Wilko has called in administrators, putting more than 12,000 jobs at risk after failing to secure a rescue deal. The family-owned retailer, with about 400 stores, is expected to close dozens of outlets, leaving significant gaps on high streets. Administrators from PricewaterhouseCoopers are expected to continue to seek a buyer for at least part of the business after their appointment. Mark Jackson, the retailer’s chief executive, said: “We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.” He added: “We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”
Our HR Comment: – Wilko collapses into administration
Matthew P Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “This is such a shame as it is with any business when it comes to. having to make such a hear decision and in this case having to call in the Administrators due to not finding a secure deal. In these instances, as with any instances that involve employees, needs to be managed professionally, to best practice and the law. It reminds me of when I worked for a short while for a well-known retail company who needed to change the companies Terms & Conditions of Employment and making a range of changes to ensure the success of the business going forward. It is never easy for anyone whether you are an employee or a member of the Management team, everyone is affected in one way or another and I wish the team at Wilko all the best in these difficult times.”
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If you are having to make difficult business decisions such as Redundancy, give us a call for an informal chat | Update from Consensus HR, outsourced HR solutions. Herts, Beds, Cambs.
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Almost one in three female workers in Britain expect to stop working before reaching their retirement age, according to a survey published by the British Standards Institution (BSI). The poll found that 29% of women expected to leave the workforce before retirement, with 42% citing health or well-being concerns and a fifth mentioning the menopause. Caring responsibilities and a lack of work flexibility were also mentioned as barriers to work. Anne Hayes, the BSI’s Director of Sectors, emphasised the need for strategies to address these issues, including support for menopausal workers and flexible working arrangements. The survey highlights the challenge of increasing the number of people in work in the UK, particularly among women aged 50 to 64. The BSI did not survey men to compare their reasons for leaving the labour market. Over half of the women surveyed found it difficult to raise menopause-related issues with their employers, and three-fifths felt uncomfortable discussing health and well-being with male managers.
Our Comment: – Almost one in three UK women expect to stop working before retirement age.
Matthew Pinto-Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “This is a very interesting article in Reuters and based on a recent survey carried out by the BSI and highlights the importance of employers ensuring that the health and welfare of their teams is of the utmost importance for the continual success of the business. This article is based on statistics for women, but the majority of points raised are relevant to all with the ever-changing employee market and retention of employees.”
If you wish to look at your current recruitment and retention strategy for your company, please give us a call or email now.
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The Importance of Human Resources in Business – Human resources (HR) is a vital function within any successful business. Its primary purpose is to attract, retain, and develop talent, which is crucial for growth and competitiveness in today’s ever-evolving business environment. In this article, we’ll delve into the significance of HR in business and examine the many roles it plays in driving organisational performance.
To begin with, HR is responsible for attracting and retaining top talent. In today’s job market, with increased competition and a limited pool of available employees, it’s essential for companies to stand out and appeal to the best candidates. HR plays a crucial role in this regard by creating effective recruitment strategies that attract top talent to the organisation. This may involve utilising a variety of methods, including career fairs, social media, and employee referral programs, to reach potential candidates and showcase the company’s values, culture, and opportunities.
Once the top talent is on board, HR must then ensure that they are properly trained, developed, and integrated into the company culture. The success of a business is directly tied to the performance of its employees, and HR must make sure that employees have the necessary skills, knowledge, and support to excel in their roles. HR can do this by providing job training and development programs, implementing performance management systems, and conducting employee engagement surveys. These initiatives not only help employees perform better but also increase their job satisfaction, motivation, and overall engagement.
In addition to talent acquisition and development, HR also plays a critical role in ensuring that the company operates within the legal and ethical framework. This includes compliance with labour laws and regulations, as well as addressing workplace conflicts and disputes. HR must also be proactive in promoting a culture of diversity, equity, and inclusion, and ensure that the company operates in a manner that aligns with its values and ethical principles.
One of the significant benefits of having a strong HR function is that it helps to create and maintain a positive and productive workplace culture. A healthy work environment fosters employee engagement and motivation, leading to higher levels of productivity and overall performance. HR plays a key role in shaping and maintaining the company culture by creating a welcoming and inclusive work environment, promoting open communication, and recognizing and rewarding employees for their contributions. By doing so, HR helps to reduce employee turnover and increase employee satisfaction, leading to improved business results.
Another crucial role that HR plays in business is employee relations. This involves managing employee benefits and compensation, addressing employee concerns, and resolving disputes. HR must ensure that employees are paid fairly and receive adequate benefits, such as health insurance and retirement plans. They must also be knowledgeable about the company’s policies and procedures and be able to communicate them effectively to employees. Additionally, HR must be available to listen to employee concerns and provide guidance and support when necessary. By fostering a positive and productive work environment, HR helps employees feel valued and appreciated, leading to higher levels of employee engagement and satisfaction.
Finally, HR is responsible for supporting the overall strategic objectives of the organisation. This involves aligning HR initiatives and policies with the company’s goals and objectives and working with other departments to ensure that the company operates as effectively and efficiently as possible. For example, HR may work with the marketing department to develop and implement employee branding and recruitment initiatives that align with the company’s marketing strategy. Additionally, HR may partner with the finance department to develop and implement compensation and benefits programs that support the company’s financial objectives.
In conclusion, the importance of HR in business cannot be overstated. From attracting and retaining top talent, to creating a positive workplace culture, and supporting the overall strategic objectives of the organisation, HR plays a critical role in driving organisational performance and success. Companies that invest in their HR function will reap the rewards of improved employee engagement, higher productivity, and a more effective and efficient business operation. Investing in HR programs and initiatives, such as leadership development, diversity and inclusion, and employee engagement, will ensure that the organisation remains competitive in today’s fast-paced business environment and attracts and retains the best talent.
In addition to the tangible benefits of a strong HR function, there are also intangible benefits that are equally important. A company with a positive workplace culture and engaged employees is more likely to have a good reputation, which can lead to increased brand recognition and a positive image in the eyes of customers and stakeholders. This, in turn, can lead to increased customer loyalty and a more stable customer base, which is critical for long-term success.
It’s also worth mentioning that HR is not just about managing employees, but it’s also about managing the company’s most significant asset: its people. By providing support, guidance, and development opportunities, HR helps employees reach their full potential and contribute to the success of the organisation. Additionally, by fostering a positive and inclusive workplace culture, HR can help to create a workplace that employees are proud to be a part of, which in turn leads to higher levels of employee satisfaction, motivation, and performance.
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Matthew Pinto-Chilcott, Owner of Consensus HR comments: “As the strikes continual and the various news channels are reporting updates, here is the latest that we have heard and now await the outcome and whether a change in the law will happen., although this will not affect the current planned strikes.”
NEWS ARTICLE – Government unveils anti-strike laws
The UK government has introduced new laws which will allow ministers to set minimum levels of service which must be met during strikes. Under the laws, which are aimed at ensuring the safety of the public and their access to public services, ministers would make regulations determining the minimum number of people required to continue working during strikes. Employers would then be able to draw up a list of their staff who would have to come into work, and if they refused they could be subject to disciplinary action and may be fired. The Strikes (Minimum Service Levels) Bill was originally intended only to apply to the railways, but the new version tabled in Parliament is much broader in scope, applying in principle to anyone working in health, education, transport, fire and rescue, border security or nuclear waste – a total of more than six million of Britain’s 30m workers. Paul Nowak, general secretary of the Trades Union Congress, described the measures as “undemocratic, unworkable and illegal.” He warned that if the proposals became law, the legislation would “prolong disputes and poison industrial relations – leading to more frequent strikes.” Business Secretary Grant Shapps said the proposed legislation was similar to existing laws in other modern European economies and it was not designed to ban strikes.
Consensus HR realises that many UK based SMEs understand the importance of Human Resources (HR) and Health & Safety (H&S) but cannot justify the cost of a full time HR person / team within their business, whilst knowing that when running a business of any size (from one employee to 250) that there will be a time when they will have to deal with a range of HR and H&S issues and employee problems. Consensus HR can be your organisation’s HR department providing everything you would expect to find in a big company but in a more cost-effective way. We provide our clients access to unlimited HR advice and employment law which is accredited by leading professional bodies, including the Solicitors Regulation Authority and the Bar Standards Board.
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Our latest blog in the world or strikes and planned Employment Law changes.
Matthew, Owner of Consensus HR comments: “Initially, I was not a fan of zero-hour Contracts when they were introduced but they have shown if managed fairly and reasonably that they do suit some businesses and especially where students are involved. However, in this news report shown below in The Guardian it shows from statistics that they are being used extensively for the over 50’s. At Consensus HR and as per the Equality Act 2010, (EQA) age should not be a factor when employing somebody and hence why the past process of some people adding their Date of Birth to their CV is now none existent and if anybody is still doing this, they should be told at interview by the employer that this is not best practice and we as HR professionals advise against it.
If your business wishes to use Zero-hour Contracts, then make sure it is for the right reasons for the worker such as flexibility, Opportunities and Extra Income and not to take advantage of a protected characteristic under the EQA which as previously stated in our blogs, is protected from day one of employment and could result in an unlimited penalty to the business.”
NEWS ARTICLE – Zero-hours contracts among over-50s hit record high.
Analysis of Office of National Statistics data shows that zero-hours contracts among the over-50s have reached their highest level since records began. There are nearly 300,000 people aged 50 and older with zero-hours contracts, the highest number for this age group since records began in 2013. The total has increased from 149,000 between October and December 2013 to 296,000 in July to September 2022. More than a quarter of the total number of zero-hours contracts are held by workers over 50. Stuart Lewis, chief executive of Rest Less, said: “The large rise in the number of people aged 50+ working under zero-hours contracts is worrying.” He added that while many have turned to zero-hours contracts because they were unable to find a more permanent or structured type of work “thanks to age discrimination or a lack of workplace flexibility . . . Others are juggling zero-hours contracts alongside other part-time roles to top up working hours to make ends meet amidst double-digit inflation.” Caroline Abrahams, charity director at Age UK, said that zero-hour contracts are on the rise among older people because, “sadly, it’s often very hard to find a new job in your 50s and beyond, because ageism is rife in the labour market.” Dr Emily Andrews, deputy director for work at the Centre for Ageing Better, said that while zero-hours contracts support many older workers to remain active in the labour market as their circumstances change, “all too often, these contracts mean one-sided flexibility in favour of the employer
Matthew Pinto-Chilcott, Owner of Consensus HR comments: “Unfortunately, this is not the greatest of news just before Christmas 2022 and the New Year 2023 but really does continue to emphasise the difficulties that businesses are continuing to experience to remain in business.
At Consensus HR, we see businesses from all spectrums of the Employee Life Cycle, when the country and economy is booming, recruitment increases and when it is not, redundancies / company restructures take place, and it is in these instances together with employee relations and development of the team that we are called upon for support. If your business is having to consider changes with its team, we highly suggest for the welfare and motivation of the team and customer service / sales that you contact a HR Consultancy to support you and help make an extremely difficult business decision completed to best practice and the law.”
NEWS ARTICLE:
Company insolvencies in November were 21% up on the same month last year and 35% higher than in 2019 – the last pre-pandemic November. The Insolvency Service data show that there were 2,029 registered company insolvencies last month. Of these, 1,595 were creditor voluntary liquidations. The analysis also reveals that there were five times as many compulsory liquidations last month than in November 2021, with a 7% increase on November 2019. The Insolvency Service said compulsory liquidations had increased from historic lows during the pandemic, partly as a result of an increase in winding-up petitions presented by HMRC. Christina Fitzgerald, president of insolvency and restructuring trade body R3, said: “What we’re seeing here is a perfect storm of creditors pursuing unpaid debts and directors choosing to close down their businesses — either before this choice is taken away from them or because they have simply run out of road.” David Kelly, Head of Insolvency at PwC, said: “This is a sobering reminder that rising interest rates, energy costs and supply chain issues are starting to bite as we head into 2023.”
Matthew Pinto-Chilcott, Owner of Consensus HR comments: – PM working on ‘tough’ new anti-strike laws“I do not know what your views are in relation to the current state of the economy and many public sector provisions taking strike action but this latest news that has been broadcasted and written in a number of papers explains what action the Government is aiming to take in the future. The current economy with high inflation and the war in Ukraine and high gas / electricity prices is something very unusual to me, having not experienced it in the past but it highlights the importance of employee relationships and the need for all parties to be reasonable and to take reasonable action. Running a business / service is never easy and having employees / team has complications as well. In these instances, it is easy for us to have our say / point of view but as with all HR and business in general, unless you know the facts and have all the information in front of you, you are not able to claim that your view is correct and reasonable! Also, depending on who’s view you listen to, whether this be the Government or the Unions, you will have your stance but we need to remember negotiation and best practice HR within your company can help to ensure that issues such as these are kept to a minimum and members of the team made to feel part of the business and the decisions that are made and fully understand why they are being made and that their views matter”
NEWS ARTICLE – PM working on ‘tough’ new anti-strike laws:-
Rishi Sunak said on Wednesday that he would bring in “new tough laws” to protect people from strike disruption. He told MPs that if “union leaders continue to be unreasonable, then it is my duty to take action to protect the lives and livelihoods of the British public.” The Prime Minister’s pledge came as the PCS union said Border Force staff would join a wave of strikes this Christmas. A bill has been introduced to Parliament which would ensure minimum service levels on transport networks during strikes, but it is yet to be debated by MPs and peers. Downing Street said the legislation would be extended to other services but would not specify what these would be, and no timescale was given. Meanwhile, the Labour Party has said it will repeal the 2016 Trade Union Act if it comes to power, making it easier for unions to take industrial action. Elsewhere, senior military figures have told the government that Armed Forces personnel should not have to sacrifice their Christmas to cover for striking public sector workers who earn more than them. Bringing in soldiers also risks weakening the “operational capability” of the military to respond to threats, ministers were told.
Matthew Pinto-Chilcott, FCIPD, ACEL BA(Hons), Owner of Consensus HR comments: – H&M to cut 1,500 jobs “The war in Ukraine and inflation is continuing to have a major impact on businesses having to make vast amendments such as Redundancies & Restructures due to major drops in profits resulting in job cuts. Employers and Managers need to ensure that when having to make these changes to the team structure that they follow the law correctly, depending on the amount of people they are proposing to make Redundant. Business Owners / Managers need to ensure they follow the law and work to best practice but make sure it is completed professionally as if incorrectly could result in severe financial penalties for unfair dismissal. “
NEWS ARTICLE – H&M to cut 1,500 jobs :
H&M is to cut 1,500 jobs across its global operations as part of efforts to save 2bn Swedish Kroner ($190m) a year, amid slowing sales and rising costs for clothing retailers. The group announced plans for the job cuts after profits fell 30% in the nine months to the end of August, partly resulting from the winding down of its operations in Russia amid the war in Ukraine. The largest of the job cuts are in tech roles located in Sweden, with both employees and consultants to be affected. The impact on the UK is currently unknown. A spokesperson said: “It is too early in the process to define how it will affect the UK specifically.” H&M CEO Helena Helmersson added: “The cost and efficiency programme that we have initiated involves reviewing our organisation and we are very mindful of the fact that colleagues will be affected by this. We will support our colleagues in finding the best possible solution for their next step.”
Matthew Pinto-Chilcott, Owner, of Consensus HR comments: Investigation reveals harsh conditions at Boohoo factory – “An interesting article in ‘The Times’ in relation to working conditions at a UK company where the team call themselves “Slaves”! How can any company employ a team where they make comments such as this and in extremely poor conditions. A reputation of a company is vital for its success and employees making extremely poor comments about it, does not help. In this article, they comment about temperatures reaching 32 degrees which I could understand in the height of summer but in November! There is no legal limit on how high a temperature can get in a workplace but surely if you had an environment like this, you would aim to get some sort of air-conditioning in so that the team felt comfortable when working and producing more!
This investigation gives perfect examples of how not to look after your team and how to go against everything a good HR strategy would provide. The current economic climate may not give companies surplus funds to provide excessive HR benefits, but all of these listed within this article are conditions that do not cost a fortune and are purely down to mismanagement by the team and failure to work to best practice and Health & Safety regulations. I dread to think what their sickness / absence and retention must be and the continual additional costs of recruiting more employees both financially and in view of their reputation!”
An undercover investigation by The Times has revealed the harsh conditions at Boohoo’s warehouse in Burnley, where workers label themselves “slaves” and have complained of racism, sexual harassment, gruelling targets, inadequate training and ill-fitting safety equipment. The investigation found the conditions, where workers are forced to walk the equivalent of a half-marathon per shift in a sweltering warehouse in which night-time temperatures can reach 32C, have led to workers collapsing in the aisles. An undercover reporter revealed staff complained they are treated as “fodder,” with managers timing their lavatory breaks and no allowances made for injuries they said they had suffered as a result of the manual work. Justin Madders, Labour’s shadow minister for employment rights and protections, said: “These shocking revelations must be a wake-up call for ministers. The government has repeatedly failed to deliver their promised Employment Bill to tackle conditions in warehouses run like Victorian workhouses.” He said there needed to be “urgent guidance for safe indoor working temperatures.”
Matthew Pinto-Chilcott, Owner of Consensus HR comments: Remote working is blamed for pub woes – “Well, this is our first blog that mentions ‘Christmas’, but I am sure there will be many more before Christmas 2022 arrives! Following the last few years and the Pandemic you could say I suppose that this will be the first real Christmas since pre pandemic when families and teams will be able to celebrate as they use to do post Pandemic. However, if these statistics from this survey are to be true, companies may be seeing that their teams are not interested in the old festivities due to working from home.
Christmas & the New Year are times to celebrate and an ideal opportunity for the team to enjoy themselves and celebrate and decorate the office whilst having a team event, but what do you have planned for this year, and nobody wishes to be ruin Christmas or the New Year?
Please ensure as we comment every year that whatever you have planned that your team are fully aware of any company / HR policies so that no forms of unwanted misconduct occur and end up ruining the party for any member of the team. We recommend that businesses have a Policy on behaviour at work related events such as Christmas, so that everyone knows what to expect and can enjoy themselves fully without any repercussions.”
PRESS ARTICLE – Remote working is blamed for pub woes –
The number of office Christmas parties booked this year is a fifth lower than pre-pandemic levels, pubs have reported. The rising number of staff working from home and cost pressures are blamed for the fall in demand. In a normal year, British pubs take in around £2.3bn in December – about one-tenth of their annual income and their most profitable month by far – according to the British Beer and Pubs Association. However, a survey of 5,000 watering holes last week found that festive bookings are down by 20% compared to what was normal before the pandemic. Meanwhile, December bookings for the wider hospitality sector are only slightly below 2019 levels, according to separate analysis by UKHospitality. The industry group’s chief executive Kate Nicholls said: “We are cautiously optimistic. Bookings are coming in, but they tend to come in a little later these days than they did before the pandemic.”
With Christmas arriving next month and this probably the first ‘normal’ one since the Pandemic. Is colleagues working from home affecting yours and attendance?
Matthew Pinto-Chilcott – Owner of Consensus HR comments: “Twitter locks staff out of offices until next week – Wow! what an article written by the BBC and Sky News in relation to Twitter and its new owner, Elon Musk, on how NOT to take over a business. At the moment many businesses are going through extremely hard economic times with the economy / inflation like it is, but businesses need to remember that their teams are one of their most valuable assets and who represent their company and its reputation and need to be managed correctly / professionally. In this scenario and the product, it offers, social media worldwide, it is inconceivable that the HR / business action the company is taking is going to get out into the media and public. Business Owners / Managers need to remember the importance of their teams / employees, even when times are extremely hard and treat them reasonably and how a reasonable employer would treat them or face the possible consequences such as poor motivation, bad moral, poor customer service and low retention.”
NEWS ARTICLE
Twitter has told employees that the company’s office buildings will be temporarily closed, effective immediately. In a message seen by the BBC, workers were told that the offices would reopen on Monday 21 November. The company did not give a reason for the move. The announcement comes amid reports that large numbers of staff were quitting after new owner Elon Musk called on them to sign up for “long hours at high intensity” or leave. The message went on to say: “Please continue to comply with company policy by refraining from discussing confidential company information on social media, with the press or elsewhere.” The BBC reports that the announcement that Twitter had temporarily closed its offices came amid signs that large numbers of workers have now also resigned as they have not accepted Mr Musk’s new terms. Employees have been tweeting using the hashtag #LoveWhereYouWorked and a saluting emoji to show they were leaving the firm. One former Twitter worker who wished to remain anonymous told the BBC: “I think when the dust clears today, there’s probably going to be less than 2,000 people left.” The person added that everyone in their team had been terminated. “The manager of that team, his manager was terminated. And then that manager’s manager was terminated. The person above that was one of the execs terminated on the first day. So, there’s nobody left in that chain of command,” the former Twitter worker said.
Matthew Pinto-Chilcott – Owner of Consensus HR comments: “I found this article – Record pay rises planned for UK but real wages lag inflation from US News and the BBC very interesting bearing in mind what is going on in the economy at the moment with high inflation at 10.1 % and the war in Ukraine. Recent statistics show that UK has seen a slight rise in unemployment to 3.6% in the three months to September, up from 3.5 in August 22. The Bank Of England is also expecting unemployment to double by 2025 as we go through an anticipated recession. Employers are going to have to juggle a number of balls to ensure their team are motivated and paid enough to live comfortably whilst inflation is high and that the books balance with good sales, preferably increasing, motivated team members, low sickness and the need to not have to restructure the business due to reducing salaries /’ payroll and headcount.”
ARTICLE:
UK companies are planning their biggest pay hikes in a decade, but real-term wages will still grow more slowly than inflation, according to the latest quarterly survey from the Chartered Institute of Personnel and Development (CIPD). The survey found that British employers expect to raise their basic pay rates by 4% on average over the coming year, and by as much as 5% in the private sector – the largest such increases since the CIPD’s records started in 2012. “Pay awards are expected to rise by the highest amount we’ve seen in our survey for 10 years but it’s being outpaced by rising prices,” CIPD labour market economist Jon Boys said, adding “Rather than feeling the benefit of higher pay, most will face a real-terms pay cut.” The CIPD say the UK’s jobs boom has not yet peaked, with 69% of employers planning to hire in the next quarter.
By Reuters – Nov. 13, 2022, BBC, The Human Times – 15th November 2022
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With the current economic climate and inflation being in excess of 10%, what effect could this have your business and could we help?
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