Off-payroll working in the public sector – Consultation

This consultation is titled “Off-payroll working in the public sector: reform of the intermediaries legislation”.

HMRC believe that a change in liability is necessary because at present, the liability lies with the PSC and that there is widespread non-compliance. They quote figures of this costing the Exchequer £440 million this tax year. How they arrived at this figure is not entirely clear on first reading of the consultation but of course, it is understandable why government would be keen to clampdown on perceived tax avoidance, particularly in light of the Panama scandal.

 

This change would be highly problematic if it was decided that the liability should fall upon the agency / interim provider.  As has been discussed in previous consultation rounds, the agencies does not have oversight of the nature of the work being performed by the candidate when they are on assignment, and therefore agencies are in the worst possible position to assess whether the intermediary rules apply.  The REC will be making strong representations to HMRC on this point.

1.       Changing the liability – so that it becomes the duty of the hirer or the employment intermediary (eg the interim provider, employment business or management consultancy) to apply the intermediaries rules for anyone working off-payroll, through a Personal Service Company (PSC), in the public sector.

 

2.       HMRC will develop a new online tool to help decide if the intermediaries rules apply.

Assessing whether someone is in or out of scope of IR35 on any given assignment has always been problematic. One of the issues is getting absolute clarity on the nature of the assignment and clear guidance from HMRC.  The nuances of how someone chooses to work and the type of work that is required do not often translate well into the short, simplistic case studies favoured by HRMC in its guidance.

HMRC have listened and recognise why Supervision, Direction or Control would NOT be the appropriate test for deciding if IR35 applies.

This consultation raises a number of concerns about how government views the vital contribution of interim managers and contractors make to the public sector, and we have already raised these concerns directly in a joint letter to the Chancellor of the Exchequer with other stakeholders.

Whilst we believe it is right that this government is committed to tackling tax avoidance, we think that this consultation raises a series of important issues that must be considered:

1.       It has the potential to blur the boundaries between employment rights and taxation status and could usher in a host of unnecessary reforms, which fail to take into account why individuals choose to work on an interim, freelance or contract basis. If it becomes a straight choice between taking an assignment in the public or private sector, we believe many will choose the latter.

2.       Aligned with the first point, the public sector needs to consider if they can afford to take on the costs associated with making these individuals “employees” in all but name. Most pressing of all on the public purse would be pension contributions.

3.       Previous iterations of “tests” to determine IR35 status have not worked and it is unclear what will be different this time around. Government must fully involve stakeholders in developing these tests and allow adequate time for the pilot and roll out.

4.       Finally, HMRC has a duty to enforce existing legislation adequately.  Simply shifting liability onto the employment intermediary will not abdicate HMRC from its responsibilities. More pertinently, it is impossible for a recruitment business to make an informed decision about the IR35 status of an engagement.

Pokemon Go – Should employers clamp down

Written by Marianne Calnan 0f People Management magazine

Popular game prompts questions over use of personal devices, as Boeing becomes first business to ban it at work.

The take-up of smartphone game Pokemon Go has been so remarkable – and the experience of playing it so immersive – that employers may need to revisit their policies to prevent a productivity glut, according to experts.

Though it has been available in the UK for just five days, the app – in which players use GPS to roam inside and outside and ‘catch’ characters – has been wildly popular, with hoards of players sighted in towns and cities across the country.

Aircraft manufacturer Boeing was forced to issue an email to its workforce banning play during working hours after the company discovered the game app had been installed on more than 100 work phones since its release. A member of staff also came close to injury while playing the game at work.

Andrew Rayment, a partner in the employment team at law firm Walker Morris, said that although Pokemon Go was just “another workplace distraction”, it had the potential to affect individuals’ ability to carry out their jobs effectively.

The game is difficult to manage as it is so readily available, Rayment added: “The game is largely played on employees’ personal phones, and, if it’s only being used outside working hours, that isn’t an issue. But if it is used in the workplace or so much out of the workplace that it’s negatively affecting work, employers need to reiterate their exceptional use policy on the use of personal devices in the workplace so all employees know where the company stands, and trust employees to follow it.”

Rayment said employers should adopt a cautious balance between giving their workforce free reign to fill their time as they see fit, and failing to trust them at all. “When agile working comes into the mix, it’s not really fair for employers to not allow employees to play Pokemon Go at their desk for five minutes, but then also expect them to answer emails at 10pm.”

There are potential upsides to the new craze. Pokemon Go players are walking miles at a time as they search out characters, and reporting positive effects on their health. Reports from the US suggest autistic children benefit from the interaction and socialisation encouraged by the game.

However, Tom Currie, a barista and bartender from New Zealand, showed the potential for the game to reach extremes when he became the first person to quit his job in favour of a full-time bid to ‘catch ‘em all’. The BBC reported that Currie had already caught 91 of the 151 Pokemon available in the game.

Some employers are taking a more light-hearted approach to prohibition. An image that went viral on Twitter this week showed an internal memo at an unnamed company, which read: “We are paying you to work, not chase fictional videogame characters with your cell phone all day. Save it for your break time, otherwise you’ll have plenty of time unemployed to catch ‘em all.”

Written by Marianne Calnan 0f People Management magazine

The Exit Interview

The Exit Interview
Once an employee has decided they are leaving it is best practice to arrange an exit interview. An exit Interview will offer a fleeting opportunity to find out information that otherwise might be more difficult or impossible to obtain.

The following are some thoughts on the exit interview: Interviews can be conducted orally or written. Exit interview questions are essential to a successful separation. Here are some tips on how to construct these questions.

  1. Save the hardest questions for the latter part of the interview. Work up to the tough stuff!

  2. A good question to break the ice is ‘would you like for us to be a reference or recommendation for you’? Do not make this offer if you would not recommend the employee!

  3. Be prepared for some bombshells. Expect the unexpected, if it ever is to happen it will happen in an exit interview.

  4. Look for open-ended questions that allow for plenty of expression. An example of this might be “how did you feel you were managed during your employment with us?” or “how do you feel the company is run?”

  5. Other excellent questions are ‘under what conditions would you have stayed?’ and ‘if you had had a magic wand, what would you have changed?’

  6. At some point in the interview ask ‘why are you leaving?’ if you do not already know.

  7. Good general questions are ‘what did you like most (least) about your position?’

  8. Try to find out if there were things the departing employee would suggest to improve conditions, production or morale.

  9. Try to get a good feel for how they viewed their compensation and benefits package.

  10. Leave room at the end of the interview for general comments. one or two of your proudest professional accomplishments.

Here are some examples of Exit Interview Questions.

  1. Before deciding to leave, did you explore the possibility of a transfer?

  2. Is there something you didn’t like about your boss?

  3. How would you rate our work environment?

  4. Were you happy with your salary and benefits?

  5. What did you think about your performance and salary reviews?

  6. How should we change the way we do things to avoid losing other good employees?

 

What do you do when an influential leader quits?

I quit       DCandBJ

Many of us have experienced that gut-wrenching moment when a senior leader i.e. that someone who is responsible for employee relationships drops the envelope on your desk announcing their resignation. Even if that leader’s departure is expected, it can still send shock-waves through the organisation.

It can have a huge impact on your team so what do you do?  We might communicate to clients, but fall flat when it comes to reassuring our employees. Reasons for this can vary; it may be that as a team we feel vulnerable and don’t like to show it, or perhaps we simply don’t know what to say.  As managers we will probably feel worried about what our employees are feeling and thinking when a major personnel change threatens stability.

So, what is the best way to react when a senior leader heads for the exit?— here are five tactics to focus your people and yourself :

Stay calm — During the meeting when your senior person resigns, ask them to keep the news confidential until you develop a communication plan (for employees and clients).

Assess the situation — Book an immediate meeting with your senior managers to identify main areas;  a beloved leader whose absence might cause major employee disengagement? Did they possess some sort of irreplaceable organizational knowledge or skills?  If so, how will you fill those gaps?

Collaborate — Depending on the size of your team and its structure, work with your senior people to develop a plan to communicate the news to your indirect reports. Internally talk about the relationships; you’ll be pleasantly surprised to see how readily your team steps up to assume new responsibilities. 

Communicate — Work out the best medium to announce the news based on the departed leader’s seniority, tenure and roles. Whatever you decide, remember to include all team members in the announcement.  Assure employees that the company is on solid footing and the departure has nothing to do with instability. Just as critical, remind clients that it’s business as usual. Explain how their account will be managed in light of the resignation, as well as your strategy for replacing that lost expertise.

Follow through — Execute your transition plan to the letter and keep key team members updated on its progress. Expect this process to play out over a couple of months and don’t underestimate the potential cultural impact. If the departed leader was well-liked and seen as a key to your organization’s success, employees will need consistent reassurances that their jobs are safe and your bottom line will remain stable.

Ultimately when an influential leader resigns no matter how well you handle the situation you will find that some employees will decide to move on.

Langley James can help you find highly skilled permanent, contract and fixed term IT professionals from our exclusive database of more than 900,000 registered users. Give us a call on 0207 780 6600 or visit www.langleyjames.com

 

Brexit – What now for your recruitment?

Keep Calm

Whichever way you voted and whatever you feel about how the referendum has ended, we are now leaving the European Union and we all have to face the consequences. We are entering a period of uncertainty and in general, business does not like uncertainty, but life goes on regardless!

If you are recruiting you will find that candidates tend to be harder to find when times are uncertain as permanent employees tend to stay put.

If your business is uncertain about recruitment but the job still needs doing there are options you can consider:

Fixed Term Contract – This allows you to have control and means that you have a “tie-in period” you are also able to budget in the same way as you would for a permanent employee offering a similar salary level. The fixed-term contract is managed through your payroll and the employee will be entitled to the same benefits as a permanent member of staff, the only difference is that their contract will have an end date.  This type of contract is often used to cover Maternity leave. If you choose this option our fee is pro-rata and you can extend end dates to suit business needs.

Contractors– Contractors can be a short-term solution to your “gap”. Highly skilled contractors are much sought after in this type of climate. Contractors are predominantly self-employed and are responsible for their own tax so will not be part of your payroll but a “cost” to your business. They generally charge an employer a day rate and although may appear expensive, will allow you flexibility. If you are considering recruiting a contractor the best time to do this is as soon as possible. Historically we have experienced upsurges of employers battling it out for the most skilled contractors who can literally take their pick of jobs when the demand is high.

NB: Some contractors are willing to take a fixed-term contract which we can arrange on your behalf; this gives you the employer, peace of mind that a contractor will see your job through when other employers will try to entice a contractor to their project by offering an increased daily rate.

Langley James can help you with all your IT recruitment needs we have our own internal database of more than 800,000 IT professionals available on daily, weekly and monthly contracts give us a call today on 0207 788 6600 or go to www.langleyjames.com.

UK employment at record high….but employers will have to pay for it!

Record High

The UK has its highest ever employment rate of 74%, with a record 31.4 million people in work.

 Over the past year, the number of people in work has risen 588,000, with nearly 75% of the rise in employment in the past year being full-time.

 Today’s official figures show that over the last year more than half-a-million more people are now in work, bringing employment to a new record high of 31.4 million.  This growth has been driven by a rise in full-time jobs and the number of vacancies has reached more than 750,000.

 Unemployment now stands at 5.1% – the lowest since early 2006 – and long-term unemployment has fallen by 25% over the year to 488,000, the lowest in six years.

 Wages have grown slowly, however, rising 2% over the last year.

  “Average earnings growth has also fallen to 2%, which is close to the underlying rate of pay growth that we’ve seen over the last few years.  This is not surprising because the fundamental conditions required for a step change in pay growth are simply not there.  Most employers still believe there are enough competent applicants out there to fill their vacancies, and, furthermore, productivity growth remains relatively weak. Conditions remain good for firms to invest in training and development and upgrading the skill content of jobs.”

 

“The UK jobs landscape is changing. Strong sterling is already severely dampening our ability to manufacture and sell goods overseas. Scotland’s oil industry has been hit hard by falling prices. Meanwhile, the IT and Technology sectors are booming with new vacancies opening faster than we can fill them. As the number of jobseekers still available to fill new openings decreases, upskilling workers will become a crucial component of fixing the skills shortage.

 

“Improving wages are a bright spot on the horizon for workers and this means employers will have to start increasing salary packages. If you are unsure of what salary you need to budget for an IT support, Development or Senior Manager role give us a call to talk through your vacancy at Langley James 0207 788 6600 or visit www.langleyjames.com

 

 

 

Homophobia in the workplace is an employer liable?

stop

Following the attacks at an Orlando nightclub the question is where is this behaviour allowed to breed? As an employer or manager we need to be aware that homophobic comments by employees or third parties can get employers into hot water: the European Court of Justice (ECJ) ruled that Romanian football club FC Steaua was engaging in discriminatory hiring practices after one of its well-known shareholders said that he would rather close the club than hire a gay player.

While it was established that the shareholder in question was not responsible for recruitment, he was perceived by the public as somebody who played a leading role in the club. The failure of the club to condemn and distance itself from his remarks was very damaging and the ECJ found that a case of discrimination could be inferred against the club from his comments.

In contrast to the US, where it is still legal in 29 states for an employer to discriminate against and fire workers for being gay, UK workers are protected against discrimination, victimisation and harassment because of sexual orientation by the Equality Act 2010. The Act doesn’t just protect the rights of gay workers: tribunals have also found in favour of heterosexual employees, such as in the case of a female employee who was made redundant from a gay bar and immediately replaced with a gay male employee.

Employers can be liable for the conduct of their employees and third parties, unless they can show that they have taken sufficient steps to prevent the discrimination, victimisation or harassment from taking place. Such steps would include: properly investigating complaints of unlawful behaviour, taking disciplinary action against any employee found to be discriminating against or harassing another, and implementing and adhering to rigorous equal opportunities and anti-harassment policies.

Employers should be aware that homophobic workplace ‘banter’ can amount to sexual orientation harassment even when the victim is neither gay nor perceived to be gay (for example one case, in which the heterosexual claimant was repeatedly called a “faggot” by colleagues). In a 2011 case, a tribunal found that an employer had harassed a (heterosexual) employee because of sexual orientation, when two of its employees used his iPhone without his permission and changed his status update on Facebook to read “finally came out of the closet, I am gay and proud”. The employee was not gay and did not believe that his colleagues thought he was.

This high-profile tweet is a reminder of the prevalence of social media and of the speed with which discriminatory comments can capture the public’s attention. In light of the huge increase in popularity and use of social media, employers should consider adopting a social media policy that sets clear standards for employee use of social media, and reminds employees that inappropriate online conduct can constitute a disciplinary offence.

Such a policy should provide example of inappropriate conduct, include prohibitions on negative, defamatory or discriminatory comments about the company and its employees, and should cross refer to the employer’s bullying and harassment and equal opportunities policies and as a best practice should be presented to all employees at induction stage.

If due to such conduct your organisation has to recruit Langley James can assist you in finding high calibre IT support and Development professionals please call 0207 788 6600 or go to www.langleyjames.com to see how we can help you.

 

 

 

 

UEFA Euro 2016 how to handle it…

euro2016

With UEFA Euro 2016 Cup just around the corner, employers need to keep an eye out for staff absences caused by these sporting events. Find out what you can do to encourage employees to enjoy the celebrations, without disrupting your business.

The country set to be gripped by football mania (to be closely followed by The Olympics 2016) employers need to keep an eye out for staff absences prompted by the beautiful game.

England’s Group B fixtures for the most part will be taking place initially at weekends, the third game is Thursday June 16 th 2pm however not all your employees will be following England! It may be useful for employers to make a note of the following dates to help you plan in advance and to look out for an increase in absences:

GROUP A 

Friday, June 10: France v Romania (20:00, Stade de France, Paris)

Saturday, June 11: Albania v Switzerland (14:00, Stade Bollaert-Delelis, Lens)

Wednesday, June 15: Romania v Switzerland (17:00, Parc des Princes, Paris)

Wednesday, June 15: France v Albania (20:00, Stade Velodrome, Marseille)

Sunday, June 19: Romania v Albania (20:00, Stade de Lyon)

Sunday, June 19: Switzerland v France (20:00, Stade Pierre Mauroy, Lille)

GROUP B

Saturday, June 11: Wales v Slovakia (17:00, Stade de Bordeaux)

Saturday, June 11: England v Russia (20:00, Stade Velodrome, Marseille)

Wednesday, June 15: Russia v Slovakia (14:00, Stade Pierre Mauroy, Lille)

Thursday, June 16: England v Wales (14:00, Stade Bollaert-Delelis, Lens)

Monday, June 20: Russia v Wales (20:00, Stadium de Toulouse)

Monday, June 20: Slovakia v England (20:00, Stade Geoffroy Guichard, St Etienne)

GROUP C 

Sunday, June 12: Poland v Northern Ireland (17:00, Stade de Nice)

Sunday, June 12: Germany v Ukraine (20:00, Stade Pierre Mauroy, Lille)

Thursday, June 16: Ukraine v Northern Ireland (17:00, Stade de Lyon)

Thursday, June 16: Germany v Poland (20:00, Stade de France, Paris)

Tuesday, June 21: Ukraine v Poland (17:00, Stade Velodrome, Marseille)

Tuesday, June 21: Northern Ireland v Germany (17:00, Parc des Princes, Paris)

GROUP D 

Sunday, June 12: Turkey v Croatia (14:00, Parc des Princes, Paris)

Monday, June 13: Spain v Czech Republic (14:00, Stadium de Toulouse)

Friday, June 17: Czech Republic v Croatia (17:00, Stade Geoffroy Guichard, St

Etienne)

Friday, June 17: Spain v Turkey (20:00, Stade de Nice)

Tuesday, June 21: Czech Republic v Turkey (20:00, Stade Bollaert-Delelis, Lens)

Tuesday, June 21: Croatia v Spain (20:00, Stade de Bordeaux)

GROUP E 

Monday, June 13: Republic of Ireland v Sweden (17:00, Stade de France, Paris)

Monday, June 13: Belgium v Italy (20:00, Stade de Lyon)

Friday, June 17: Italy v Sweden (14:00, Stadium de Toulouse)

Saturday, June 18: Belgium v Republic of Ireland (14:00, Stade de Bordeaux)

Wednesday, June 22: Italy v Republic of Ireland (20:00, Stade Pierre Mauroy, Lille)

Wednesday, June 22: Sweden v Belgium (20:00, Stade de Nice)

GROUP F 

Tuesday, June 14: Austria v Hungary (17:00, Stade de Bordeaux)

Tuesday, June 14: Portugal v Iceland (20:00, Stade Geoffroy Guichard, St Etienne)

Saturday, June 18: Iceland v Hungary (17:00, Stade Velodrome, Marseille)

Saturday, June 18: Portugal v Austria (20:00, Parc des Princes, Paris)

Wednesday, June 22: Iceland v Austria (17:00, Stade de France)

Wednesday, June 22: Hungary v Portugal (17:00, Stade de Lyon)

LAST 16 

Match 1: Runner-up Group A v Runner-up C (14:00, June 25, St-Etienne)

Match 2: Winner B v Third-place A/C/D (17:00, June 25, Paris)

Match 3: Winner D v Third-place B/E/F (20:00, June 25, Lens)

Match 4: Winner A v Third-place C/D/E (14:00, June 26, Lyon)

Match 5: Winner C v Third-place A/B/F (17:00, June 26, Lille)

Match 6: Winner F v Runner-up E (20:00, June 26, Toulouse)

Match 7: Winner E v Runner-up D (17:00, June 27, St-Denis)

Match 8: Runner-up B v Runner-up F (20:00, June 27, Nice)

QUARTER-FINALS 

Match 1: Winner Match 1 v Winner Match 3 (20:00, June 30, Marseille)

Match 2: Winner Match 2 v Winner Match 6 (2000, July 1, Lille)

Match 3: Winner Match 5 v Winner Match 7 (20:00, July 2, Bordeaux)

Match 4: Winner Match 4 v Winner Match 8 (2000, July 3, St-Denis)

SEMI-FINALS 

Winner QF1 v Winner QF2 (20:00, July 6, Lyon) 

Winner QF3 v Winner QF4 (20:00, July 7, Marseille)

FINAL

Winner SF1 v Winner SF2 (20:00, July 10, St-Denis)

As an employer you have a number of options open to you:

Use annual leave

Invite staff to book annual leave if they wish to watch sporting fixtures that occur during work time. Encourage staff to book holidays with sufficient notice if they are going to need time off. This will help you to plan ahead for any staff shortages. You could also offer unpaid leave if you have enough staff to cover absences.

Allow flexible working

Let employees leave early to watch sporting fixtures, but ask them to either start earlier, finish later or a combination of both on the same or another day during that week to make up the missing time. Other flexible approaches include allowing staff to swap shifts, if feasible.

Do nothing

You could take the view that any unauthorised absence is just that and, if staff choose to be absent on that day without taking a holiday, they leave themselves open to disciplinary action.

Watching sporting events at work

Install a TV screen or projector screen so that employees can watch a game and use the occasion as a team-building event, so no one has to take days off. Or, if you don’t have a TV, let them listen to it on the radio. However, you should be aware with either of these options that you will need either a TV licence or a licence from the Performing Rights Society for radio use. And remember, not everyone will enjoy watching sports, so be mindful of others when making arrangements.

Use it as a perk

While you have no obligation to cater for your employees; sporting interests, you could aid motivation by using an hour or two's time off to watch a sporting event as an incentive, perhaps based upon individual or group performance.

Review your internet policy

Employees may try to watch sporting events online or follow instant updates on news and social media sites, so you should remind them of your internet use and monitoring policies. It is up to you to decide whether you’re happy for your employees to keep track of events online; this might cause less disruption than people taking time off, but it is worth bearing in mind that if staff are streaming live sporting fixtures on a company-owned computer, you should have a TV licence to do so.

Remember that not all employees will be supporting the England team. So, to avoid any discrimination, it will be important that, whatever you decide to do, you offer the same concessions to all employees who wish to watch fixtures involving their chosen country.

Rebuilding Your Staff Employee By Employee

Problem – “Some Employees are minimal and you can’t get any improvement”

Solution – rebuild your business one employee at a time

Minimal employees have become the bane of business. These employees do just enough to get by and no more.  A business with good market share and potential, a good strategy but with poor results then it almost always points to minimal employees. Sometimes owners/management see this but often it takes an outsider to point it out. Once this is understood to be the problem the question is – How to be rid of these bottom-feeders and get some good people in their place? The answer is to build it employee by employee. The following are some key concepts when considering a personnel ‘upgrade’:

1. Understand that minimal employees cause discontentment with productive employees. Good employees often leave because of minimal employees. Having a minimal employee can hurt the entire operation. Realising this is important when difficult decisions need to be made.

2. Understand that most businesses cannot shut down as they reorganize or redesign. Using the analogy of a flying plane: you cannot stop the plane to fix it – you have to fix it while it is flying. The rule here is ‘don’t shoot yourself in the foot’. Usually this means don’t fire or lay-off until you have replacements.

3. View employees as resources and profit centres – not just expenses. Minimal employees are usually cheaper but deliver much less value.

4. Review your staffing at least once a week. (depending on the circumstances this may be necessary more often.) Go through each employee and determine his or her appropriateness for the business.  Use a spreadsheet, keep notes and strategies current so they can be constantly reviewed.  Highlight those employees that are ‘on the bubble’ or are delivering questionable value.

5. Do evaluations and reviews every three months. Once or twice a year is simply not enough.

6. Measure and evaluate your people weekly. Producers welcome the attention and ‘bottomfeeders’ will do all they can to avoid the scrutiny. Find some criteria for even those hard to measure job classifications – like service rep.

7. Find out if the poor producers have potential. Time and time management want to let someone go but not looking at potential. Sometimes they are amazed when they see a minimal employee blossom. It is usually better to give the minimal employee a chance or opportunity – if they do not want it they will often quit.

8. Understand that accountability is the employee’s responsibility – not management’s. It is management’s responsibility to do something about the lack of accountability if it is not there. This makes it much easier to deal with those tough decisions when the time comes.

9. Have a training and career plan for each employee.

10. Recruit right. The key to building a successful staffing is to make sure each new recruit is worth recruitig and is better than what you have. Here at Langley James we will go to extraordinary lengths to assist you in Recruit Someone Worth Recruiting. Consider work ethic, values, maturity, drive, creativity, etc. Truly amazing things happen when you replace a ‘bad apple’ with a good employee.

11. Look for ‘breakthrough’ employees that can bring high value quickly. This is usually a factor of skill, experience and work ethic. This can bring a corresponding sharp spike in performance.

12. Set up a system where employees can train or mentor each other. This tends to raise the standard throughout the business.

13. Constantly evaluate what your market and customers demand. Make sure you are hiring to meet this demand.

14. Make the processes automatic – daily if possible. If you stay focused the results will come. Focus on the process!

15. Be persistent.

 

How to Approach the Exit Interview

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A lot can be learnt from exit interviews. Exit interviews are not a waste of time, although many deem them to be. It is an important exercise in order to determine if there is anything you can do differently going forward with your remaining team. It is important to remain impartial during the interview, and to ensure a balance between obtaining the relevant information whilst allowing the departing employee the positive closure they need.

The ultimate aim of the exit interview is to determine the reasons for the departure of your employee, on the basis that criticism is a useful driver for organisational improvement. A successful exit interview can give you an insight into the current working environment, culture, management approach and processes. Relationships amongst the team is a likely factor to be discussed. Some employees may be more forthcoming in providing information so do bare this in mind.

Try to keep the interview structured and contained. The objective of the meeting is to gain the relevant information. Ensure that the interview can:

  • Identify what your organisation is doing well
  • Identify any areas that can be improved
  • Confirm the skills and experience a replacement employee will need in order take over the role and move forward.
  • Provide an understanding to you of why the employee is leaving
  • Allow the departing employee to say goodbye on good terms.

Finally, don’t take anything personally, and try to remain impartial. It can be difficult to hear an employee talking negatively about the organisation, but if this is the case, turn it around and use the information positively, make changes accordingly and move forward with the remaining team. Any feedback is useful whether positive or not.

Let us know your thoughts on the issue. You can join in the conversation on Twitter, Facebook, LinkedIn and Google+.

If you need help in recruiting for both permanent and contract staff, please contact us on 0207 788 6600 and one of our expert consultants will be ready to help.

You can view all our latest vacancies here

 

36% report pay rise, whilst 3% have salaries slashed

36% of people have had a pay rise this year according to Mori iPSOS. Out of the 1600 people who were surveyed, one-in-three report their pay to have been frozen this year, while 3 percent are suffering a pay cut. Although 64 percent are reporting their pay to have been revised higher, only 23 percent are reporting an increase of more than 2%.

The survey responses collectively point to employee pay reviews leading to an average pre-tax salary increase of just 1.3% this year, higher than the 1.0% increase signalled for 2015 but below the 1.5% rate recorded in 2014.

It is reported that pay reviews in the public sector in April continued to lag behind those in the private sector, with salary growth rates of 1.6% and 0.9% signalled respectively, although both are up on 2015. Shockingly, the proportion of employees in the public sector reporting a pay cut or freeze rises to 51 percent compared to 28 percent in the private sector.

It was also recently reported that less than half happy with what they’re earning, and the vast majority are looking to change jobs in the next two years.

It is widely known that now more than ever before, employers are focusing on retaining and developing strategies in order to retain their staff in an increasingly competitive market.

Let us know your thoughts on the issue. You can join in the conversation on Twitter, Facebook, LinkedIn and Google+.

If you need help in recruiting for both permanent and contract staff, please contact us on 0207 788 6600 and one of our expert consultants will be ready to help.

You can view all our latest vacancies here

 

Why Productivity is Lacking

IT professional at work. Confident young man working on laptop while his colleagues talking in the background

The UK Government’s recent ‘Productivity Plan’ was attacked as lacking in original ideas and clear goals, and was slammed as “nothing more than a list of recycled policies”, by a group of MPs. It is clear that the UK is facing a long-term productivity problem which is being made worse by the financial crisis that the country has faced over the years. The economic downturn was labelled by MPs as “the most damaging financial crisis seen in generations”.

It seems as though the battle between productivity and the economy is transpiring as nothing more than a vicious circle. High levels of productivity contributes to growth, and growth prompts high levels of productivity. The Government’s efforts to “fix the foundations and create a more prosperous nation” is under severe criticism. Is it time to take the growing issue into our own hands?

Learning and Development

It is reported by the OECD that the UK suffers from several weaknesses in its overall skills base which is what is heavily contributing to the longstanding productivity gap with other European countries and the United States. According to the report, numeracy and literacy skills in England and Northern Ireland are among the lowest, and the standard and level of intermediate professional and technical skills are set to drop to 28th out of 30 European countries. 

The rapid pace at which working environments are changing due to technology, laws, policies and global competition means that skill sets must be continually updated. Learning and development is a crucial organisational strategy that ensures a sustainable and successful organisation through the identification of core skills and competency required in order for staff to achieve to the best of their capability, and the implementation of development plans.

An employee is more likely to perform to a higher standard and demonstrate a higher level of productivity if they are confident they have the knowledge and capability to achieve in their role.

Company Vision

Any good business has a clear vision, and through this vision goals can be set. Goals can be set for both the business as a whole and for each employee as individuals benefiting everyone. Unfortunately, this isn’t always the case. A lack of clear vision and goals can be detrimental to productivity, satisfaction and ultimately retention. Productivity levels begin to deteriorate when people feel little purpose or as though their contributions are meaningless.

Begin by assessing the current state of your business and determining what your team expects of you, and what you need from your team in order to reach your objectives. Determine also, any personal career goals your employees may have and how they want to reach their goals. This way, when you set objectives for both the business and for individual employees, you can tailor them so that they benefit all parties. Productivity levels in likely to increase when an individual feels that they are not only contributing to the companies targets, but are working towards reaching personal goals too. Read more on implementing career development plans.

Setting KPIs is a great way of measuring and determining whether employees are meeting targets and fulfilling objectives, but be careful not to create additional stress or pressure to the employee, you will ultimately achieve the opposite of what you are trying to if you do. Set provisions in place in that cater for those who may underachieve, nurture these employees, identifying where the employee is struggling and aiding them in achieving goals, or adjusting objectives where necessary. Help your team reach their full potential rather than firing those who are underachieving. Don’t forget, a high turnover costs more to a company than simply nurturing and retaining your staff. Set goals that will not only benefit the business as a whole, but help your employees grow and reach their personal targets to the best of their potential.

Workplace Stress

Stress is detrimental to all aspects of an employee’s performance. According to research conducted by Towers Watson, employees suffering from high levels of stress have lower engagement levels, are less productive, and ultimately absenteeism levels are far greater compared to those who are not working under excessive pressure. Stress is inevitable in most working environments. They key to retaining and maintaining satisfaction and productivity levels among employees is helping your staff to manage stress more effectively. Time management plays a pivotal role in reducing stress. An overwhelming workload, too many demands and feeling like there is not enough time will undoubtedly trigger a sense of frustration and panic, and helping your employees to organise, prioritise and plan more effectively is the first step in managing productivity levels.

Of course, stress can have a positive effect on some, kick-starting adrenaline and motivating an individual to perform quicker in order to meet demands and requirements. But poor management and too much exposure to stress will eventually induce a lack of engagement and productivity, as well as negatively influencing loyalty and commitment to the company. Read more on stress management.

Lack of Effective Communication

One of the fundamentals to enhancing productivity is creating satisfaction, and the key to achieving that is by creating clear and effective communication. An effective system of communication means that all employees must have full knowledge of the hierarchy. Each member of staff must be aware of who they can talk to in regards to any issues they may be facing, and ensuring accessibility to the mentors and managers who deal with their issues is of paramount importance.

Creating clear communications refers to both interpersonal communication, and communication through technologies. Utilise technologies and systems that help employees compete tasks more efficiently whilst allowing them to share information, ideas and help and support colleagues. Tools such as Yammer and Office 365 are a great way of allowing staff to share and communicate efficiently. When communicating with employees, ensure that every comment you make is actionable; provide feedback to employees on a regular basis; and ensure that any criticisms are constructive. Following these three simple steps will promote open communication and encourage honesty. Read more on open communication.

If you are looking for someone to join your team who can help you manage employee productivity, satisfaction and retention, then call us today on 0207 788 6600 and we can help you find the right HR professional for the role.