Home
The role of Human Resources within your business
It is often said that people are the biggest asset in any organisation and for good reason. Any effective business strategy will have human capital at its heart. The skills, knowledge and abilities of your employees deployed across the business effectively will make the difference between success and failure. The broad principles are the same no matter what the size of the business, what is different is how best to deliver on that objective and the risks associated with failure. This is the function and objective of HR within your business, and is an essential aspect of every business.
All businesses require a certain level of performance and behaviours from employees in order to succeed. By ensuring your business has robust policies and people management systems in place such as disciplinary and grievance, equal opportunities, appraisals and attendance monitoring this will clarify what is expected from employee’s performance and behaviour, resulting in improved operational efficiency and sustained performance. Also essentially, in today’s climate, the business must recognise that the failure to ‘do things right’ not only prevents them from maximising the potential of employees but can leave them exposed to employment tribunal claims, corporate liability or simply inaction as the risk associated with doing what is required is simply too great.
By ensuring Human Resource management has a key role you are much more likely to optimise your business, and at the very least, will have basic statutory procedures in place ensuring legal compliance and protection for both parties.
The rise in ‘Presenteeism’
One of the interesting debates recently, particularly relevant to the professional service sector is what is termed ‘Presenteeism’. It is more recognisable following the recession due to high levels of job insecurity and employees feeling under pressure to perform in order to avoid redundancy. It is defined as the loss of productivity that can occur when employees come into work but function at less than full capacity because of ill health.
Some interesting statistics:
- 66% of employees are coming in earlier and staying later since the recession
- 54% of employers cite staff absence as their biggest fear
- One in five managers work the equivalent of 6 days due to extra hours
- One in six employees is affected by mental health issues costing an average of £1000 per employee
- Every £1 invested in flexible working, employers gain £3.50
- 2010 saw the lowest recorded rate of absence days per employee (7.7 days per year, per employee)
(Sources: YouGov, CMI, Sainsbury, CIPD Absence Management Survey, Nov 2010)
So why is everyone talking about ‘Presenteeism’? It is now recognised that by the employee being ‘present’ they could actually be taking value away from the business rather than adding it.
How to manage ‘Presenteeism’… without encouraging unnecessary absenteeism
- Recognise the issue and measure the problem
- Identify the causes, are employees not feeling well or not performing well?
- Make flexible working or remote working more accessible in order to reduce work stress, and provide less chance of spreading any infection
- Do not allow a long hours culture to be accepted as a reflection on commitment
- Take mental health issues seriously and ensure you have the policies within your business to deal with these issues effectively and timely
- Lead by example!
As employers we always focus on reducing absence levels, however now we need to recognise and address ‘Presenteeism’. This will reduce cost and improve employee engagement and productivity.
Changes to current parental leave entitlement
As you will have heard recently in the news changes are due to come into effect in April 2011. Current parental leave entitlement allows women up to one year’s leave following the birth of their child (0-6 weeks at 90% of earnings and remaining 33 weeks at statutory rate) and fathers are currently entitled to two weeks leave at statutory rate of pay (Currently £124.88 per week, to increase to £128.73 on 3rd April 2011).
The changes that were introduced by the last Government and adopted by the current come into effect in April 2011 and apply to babies born after 6th April 2011. Under the new legislation mothers will be entitled to transfer the second half of her one year maternity leave entitlement to the father. They must have been a minimum of 6 months employment and 8 weeks’ notice must be given to employer of intention to transfer.
The Government has pledged to consult with businesses in order to have a ‘new, proper flexible system of shared parental leave’ in place by 2015. This will allow greater choice of how parental leave should be shared.
As a business have you reviewed your existing policies to accommodate the changes and are your employees aware of their rights?
How can Effective HR Solutions Ltd help you and your business?
Effective HR Solutions Ltd provide robust and cost effective HR solutions to SMEs and new business ventures that do not have in house HR capability.
We provide all areas of HR support, including employment law, absence management, redundancy and outsourcing, recruitment & training, performance management, company restructures and employee documentation. We offer clients HR health checks that conduct an assessment of all HR systems providing risk assessed recommendations to improve their business.
We have a pragmatic approach, understanding what the company wants to achieve and its strategic direction and how we can help them use their employees to maximum effect to achieve this. We ensure the solution’s we provide work in practice, not just in theory, and are truly necessary, not just nice to have.
We pride ourselves on our personal approach and on our ability to adapt to various businesses and their cultures, rapidly understanding their needs. It is not about off the shelf solutions, but rather practical, cost effective yet robust HR solutions that protect and deliver benefit to your business.
Please visit our website if you would like further information on the service we provide at www.effectivehr.co.uk or if you would like more information or to discuss a current HR issue please contact 0845 680 8241 or email emma@effectivehr.co.uk.
