Rewards & Benefits

13 02 2023

The Importance of Human Resources in Business

Matthew Chilcott Absence Management, Blog, Disciplinary & Grievance, Employment Law, General, Handbook, Health & Safety, Investigations, Newsletter, Payrol, Performance Management, Recruitment, Redundancy, Rewards & Benefits, Training & Development #outsourcedhumanresources, Business, Business Owners, hertfordshire, HR, HR Advice, HR Consultant, HR Consultants, HR Support, outsourcedHR, Small Business, SME, SME's, stevenage

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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YOUR OUTSOURCED HUMAN RESOURCES DEPARTMENT.

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Young workers' safety highlighted during National Apprentice Week

31 01 2023

Automatic enrolment pension thresholds 2023/24

Matthew Chilcott Blog, General, Payrol, Rewards & Benefits #autoenrolment, #outsourcedhumanresources, #pensions, Business, Business Owners, hertfordshire, HR, HR Advice, HR Consultant, HR Consultants, HR Support, outsourcedHR, Small Business, SME, SME's, stevenage

Matthew Pinto-Chilcott, Owner of Consensus HR comments: “At least this is one confirmed fact that will help business owners when having to pay their employee’s pension contributions and should help those employers who do not meet the current £10,000 threshold but have a number of the team on part-time flexible hours.”

PRESS ARTICLE: Automatic enrolment pension thresholds will remain the same for 2023/24

The government has confirmed auto-enrolment thresholds will be held at their current levels for the next year. Laura Trott, under-secretary of state for pensions, said the decision was taken to “ensure the continued stability of the policy in light of the impact of Covid-19 and prevailing economic factors.” The 2023-24 annual thresholds mean the automatic enrolment earnings trigger will remain at £10,000 and the lower earnings limit of the qualifying earnings band will remain at £6,240 with the upper earnings band staying at £50,270.

FT Adviser

The Times

The Human Times

YOUR OUTSOURCED HUMAN RESOURCES DEPARTMENT.

Full HR & H&S Support

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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What are the pension auto-enrolment thresholds for 2023 / 24?

30 01 2023

Divorcing staff could soon be given time off

Matthew Chilcott Blog, General, Rewards & Benefits #divorce, #outsourcedhumanresources, Business, hertfordshire, HR, HR Advice, HR Consultant, HR Consultants, HR Support, outsourcedHR, Small Business, SME's, stevenage

Matthew Pinto-Chilcott, Owner, Consensus HR Comments: “They always say that there is nothing more stressful in life than a Divorce or moving house and it is interesting to see this scheme that several employers are backing under the Positive Parenting Alliance. Currently employees take leave or go sick when going through such circumstances and tend to be demotivated which is understandable but what about it from an employer perspective? Currently there is no legal obligation to give a set amount of time for a bereavement and is purely based on your employer and what has always been offered in such circumstances, but would a set policy help? Several employers seem to think so!!”

NEWS ARTICLE: Divorcing staff could soon be given time off

Several big UK employers including Tesco, Asda and NatWest are backing a scheme that gives time off to parents who are splitting up. Under the Positive Parenting Alliance’s scheme, employers will amend human resources policies, so a separation is given similar status to a family death or serious illness. Participating employers will provide leave or flexible working as well as access to support services, such as counselling. A poll of 200 workers by the alliance found 90% say their work was adversely affected when they divorced, while 95% reported that their mental health at work also suffered. Around three-quarters felt they were less efficient at work, while about 40% had taken time off because of their separation. Sir Andrew McFarlane, president of the family division of the High Court, says he hopes that other employers, including the civil service and NHS, will adopt the scheme.

The Daily Mail

The Times

YOUR OUTSOURCED HUMAN RESOURCES DEPARTMENT.

Full HR & H&S Support

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If sickness and absence are causing your company problems and you wish to know the best way to manage it, give us a call now.

03 01 2023

Half of workers eye new roles

Matthew Chilcott General, Performance Management, Recruitment, Rewards & Benefits Business, Business Owners, hertfordshire, HR, HR Advice, HR Consultant, HR Consultants, HR Support, Recruitment, Small Business, SME, SME's, stevenage

Matthew Pinto-Chilcott, Owner of Consensus HR comments: “Retention of good members of the team is crucial for the success of any business whilst ensuring you do not create employees that become clones and only do the basics whilst never thinking outside the box as jargon goes. At Consensus HR, we have personally noted how hard this can be for businesses as members of our team have wished to go to pastures new to progress their careers or return to family duties. Unfortunately, / fortunately, this is becoming more common for businesses in general and with the cost of recruitment continually increasing, businesses need to work with their team, ensuring regular performance reviews take place and Job Descriptions are updated on a yearly basis / discussed, whilst making the working environment a place people want to go to work with flexibility such as Hybrid if possible. It is always good for people to leave a business for the right reasons and give positive feedback to their new employer about their previous employment as we have seen many times, the opposite and I am personally proud to know that although they may no longer work for me, they have now gone on to progress their career with an employer who can provide more of what they are looking for in a new career.”

Over half of workers intend to look for a new job in 2023, according to a Hays poll of 13,500 professionals and employers. The Mail says that with more than 1.1m unfilled jobs in the UK, those looking for a new challenge are likely to see plenty of opportunities. Areas with shortages that are set to see demand for roles include engineering, construction and technology, while the drive for green jobs will mean the need for more energy and sustainability managers. The most sought-after employees are expected to be electrical and automation engineers – with these among roles on the UK government’s shortage occupation list. Cyber security managers are expected to continue to command some of the highest average salaries, at around £81,500 a year.

The Daily Mail

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Therapy sessions start for long-term sick | Consensus HR – Herts

20 12 2022

Groom v Samuel Smith Old Brewery

Matthew Chilcott Blog, Disciplinary & Grievance, Employment Law, General, Investigations, Rewards & Benefits #outsourcedhumanresources, #unauthoriseddeductionofwages, #unfairdismissal, Business, Business Owners, hertfordshire, HR, HR Advice, HR Consultant, HR Consultants, HR Support, outsourcedHR, Small Business, SME, SME's, stevenage

Matthew Pinto-Chilcott, Owner of Consensus HR comments: “Groom v Samuel Smith Old Brewery . With Christmas now not far away, when I saw this recent article written by our Chartered Institute (CIPD), it seemed fit to write about it and one of the most common claims to an Employment Tribunal (ET), ‘Unauthorised deductions from wages. In this instance it involved a pub and its management team and a clause within their Contract that stated monies could be deducted from their wages for loss of stock etc. However, as with always, the word ‘Reasonable’ raises its head and is very important that all business owners and their management team when making decisions ensure they look at the facts and fully consider if it reasonable to take the action. In this case, it was found not to be reasonable, and this article explains why. HR is under Civil Law and the balance of probabilities and hence why you always need to be able to demonstrate that the action you took was reasonable.”

ARTICLE – Groom v Samuel Smith Old Brewery:

In this case the ET was called upon to consider if deductions made under a contract were lawful; and if not, in making those deductions, had the respondent acted in a manner calculated or likely to destroy the relationship of trust and confidence between employer and employee.

The facts behind the case were that a married couple took over the running of a pub from May 2019, following a period where one of them worked as relief manager in the same pub. On the day before both taking over, a stock take was undertaken by a representative of the respondent. Upon finding a deficiency in the stock, allegedly from the claimant’s time as relief manager, the claimants were forced to make up for this out of their own pocket, to a total of £480 or thereabouts. The payment of this was presented as an ultimatum; if the money were not paid over, they would not be able to take up their joint contractual position as managers.

On two further occasions deductions of £428 and £565 were made in line with this clause. These were not challenged. Finally, following another stock take the owner notified the claimants that they would deduct £4361.54 from their joint salary due to gaps in stock levels, this amounted to 12.5% of their net salary (which was only slightly above national minimum wage anyway).

The amounts calculated as deductions were based on a contractual clause and a relevant policy. These set out that the total sum owing was based on calculations as to how much surplus should have been created in an average pub in terms of beer and mixer drinks (as the head on the beer, or ice in a glass with a mixer, meant less liquid was served than sold), against the actual stock levels in the pub. If the actual stock levels were less than the 6% surplus the respondent said should be present, based on what been sold, then the clause allowed for the deficit to be taken from the salary of the claimants. This check could happen at a time arbitrarily picked for stock check. This therefore meant that any surplus previously recorded, where the pub held drinks over the calculated surplus, would not be taken into account, even if overall it meant that there was not a deficiency.

The deductions took place whilst the claimants were on annual leave, and they submitted their resignation on their return by letter, stating that this amounted to constructive dismissal because of a fundamental breach of contract. Specifically, that is the breach of trust and confidence. At that point they gave their contractual two weeks’ notice, but following further communication from the respondent’s representative, they withdrew that notice and resigned with immediate effect.

Claims were then made for constructive unfair dismissal and unlawful deduction of wages.

Notes for employers:

Whilst only ET, and therefore not binding precedent, this case is an important reminder for employers to take care when drafting deductions clauses. The clauses relied on in this case were not sufficient so as to result in a reasonable calculation of the employer’s loss, and therefore were not reasonable to enforce. Employers should instead be explicitly clear what is meant by a deficit and set out the means of calculating this.

A further note is that even where a valid deduction clause is in place, employers must have in mind the impact of the deduction on the individual, especially if the employee is a low earner and the amount is significant. At 12.5% of their wages, the amount deducted by the respondent represented a significant portion of their joint income, which could have had serious consequences for the claimants. This drew criticism from the ET and led them to question the validity of such a deduction. Ultimately it contributed to the successful constructive dismissal claim and is a reminder of the need to be reasonable when exercising contractual clauses.

What is the law in relation to this?

13(1A) of the Employment Rights Act 1996 – Right not to suffer unauthorised deductions.

(1) An employer shall not make a deduction from wages of a worker employed by him unless—

(a)the deduction is required or authorised to be made by virtue of a statutory provision or a relevant provision of the worker’s contract, or

(b)the worker has previously signified in writing his agreement or consent to the making of the deduction.

(2) In this section “relevant provision”, in relation to a worker’s contract, means a provision of the contract comprised—

(a)in one or more written terms of the contract of which the employer has given the worker a copy on an occasion prior to the employer making the deduction in question, or

(b)in one or more terms of the contract (whether express or implied and, if express, whether oral or in writing) the existence and effect, or combined effect, of which in relation to the worker the employer has notified to the worker in writing on such an occasion

HRDirector

CIPD

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28 11 2022

100 firms move to permanent four-day week

Matthew Chilcott Employment Law, General, Handbook, Recruitment, Rewards & Benefits #100firms, #4dayweek, #outsourcedhumanresources, Business, Business Owners, Hertford, hertfordshire, HR, HR Advice, HR Consultant, HR Consultants, HR Support, Small Business, SME, SME's, stevenage

Matthew Pinto-Chilcott of Consensus HR Comments: “Talk of the four-day week has been going on for some time now and especially since the Pandemic occurred but what are your views and the companies on this? It will be interesting to see the feedback in the future with this initial 100 British companies and the affect it has had on moral, health, motivation and company profits. We await the outcome, but have you considered it? Is it the way forward? Personally, I believe as long as the correct Policies and Procedures are put in place for the team and company and the required results are achieved, then why not have a four-day week? I look forward to hearing client’s views in the future and seeing how many do actually give it a go!”

NEWS ARTICAL:

One hundred British businesses have signed up for a permanent four-day working week that will see no loss of pay for staff. Around 2,600 employees are set to benefit from the new working pattern. The two biggest companies to have signed up are Atom Bank and global marketing company Awin, which each have about 450 UK staff. Accredited firms have demonstrated that they have genuinely reduced hours for workers rather than forced them into longer days. A global trial has seen more than 3,300 employees across 70 companies and charities taking part in a six-month experiment. At the half-way point in September, the trial – which involves researchers at the universities of Cambridge and Oxford, Boston college and think-tank Autonomy – saw 88% of the UK respondents say the four-day week was working well for their business. Around 95% said productivity had either stayed the same or improved. However, it was noted that only around half of those taking part responded to the survey canvassing opinion at the three-month mark.

The Daily Mail

The Guardian

The Human Times

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This article talks about 100 companies going over to a four day week, but what are your views? If you would like to discuss how this could be achieved from a HR perspective, give us a call email now.

22 11 2022

Watching the World Cup in the work-from-home era

Matthew Chilcott Blog, Employment Law, General, Performance Management, Rewards & Benefits #Hertfordshire, #outsourcedhumanresources, #stevenage, #Worldcup, Business, Business Owners, HR, HR Advice, HR Consultant, HR Consultants, HR Support, Small Business, SME

Matthew Pinto-Chilcott owner of Consensus HR, your outsourced HR Department comments: “What are your views on this, this year considering what has happened over the past three years? Has your company always allowed the team to watch the game? What teams can they watch if they are allowed? Is just England, Scotland, Wales & Northern Ireland. The home teams. What is your company, Policy? Is this written for all social events such as these so that the whole team know what is expected? Have you had to discipline anybody in the past for watching sport when they are not permitted to, due to the company stance?

Football is only one of the sports, social events that employees wish to watch during work time and especially when it is their nation playing but how do you manage this fairly and professionally? Do you even allow it or tell the team they are there to work and not watch these events in work time?

This is a question all companies should ask themselves and make sure that they have the correct Policies & Procedures in place such as a Social Policy that details what is permitted to take place and should any member of the team not adhere to this the repercussions that could exist such as disciplinary and grievance. Your work environment should be a place that people wish to come to work but be expected to work and know what is expected as and when. Here’s to the World Cup and whoever you support.

NEWS ARTICLE – Watching the World Cup in the work-from-home era :

This is the first World Cup tournament of the remote-working era, and BBC Newsreports that many employers are opting for an easy way to deal with the games that happen in office hours: let staff work from home that day. A survey by polling company Opinium found that nearly half of working fans will be allowed to watch the game during office hours. Just over a quarter of fans said that their employer will show the matches live, while one in five will allow them to watch the football elsewhere. Some companies will use the event as an opportunity to have some fun in the office, and bond with colleagues and clients. But some 9% of workers told pollsters YouGov that they intend to watch the game when they should be working, without their employer’s knowledge – which could leave them at risk of disciplinary action. Meanwhile, the hosts’ treatment of migrant workers who built the stadiums and other infrastructure for the event, and Qatar’s intolerance of its LGBT citizens, has encouraged some businesses to boycott the World Cup altogether.

BBC

The Human Times

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What are your views on the team watching football whilst at work or at home should they be a hybrid worker? This article from the BBC shows the change in attitude and if you wish to ensure your company Policies & Procedures are up with the times for the benefit of the business and team, contact us now.

18 11 2022

National Living Wage rising to £10.42 in April

Matthew Chilcott General, Recruitment, Rewards & Benefits #NationalLivingWage, #NationalLivingWage2022, #wages, Business, Business Owners, HR, HR Advice, HR Consultant, HR Consultants, HR Support, Small Business, SME, SME's

Matthew Pinto-Chilcott – Owner of Consensus HR comments: “National Living Wage rising to £10.42 in April – When writing this, it is November 2022, but I believe it is best for all businesses to know well in advance what the new National Living Wage (NLW) is going to be in the next financial year, so that they can plan accordingly. Wages / Salaries are one of the highest financial outgoings that companies face on a weekly, monthly and yearly basis and need to be fully considered and part of the plan when planning their Recruitment / Organisational structures. Employees are what helps make a business successful but having the funds available to have them, is key to a successful business and team. Business Owners / Managers have to ensure, as with all areas of HR and business in general that the correct measures are taken when faced with an increase in anticipated costs such as wages to ensure the growth / success of the business and motivation / culture of its team. Failure to plan can result in a demotivated team, poor customer service and sales and believe me, it is not easy as I have found during the past 10 years and the economic difficulties businesses have had to endure.”

The National Living Wage – the legal minimum wage for workers aged 23 or over – will increase from £9.50 to £10.42 an hour in April, a rise of 9.7%. Chancellor Jeremy Hunt has also revealed that the National Minimum Wage for those aged 21-22 will increase from £9.18 to £10.18 in April; the rate for 18 to 20-year-olds climbs from £6.83 to £7.49; those under 18 will see minimum hourly pay increase from £4.81 to £5.28; and the Apprentice rate will be lifted from £4.81 to £5.28.

BBC

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If you are worried about members of your team and stress and would like some HR guidance, give us a call / email now.

15 11 2022

Record pay rises planned for UK but real wages lag inflation

Matthew Chilcott General, Performance Management, Redundancy, Rewards & Benefits #inflation, #salaries, #wages, Business, Business Owners, HR, HR Advice, HR Consultant, HR Consultants, HR Support, Small Business, SME

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 – 15^th 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?

05 08 2022

Seven HR – Back to basics

Matthew Chilcott Absence Management, Blog, Disciplinary & Grievance, Employment Law, General, Handbook, Performance Management, Recruitment, Rewards & Benefits, Training & Development Business, Business Owners, HR, HR Advice, HR Consultant, HR Consultants, HR Support, Small Business, SME, SME's

Anti-Slavery Day | Consensus HR in Herts & Beds.

Our company mission statement is “Helping companies take the pain out of managing people, whilst preventing people problems” but what does this actually mean? We can help you and your Company put in place the ‘Seven HR – Back to basics’.

Continually, throughout industry and with the current climate, high inflation and the end of Pandemic support measures, such as Furlough. What the ‘Back to Basics’ are we are hearing about when out talking to clients and businesses in general? What can you do or put in place to ensure you are proactive, working to best practice and an employer of choice?

Getting your companies Seven HR – Back to basics and ‘Foundations (previous blog)’ in place is vital for the success of your business and helping you to prevent people problems. Whilst creating a company where people wish to work, which leads to an increase in the bottom line and productivity. Where there are no concerns for demotivating the team or threats of Employment Tribunal (ET) claims, plus bad working atmosphere.

Seven HR – Back to basics for business owners / managers:

1. Recruitment and Selection:

When making the decision to recruit, business owners need to ensure that a set company Policy and Procedure is in place that ensures you work to best practice, the law and maintain consistency throughout, when recruiting members of the team.

As part of the Seven HR – Back to basics; Companies need to be able to demonstrate why somebody got the job rather than another candidate.

Was it their qualifications?
Was it their experience?
Their Competence when answering questions?
Why?

Failure could result in somebody claiming they were discriminated against for one of the protected Characteristics under the Equality Act 2010 such as age, sex and disability.

Further information on how we can help and what is included, can be found here. Plus, details on what is included overall in ensuring you recruit successfully can be found here.

2. Employment Contract:

Since the change in the law in April 2020, employees are entitled to an Employment Contract from day one of employment when previously it was within 3 months. We are still finding that many companies do not provide this on day one of employment, but this should be produced when the decision to employ the person has been made and signed, dated and sent to them for their viewing, with the agreement signed and dated.

It is important that your employee contract includes specific legal clauses and others which need to be adapted to suit your business and service/product you offer, such as the clause for deduction of wages. Unauthorised deduction from an employee’s wages can result in an employee, current or past making a claim to an Employment Tribunal regardless of length of service. Although this should make no difference, as companies need to work to best practice and the law or face the possible consequences that could occur, such as an award of £2,100.

We work with clients to draft a company specific Contract of Employment such as full-time, part-time, self employed, home working etc and by getting to know their business ensure clauses are adapted to ensure maximum usefulness for the employee and business.

As previously mentioned, failure to provide an Employment Contract from day one can result in a claim to an Employment Tribunal, claims for an authorised deduction of wages due to money being subtracted from an employees pay, and the company not contractually permitted to do so, even after consultation with the member of the team.

Areas which should be covered in an Employment Contract can be found by clicking here.

3. Employment checks: References and Right To Work in the UK

All employers within the UK have a responsibility to prevent illegal working. Since Brexit, there are additional needs for employers to check the legality of employees right to work in the UK and the correct checks must be made. We advise every client, to obtain copies of employees Passports and/or Visa’s and keep this securely on an IT system with the employees’ consent.

The Government now has a system that allows employers to check somebody’s legality to work in the UK and can be obtained by a job applicant giving you their ‘Share Code’. By visiting https://www.gov.uk/check-job-applicant-right-to-work and checking that the documents they have provided allows them to work in the UK.

Failure to ensure this is completed correctly can result in an employer being sent to jail for 5 years and pay an unlimited fine, if their found guilty of employing someone who they knew or had ‘reasonable cause to believe’ did not have the right to work in the UK.

This includes, for example, if you had any reason to believe that:

they did not have leave (permission) to enter or remain in the UK
their leave had expired
they were not allowed to do certain types of work
their papers were incorrect or false

Check your employees eligibility to work correctly:

You can also be penalised if you employ someone who does not have the right to work and you did not do the correct checks, or you did not do them properly.

If this happens, you might get a ‘referral notice’ to let you know your case is being considered and that you might have to pay a civil penalty (fine) of up to £20,000 for each illegal worker.

You’ll be sent a ‘civil penalty notice’ if you’re found liable and you’ll have 28 days to respond.

The notice will tell you how to pay, what to do next, and how to object to the decision.

Your business’s details may be published by Immigration Enforcement as a warning to other businesses not to employ illegal workers.

Read more about illegal working penalties.

4. Not following procedures and the law:

HR is covered under Civil Law and the ‘Balance of Probabilities’ and not Criminal Law and ‘Beyond Reasonable Doubt’. There are set procedures to follow which are outlined in the Acas Code of Practice which gives clear instructions on how to deal with employee issues within a business.

Failure to follow the Acas Code of Practice can result in claims for unfair dismissal, unauthorised deduction of wages as well as many other areas such as Age Discrimination, Sex, Gender, Race and all other protected Characteristics under the Equality Act 2010 where awards to an employee can be unlimited in certain circumstances.

Employers have to be able to demonstrate that they acted reasonably in dealing with an issue and followed the correct procedure of investigating the incident, holding the appropriate meeting and an offer to appeal should a penalty be place on an employee. It is up to the manager who is Chairing the meeting and making the decision to be able justify why the action they took is reasonable and what a reasonable employer would do and not HR. Questions to consider include:

What Policies and Procedures are in place?
Was the member of the team adequately informed and giving the appropriate development?
Are the right tools provided?

5. Failure to take an employee’s concerns/moans seriously:

As managers of a team, we all know that team members can raise a number of concerns that affect them and their motivation to do their job, which can result in certain people occasionally being ignored or seen as moaners.

However, managers need to ensure that they take the necessary action, as needed, as failure could result in the employee raising a grievance.

Grievances should initially be dealt with informally, if possible, but should this not resolve the matter, then the Acas/Company Grievance procedure should be followed as soon as possible. Managers should never just ignore it, as a mole hill could turn into a mountain and result in awards being adjusted by up to 25% by an Employment Tribunal (ET).

Employee, Worker or Self-Employed … What’s the Difference

6. Not managing Performance of a team member:

Business owners and managers need to ensure that they have an adequate Performance Management Process in place to make sure that each employee is clear about what is expected from them in their job, whilst also understanding what they are doing well, to identify what the manager can do to support and coach the employee to work differently or better. Working towards the same company SMART goals ensures success for the business, as well as individuals working within it.

Each person should prepare for their Performance Management Meeting by reviewing their job description and any set objectives. These may be what were agreed during or since the last review meeting and completing a preparation form. Any discussions and comments for the previous year should be written down and discussed; with objectives agreed for the coming six months, using the job description relevant to the role and the company.

All members of the team should be working towards the same company goals whilst also having personal SMART goals to ensure success for the business, as well as individuals working within it.

We know that having a suitable performance review process in place helps to facilitate effective performance management – of your teams and your business. These steps allow for individual SMART objectives to be written and rewarded appropriately if achieved, development identified or corrective action taken.

Six-monthly structured one-to-one performance management meetings (appraisals) are recommended. These allow the individual and company management representative to sit down in a friendly environment and set SMART objectives. Both company and personal goals are agreed for the team member to achieve. Feedback should be sought throughout the year. Plus, everyone is fully aware of initial actions and steps of last resort.

SMART – Specific, Measurable, Accountable, Realistic, Time Based. Failure to manage a team members performance effectively can result in a range of issues for a company from demotivation, loss of sales, poor customer service, Employment Tribunals and high turnover in employees.

7. Employee Handbook:

Employee Handbooks are one of the key HR foundations for any business. They ensure that all your team members know what is expected from them. This includes holidays and hours to how poor misconduct may be dealt with in line with employment law. They set out the rules for ensuring that everybody within the team knows what action can be taken by the company, should expectations not be met. Two examples are Disciplinaries and Grievances; initial actions and steps of last resort, would be included.

Our Handbooks are legally written by the Chartered Institute of Personnel and Development (CIPD) and our HR business professional. We consider all your specific business areas, ensuring legal adherence.

An Employee Handbook puts all the key information and rules in one easy place and allows them to access the information as and when required without needing to ask a member of staff which, during the first few days of a role, can sometimes be quite daunting. We encourage these to be easily accessible and available online through the use of our Breathe HR IT system

As part of the Seven HR – Back to basics; a Company Employee Handbook allows the team to gain an understanding of what is expected from them and the company with areas such as pay, hours of work and benefits to communication and team events to name a few. We also ensure that important company policies are included such as disciplinary & grievance, equality and sickness.

We work with our clients to ensure that the handbook is tailored to the business, reflecting the organisation’s values/vision, and on occasion, a welcome letter from the management team.

Failure to provide an Employee Handbook may result in members of the team claiming they were not aware of a Policy or where to find out about that Policy and can help managers manage more effectively as they can direct team members to the handbook for information thus allowing them to manage more effectively. We also suggest that all Policies and Procedures, Company Handbook, a member of the teams Contract of Employment and Job Description are easily accessible to them via a user-friendly IT system such as Breathe HR.

Are all your HR basics in place? If not and you need some help and guidance, contact us now by clicking here.

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