A business' most valuable asset is its people, and having robust HR systems in place really helps to get the best out of your workforce, protecting your staff and your company.  The following tips will provide the starting point for a strong HR framework.
Recruitment procedures are key, and finding the right person for the job role will save you a lot of hassle, time and expense further down the line.  Take the following steps:

  • Select the most appropriate methods to source candidates, considering job boards, recruitment agencies, local press or social media. Remember that employment legislation applies to recruitment and an inappropriately worded advertisement creates the risk of a claim for unlawful discrimination at an Employment Tribunal.
  • Implement the most suitable assessment process for each role, and use various methods such as interview, role play or presentation.
  • Use fair scoring criteria when making the final decision on which candidate is right for the role.

Contracts of employment are an easy way to reduce the chance of disputes arising.  Legally you must provide a statement containing key employment information to your employees within two months of them starting work, so ensure that you have the appropriate paperwork in place.
Our recent research estimates that the average small business owner loses up to 40 days of working time from employees claiming to be ill when they're not.  Implement a sickness policy which sets out the company's expectations in terms of an acceptable sickness level.  
Ensure you have strong maternity/adoption and paternity leave policies in place to ensure all employees are treated fairly and aware of their rights.  Statutory leave and pay levels are subject to regular changes, so it is important to keep your policies up to date.
Employment Tribunals for constructive dismissal or discrimination are expensive and can damage a company's reputation.  If you are taken to an Employment Tribunal and your disciplinary or grievance procedures are deemed to be incorrect, the Tribunal can increase the compensation by up to 25%.  For example, if an employee is awarded £10,000, this could be increased to £12,500, so make sure you have robust disciplinary and grievance policies in place which comply with the ACAS Code of Practice.

When different scenarios arise in the workplace, such as performance management, redundancy or conduct issues, it is important to have letters in place which comply with legislation and include all the relevant information appropriate to the situation.  For example, when inviting an employee to attend a disciplinary hearing, there are various steps which legally must be taken and it is important that the correct documents are in place to document the process.
An employee who has been employed by a company for over 2 years, has a statutory right not to be unfairly dismissed.  Any performance-related dismissal needs a fair and non-discriminatory performance management process, ideally setting out the process for assessing employees and deciding the correct course of action when agreed goals are not met.

Redundancies are unfortunately becoming more common, and if handled incorrectly, can lead to an unfair dismissal claim.  A redundancy procedure should be introduced, including consultation with the employee, a fair selection process and the ability to demonstrate that you have considered the question of alternative employment to avoid the dismissal.
For a free review of your current HR policies and procedures by ClearSky HR, call us today on 0808 147 1921.