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The Dos and Don’ts of Staff Poaching

staff poaching

Source: Free Digital Images/Adell Rucker

Companies have long eyed up competitors’ talent with a view to bringing them on board to increase their own competitiveness.  However this activity is fraught with danger in terms of potential legal consequences.  There are many dos and don’ts of staff poaching.

If a company has an eye on a competitor’s employee there are potential ways that they can be recruited.  They could be approached direct, but another method could be to use a headhunter or executive search company. These are  specialist recruitment agencies who will source management and top level jobs.  They will act as a middleman seeking out and approaching key individuals putting distance between the employer and potential employee.

Having a professional network can help a company reach out to targetted individuals.  The use of social media in recent years has done a great deal to enhance professional networks.  Indeed the power of Linkedin has grown dramatically in recent years.  It is said that anyone of use has 200 contacts within our circles and we are six steps away from contacting the person we would like to talk to.  That is very powerful.  Contacts in our network can come from many different sources – partners, family, friends, neighbours, clients, etc.  The traditional old boys network has always worked rather well.

Employers should always beware of taking on competitor’s employees who have a restrictive covenant clause in their contract which may be pursuable in a court of law.  The wording of such a clause is, of course, key.

For those employers that value their employees and fear them being poached by competitors there are key things to do in order to protect their interests.

Providing an interesting job is really important so that employees maintain job satisfaction along with career development opportunities is essential to meet career aspirations  Succession planning will provide a career path that top performers can see and value acting as a retention tool.  A comfortable work environment is also really important to encourage engagement.  It goes without saying that financial reward should be right although non financial benefits are also important.  Becoming an employer of choice is great to bamboozle the competition.

Having managed to recruit successfully a further way to protect themselves, a company should include a restrictive covenant or non-compete clause in a contract that includes details on the timescale that an employee may not work for a competitor and a banned geographical location.  It is always good to draft something that would stand up in a court of law.  It may not be viable if the restriction is not integral to the business’ survival.

If a company receives a letter of resignation from a valued member of staff who may have been poached consideration may be given to tactics of how that employee can be persuaded to stay.  If they are valued, this is always worthwhile.

 

 

Four Reasons to Review an Employment Contract

Much of the work that I do as an HR consultant is reviewing employment contracts and employee contracthandbooks.  This can be due to taking on a new client with existing documents as well as providing this service to existing clients. Here I provide four reasons to review an employment contract.

Employment law seems to change every five minutes.  The government have now decreed that employment law changes should be made April and October each year, but often changes are often implemented outside of these months.    Employment law therefore can move on very quickly and employment terms and conditions can get very out of date if they are not reviewed on a regular basis.  For example pension auto enrolment will be hitting the SME market and it is important to add in an appropriate clause to the contract to comply with statutory law.  This is important if there is no clause relating to pensions in the document or an existing pension scheme is detailed.

Sometimes an employment contract may not contain all the appropriate clauses.  For example I recently reviewed a document that did not contain a continuous service clauses.  This is essential as detailed by the Employment Rights Act 1996.  In a TUPE situation where an employee transfers from one employer to another and possibly again and again, often the only way to track an original start date is by the continuous service date on the contract.  The Employment Rights Act 1996 (part 1) details all the essential clauses that need to be included. http://www.legislation.gov.uk/ukpga/1996/18/part/I

These are:

  • the names of the employer and employee
  • the date when the employment began
  • the date on which the employee’s period of continuous employment, as mentioned above
  • the scale or rate of remuneration or the method of calculating remuneration,
  • the intervals at which remuneration is paid (that is, weekly, monthly or other specified intervals),
  • any terms and conditions relating to hours of work (including any terms and conditions relating to normal working hours),
  • entitlement to holidays, including public holidays, and holiday pay
  • incapacity for work due to sickness or injury, including any provision for sick pay, and
  • pensions and pension schemes,
  • the length of notice which the employee is obliged to give and entitled to receive to terminate his contract of employment,
  • the title of the job which the employee is employed to do or a brief description of the work for which he is employed,
  • where the employment is not intended to be permanent, the period for which it is expected to continue or, if it is for a fixed term, the date when it is to end,
  • either the place of work or, where the employee is required or permitted to work at various places, an indication of that and of the address of the employer,
  • any collective agreements which directly affect the terms and conditions of the employment including, where the employer is not a party, the persons by whom they were made, and
  • terms relating to where the employee is required to work outside the United Kingdom for a period of more than one month

A copy of the employment terms and conditions should be provided to the employee within eight weeks of commencing employment.

Another reason for an employer to review an employment contract is when they wish to make changes and negotiate new terms.  A review of the existing terms first may highlight the changes that need to be negotiated.  However, the employer can not change terms and conditions of employment on a whim, there needs to be clear justification, not least, to convincingly explain the situation to employees. It is important that all the terms are clear.  Often I come across contracts that contain discretionary clauses.  When discretion is used to make judgements human subjectivity can come into play possibly leading to discrimination when one employee is treated less favourably than another.  Rather than have discretion, clauses should be clear to avoid any discriminatory variances.

Following a merger or acquisition where two companies (or more) may come together, a company may be faced with various terms and conditions.  An employer may wish to harmonise terms and conditions following a TUPE situation for various reasons – difficult business conditions, simplicity, cohesion, redress imbalances, restrictive convenants or difficulty with providing benefits.

Previously with TUPE legislation it was impossible to change terms and conditions post-merger except for an ETO (economic, technological or organisational) reason as previous terms were protected.  However since 31 January 2014 the law has changed. Businesses with collective agreements may negotiate a change one year post-transfer provided the changes are not less favourable.  Contractual changes will be permitted for economic, technical or organisational reasons with the agreement of the employee and or where a contractual right of variation exists.  However, the latter does not permit an employer to unilaterally impose a change and consultation should always be undertaken and written agreement gained.

If a contract is reviewed and changes are to be made consultation with and written agreement from employees is essential.  Employees can be provided with a brand new set of employment terms and conditions to sign or may be issued with contract variation letter with copy for signature depending on the extent of the changes.

Maria Miller’s Demise – A Blow for Equality?

It could be argued that Maria Miller’s demise does not bode well for equality.  There are now only three women in the cabinet and her role was filled by a man, Sajid Javid who is to become the new Minister for Equalities.

Women have long been under-represented in the government and particularly at senior level.  It was a miracle that Margaret Thatcher rose to the heady heights of Prime Minister and shattered the glass ceiling.  As she rose through the ranks she dyed her hair blonde in an effort to appear more feminine in response to criticism, however, once she got into power she chose to act like a man and had voice coaching to tone down her shrilly voice.  She was only interested in self-advancement however as there were few other women in her government and none in her cabinet.  She did little to advance equal pay or childcare.

Tony Blair’s Labour government encouraged more women into the profession but it is still a male dominated environment.

Today in all professions there are very few women at the top and it is a struggle to get there.  Ruthlessness seems to be the key. Some women emulate men discarding their high heels and wearing trouser suits in an attempt to bury their femininity.

Women do have an important and equal contribution to make to the workplace.  So what can they do to improve their chances of making it big?

Well they should take on diverse and challenging assignments, taking every opportunity to develop new skills.  Having completed an accomplishment they should shout about it to the rooftops.  Women need to be visible and promoting their talents.  Hiding their light under a bushel will get them nowhere and they will be trodden on by the stampede of men eager to get to the top.  Men are naturally competitive and women should show more willingness to compete in a man’s world.

Women should take more risks, after all nothing ventured nothing gained.  The “fake it till you make it” attitude should prevail.  Women should be open to any opportunity – who knows where it might lead.

Women should learn to be direct and succinct.  They should attempt to leave the soft and fluffy image to one side if they want to get ahead and get to the point without trying to wrap ideas and statements up in soft language and waffle.

But what can employers do to ensure that women have a helping hand to rise through the ranks?  Positive action in terms of recruitment and promotion are essential.  “Women are actively encouraged to apply as they are currently under-represented” should be included in job or promotion adverts.  Women should be given every opportunity to progress in the workplace and be included in succession plans being identified for roles at the top.

Flexible working for all employees comes into force in June 2014 and flexible working requests should seriously be considered by employers so that they can hold onto valuable women’s skills rather than let them be a statistic in annual turnover or being a casualty of a poor work life balance attempting to have it all. Women should be assigned a mentor to help them develop and employee reward should be structured so that equal pay rules and the current gender pay gap is closed.

Dressing For Business In The Workplace

As soon as this topic is mentioned many people think, ‘formal dress,` certainly a jacket at the very Janeleast! This was certainly the case 10-15 years ago, happily dress codes have changed and relaxed, however this leaves many in a clothing dilemma surrounding ‘smart/casual’ business wear! Many, though not all, do not understand what this entails and often ask ‘does it really matter?’

My answer to this is, how eager are you to earn more money? Get promoted faster? Find a new job, or simply just get noticed in the office rather than fade into the background. Many hours are spent honing their CV hoping to impress the reader and yet when it comes to the interview, few spend more than a couple of minutes considering what their visual impact should be!

James Caan of Dragon`s Den fame, was taught as a young recruiter that you look from the feet up to decide whether the person he was interviewing was a suitable candidate. Why should your shoes be so important? Well, you can tell a lot by how they are cared for! Dirty, worn, scruffy shoes may indicate a person who is not interested in detail and has no pride in themselves. This may seem harsh but contrast this to a pair of clean, shiny shoes, this is clearly someone has taken the trouble to make sure every last detail is covered off and could indicate at work you are happy to go the extra mile!

Some might dismiss this out of hand as being unimportant; however in this very competitive market place can you afford to leave any small detail to chance? Considering your personal brand is vital to make sure your image is congruent with the company you represent. You would not trust a solicitor wearing jeans and a t-shirt, equally would you wouldn’t want a receptionist greeting your clients chewing gum, wearing bright garish nails and spending all the time on her mobile phone!

If you would like to be ahead of the competition and be remembered for the right reasons, an hour`s image audit could make the difference between success and failure! At the very least, you will become more confident in your outward appearance which will pay dividends, not only in the work place but socially too!

This is a guest blog by Jane Sumner of Image Matters.

For further information visit:

www.image.mattersuk.com

https://www.facebook.com/pages/Image-Matters-Jane-Sumner/146671162084342

https://www.linkedin.com/pub/jane-sumner/13/4a0/8a5

https://www.youtube.com/watch?v=f3DhWQ_OAKw

Email:image.matters@btinternet.com

Phone: 07779585323

 

Effective Sickness Absence Management Tools

Sickness absence costs the UK millions each year. Managing sickness absence can be challengingsickness absence management and needs employer commitment to tackling the issue.  Here we provide some effective sickness absence management tools which are essential in the battle against sickness absence.

If you don’t measure sickness how do you know you’ve got a problem.  Of course if you are a small business with only a handful of employees the effect of one of your employees being sick will be obvious.  Apart from the cost there will be lost productivity and possibly low morale on the employees holding the fort.  However, if you are a larger business with a lot more employees the effect of sickness absence might not be so clear.

An HR information system can be a huge bonus in measuring sickness absence.  Based on the inputted data from sick days reports can be produced for discussion at senior management team meetings.  Here problematic members of staff can be highlighted and dealt with appropriately, whether it is regular intermittent absence or long term sickness.  The main point to remember is that sickness absence management needs to be dealt with.  There should also be a sickness absence procedure in place that gives clear guidelines as to how sickness absence will be dealt with.

Employees who are off sick should be required to phone into their line manager on the first day of sickness within one hour of their shift.  They should personally phone in and should not be allowed to text or send an email.  If the sickness absence continues the line manager should stay in touch with the employee to monitor progress.  The employee should be phoning in on a regular basis or the line manager should phone the employee.

On the employee’s return to work, a return to work interview should be conducted by the line manager to check the employee is ok to return, to discuss what has happened whilst the employee has been off work and to ensure they take responsibility for their attendance at work.

If the employee fails to return to work you should consider getting an occupational health assessment to help you manage the situation.  This may mean implementing some work place adjustments to allow the employee to return to work.   When they are ready to return to work, you need to agree a return to work place then coordinate that process.

How To Manage Remote Workers

Over the last few years there has been a huge growth in the numbers of people working from home or remotely.  This has been caused by the increased use of high speed broadband, Skype, laptops, tablet computers and hand held devices facilitating the ability to work wherever we like.  Millions of people now work at home or remotely on either a full time or part time basis.  With it comes the challenges of learning how to manage remote workers. 

A challenging economy has also forced employers to cut back on costs, such as office expenses, and let people work remotely. There’s also evidence that others, who haven’t been able to find jobs, are earning a living by starting a home-based business.

There are many advantages to this type of working, which we can all recognise; the work-life balance is much improved without the stress of struggling to work every day on the congested road and increasingly disorganised rail systems.  So much time is saved by not having to get up at the crack of dawn to get to the office on time and exhaustion is a distant memory as we leisurely wake up, eat a decent breakfast in the comfort of your kitchen then get the kids to school before sitting down to the computer to start the working day.

As long as we meet our targets and maintain our usual output, the hours we work need not be fixed if our work (and where relevant our manager) dictates, so that by working flexibly we have the time to do that bit of shopping or attend that dentist appointment during the day.

Having set up and completed a risk assessment on the work area to comply with health and safety what could be easier than working from home?

The reality is, however, that it doesn’t suit everyone.  Working from home can be very isolating.  How many of us actually see our neighbours and friends during the day now – they are all out at work!  Being alone day after day with no social interaction can be very lonely without that “over the photocopier” chat, gossip with the tea-lady or the office Friday pub lunch where we can look forward to the weekend.

For those individuals prone to depression working from home can become a nightmare with the distinction between work and home becoming a blur.

The saying “out of sight out of mind” might apply with a perception of being ignored by the company, if we are an employee, can set in, only getting the odd phone call to check that performance targets have been reached and to find out when the monthly figures will be sent in.  In such circumstances a feeling of de-motivation and being under-valued can occur and lead to a drop in performance.

Working from home is ideal for self-starters who can discipline themselves to work set hours so that there is a clear distinction between work and home.  Line managers of such individuals have to have the experience and skill to be able to manage at a distance and understand the issues that arise.

First and foremost, the type of work needs to be adaptable to home-working such as administration, freelance interviewing and sales.

The company needs to ensure there is a home working policy in place that covers issues such as health and safety, equipment safety, data protection, communication and performance management. There should be consideration to having a home working checklist.  These documents should be communicated well to the workforce with clear procedures in place.

The line manager needs to be able to encourage team interaction by organising team meetings at a single location on a regular basis to provide valuable information on what is happening within the business, eg and training & promotional opportunities.  Perhaps video conferencing could replace physical group meetings when these are not possible.  Such get-togethers should be supplemented by phone calls and emails to keep in touch.

The line manager needs to be able to communicate clear goals and the standards expected within the home-based role and be equipped with the tools for measurement and assessment of work quality to ensure that everything is satisfactory.  Training for line managers in managing hom workers is important.  

Security of information and data protection should be a high priority.  A decision should be taken whether to give remote workers full or controlled access to network links using an IT security risk assessment.  The issue of company laptops with encryption software, for example, would reduce the possibility of disaster with important corporate documents getting mixed up with the children’s homework or theft from the boot of a car.

Also the installation of virus protection and guidelines on authorised use of additional software and prohibition of USB sticks and floppy discs to transport data should be essential.

Information on using secure servers and taking daily back ups should be incorporated into an IT security policy both for remote (and office) workers giving details on not sharing passwords, not opening suspicious email attachments and visiting work-related websites only.  Clear instructions for not modifying any company spreadsheets and macros without authorisation can also help to provide guidelines on what is acceptable IT use.

Companies considering implementing home or remote working should think about running a pilot scheme to see if it is feasible and practical for business and individual needs before making a commitment.

The Tax Situation of Seasonal Gifts And Benefits To Staff

With Christmas nearly upon us yet again this is a quick reminder of the tax treatment of seasonal christmas_partygifts and benefits to staff.

Social functions for employees

There is a tax exemption for employee entertaining, but terms and conditions apply. The relief only applies to ‘annual parties’ available to all staff and is set at £150 per head. The figure is inclusive of VAT. If the cost of qualifying parties goes over £150 per head then unfortunately all the costs (not just those above £150 per head) are taxable as a benefit in kind.

Taxis home and any overnight accommodation have to be included in the calculation.

It’s important to note that the amount of £150 per head applies to all those attending the function not just employees. This will come into play if employees are allowed to bring guests.

Tax on business profits

The cost of employee entertaining, as long it’s not incidental to the entertainment of others is allowable. If you invite clients and customers to your party, it is important to consider how to apportion the costs for corporation tax purposes.

Gifts to employees

Christmas presents paid in cash to employees will always be taxable along with other earnings. The same treatment extends to vouchers that can be spent on either one or a number of different shops of the employee’s choice. The employee has to pay tax on the full value of the voucher.

If employees are given a seasonal present, such as a turkey, an ‘ordinary’ bottle of wine or a box of chocolates, as long as the cost is reasonable, HM Revenue & Customs (HMRC) won’t seek to tax it. Unfortunately, HMRC will not tell us the monetary limit it considers as ‘trivial’ but in our experience, less than £50 a head is usually acceptable. If the value of the gift is more than this, it will be taxable.

This blog has been provided by Duncan Mitchell of CED Accountancy Services Ltd.

Contact details:

TEL 01327 358866
FAX 01327 358355
EMAIL duncan@cedas.co.uk
WEB www.cedas.co.uk

Beware the Use of Fixed Term Contracts

Many employers offer fixed term contracts which can provide certainty of employment for a specific length of time, however, it is important to remember that they come with certain strings attached. With increasing length of service comes increasing employment rights.  After two years service there is the right to claim unfair dismissal and redundancy pay.  After four years service under successive fixed term contracts, according to the Fixed Term Employees Less Favourable Treatment Regulations 2002, a worker is deemed to be a permanent employee unless that can be objectively justified.

Many organisations rely on external funding and issue successive fixed term contracts accordingly hoping that the precarious nature of the funding process can be classed as objective justification.  However the case of Ball v Aberdeen provided definitive ruling that this is not correct.  It has implications for many educational, public sector organisations and charities that tend to issue fixed term contracts.

Fixed term employees have the right to be treated the same as a permanent employee doing the same or similar work.  The regulations protect them from any detriment linked to their fixed term status.  The exception is where that treatment can be objectively justified. Fixed term workers are entitled to the same level of benefits as their permanent comparator.  If this is not possible the employer may have to increase the salary of the fixed term worker in order to compensate them for their loss.

The non renewal of a fixed term contract is a dismissal in law and requires a fair procedure to be followed ie letter, meeting, appeal. If a fair procedure is not followed there is a risk that the worker can claim unfair dismissal if they have two years service.

In a redundancy situation an employer is more likely to terminate fixed term employees.  Potentially they risk a claim of unfair dismissal that the workers have been dismissed because they are temporary.  Employers should therefore mix fixed term workers with permanent employees in the redundancy pool.

Employers should beware of giving notice early before the end of a fixed term contract ends.  The fixed term worker could claim for breach of contract if there is no clause in the contract that will allow early termination.  The worker could be awarded the full amount of the wages they would have earned had the contract remained in force by an employment tribunal.

Tattoo or Not Tattoo – Body Art At Work

Tattoos have been growing in popularity in recent years.  In the past they have always been associated with a stereotype – the macho man often with a thuggish image – a convict, a biker, a rocker or a rebel.   Even the latin word for tattoo is stigma. Tattoos date back many thousands of years; a mummified body found in the Austrian/Italian alps dating back over 3000 years BC carried the marks of tattoos.

The sterotypical image of the tatto appears to be changing with many young people, in particular, increasingly getting their bodies covered in ornamental art encouraged by celebrity role models such as David Beckham.  It is estimated that one in five people in the UK now have a tattoo.

My own son spent over £200 last year getting his right upper arm covered in a large tattoo (I am not a fan).  He works in a professional role in an office environment and had the sense to ensure that the image is covered by a shirt sleeve even if rolled up.  His actions copy those of Winston Churchill who had an anchor on his forearm which was always well hidden (surprisingly he copied his own mother who had a snake tattooed on her wrist).

Nevertheless tattoes in the workplace can be frowned upon. Whilst they may be acceptable in creative industries, in the corporate world they remain a thorny issue.  It is freedom of choice and expression to acquire body art but it has to be balanced with the need to fit into the world of work. In 2012 the Metropolitan police banned employees from getting visible tattoos or they would face disciplinary action.

Research done by the British Sociological Association found that regardless of how intellectual and skilled a person is, if they have a visible tattoo at interview the likelihood of ruining their chances is very high with potential employers viewing them as dirty or unsavoury.  It is all about corporate image and perception which continues to fuel stereotyping more likely with the older generation of managers.  Having a tattoo does not affect a person’s ability to do a job and indeed many professionals do have tattoos, they are just well hidden.  Nevertheless at interview first impressions are vital.

Research carried out by the University of St Andrew interviewed recruiters in a bank, council,prison, university and bookseller to find out their view on job applicants with tattoos.  Opinions included a statement that a tattoo would stop an applicant being recruited to the tattoo being the first thing discussed when the applicant left the room detracting from the discussion of job ability.  Other opinions included that customers might think a tattooed member of staff as being abhorrent, repugnant, unsavoury and untidy.  The programme Tattoo Addiction aired on Channel 4 showed Paul who displayed a tattooed face discussing how difficult it was to find a job.

Having a policy on body art is not discriminatory.  Employers have the right to provide guidelines to staff on this subject and whilst a whole policy need not be dedicated to this, clauses could be inserted into a dress code.

 

Promoting Wellbeing In the Workplace

There has been an increase in wellbeing in the UK according to the news recently.  Apparently our feeling of wellbeing is more than that of other countries in the EU and we have now overtaken France.

It seems that over recent years one of the latest hot topics to emerge  the management of wellness in organisations. Lead by the government initially, it began in 2005 with the appointment of the first national director of health, work and wellbeing strategy to spearhead initiatives that promote and improve health in the workplace. The trend towards managing wellness, a proactive process, is a counter-balance to managing absence, which is a reactive process.

The proactive stance of tackling wellness is probably due, on the whole, to rising stress levels, increased working hours and to a backlash to the implementation of overzealous rigid absence management policies.  The cost of absence in the UK has continued to rise over the years, thus defeating business objectives to tackle this issue and providing an argument that it has not worked.It can be argued that increasing absence levels have been caused by:

• Generous sick pay provision

• Increasing employee age and perceived high levels of job security

• High levels of stress, job intensity, job repetitiveness and worker passivity.

• Low levels of working-time flexibility, job responsibility and control.

• Poor absence management and lack of accountability for the costs of sickness absence.

• Lack of information about the normal duration of illnesses and recovery periods from operations.

• High reliance on public health systems and their physicians to certify absence.

• Failure to put in place a company wellness policy and rehabilitation programme.

• Conflicts between sickness absence policy, health and safety policy and work-life balance policy.

A major problem with many sickness absence policies is that they concentrate mainly on the action to be taken when an employee becomes unwell, setting out bureaucratic procedures to record and deal with sickness absence whether long or short term.

The implementation of a wellness policy, on the other hand, addresses the wider and positive issue of employee wellness. The aim should be to minimise sickness absence through a mix of health awareness, clearly defined entitlements and tight management controls.

Issues that could be covered in a policy to promote the avoidance of absence include working time and second jobs, stress management, disability, work/life balance, violence and bullying, healthy working environment, controlled temperatures, job content/satisfaction. The policy could then be linked or incorporated into an existing absence management policy.

A starting point to gauge the level of opinion in how employees perceive the management of wellness in an organisation could be to undertake a survey. The findings will then give key information to take action.

So whose responsibility should be it be to implement a wellness strategy/policy? Well, as with all key business initiatives, senior management should be on board and should drive the issue from the top. It should be, the responsiibility of middle management to then continue to drive the process throughout the organization coordinated with the support of HR, occupational health and health and safety where appropriate.

The wellness agenda can be supported through the tailored introduction of flexible working, employee assistance programmes, counselling services, health promotion, regular health screening and checks, life-style medicals, diet and health education, nutrition programmes, medical insurance, annual flu jabs, periodic polio immunization, occupational health support, risk assessment and management, stress management, gym membership, exercise promotion, access to clinics for staff not covered by health insurance, who need treatment to recover quickly. A mix of some or all of these suggestions could make a significant change within organisations improving attendance and retention quite dramatically. The cost of introducing many of these initiatives are easily outweighed by the reduction in absence management costs.

As with all strategies and policies the management of wellness should be monitored and reviewed on a regular basis to check whether progress is being made. The growth in wellness is linked to a growing awareness of the contribution of well-being to productivity and high performance working. According to the CIPD, research suggests that employees in poor health cut productivity by around 20 per cent, which adds weight to giving serious consideration to the issue of managing wellness.

Wellness management should be a holistic strategy combining better health and better management, thus ensuring individuals are able to perform and so improving productivity and, therefore, the bottom line of the business.