Getting redundancies right

In a tough economic environment employers may conclude they need to reduce headcount and make some redundancies.

If that’s the case, there’s a statutory process to follow before making people redundant. It’s important to get the process right to avoid unnecessary disputes or Employment Tribunal claims for unfair dismissal.

Here are some key points to remember if you think you need to make redundancies.

Make sure it’s a genuine redundancy

Redundancy is about the role, not the person. The redundancy process should never be used to dismiss a specific employee in place of performance management and a disciplinary process. A redundancy is only genuine if it fits within one of the following descriptions:

    • the employer ceases to carry on the business in which the employee was employed,
    • the employer ceases to carry on that business in the place where the employee was employed,
    • the needs of the business for employees to carry out work of a particular kind cease or diminish, or
    • the needs of the business for employees to carry out work of a particular kind in the place where the employee was employed cease or diminish.
Preparation is key

Once you have established the reason for the redundancy of a role, prepare some notes for the consultation process. These notes should include key information you need to communicate:

    • why you need to make redundancies,
    • which jobs are at risk,
    • how employees will be selected for redundancy,
    • the number of people who could be involved,
    • how you plan to carry out redundancies,
    • how redundancy pay will be calculated and
    • details of any agency workers at the company
Fulfil your obligations

Establish the timeframes within which you need to consult and whether you need to consult a trade union, or elected representatives. If you plan to make more than 20 people redundant within 90 days you will need to do collective consultation, so it’s important to know your obligations.

Plan for the process

Prepare your notes and make sure you know the timeframes and consultation requirements. It can then be helpful to create a communication plan for the consultation process. The plan should include details of the consultation with potentially redundant employees as well as other team members who may be affected by the changes.

Make proposals

When the consultation is complete, a redundancy can be confirmed. True consultation involves listening to alternative ideas to avoid redundancies, considering any contractor or agency worker roles instead and redeployment opportunities within the company. It’s also important to ensure the affected employees fully understand the reasons for the consultation and what it means for them specifically. Prior to consultation being completed any redundancy plans should be presented as proposals, subject to consultation.

 

If you’re making large-scale redundancies, it can result in a long and complex process, but whether it affects one employee or 50, it’s still important to get it right and consider their rights and how the news will affect them. Good planning and communication is key.

We work with businesses during difficult times and help to take away the worries about getting it wrong, so if you’re business needs to make these difficult decisions, get in touch with Helpful HR.

Leadership tips

Congratulations! You have achieved that long yearned for appointment or promotion in to a leadership role. The joy of your success may be palpable, and rightly so. However, an element of apprehension may make an appearance at some point.

Here are some top tips for any newly appointed leaders out there, to make sure you’re set for success.

Identify some quick wins

The first 100 days is a typical gauge of success, so speak to key people to identify some quick wins and find the right people to deliver them. Motivate, monitor and measure their progress, provide support and celebrate the successes. Make sure that the delivery of the quick wins sets the tone of your leadership style and be consistent.

Meet people and listen

Your success is dependent on other people, both in and outside of the business.  Make a commitment to meet:

  • your direct reports and key people in their teams
  • other leaders in the business (if you’re part of a senior leadership team)
  • key partners in other business areas, with whom you can share knowledge
  • key customers and suppliers

When you meet with them, ask questions about how things are going and what could be better. Listen to their thoughts and opinions and make notes.

Create a long-term plan

Whilst the quick wins serve a purpose, you also need to think long-term. Use the information from your initial meetings to identify the long-term priorities. Ensure you communicate to your team about these priorities and your reasoning. Ask for feedback, listen, then make a final decisive plan, identifying the ‘what’, ‘why’, ‘who’ and ‘when’ for each of your priorities.

Overcommunicate

Be visible and accessible. Arrange and stick to regular meetings with peers and direct reports, as well as key project leaders. Share information with them and ensure they share their progress with you.  Involve your direct reports in defining the ‘how’ in your plan. Your success is dependent on how it is delivered, as well as the ‘what’, ‘why’, ‘who’ and ‘when’.

There are many other things you could do, and there are many articles about successful leadership if you look for them. But these tips should help to send you off in the right direction. If you need support in a new leadership role, get in touch with Helpful HR.

How flexible are you?

Parents and carers were given the legal right to make a flexible working request in 2002. From 2014 any employee with over 26 weeks’ continuous employment with their employer has the right to request flexible working. However according to a recent CIPD report, Megatrends: Flexible Working, the number of employees working flexibly has flat-lined since 2010.

Why not be flexible?

Apprehension and at times downright negativity about flexible working is not unusual. Requests to work fewer hours, compressed hours and/or working from home often provoke this response. This is particularly the case if the employee making the request manages other employees. Employee visibility is the issue and managers think if they can’t see their staff, they don’t know they’re working. Managers question their employee’s honesty, convinced they will be ‘out shopping, or walking the dog when they should be working’.

Where does this lack of trust come from? Employers need consider if they expect employees to deal with work outside of their contractual working hours. If they expect flexibility but don’t reciprocate due to a lack of trust, employee goodwill will wane.

Reciprocal flexibility works

Perhaps this is a bit extreme, but trusted flexibility can work both ways to the benefit of everyone. It just requires a bit of extra thought about how it can work. If employees want flexibility and their employer gives it to them, their engagement, loyalty and commitment will increase. If employers refuse requests, employees will ask why they should go the extra mile when the company isn’t prepared to do the same for them. They will be less motivated and may begin to ‘work to rule’ or look for a job elsewhere. I don’t think any employer would want that outcome, especially at a time when the ‘war for talent’ seems tougher than ever.

Managing flexible employees

It’s a reality that some jobs really can’t be done flexibly, but every requests need to be considered properly, to see if it can be accommodated. Managers are often concerned about managing less visible employees. But if outcome-based objectives are set, it should be easy to identify and address a dip in performance levels. It’s entirely possible that managers feel overstretched and feel they don’t have the time or energy to consider how it might work. But companies that provide flexibility will benefit from increased talent retention, engagement and productivity. At a time when there are reported skills shortages, surely it’s worth the effort?

If you would like help managing flexible working in your company, or support in dealing with a request, please do get in touch.

Recruiting the best

Having the best talent in your business is key to its success. Whatever your business, if you don’t have the right people in the right roles, you may find achieving success difficult.

If you do hire the wrong person, the cost can be great. Of course there’s the financial cost of replacing people through the usual channels i.e. recruiter fees or advertising costs. It could also result in decreased productivity, decreased employee morale, not to mention the cost of management time and potentially, damage to your employer brand.

By introducing a sound recruitment process you stand a much better chance of hiring the people your business needs.

Our top tips for recruiting the right people
  • Make sure you have an up to date job description outlining the responsibilities of the role you need to fill, and what skills and experience needed.
  • Use the job description to shortlist applicants for interview by identifying relevant experience and skills.
  • Use the job description to create themes you would like explore at interview.
  • Prepare some welcoming questions, to put the candidate at ease, and smile!
  • Use the candidate’s CV to create questions in the themes you have identified.
  • Consider and prepare some probing questions to follow up.
  • Keep the questions on point, and avoid asking any personal questions. ‘Getting personal’ can potentially get you in to a world of trouble, so just avoid those questions altogether.
  • Interview in pairs, so you can really listen to the candidate and develop a rapport without worrying about taking notes, and agree with your interview partner who will ask which question in advance.
  • Allow time for the candidate to ask you questions, and think about how best you can ensure you’re presenting an attractive and authentic impression of the company.
  • Make sure you take notes of the actual answers given, rather than your thoughts or feelings about the candidate’s answer.

Nothing is guaranteed when it comes to interviewing and selecting the right person, but by adopting this approach you stand a better chance of recruiting someone who can actually do the job you need filled, and do it well.

If you would like help with your recruitment processes, please do get in touch with Helpful HR

The Employment Status Conundrum

The ‘gig’ economy has been centre stage recently in the news and has caused confusion around individual’s employment and tax status.

Recent cases

Uber is adamant its drivers are NOT employees. However, an employment tribunal  concluded they are, ‘workers’.  Addison Lee  also had a recent employment tribunal judgement, which came to the same conclusion.

The consequences

These cases demonstrate the pitfalls of getting it wrong, on a large scale. The judgements of the tribunals have definitely provided Uber and Addison Lee with bucketloads of negative PR.  They also have the administrative headache of changing their status, backdated rights to holiday pay and the National Living Wage. There’s also a strong chance that HMRC will collect backdated employer’s tax contributions for all of their newly defined workers.

How to establish status

In order to avoid the same problems as Uber and Addison Lee, employers are well advised to make a proactive and honest assessment of people they hire and ask the following:

  • Does the individual work off-site?
  • Are they using their own equipment?
  • Is there a mutual obligation about you offering work and the individual having to accept work when offered?
  • Does the individual regularly work for other companies?
  • Can the individual send someone else of their choosing by way of a substitute, to carry out the work?
  • Does the individual control how or when the work is completed?

If the answer to one or more of the above questions is ‘no’, the individual you’re hiring is probably not self-employed. If you treat them as self-employed, in the long-term you may very well come up against some difficult and costly issues.

We can help

If you need any advice or support on determining the employment status of individuals working for your company and what it means, get in touch with Helpful HR.