RETENTION ISN’T ALWAYS GOOD
by Claire Thwaite Director, Cube HR
There is no doubt that it is usually cheaper to retain existing employees than it is to recruit new ones but there are exceptions to this rule – a poor performing or negative employee may cost your business much more.
Employers will often approach us for advice about under-performing members of staff and when we dig a little deeper, we find that this lack of performance has been tolerated for months, sometimes even years as the employer either doesn’t know how to, or is too worried to, address it.
One under-performing employee can have a huge impact on the success of the business and on overall employee retention. Not only is your poor-performer unproductive, inefficient at their own job role, and taking up a higher percentage of
management time, the burden it places on the rest of the workforce can lead to lowered morale, lack of motivation and ultimately losing your valued, high-performing employees.
Those impacts can be more significant when a manager is negative or not performing – the whole team suffers, and this can create ripples through the entire organisation. Imagine having one piece of mouldy fruit in a fruit bowl, if you don’t deal with it immediately, the mould spreads to the nearby fruit, until gradually the whole bowl is ruined.
Does this mean you should dismiss those employees? Not necessarily. You need to find the root cause then give your employee the support and tools needed. If they still can’t, or won’t, perform, ask yourself how much keeping them is costing.
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THE RIGHT PATH FOR REDUNDANCY
AND RESTRUCTURING by Olivia Bailey
Employment solicitor, Harrison Drury
Company restructuring and reorganisation is an essential part of business planning, in good times and bad.
The gradual winding down of the government’s Coronavirus Job Retention Scheme (CJRS) is likely to be a catalyst for many businesses to review their team structures and staffing needs, ensuring business continuity and retention of key employees.
However, businesses need to minimise the risk of potential employment claims. Firstly, the definition of redundancy must be met and it’s important to show that the business has explored other options to avoid redundancies.
These may include reduced working hours over the full working week or asking employees to agree to working fewer days per week. Business should also consider whether there are any alternative vacancies within the business, or across a group.
If redundancies are still required it may be necessary, depending on numbers, to undertake a consultation process. Consultation involves meeting with employees that are at risk of redundancy as a group, to explain the reasons behind the redundancy process and to inform of how many jobs are at risk.
At the initial meeting, you may wish to ask for volunteers for redundancy to reduce the number of compulsory redundancies that will be made. If collective consultation is required, employee representatives should be elected and consulted, or consultation with trade union representatives should take place.
The redundancy process requires careful planning and if you are considering making redundancies, we always advise businesses to seek legal advice at an early stage to ensure that all legal requirements are met and to avoid common mistakes.
Let our people look after your people
Our employment and HR team take a proactive approach to help you engage with your staff.
www.harrison-drury.com Offices throughout
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RECRUITMENT
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