The post-Covid ‘Great Resignation’ has received a lot of coverage, as employees re-evaluate their priorities decide to make life-changes.   Employers are definitely experiencing challenges in hiring, due to low unemployment rates and high inflationary pressures. Undoubtedly the impact of Brexit is in the mix, adding to the difficulties in certain sectors.

Earlier this year, the FT reported that in Q1 2022 UK unemployment rates fell to their lowest in nearly half a century.  In August 2022 People Management reported that the number of job vacancies rose to a new high of 1.85m in the last week of July 2022.  We are now experiencing much higher rates of inflation, with the Consumer Price Index exceeding 10% in July 2022. This increased inflation is putting pressure on employers to increase wages.

With inflationary pressures affecting employees and employers alike, many employers are undoubtedly feeling the ‘squeeze’. Their challenge is to balance the organisation’s need to retain and recruit talent in a competitive market, with the increasing demand for high salaries.

People Management also reported in July 2022 that 80% of employers are hiring for ‘potential’ skills and capabilities, with a view to developing their own talent.  In order to address the skills shortage, maintain low attrition rates and ensure the organisation’s capability is developed, 60% of employers are providing employees with learning resources to support organisational capability. Employers are having to take a more creative approach to retaining and attracting talent. It’s no longer feasible to rely on the draw of a high basic salary, to ensure the organisation’s costs don’t escalate.

What are the practical steps employers can take to aid retention and resourcing?

There’s no one panacea, as organisations in different markets will experience the current climate in different ways. But a good place to start is for leaders to ask themselves 10 challenging questions:

1. Do you have leaders who motivate and inspire their teams and lead with compassion?
2. How capable and effective are your people managers at managing in the Post-Covid era of hybrid working?
3. How healthy is your organisation’s culture?
4. Are benefits aligned with employee priorities, and do you know what your people value?
5. Can you offer career progression and development opportunities?
6. Does the organisation have a sense of community, where employees are truly invested and engaged in the organisation?
7. Is good performance rewarded with valued benefits?
8. Do you have a long-term talent strategy, for example a pipeline through relationships with education establishments, or apprenticeships?
9. Are your recruitment processes efficient and effective, and do good candidates ‘disappear’ during the process?
10. How successful are your new hires and what are the retention rates during the first six-12 months?

Once you have answered these questions, you may be able to identify areas of focus. These areas can then help you to develop a retention and attraction action plan for the short and long-term.

If you’re finding the current labour market challenging, or if you’re experiencing the ‘Great Resignation’ first hand in your business, get in touch with Helpful HR.

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.

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