Is in-house HR the best option for your Company?

Having worked ‘in-house’ for much of my career and more recently as a consultant, I’ve had seen both sides. This is particularly illuminated when one performs a detailed ‘access all areas’ HR audit.  Matching the needs of the business against the capability and remit of the HR function. Often it can be a bigger gap than anyone realises.

New role in HR – Work out what you need to do to fit in

When you begin a new role with a Company they are keen that you bring new ideas and change things. But many quickly realise that the most important thing to learn is ‘How they do things around here’. For in many companies not working that out quickly could mean one is not in post long enough to do more than just be new.

Companies by their very nature are insular. The individuals that do well are either the very brave and talented who do their own thing but bring in so much revenue that no-one cares. Equally those that are extremely corporate will have long and successful careers. Individuals that are very bright will move on naturally because there will be many options for them. Those that are clearly poorly performing will be moved on. But everyone else stays.

So, in that context the parameters of what ‘good HR’ looks like are set. This will almost certainly involve maintaining unique processes and ways of doing things. Quirky administrative approaches. Often long winded. And all the unwritten stuff about who gets fired quickly and how.  And what gets ignored or isn’t deemed officially important.

HR ignore half their customers

When a Company initiates an HR audit what they often want to know is how do we compare with our competitors? Do we have the right resources and skills in HR. Too much or too little? That answer is always unique to the organisation as often it is driven by individuals and/or the sector. If you have someone very senior that insists that HR is all about administration and problem solving and nothing more than that will dictate who you have in your function. If you are in a sector where you have high turnover and a lot of ER problems that may require some intense catch up before you move to a different model.

Companies have different motivations for HR audit from are we compliant (will I get my bonus?) right through to do we have the skills and talent in HR and the remit to achieve what the ambitious CEO and board want to achieve.  Often there is quite a gap.

And HR still exclusively focus their activities on ‘employees’. The self-employed, the flexible labour and the workforce of tomorrow are largely ignored which is a bit like only caring about the customers that visit your store and not the ones that shop occasionally on-line or could be buying your products.

Most HR process are substantially similar – not substantially different.

In an article written by Ruud Rikhof, Managing Partner of KennedyFitch he states “We believe that 80% of the activities in HR are substantially similar from company to company, not substantially different”. So, if it is substantially similar, why would you need it “in-house and customised” when you could pass it on to someone else, do it quicker and save money?

So many HR practitioners talk about Best in class. So many CEO’s don’t share these aspirations as they see such a process as long winded, expensive and distracting from core business.

Do ‘best in class’ processes you have contribute to the bottom line?

Whilst core HR processes should be agile and robust, they will never give your business a competitive edge. So, it’s wise to focus what resource you have on the things that will.

One of the issues about benchmarking your company’s HR needs against another is that whatever standard you use may not be the right one.

Your performance management system may have won awards and have some great technology with it – but does it drive performance?

You may have invested in a fantastic HR software system – but where are the reports and does anyone use or understand it apart from HR?

So, do you know what is right and important for your organisation and is that where you are directing your resources?

Individuals want an individual experience

When you go out to market to hire exceptional talent, the person you offer to is unique. You are excited about them joining and may even create a different package to get them on board. The CEO will take an interest in their on-boarding. But at that point the individual approach begins to wane. HR will get anxious that the Company is being inconsistent and will want the new hire to be treated the same as everyone else.

We have observed that increasingly individuals demand that they are treated as individuals. It’s often a deal breaker. Yet in-house HR activities are focussed on treating everyone the same.

What are the alternatives?

Many companies value their long serving loyal HR administrator. Key thing is to ensure you have the right level of senior HR challenge and expertise.

Equally you can contract out the administration, investing in a good system and employ a bright career hungry HR professional to work with your leaders and focus on the big things for your Company.

Many companies have an Employment lawyer on speed dial which absolutely supports the reactive problem solving risk adverse model that is hardly likely to have your HR function doing things differently.

Of course you can have both. HR lead in-house and HR admin in house. But that then results in what many businesses have now. A cost centre that stops more than it starts and manages problems.

Getting your HR capability right can be a powerful tool for increased competitive advantage. Especially in a challenging market

 

www.amelore.com

No more evening emails – a dream or reality?

French working life has been in the headlines again recently with the government passing legislation about the sending and use of work emails outside of “normal” working hours.  Much of the focus was on the belief that the French government was “banning” emails in the evening or at weekends, which isn’t actually true.

What the legislation is actually making French employers do is to come up with a jointly agreed (with the trade unions) policy about the use of work emails outside of “normal” business hours (whatever they may be).  That’s hardly the same thing as “no emails after 17.00”, but it is up to individual organisations to decide if they want to go that far or not.

It’s not just the French that have made such a bold statement about trying to clarify the boundaries between work and non-work time. A number of large multi-national organisations, many in the technology / IT sector, have decided to develop similar style policies in the hope that it will reduce employee burnout.  Which leads to two main questions – is it a good idea to have such a policy? – is it possible to implement it?

Is it a good idea?

I’m not a fan of having a policy for policy’s sake, however, it is always important to be very clear on what an organisation expects from its employees.  If employees don’t know and understand what is expected of them, how can they reasonably be expected to do or not do something?  Yes, there may be some obvious or implied things that employees shouldn’t do – for example, punching a colleague – but depending on what sort of culture your organisation has, certain behaviours might happen because no-one actively challenges or stops them.  This is where the clarity of written guidance is helpful – it is harder to say you didn’t know that you shouldn’t XXX if there is clear, written guidance saying that you shouldn’t.

There is a potential argument “for” and “against” having such a policy – such as……

FOR:  I worked for one organisation where it was common for the senior team to email each other at 3.00am with the expectation that people would reply.  These people weren’t in different time zones but were forced to be “always on” because their “boss” was and he expected it of them.  To my mind, this isn’t a healthy or sustainable way of doing business and it was certainly backed up by seeing the toll on some of the individuals. Allowing people some down time is vital if you expect them to stay healthy and effective – a policy or guidance could help to create some space for them to do this.

AGAINST:  Some people will say that they find they are most productive on an evening, perhaps when the kids are in bed, and use this time to good effect.  In fact they use this time to perhaps “make up” their working hours, as they have to fit in school runs, caring responsibilities etc. To stop them sending emails and working this way could well be counter-productive. Should you force “normal” 9.00 to 5.00 working on people who don’t want or can’t work that way?

One thing is for sure, I’m not suggesting that anyone “bans” sending evening or weekend emails – that is down to individual choice – but reducing or stopping the expectation that colleagues will respond is a different matter.  Expectations and clarity are key.

How could or should I implement an out of hours email policy?

As with many policies there is no one size fits all.  Yes, there should be some basic points in here (eg. what is and isn’t expected) but the actual detail of how your organisation wants its employees to work is down to you and them.

Some key questions to consider might include:

  • What does the organisation want this policy to achieve / deliver? (eg. better work / life balance) Are there other ways you could achieve this rather than writing a policy?
  • Why do you want to introduce this policy now?
  • What do your employees feel about this issue? Do they believe that action is needed?
  • What are the key things you will and won’t want employees to do? (be clear and concise)
  • Will this be a contractual or non-contractual policy? (this will affect how you implement it)

Drafting the policy and / or guidance will be key, as will be the communication and consultation with staff about it. You definitely need to engage staff early and make sure they are onside with this, or launching such a policy could end up being more trouble than it’s worth!

So will I be recommending that the organisations I work with adopt an out of hours email policy?  The short answer is “it depends”.  Some organisations are mature and flexible enough in how they work that such a policy would be extraneous and unwelcome.  For others though, the clarity would be helpful and important to support employee wellbeing so a policy could be very useful and well needed.

Happy 2017? Predictions for employers……

2016 was an eventful year and most people are now looking forward to a (hopefully) better 2017.  So, a few days into the year, what can employers look forward to over the next 12 months?

  • Brexit

After dominating the headlines in 2016, 2017 is also likely to be a year where Brexit is in the news.  Assuming that the government does what it has promised, then article 50 will be triggered in March 2017.  What Brexit will actually mean for employers and employees remains to be seen, but hopefully things will get clearer.  Updates to come, watch this space…….

  • Changes to work permits and the Immigration Act

This is hardly surprising given the current Brexit situation.  Some of the changes have already been announced and there will be doubtlessly more to come.

What we do know already is that employers sponsoring foreign workers with a tier 2 visa will be required to pay an “immigration skills charge” of £1,000 per worker (£364 for small employers and charities) from April 2017. The immigration skills charge will be in addition to current fees for visa applications.

In April 2017, the minimum salary threshold for “experienced workers” applying for a tier 2 visa will increase to £30,000.  New entrants to the job market, and some health and education staff will be exempted from the salary threshold until 2019.

  • Gender pay gap reporting

Or the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 to give them their full name, which will come in to force on 6 April 2017.  The government published updated guidance on these regulations a couple of days ago and has confirmed that all organisations with over 250 employees need to provide and report on gender pay gap information based on the date of 5 April 2017.  If you haven’t started planning for this, make it top of your new year “to do” list.

  • Apprenticeship levy

There has been much talk about the forthcoming apprenticeship levy and the potential opportunities it brings.  If you are an organisation with a payroll of more than £3m then from 6 April 2017 the levy will apply to you.  The Government has recently published updated guidance for employers on how the apprenticeship levy and the new funding system will work.

  • Salary sacrifice schemes – RIP

As stated in the Chancellor’s Autumn Statement, there will be significant changes to what type of salary sacrifice schemes employers will be able to offer.  Some of the current items offered, such as gym membership, will be abolished from 6 April 2017.  If you haven’t already reviewed your employee benefits scheme, then now is the time.

  • Rises in the national living wage and national minimum wage

This was another announcement in the Autumn Statement.  Rather than having different dates when there are changes in the hourly rates for the national living wage and the national minimum wage, these have now been aligned.  So the next changes will be due on 1 April 2017 and the rates are set to rise.

  • Trade Union Act 2016

We are waiting to hear exactly when this legislation will come in to force but it will happen at some stage during 2017.

Under the rules, a successful vote for strike action will require a 50% minimum turnout and a majority vote in favour of industrial action.  Strike action in “important public services” will require a strike vote of 40% of all eligible voters.

  • Pensions……

There has been a lot in the news about pensions in 2016 – whether it be related to the demise of BHS or the rise in the “gig” economy.  There are already some known changes planned for 2017, such as the final phase of pension auto-enrolment to encompass all employers and the rise in the minimum employer contribution rate.  It is likely there well may be others….

We’re sure that there will be other developments during the year ahead, so keep your eye on this blog for more updates.  Happy New Year!

www.amelore.com

Data, data everywhere – but what data should I do something about?

Data, particularly “big data”, seems to be constantly in the headlines – whether it be because data has been lost (the TalkTalk hacking incident) or because it’s being used for something that’s perceived to be intrusive (adjusting insurance premiums or the monitoring of emails by the NSA).  For some people and organisations data is a fundamental part of what they do, but for the rest of us – should we be taking more notice of our data?  Are we missing a trick?

Depending on what type of organisation you currently work for, then you may find that you are already required to report on and publish some key data.  If you work in an organisation that is classed as a “public body” under the Equalities Act 2010   definition (for example the BBC, a local Council or the Police) then you already need to publish data about your workforce.  Specifically data that relates to how your workforce is made up relating to “protected characteristics” and other equality data – for example the percentage of your workforce who are disabled, the age profile of your workforce and the gender split. If you work in local or central government then you already have to publish data about the remuneration of your senior / executive managers.

Even if there is no statutory requirement for you to report and publish the sort of employee data highlighted above, could you find this information useful?  Certainly if you do any form of workforce planning for your business then you probably already look at and use key employee data such as salaries, length of service, duration that people have been in role, employment status (temporary or permanent) and key skills / competencies.  If you don’t currently do any workforce planning, should you think about doing some to help your business to be ready for the future? (hint – we recommend you do!)

If you are struggling to recruit to a certain role then looking at the data could help you come up with a solution. Filling some roles takes more than an advert on your website and Totaljobs etc…..  Looking at your recruitment and candidate data may help you to tap in to a new pool of potential candidates who you’ve previously overlooked or help to identify a different, more effective recruitment channel.

Even if you don’t want to go on a data journey yet, you will find that going forward more and more businesses are going to have to start reporting on and publishing key employee data.  Hopefully you are aware of the gender pay reporting requirements (The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017) that are due to come in to force some time in 2017?  If you employ more than 250 staff, then these regulations will apply to you so you need to start preparing now.

There are also discussions about whether businesses need to do more to be transparent about what they pay their senior staff (eg. Directors and Chief Executives).  After all, the public sector already has to report on what they pay their senior staff.  The government has just issued a “Green Paper” to consult on whether businesses must report on the pay of their most senior staff compared to the pay of their average employee. The consultation is open until 17 February 2017 if you want to contribute.  Should the consultation end up being translated in to new legislation, then you’ll need to get to grips on your data again – so watch this space.

If you’re struggling to get to grips on your employee data then we can help…Consider having an audit of your organisation’s HR systems and procedures which can examine what data you hold and why and provide you with an overview of your obligations and how compliant you are.

Equally commissioning a gender pay audit to enable you to address any issues before the data becomes public could be helpful.

www.amelore.com

Christmas. It’s the time of year when…

This is the ultimate advice checklist for how HR should deal with Christmas issues…
1. Employees sometimes do stupid stuff. At Christmas time and otherwise. It’s a fact of life.
2. Just deal with it.
3. Resist the urge to worry too much about vicarious liability, discrimination and constructive dismissal. Although it is probably a good idea not to put any mistletoe up in the office.
4. Resist the urge to write any sort of policy.
5. Resist the urge to put any sort of disclaimer about behaviour in any Christmas party related literature. If someone wants to punch Bob from Accounts on the dance floor after 12 pints of beer then they will do it anyway. See points 1 and 2.
6. Resist the urge to write special rules about absence from work after social events. See point 2.
7. Apply Christmas common sense.
8. Avoid sprouts in an office environment at all times. This is especially important in small or poorly ventilated offices.
9. Never, ever, buy Secret Santa presents from Ann Summers.
10. Put a tree up; Eat some Quality Street; Wear a Christmas jumper; and remember to enjoy yourself.

Fit for business? How about an audit?

People often ask what differences I see between working in the UK and France, particularly as a manager.  If there is one thing that is likely to strike terror in to the heart of a French manager or business owner what do you think it would be? Trade unions? Staff demanding their 2 hour lunch break? The actual answer is an “inspecteur du travail”, who is literally a government “workplace inspector”.  Under French law, people in these roles have the right to inspect any business, big or small, at any time to ensure that the employer is upholding their legal, employment obligations towards their workers and staff.

Surprisingly most French people actually think this role is a good and important thing, rather than being “government interference”.  It helps to ensure staff safety, means that French businesses always have their paperwork in order and apparently contributes to France’s high productivity levels. But it could never happen in the UK could it, especially not after Brexit?!

No – not exactly.  However, if you work in a “regulated industry” or supply services to one, you may actually find your employment practises (including your employee related “paperwork”) come under scrutiny. So what do I mean by a “regulated industry” and could it include you?  The typical kinds of organisations or activities that would put you in this definition would be some of the following examples (though not an exhaustive list by any means):

  • Financial services – particularly product selling and advising.
  • Social care – providing any sort of social care, to people young, vulnerable or old.
  • Health Care.
  • Education – be in for children or adults.
  • Housing providers – private sector, public sector or not-for-profit.
  • Utilities providers – including telecoms, as well as water, power etc.
  • Local government – who may well also provide some of the services outlined above.

When you include organisations and businesses who supply services or goods to the types of organisation listed above, you start to realise what a potentially large number this is.

The people who do the scrutinising or inspecting are likely to come from a regulatory body such Ofsted, the Care Quality Commission (CQC) or OFWAT, but there are times when other individuals may need or demand to scrutinise your business.  For example, should you be unfortunate enough to have a serious workplace accident, then the Health and Safety Executive (HSE) will come in and investigate.  This will include scrutinising your policies, training records, employee files and more. It can be incredibly scary, especially as you won’t have had time to “get your house in order” beforehand so any gaps in your “paper trail”, that you have been meaning to fill in, won’t have been sorted out. Oops.

As you are probably aware, the penalties that the HSE or other inspection bodies can levy can be punitive, substantial and costly.  They can even stop you trading / operating.  All potentially because you haven’t been able to produce a particular bit of information or paperwork, or because you haven’t got a policy or process in place.

Sometimes businesses also voluntarily invite people to come and inspect them too. If your business wishes to gain accreditation from Investors in People or to gain an ISO standard then their assessors will need to scrutinise and check that you say you are doing exactly what you claim and what their standards require.  Again, this will be a detailed look at your processes, procedures, policies and employee files.  If you don’t have the things in place that the standard requires, then no accreditation – and potentially a long wait (and associated cost) until you can attempt to get accredited again.  It may even mean that you can’t tender / provide your services to key customers until you get that accreditation.

So, how confident are you that your current HR policies, processes and employee files would stand up to such close scrutiny – be it on a voluntary or regulatory basis?  If you aren’t sure, then we strongly recommend that you take action now.  Who knows what tomorrow may bring?


What does an HR Audit or HR Operational Review involve?

Bringing in external auditors is not anyones favourite pastime however it is accepted as a normal part of business life.  Important for shareholders and investors to get reassurance that everything is going well and often Directors get well deserved credit for good governance and Internal controls.

However, what a more in depth internal audit can bring is a sensor check of how compliant and fit for purpose your business is.

Depending on your needs, we can just do a paper review and look at key documentation such as employment contracts, employee data and staff handbooks. Or we can also meet key staff and check understanding and needs spotting early problems emerging and flagging them.  We can also assess the fit of key staff in key roles if you would like us to.

We then produce a report with recommendations for you to set and implement your own priorities.  Our work with you may include further reviews to check on progress.

HR Audits give you the heads up on what you could and should be thinking about in your business.


At Amelore we offer a tailored service to help you to get your business in shape and to make sure you are ready for whatever tomorrow may throw at you.  Why not contact us to find out more about our HR audit service or our HR bootcamp?

www.amelore.com

The impact of the Uber case and other recent employment law changes.

 

You may not normally pay a lot of attention to the world of employment law – after all that’s what HR professionals are for – but you may well have noticed the recent case about Uber in the media. So what does the recent case ruling mean for you and your business?

Put simply the Uber case was about whether the taxi drivers working via the Uber app are self-employed or actually work for Uber, so are classed as “workers”. Why does it matter?  Being a “worker” gives you a number of rights and protections under current UK employment law that you don’t get if you are self-employed.  Being a worker is a big advantage for the people driving for Uber as it now means that they are entitled to earn at least the National Living Wage (if they are aged 25 years +) or National Minimum Wage (if they are under 25), as well as being entitled to paid holiday and other benefits.  Up until now many Uber drivers had complained that they weren’t earning even the National Minimum Wage and were being treated as “slave labour”.  This is now set to change, pending an Appeal of the case by Uber.

A lot of businesses use self-employed people, be they consultants, skilled tradesman or technical experts.  This is particularly true of small businesses and new “start-ups” who don’t necessarily have the budget or need for staff all of the time.  However, neither you as a business owner, nor an individual, can just decide that you want someone to be self-employed – they have to meet certain criteria or conditions, which can be complex to interpret.    If you get it wrong, both the business and the individual are liable for some hefty penalties from HMRC. You can find more information about this here  but we also recommend that you get some appropriate professional advice on this if you are in any doubt – we can assist with this.

October is one of the two months when changes to employment law currently happen. This October (2016) has seen a few changes that, depending on the nature and size of your business, you may need to take action on. The main changes are:

  • Increase in the National Minimum Wage rates – effects all businesses and sectors

Effective from 1 October 2016 there has been an increase in all levels of the National Minimum Wage that you must pay to any workers or employees.  The new rates are:

Age 21 up to 25                      £6.95 per hour  (+ 25p)
Age 18 up to 21                      £5.55 per hour (+ 25p)
Under 18s                               £4.00 per hour (+17p)
Apprentices                            £3.40 per hour (+10p)

Workers / employees aged 25 years + are entitled to the National Living Wage which is currently £7.20 per hour and has not changed.

  • Modern Slavery statements – effects any business supplying goods and / or services with a turnover of £36m + per annum

The Modern Slavery Act was implemented earlier this year, and it’s first deadline for businesses to take action has just passed.  If you are a business  whose turnover is £35m + and whose financial year ended between 31 March and 30 April 2016, then your business should have published a “modern slavery statement”, signed by a Director, on your company website or have one prepared that you can issue on request.

Hereon in every organisation whose turnover (relating to goods and / or services) exceeds £35m per annum needs to publish their annual “modern slavery statement” within 6 months of the end of their financial year.  If your business hasn’t yet prepared your statement yet and are now or soon required to do so, please contact us for help and advice.

There are other changes on the horizon too, that we recommend that your business starts preparing for:

  • Mandatory gender pay gap reporting – reporting to start from April 2017, for publication in 2018 onwards

This will apply to any organisation that employs 250+ people.  The guidance on what is required in the reports is still being developed and is complex.  Large fines are likely to be issued for non-compliance. If you are a larger business and don’t already analyse and report on your gender pay differences / gap now is the time to start preparing to do so.  We have expertise in this area and are happy to help you prepare – please contact us.

  • Pension auto-enrolment updates – now scheduled for April 2018

This will apply to all businesses who employ at least one worker / employee.  This will see an increase to the minimum employer contribution rate, taking it to at least 2%, as well as an increase to the minimum employee contribution rate.  Given the amount that these increases will be an added employment cost to your business, we would recommend that you start your financial modelling now so you can see how this will affect your future workforce costs.

Looking to recruit high quality staff but not succeeding?

Despite the looming shadow of Brexit, many UK organisations are still recruiting – albeit on a temporary rather than permanent basis.  Many industry sectors are reporting that it is still difficult to find the right candidates with the right skills and experience, despite the fact that many people are out there searching for new roles right now; myself included.

Is it a matter of the right skills not being out there in the job hunting population or is something else at play?  Here are a couple of examples to illustrate what I mean….

A friend, J, is looking for a new role and career change.  Knowing this he is prepared to take entry level role with the right organisation as long as it gives him what he’s looking for.  J likes being outside, getting up early and working autonomously – he thinks that being a Postman is just the new career for him.  Then he tries to apply for a role with Royal Mail….. To cut a long and painful story short, J’s “candidate experience” is a very negative one.

Why, you may ask?  This should give you a flavour and is not unique to the Royal Mail:

Applications have to be made via an online recruitment portal, which requires you to register, fill in your personal details and to complete an online assessment.  Easier said than done…. J is fairly computer literate and his brother is an “expert” – they try and fail several times to register a basic application.  There is no phone number, email address or help option for him or other applicants to help them with this labyrinthine application process.

If J wasn’t so keen he would give up now. Other suitable applicants may not have the “IT savvy” or the perseverance, so Royal Mail is losing out on a potentially large candidate pool. (how IT savvy do you need to be a Postman anyway?)

  • Where there are multiple vacancies, perhaps with a minor change such as working hours / days or work base, J has to apply separately for each. Each time he applies for a role he has to do the exactly same online assessment again and again.  Frustrating, a waste of his and the Royal Mail’s time (and money?) and it undermines the validity of the assessment. (practise makes perfect – so repeating the test and getting the feedback means you can easily boost your scores).
  • J finally manages to get an application registered and waits to hear. And waits…. And waits. The closing date has been and gone, and despite being told to check his “portal” for progress / an update, there is none.  There is no phone number or email address for him to chase this up so he has to decide whether he waits any longer.  He’s been invited to attend another interview for a different role – so perhaps he’ll just go with that one instead.

I can echo similar experiences to J’s and can add to the what not to do list further:

  • I have a non-standard address and post code – the computer says “no” to allowing me to progress my application. Now what – make one up? (easier said than done)
  • The salary and the exact work location are a mystery. How do I know if the role is paying enough for my needs and am I able / willing to work in that location? (client confidentiality is not an excuse!)  Should I bother to apply?
  • Do I really want to spend hours filling in a very detailed online application form when the majority of this information is on my CV? Can’t I just upload my CV and add in the missing bits?  Also – I can’t save my application part way through – it’s all in one go or nothing.  I don’t have 2 uninterrupted hours available so perhaps I won’t bother….
  • The recruitment portal promises to save my details for next time, should I apply for other roles with the organisation. It doesn’t….  I have to start again if I want to make another application  – do I want to go through that pain again?

So in summary, many of the issues that are putting people off seem to be due to overly automated process with no “human touch”.  Theoretically going for an automated, standardised recruitment portal should make recruitment slicker, cheaper and easier for your organisation – but what about for the candidates?  The initial impression they get from your recruitment system can be extremely negative and it means you have lost them before you even know about them. Employee branding, good PR, your employer reputation and your brand recognition / values aren’t going to change that.

Is it time for a rethink and change to your recruitment approach? We can help……..

www.amelore.com

Company mergers – creating one big, happy family?

 

mergeIn my HR “life” back in the UK, I often found myself providing advice on managing change, whether it be restructuring, TUPE transfers or subtler cultural change.  I now find myself on the other side of things, as Happy Holidays and one of their former competitors, Smiley Holidays, have both been acquired by a large French company.  While these purchases took place a while ago now, it is interesting to see how the changes have now started to trickle down to the staff (me!).

So, can these changes create one new, contented holiday company / family?  At the moment, the views of myself and colleagues are mixed – we’re not entirely convinced that things will be better, or even as good.  What could be done to change our minds and to keep us engaged and motivated?  Here are some suggestions:

  • Communicate, communicate, communicate

With any changes or takeovers there are always rumours about what will and won’t happen.  Clear, regular communication is key if you are to stop the rumour mill and keep staff feeling engaged, rather than worried for their jobs.  A monthly newsletter is better than nothing but it doesn’t really do all it needs to.  How about using social media and other forms of communication too?  – Especially if staff are based in multiple locations or work different shift patterns.  Certainly face-to-face updates and briefings tend to be the most popular method with staff themselves, so can this be done in any shape or form? (Skype, Facetime, podcasts etc)

  • It’s not all about structures…..

Most people tend to think of “change” as being about restructuring, but that isn’t always the case.  Yes, it can make sense to join up some teams and to make some efficiencies and savings while doing so, however, this shouldn’t be the knee jerk reaction.  If you are keen to keep current brand identities then you need to keep some differences in place, which means not merging and restructuring everything.  Be clear on what structures will change, why and when, so allowing other, not directly affected teams / departments to stop worrying about what might happen to them. (at least for now)  At least they can focus on their roles properly again and not be distracted or worried about what may lie ahead.

  • Timing is everything

Make sure you understand what the businesses do when and why.  Are there any critical or very busy times when it would be unwise to change things?  For example for Happy Holidays, changing all of the company mobile phones over to a new network provider with new phone numbers perhaps should have been done outside of the holiday season!  There would have been no customers in resort trying to call old numbers or not knowing about new numbers, and would have avoided a number of problems, upsets and complaints.

  • Who are we again?  What do we do?

Staff do identify with the organisation they work for and can often be surprisingly loyal to it.  Staff will feel that they have their “psychological contract” in place with their employer, as well as their actual employment contract.  Any change can potentially challenge the trust between employer and employee, and potentially sever the “psychological contract”.

It’s really important that staff can see and understand what the future holds and what will be changing. They can then choose whether they want to be part of this or not, and act accordingly.  This can include seemingly obvious things such as – are we still planning to deliver the same product(s) or service(s) to the same customer(s)?  Will we keep the same company values (eg. “green” or “ethical” commitments)?  Will I still wear the same uniform?  Will I still work in the same place?  Will I be working the same hours?  Things like this can really make a difference to someone deciding whether they will stay and go through the changes, or leave now to avoid them.

Even though this is about the two holiday companies I hope that the suggestions will be helpful for your business too.  If anyone from Happy Holidays is reading this, you know where I am and I’m more than willing to make this change a positive one!

www.amelore.com

It’s holiday time – So, how does your holiday policy shape up?

Whilst most employers run the usual January to December holiday year, some companies operate a holiday year which mirrors their financial year. Those very brave employers have a holiday year which follows each employee’s employment start date (administratively this must be a nightmare!)

Employers with an April to March holiday year will find themselves in a peculiar situation for 2016 through to 2018. Remember that all workers are entitled to a minimum of 5.6 weeks’ paid holiday, which means 28 days for a full-timer. Bank holidays count towards this entitlement.

Due to the moving Easter holidays, rather than the typical eight bank holidays in a year, April 2016 – March 2017 will have only six bank holidays, while April 2017 – March 2018 will have ten.

So what can you do about this?

Your first port of call is to check your contractual wording around holiday entitlement. This could throw up a number of different scenarios.

Here are a few (using full-time workers as an example):

  1. When the contract states: “you are entitled to 20 days holiday plus all bank holidays”. For April 2016 – March 2017 this would mean that your employees would only receive 26 days holiday, which is obviously below the statutory minimum entitlement. You would therefore need to give them an additional two days paid holiday. For April 2017 – March 2018 they would receive 30 days holiday, but without specific wording which has anticipated this exact scenario it is unlikely you will be able to deduct the extra two days, as the entitlement is to “all” bank holidays.
  1. When the contract states: “you are entitled to 20 days holiday plus 8 bank holidays”. Again your employees would only receive 26 days holiday for April 2016-March 2017 as there are only six bank holidays. You would therefore need to give your employees an additional two days paid holiday to ensure they receive their statutory minimum entitlement.

However, for April 2017 – March 2018 you could choose not to give employees two of the ten bank holidays (there is no automatic right to time off on a bank holiday). However, unless they agree otherwise, you would not be able to deduct these from the 20 day holiday entitlement as the contract says that they are entitled to 20 days holiday. You would instead have to get them to work two bank holidays, which may not be practical if the office is closed and certainly will not be popular.

  1. When the contract states: “you are entitled to 28 days holiday inclusive of bank holidays”. The result of this is the same as point 2 above. You will have to give two extra days for 2016-2017 and you could choose to require employees to work two bank holidays for 2017-2018.

This situation is bound to arise again in the future so the next time you undertake a review of your employment contracts it would be worth considering whether you want to include wording in the holiday clause so that holiday entitlement can be adjusted each year if necessary to allow for this scenario.

This may be even more desirable where you already offer holiday in excess of the minimum statutory entitlement and don’t want to be in a position of having to afford additional days to employees in a particular year.

www.amelore.com