. Job evaluation is an assessment of the role, not the person doing it, and should be based on a fair, transparent system that is effectively communicated and understood by employees.

The type of scheme chosen will depend on organisational needs, but any staff making decisions on job roles must remain impartial and may require training in the chosen system.

How can we assist you?

Amelore can provide both job evaluation and gender pay auditing services tailored to your needs.  If you would like more information, please get in touch with us.

www.amelore.com

Gender pay – How ready is your company?

gender equalityMore than four decades after the Equal Pay Act, the gender pay gap still stands at about 19%, with the average British woman earning around 80p for every £1 earned by a man.

In October 2016 the Government will introduce Regulations that require all companies with 250+ employees to carry out a gender pay review, and publish their data.  This has implications for the company’s reputation, its ability to attract and recruit staff and could also trigger equal pay claims from existing staff.

The Regulations will make changes to the Equality Pay Act 2010, and aim to “end the gender pay gap in a generation” (David Cameron). They will take effect from 1 October 2016 with the first reports needing to be published before 30 April 2018 and then annually by 29 April.

Getting prepared

Has your company ever carried out an equal pay audit? Do you know what your issues are and are you taking steps to resolve them?  If not, we strongly recommend that you consider carrying out an Equal Pay Audit this year ahead of the compulsory reporting dates so that you are not caught by surprise and can address issues early on.

A confidential Equal Pay Audit will:

  • Review and analyse gender pay
  • Identify any gaps and risks
  • Examine which objective justifications exist
  • Make recommendations for resolving areas of high risk.

Facts and Figures

The UK’s gender pay gap currently stands at 19.1% (Office for National Statistics, 2014) – forty four years after the Equal Pay Act was introduced – and lags behind the rest of Europe on 16.4%.

The new duties apply to private and third sector employers, employing 250 or more staff within Great Britain, and include limited companies, LLPs, statutory bodies and unincorporated associations.

Employers will have to provide and publish five items of gender pay information: the mean and median gender pay gap, the mean gender bonus gap, the percentage of men and women in the bonus scheme, and the distribution between men and women in salary quartiles.

The September 2015 Business in the Community Survey reported that 89 per cent of employees said they would feel more negatively towards their employer if the gender pay gap was relatively large in their organisation.

However if it was relatively small, 71 per cent would feel more positively towards their employer.

Do employers intentionally pay women less than men?

Not they don’t do this intentionally but they can often do it unconsciously.  Men are often much better at negotiating when they join an organisation. Women have the expectation that if they work hard and are good at their job so they will be fairly rewarded. Whilst this is true it is extremely rare for an employer or HR professional to review salaries with gender in mind.  If someone is earning less than they could or should, this is seen as operationally savvy and commercial. Good management even.

women high five

We have reviewed many employer data sets and observed stand out discrepancies which are explained away as historical, personality or line manager driven and as such no longer issues.  However if an organisation is paying a woman or women less than men in equivalent roles for no tangible reason, this will not only need to be rectified urgently but could result in resignations and a damaged employer brand and/or Employment Tribunal proceedings.

Benefits to the organisation

Pay is at the heart of the employment relationship, it influences how valued an employee feels and can act as a powerful demotivator if you get it wrong.

As an employer you will need to go public with your data, publish it on your website and upload it to a government website.

It is worth looking at the information early to assess what risks you are carrying and what measures need to be put in place over the next year to two before the first reports are published. Carrying out an audit now will help you comply with the law and good practice.

It is important that you feel confident that any analysis has been carried out reliably and that valid defences are understood or that indefensible issues are tackled so that you have fair, rational and transparent pay for your employees.

Understanding your risk profile and the measures to reduce these risks will protect your company from reputational and financial risks.

How we can help?

Amelore can conduct a gender pay audit and provide you with a report and recommendations now so you can address any issues before this legislation takes effect.

www.amelore.com

Executive Search and Recruitment Agencies – Do you know the difference?

recruitment posterHiring the right people is as significant to the success of a company as the business model and health of the balance sheet.

Recruitment is a highly lucrative unregulated and fast growing industry. It is important therefore for companies to understand the different options available to them, the costs as well as the benefits and any downside of the choices they make.

Some Key Facts

The CIPD (Chartered Institute of Personnel and Development) in partnership with Hays Recruitment, conducted a Resourcing and Talent Planning survey in 2015.

Resourcing and talent management in current economy “an employee’s market”

  • Half of CEOs have recruitment & talent management as a priority
  • Three quarters are recruiting key talent/niche areas
  • Growing demand for labour – more than half expecting headcount to increase
  • Skills shortages are escalating – four-fifths feel that competition for talent has increased
  • Lack of specialist or technical skills & lack of sector/industry or general experience were common problems
  • Organisations are increasingly required to be creative in both their search for candidates and the packages they offer

What is the difference between Executive Search and Recruitment Agencies?

The aim of Recruitment Agencies is to fill a position with the best available person. Recruitment agencies source from a pool of candidates that are actively looking for a new challenge by advertising on various platforms. This leads to a group of candidates that are “self-selected” of which the selection was not pre-determined by the company.

The aim of Executive Search consultants is to locate and recruit the best person, regardless of whether he or she is already employed or seeking a new position.

This approach can broaden and deepen the talent pool available to a search firm’s clients and places the control of who should be part of this talent pool, squarely in the hands of the client company.

There may also be the use of specialised psychometric tools, resources and skills to enhance the selection process.

The costs

Executive Search and Recruitment Agencies tend to charge a percentage fee or a retainer.

The percentage fee is based on the starting salary of the candidate and is normally payable once the candidate starts work with you. This form of charging is most common and if you don’t find a suitable candidate, you don’t have to pay the agency anything.

However, fees can vary from 8-25% depending on the agency and the salary. If you choose a retainer fee, it is agreed at the outset; with a percentage being payable upfront and the remainder due when the candidate starts their employment.

What are your recruitment options?

Your network – Many companies use their personal network to find staff and this can be very effective. However it can also lead to skills shortages and complications with personal relationships.

Advertising online – Companies may advertise via online sites such as Linkedin, Indeed, Monster, Fish4jobs etc  This has the benefit of advertising that your company is busy and hiring but can create a lot of administration.

Recruitment Agencies – You won’t have been in business long before the sales calls start.  When choosing an agency, try and get a recommendation and check their credentials. Anyone can set an agency up with no qualifications or experience. If things like diversity and inclusion are important to your company make sure you ask about this.

Executive Search or Headhunters – This is usually used for senior or specialised roles due to the cost. Finding a firm that understands and challenges you is worth a lot. Meeting a few firms and interviewing them can be helpful.

De-constructed recruitment – A key component of recruitment is identifying the passive candidate.  You pay a day rate for experienced researchers to find and speak to candidates for you.  A cheaper option but requires internal co-ordination.

Independent HR company or individual – Many experienced HR professionals have strong recruitment experience. They will often manage the process for you, even if you work with an external recruiter.

Common recruitment mistakes

Organisations in high growth mode often run very inefficient and costly recruitment processes with little thought for the candidate experience even though it is a seller’s market.  Multiple repetitive interviews, waiting until vacancies have been created to start a process and failing to assess candidates thoroughly are typical.

Looking ahead

It is important for companies to understand and cultivate their ability to read market conditions, trends, movement and fluidity in order to develop and manage effective recruitment strategies. Needs changes as companies grow and it is important to regularly review this.

Do get in contact if we can help you with your recruitment or retention issues.