13Mar

Termination Payments for Employees

Currently employers are able to use termination payments in the course of negotiating a mutually agreed exit. Often so that a formal but inevitable process can be avoided, and for the benefit of all involved. In such cases, the employee concerned may be offered a payment on termination which is paid under a settlement agreement. The agreement is used to ensure that no legal action can be taken against the employer, and in consideration of this, the employee receives a sum of money, called the termination payment. This amount includes other entitlements such as notice pay, redundancy pay and ex gratia payments.

Termination payments up to the value of £30,000 can be paid tax free. But anything over this amount will attract tax deductions. Although this has not changed, a close examination of the employment contract in each case is required.

Currently, if an employee does not have a clause in their employment contract which allows for their notice payment to be paid “in lieu”. This means that they do not have to work their notice but will be paid it in a lump sum. The amount could be added to the termination payment and paid tax free, as long as it is under the £30,000 threshold.

However If there is a PILON clause (Payment in Lieu of Notice) within the employment contract, notice has to be treated separately and taxed in the usual way. If this is not done it would attract unwelcome interest from the Inland Revenue and potentially viewed as tax avoidance.

The benefit for both employers and employees has been that as long as there is no PILON clause within the contract, and the termination payment was no higher than £30,000, the notice pay could be paid without deductions. This means the lump sum offer could be more attractive to both parties.

The position from 6th April 2018 onwards

For any termination payments due to be paid on or after 6th April 2018, any “payment in lieu of notice” will need to be taxed as earnings. The employer will need to carefully calculate the full extent of any unexpired notice the departing employee would have been entitled to and ensure that the payment for the equivalent period is subjected to tax and national insurance contributions required. This still applies whether or not there is a payment in lieu of notice clause in the contract of employment.

This means that the need to closely inspect and interpret the employment contract has disappeared. However, it also takes away the ability to offer increased termination payments at no real cost to employers, and the benefit certainty lies with the Inland Revenue rather than the parties involved.

For further information on this or any other employment issues please contact Sally Phillips on: sally.phillips@wardwilliams.co.uk or give us a call on 01932 830664

28Feb

Managing Line Managers

The line manager’s role is an essential position in terms of managing performance, inspiring teams, retaining talent and driving the business towards success.  However line managers are now dealing with far more complex people management issues on a daily basis than ever before.

The people management sphere is ever changing as are the expectations of the line management role.  It would seem that we are asking more of our line managers regardless of the type or size of business and this is something that HR have supported for some time.

But are we, supporting and enabling our managers to take on these additional challenges? We look at the top ways HR can support the line manager’s role:

1. Development is a key part of the role

Training and continued professional development should be a core part of the line management role.  Through continued development, we can improve line manager’s competence and confidence in managing more complex issues like: managing absence, performance, conduct and capability issues within their teams.

Additional to this, the HR function should be informing line managers about changes to legislation that may impact the way they need to implement policies and procedures.

2.  Performance feedback in invaluable

We expect line managers to give feedback to teams and carry out performance appraisals. However we often either fail to do these with our own line managers, or fail to consider what real-time feedback we can be giving them.  Line managers require a carefully considered review of how well they have met their individual objectives, and about their continued development and most importantly positive feedback and recognition when they’ve achieved success.

3. Support managers during difficult times

Managers are primarily those who are asked to engage in difficult people management activities, holding the difficult conversations about work performance, attendance, capability or conduct.

Often when complaints are made, line management actions are immediately challenged, and on some occasions, the management responsibilities for that individual are removed before an investigation into the complaint has started.  Quite often managers are left in the dark pending the outcome of investigations or other formal activities causing an equal level of anxiety and distress for them.

We should give careful consideration before suspending any manager or removing responsibilities depending on the nature of the complaint and the evidence available.  Updating that manager by providing some assurance over the progression of any investigation is also vital, along with a careful consideration for additional support for that manager, including counselling, access to a mentor or HR support.

4. Developing managers into Leaders

As the race to attract and retain talented people continues, we should never lose sight of the challenge of ensuring the organisation has an effective leadership development and succession planning pathway.

Organisations should be actively reviewing their management competencies and pushing intermediate line management development to ensure there is a pool of capable leaders constantly under development.  How these future leaders are identified will vary depending on the organisation, however, while it may be difficult to offer constant career progression, there should be an opportunity to allow managers to develop in different areas and to understand every component of the business.

If you would like to find out more on how Ward Williams HR can help with training line managers. Please feel free to email sally.phillips@wardwilliams.co.uk or give us a call on 01932 830664

19Feb

Five benefits of employee surveys.

As with customers, there are many beneficial reasons to survey your employees. Many companies already conduct employee surveys as a way to improve their business. This makes perfect sense as there is a direct correlation between business success and employee satisfaction.

When employees are engaged they feel connected to each other and to the aims of the organisation they work for. They believe in a shared purpose and feel they play an important part in fulfilling it.

An engaged workforce is more motivated and productive because people take pride in what they are doing and have faith in those around them. This leads to better working relationships, greater collaboration and ultimately a more successful organisation.

Here, we will outline five benefits why you should conduct employee surveys within your organisation.

1. Improve your business:

Surveying your employees is a great way to identify opportunities and any obstacles to effective management. By gaining valuable insight from your employees, it will allow you to address concerns and also gauge employee sentiment. It also gives you another perspective view of the company and its operations. By surveying your employees it will enable you to prioritize future actions and revise your strategic plan if required.

2. Increase employee engagement:

You can gather information on issues and also discover what motivates your employees. By gathering this feedback it will enable you to identify concerns, implement changes and ultimately increase employee satisfaction. Improving the experience for your employees will increase their engagement and will further lead to a boost in productivity.

3.Boosts employee retention:

Employee retention refers to the techniques employed by management to help the employees stay with the organization for a longer period of time. By surveying employees, and acting on the feedback given. It will enable you to specifically address areas of dissatisfaction for the employee. Tracking employee satisfaction over time will also allow you to avoid future employee losses. Employee retention strategies go a long way in motivating the employees so that they stick to the organisation for the maximum time and continue to be engaged.

4. Promotes a positive working environment:

Conducting employee surveys in your organisation can help to create a positive working environment. By seeking feedback from employees they feel their opinions count and are valued. Establishing open feedback also creates a positive culture of trust, fairness and accountability.

5. Setting a benchmark:

Employee surveys also provide great benchmarks. You can gather employee feedback on the company, work environment, new products and services. The first employee surveys will serve as a point of reference, enabling you to track changes over a period of time. Employee feedback can also give you an idea of what other key stakeholders may think. For example, employees can give you valuable insight into what your customers may feel about new products and services.

If you would like to find out more on how Ward Williams HR can help with employee surveys. Please feel free to email sally.phillips@wardwilliams.co.uk or give us a call on 01932 830664

06Feb

The importance of employee retention

Employee Retention refers to the techniques employed by management to help the employees stay with the organization for a longer period of time. Employee retention strategies go a long way in motivating the employees so that they stick to the organization for the maximum time and continue to be engaged. Efforts must be taken to ensure growth and learning for employees in their current role and for them to enjoy their work.

Employee retention has become a major concern for many businesses. As individuals being trained often have the tendency to move to other organizations for better prospects. Lucrative salary, comfortable timings, office culture and growth prospects are some of the key factors which prompt an employee to look for a change.

Whenever a talented employee expresses his willingness to move on, it is the responsibility of both management and the human resource team to find out the exact reasons leading to the decision.

It’s essential to learn more about the reasons why people resign. The reasons might simply be more attractive jobs elsewhere or chances for a lifestyle change, in which case it might be out of your hands to retain these employees.

However, many people leave their jobs because they are dissatisfied with their current employment situation.

Main reasons people leave a job:

  • Poor salary and benefits.
  • A lack of training and development opportunities.
  • Lack of work/life balance.
  • Dissatisfaction with management.
  • The commute to work.
  • Not getting along with colleagues.

 Methods used to find out why staff are leaving:

  • Exit interviews.
  • Confidential attitude surveys.
  • Questionnaires sent to former employees after their departure.

However, while companies do conduct ‘exit’ interviews to try and ascertain the reasons behind a departure, because employees need to obtain a decent reference, people often tone down or completely fabricate their reasons for leaving.

Ways to improve staff retention

By using a mixture of the below methods, you should see an improvement in staff retention rate.

  • Ensure those being recruited have a realistic idea of what the job entails.
  • Improved career development opportunities.
  • Effective appraisals / performance management in place.
  • A good work/life balance.
  • Strong diversity policies.
  • A mechanism for staff to register dissatisfaction, whether it be appraisals, grievance proceeding and so on.
  • Leadership training for managers.

As a manager, it is vital to frequently reinforce the importance of your employees’ roles to the organisation as a whole. This can be done by showing direct connection between their activities and company success. Not forgetting that even the smallest tasks can contribute. Develop a work culture that encourages diversity and creativity and put in place effective anti-discrimination policies that promote flexible working, where possible.

By adopting a strategy for staff retention is not always easy, but it will greatly benefit your organisation.

If you would like to find out more on how Ward Williams HR can help with employee retention. Please feel free to email sally.phillips@wardwilliams.co.uk or give us a call on 01932 830664.

01Feb

Why invest in Employee development?

Every employee can benefit from an employee development program. However it’s easily forgotten with the pressures of daily business. But as an employer, you can’t afford to cut employee development from your budget.

Here are 4 reasons: Why should you try to make it happen in your business.

  1. It helps attract and retain great employees.

When it comes to attracting and hiring the best employees, here’s why having a solid employee development program matters:

  • Employee development can be seen as an additional benefit, and this is something that employees weigh in the “pros” column when looking for a job.
  • Loyal employees aren’t prone to quitting, and that’s what employee retention is all about. By knowing that an employer is willing to provide training and development. It makes an employee feel important and it makes them loyal.
  • Builds your reputation as a good employer, and one who cares enough to provide training. This is great for both hiring new employees and how customers see you. Once word gets out about who is good to work for, it can affect sales as well as the recruitment process.
  1. Creation of promotable employees.

Hiring from within is a good idea. Who else is more familiar with the day-to-day business, and your customers? But not every long-time employee is ready for such positions, and promoting them when they aren’t leads to problems.

An employee development program will:

  • Help you identify both strengths and weaknesses in your employees.
  • Create a pool of talented workers
  • Create workers ready for promotion.
  • Improves employee engagement

Employee development both trains your current employees for possible future promotion from daily worker to management as well as shows you which employees have aptitude for such a promotion.

  1. It can save and earn you money.

Employee development has the potential to increase sales and output. Employees will do better work for you in the long run. That’s going to help save you money, as employees become more efficient and proficient.

  1. Looking ahead towards the future.

Employee development is a continuing thing, and that means that you always have to have an eye on the future. You’ll need to ask yourself:

  1. What industry changes might I expect?
  2. What kind of leadership will I need?
  3. What will my customers need from my employees?

Since your employees are integral to any answer you might come up with for these questions, their training and development are tightly involved, too.

An employee development plan that’s going to work necessarily makes you consider the future path of your business. By staying on your toes as far as relevant employee development is concerned means you’ll be thinking ahead of the curve for your business.

If you would like to find out more on how Ward Williams HR can help with employee development. Please feel free to email sally.phillips@wardwilliams.co.uk or give us a call on 01932 830664.

25Jan

Top Performance Management Trends for 2018

At Ward Williams HR, we talk to HR professionals on a daily basis about their performance management processes. We have witnessed that over the past year that organisations have continued to become more employee-focused and less process-driven. With these exciting changes happening, we’re excited to announce our predictions for 2018.

  1. The shift from quantity to quality of conversations and feedback

Last year, was the year that Continuous Performance Management moved from being a disruptive HR trend to being widely recognised as the most effective approach to managing performance. Companies of all shapes and sizes have been shifting from annual appraisals to more frequent ‘check-ins’ with real-time feedback and the redesign of performance management process is now a high priority.

As organisations continue to embrace this new approach, attention is now being turned to how to make performance dialogue more meaningful.

To achieve this, companies will need to provide:

  • Employees and managers with a framework for having high-quality discussions and giving effective feedback. Performance management frameworks or systems should encourage future-focused, developmental dialogue supported by in-the-moment, qualitative feedback.
  • Training for managers in everyday coaching skills.
  • Separate performance measurement from performance improvement conversations and feedback.
  1. Simplification of Performance management systems

As employers become increasingly concerned with employee experience and how to improve performance at work, we need to start with the simplicity of our workplace processes.

In previous years, performance management became increasingly complicated as organisations focused on measuring performance and linking it to pay. However, we’ve now come to realise through research that these processes do not actually result in reliable data and actually damage employee performance and engagement.

Companies will need to strip out complexity such as annual appraisals, ratings, calibration meetings and competency assessments, focusing instead on regular, quality performance conversations and feedback.

  1. Increase of quality and learning goals

Learning goals are the individual employee goals related to the skills and competences that the individual needs to develop in order to increase the success rate of business goals. It has been found that many people find setting development goals more difficult than setting business goals. But there has been seen to be a slow improvement on this and slowly becoming part of the standard performance management process in most organisations.

  1. Companies to shake up how they manage performance-related pay and bonuses

Companies are continuing to discard annual appraisals and employee ratings. This is a great step forward and leaves employees feeling more valued and results in a more productive workforce.

However some companies are struggling to understand how to handle performance-related pay and bonuses under a continuous performance management model. This is because of the inadequacies of performance ratings and that there is little correlation between ratings and actual performance. At Ward Williams HR we believe that some companies will abandon performance related pay entirely, and instead, base pay decisions on market rate and responsibility and bonuses on team or company performance.

This removes the subjectivity inherent in performance-related pay and saves everyone significant time and effort.

  1. Focus on manager impact on performance management rather than completion rates

In 2018, companies will increasingly be evaluating the quality and impact of performance management dialogue between managers and employees.

Given that managers account for a large variance in employee engagement and that only a small percent of employees agree their performance is managed in a way that motivates them, HR professionals will need to be monitoring how often performance check-ins are taking place and how frequently feedback is being given. HR will also need to understand the impact these interventions are having on employee morale and performance. This will provide them with the insight they need to understand who their best managers are and which managers need coaching and support to better develop their teams.

To find out how Ward Williams HR can support your business with Performance Management.

Please contact Sally Phillips 07887 877521 or email sally.phillips@wardwilliams.co.uk.

16Jan

Five ways to improve employee engagement

With employment at an all-time high, companies are having to work harder to keep and retain talented staff. Retention and productivity strategies have become a key consideration for organisations of all sizes, with employee engagement high on the agenda of many businesses today.

However, to develop an effective engagement strategy is no easy task. For employee engagement initiatives to be successful, they must be tailored to the unique needs and desires of each individual.

What is employee engagement?

It has been proved that engaged employees invest extra time, effort and initiative to contribute to business success. As well as being more motivated, committed and loyal, engaged workers are typically higher performers and produce better results for both the customer and the company.

So what are the key steps you need to take to improve your employee engagement?

1. Make sure you’ve got inspiring leadership

By having competent, passionate and hands-on leadership is critical to employee engagement. Showing a genuine interest in your employees and investing time in understanding their needs and aspirations will help send the message that their contribution is valued, creating goodwill and a desire to succeed – both as an individual and as part of a team.

2. Provide opportunities for growth and development

Engaged employees are those who are given the opportunity to use their skills, and are encouraged to stretch those skills further in order to progress.
Regularly “check in” with employees and discuss their career plan. Does their current role make full use of their strengths and abilities? If not, come up with a plan to expand the role description. Is their career moving in the direction they desire? Try and map out a path within your organisation and agree on targets for promotion.
During the discussion also look at training and development opportunities that can help them advance within the company. Provide clear and consistent feedback on how they can improve their performance. Ultimately, showing that you care about helping employees maintain job satisfaction will reap the rewards.

3. Foster meaningful work for all employees

As a manager, it is vital to frequently reinforce the importance of your employees’ roles to the organisation as a whole. This can be done by showing direct connection between their activities and company success. Not forgetting that even the smallest tasks can contribute.
By employees believing that the work they are doing is important and has value. They feel they are contributing to something meaningful and take pride in the results of their efforts.

4. Recognise and reward employees

For employees to give their best, they need to know their efforts will be recognised and rewarded. By regularly thanking them for their efforts demonstrates your awareness of their hard work and provides encouragement for them to boost their performance.
Make the time to celebrate accomplishments, rewarding and recognising employees in ways that are meaningful to them. These could be simple things like ordering in a team lunch, or sharing a win with the wider business or even presenting someone with a small gift for achieving a milestone. These all go a long way to making people feel recognised and rewarded.

While competitive pay and benefits are key motivational factors in accepting a job. By providing incentives to drive higher performance gives employees something extra to aim for and helps them stay engaged for a longer period.

5. Put people at the center of your business

Companies that understand people are their greatest asset reap the benefits of an engaged workforce. This means considering employees’ lives beyond the office.

A work environment in which people feel valued, heard and have a sense of camaraderie is critical to employee engagement.

If you would like to find out more on how Ward Williams HR can help with employee engagement. Please feel free to email sally.phillips@wardwilliams.co.uk or give us a call on 01932 830664

10Jan

The employee induction process

Many employers see employee induction as a waste of valuable time but this is a critical process when you take on a new employee. Induction gives your new employee an objective view of your company, organisational culture, and work ethic, which will allow the employee become productive sooner and ensuring a happy motivated workplace.

What you should cover before you start the induction process

  • As the HR representative, manager or supervisor you must be part of the employee induction process.
  • Ensure that your new employee’s office equipment is setup for them when they arrive. It will create a good impression and avoid wasted hours later on.
  • Inform all your colleagues, that a new member will be joining the team. Before your new employee arrives.

You should also contact your new employee to confirm the following:

  • When they must arrive at the office.
  • Where they must park.
  • How they will access the building.
  • What your company’s dress code.
  • What they must bring to work on the first day.

What should induction cover?

  • An introduction to your company/department and its personnel structure
  • A layout of the establishment, depending on your building size and structure
  • The terms and conditions of employment
  • Relevant personnel policies, such as training, promotion, and health and safety
  • Your company rules and procedures
  • Arrangements for your new employee’s involvement in their business area or unit
  • An induction checklist, which will be used as a quick reference guide

What benefits your new employee will get from an induction programme

  1. The employee will feel welcomed into your organisation, be respected and be made to feel more comfortable in the workplace. He will also find it easier to integrate into the workplace.
  2. Your new employee will feel that he made the right decision to join your organisation.
  3. A good induction programme will help to build the new employee’s self-esteem, morale and sense of motivation.
  4. An induction programme will establish good communication between you and/or the supervisor and your new employee from the very beginning.

When was the last time you reviewed your employee induction process and updated your policies? Or do you need help creating one but aren’t sure where to start? Ward Williams HR can provide you with the creation and review of all policies, procedures, documentation and handbooks.

If you would like to learn more of how Ward Williams Hr can support your business. Please contact Sally Phillips on sally.phillips@wardwilliams.co.uk or call 01932 830 664

03Jan

The benefits of the employee handbook

Creating a company employee handbook can seem like a daunting task, but having one brings many benefits. Here are five reasons your organization should have an employee handbook:

1. Introduces employees to your culture, mission and values

Perhaps the most important aspect of your employee handbook is the introduction of new employees to your corporate culture and how they will fit in. This helps to foster a sense of pride and belonging, which studies have shown will help employees become more productive in a shorter period of time.

2. Communicates to employees what is expected of them

The handbook also communicates an employee’s general responsibilities regarding safety, timekeeping and reporting. It serves as a compass for the organization’s policies and procedures. It will advise whom employees should contact when they have an unscheduled absence (and what the timing should be).
No policy is effective if it is practiced inconsistently. A handbook will accurately communicate your organization’s policies regarding employment, conduct and behaviour, compensation and other policies and procedures you follow.

3. Showcases the benefits you offer

Does your organization offer health insurance, paid parental leave or other benefits to employees? Make sure they know about these policies and the eligibility requirements by communicating them in the handbook. A robust benefits package can help you retain your best and brightest employees, so be sure they know about your full suite of offerings by communicating these in the handbook.

4. Educates employees about what they can expect from management and leadership

An employee handbook provides objectives and leadership styles, as well as management best practices, to foster healthy management-employee relationships.

5. Helps defend against employee claims

Unfortunately, employers should consider it a matter of when, and not if, they will face a lawsuit or similar challenge from a current or former employee. When this happens, one of the most useful documents you can provide your attorney or third party investigator will be a copy of your handbook. A thorough and compliant employee handbook will help to show that the organization exercised “reasonable care” towards its employees. The employee’s signed acknowledgement page will show that the employee had an opportunity to familiarize themselves with the organization’s policies, a chance to ask related questions, knew whom they could turn to for help within the organization, and agreed to follow the terms and conditions of employment set forth by the organization.

When was the last time you reviewed your policies and updated your employee handbook? Or do you need help creating one but aren’t sure where to start? Ward Williams HR can provide you with the creation and review of all policies, procedures, documentation and handbooks.

If you would like to learn more of how Ward Williams Hr can support your business. Please contact Sally Phillips on sally.phillips@wardwilliams.co.uk or call 01932 830 664

28Dec

Working Time Regulations

The Health & Safety Executive (HSE) has responsibility for enforcing the requirements on working ‘limits’ and associated matters in the Working Time Regulations 1998 (WTR).

The HSE says that most complaints received about working time can be resolved without a visit. However if an HSE inspector is visiting, this is likely to signify that the breach involves a significant health and safety risk to workers. Or it could be the reluctance to hand over records to the regulator.

How the HSE approach working time complaints.

The relevant matters for which HSE inspectors are responsible are:

  • Weekly working hours;
  • The length of night work;
  • Health assessments; and
  • Record-keeping.

For ‘entitlements’ like annual leave, and rest breaks or rest periods), the enforcement is carried out through employment tribunals.

Failure to comply with the WTR in these matters renders the employer liable to prosecution by the HSE.

In some industries, the Regulations are enforced by other bodies:

  • Local authorities deal with shops, offices, hotels, catering, sports, and leisure and customer services workplaces.
  • The Vehicle and Operator Services Agency deals with HGV and PSV drivers.
  • The Office of the Rail Regulator deals with rail workers.
  • The Civil Aviation Authority deals with air cabin crew.

If you would like to find out more on how Ward Williams HR can help your business to be Working Time Regulations compliant. Please feel free to contact Sally Phillips: sally.phillips@wardwilliams.co.uk or give us a call on 01932 830 664.