Looking ahead: What are the main challenges facing HR today?

Continuing our spring guest blogging season here on the LCP blog, we’re today pleased to welcome Greg Moran; Greg is Founder and CEO of Chequed.com, a Pre Employment Screening technology for pre employment assessment and reference checking. You can stay up to date with Greg on twitter @CEOofChequed.

When I asked some of the foremost thought leaders in the HR space, they all seemed to say the same thing: HR needs to more strategically connect what they do to bottom line results and their company’s success. The challenge is that HR professionals are often viewed as administrative paper pushers who are responsible for resolving complaints and employee grievances. The truth is that HR is often one of the most important departments in any business and contributes so much more to the organization than one may suspect. The challenge then becomes, how do we demonstrate our value?

Focusing on the Strategic Side: Paul Kearns, Director at PWL, a strategic HR, measurement and evaluation consultancy, believes the day to day, transaction portion of HR can become a weight for too many professionals, holding them back. “While we’re dealing with the reactive stuff, while we’re dealing with the transactional stuff, we’re often taken off the ball of the strategic stuff…Whilst all of these things hopefully bring some benefits to the organization,” he says, “I think it’s time for senior HR execs to maybe stop looking at the process and refocus on the impact of these things.” By focusing on the building of competency frameworks for example, if one doesn’t look strategically to see how these will impact the long term goals of the company, the opportunity to make a difference gets lost and diluted. This lack of focus can further enhance the stereotypes of HR as a necessary evil, not a driving force in the business. Making sure that activities and procedures are all moving towards specific corporate goals will ensure a more visible contribution and value from HR.

Making Organisational Connections: Jack Philips, Founder of the ROI Institute believes that HR needs to build deeper relationships with and knowledge of the entire organisation. Top level HR seems to have established this knowledge expertise, but a more shallow awareness can be found within the department. HR is unable to contribute value without deeper operational knowledge. Phillips points out that “we need to be so well-connected that we understand the operational issues…[and ] the challenges ahead.” Going back to basics and learning more about the long-term vision and goals will help HR connect more firmly to the organization and therefore increase visibility as well as the perception of value.

Data – Getting it and using it properly: The good news is that many HR professionals are talking about and thinking about metrics every day. “Business alignment is so critical these days, on all of our projects,” says Dr. Jack Phillips of the ROI Institute. Unfortunately, HR’s contribution can be overshadowed by reporting the wrong data and metrics. “HR execs don’t have the data that says, ‘Hey, we’re investing here, and it’s making a difference right here in this organization, on this particular project.’“ He points out that HR needs to focus on data that ties in directly to business outcomes. “[HR] can’t gain respect unless we show the value as other colleagues in the organization do.” Paul Kearns agrees. “Every other function, every other discipline, management discipline, tends to know how to measure itself. What we need to get much better at is producing evidence—not just measurement, but evidence. The only evidence that really matters to a chief exec or a CFO or whoever, is evidence of value: improvements in output, cost, revenue, quality.” Dave Ulrich, professor of business at University of Michigan’s Law school notes that “one of the biggest challenges of HR metrics is measuring what is easy and not what is right. [HR] measures transactions: how many people went to training, how satisfied they were when they were training—but we don’t measure the outcome of training.” If we shift our focus to measuring the outcomes that demonstrate business value, HR can contribute more useful and tactical metrics.

HR is a challenging position, and arguably one that has the greatest ability to influence an organization. By keeping a strategic focus, understanding and connecting with the company at a deeper level and providing data and metrics that showcase efficiency and improvement, HR professionals can poise themselves for a winning position.

What do you think; would you add anything to Greg’s round up of the major challenges?

Also see our HR trends and legislation changes for 2012 newsletter and this earlier guest blog psot on careers in HR.

Why investing in employee health could literally save companies a fortune

Here on the LCP blog we’re continuing our spring guest blogging season in which we write for others’ blogs and welcome you to write for us! Today Stuart Henderson provides a compelling argument for investment in workplace health. Stuart runs a health insurance blog and produces content based on various types of policy including personal, expatriate and corporate healthcare.

The cost of absenteeism is a regularly discussed topic, particularly at this time of year when many businesses will still be recovering from lost productivity over the winter period. While many UK companies may be reviewing the cost of employee benefits such as corporate healthcare due to the continuingly difficult financial climate, they may want to take into account the true value they provide also.

Significant Losses

Last year alone, UK businesses lost over £36 billion due to absences in the workforce. A significant amount no doubt about it, but a statistic which only tells one part of the story.

The cost of lower productivity stemming from employees who attend work even when ill (known as presenteeism) could be up to three times higher, or around £108 billion, according to a recent report from Legal & General.

The report revealed that presenteeism lead to a typical loss in productivity of around 12%, while the loss suffered from absenteeism is normally around only 4%. Together with the loss in productivity typically seen as a result of less than optimal employee health, due to poor diet and lack of exercise, poor employee health can lead to a drop in business performance and productivity of up to 26%.

The effects of presenteeism on workplace productivity and performance are not simply limited to the affected employee either. Continuing to work while unwell can lead to an increase in workplace accidents, illness spreading throughout the workforce leading to further drops in productivity, conflicts with co-workers and accidental damage to business equipment – all of which can result in additional costs to employers.

But at the same time, employees clearly feel pressure, due to uncertainty in job markets and the strains of the current economic climate, to go into work even when ill. 37% of employees surveyed in a Health of the Workplace poll said they would work even when ill, whilst 15% said they are concerned about taking time off sick.

O2 Study

This information hardly seems surprising given the results of another study, commissioned by O2, which highlighted that roughly 25% of employees believe their performance at work is measured more on the amount of time they spend in the office rather than the volume or quality of their output.

However, despite this many UK employers do not keep an accurate measure of the total cost of absenteeism on their business and almost none measure the cost of presenteeism.

According to the Aon Hewitt Benefits and Trends Survey a poll of 185 UK organisations representing a combined global workforce of around 650,000, a third (32%) of organisations polled said they did not track employee absence due to illness on an annual basis. Even of those who did, almost two thirds were not confident in the accuracy of their figures.

Yet the cost and amount of action required to dramatically improve employee productivity and performance are comparatively very small. From simple things such as introducing fruit to the workplace, to encouraging exercise and providing, or contributing towards employee healthcare, there is plenty organisations can do to improve both the productivity and health of their workforce.

If you would like to build a business case for investment in workplace health, also see this previous guest post on why good health is good business.

Image source: imagerymajestic

LCP’s Caption Competition: Performance

- £5 Amazon vouchers for the winner!

This month’s newsletter includes an introductory guide to using competencies for performance management – if you’re reading this before Friday the 27th of April sign up here for a copy.

In line with this, the theme for this month’s caption competition is ‘performance‘ – looking forward to reading your suggestions!

We’ll announce the winner on Friday the 4th of May; follow @ClaireWalshLCP or @LCPNatasha on Twitter or check the blog comments. Thanks to a4blank on Flickr for the photo.

Thinking about implementing an ID card system? Some of the benefits to consider…

Some employers may have been put off by the extra cost and time required to set up a secure ID card system. However, whilst primary aims are often security and monitoring staff, ID cards need not always be about ‘policing’ your employees and if used effectively they can actually be a way to improve employee engagement. Today’s guest post – part of our spring ‘guest blogger season’ highlights some of the main benefits which could be taken advantage of.

High-quality employee ID cards offer many benefits for businesses as well as employees. These plastic cards—which can feature the employee’s photograph and name, job title, or the department in which he or she works—can be worn around the neck, attached to a retractable cord or clipped to a belt or badge. Mid-sized businesses issue employee ID cards for a variety of reasons to help streamline processes and give their employees multiple benefits. These can include:

Security

ID cards increase security, both for the employee and for the business by restricting access to buildings. Only to those who have appropriate credentials via their employee ID cards can have access to your facility – eliminating the possibility of someone random from the street, a former employee, irritable customer, etc. from entering the building unannounced or unwanted.

Relationships

In today’s current workplace, many times employees in mid- to large-sized companies use email as their main form of communication. Employees that are in different departments in various parts of the building do not always see each other. Having a photo ID card can help make it easier for employees to get to know each other and put a face with a name and job function should they see each other in a meeting, hallway, cafeteria, etc. In addition, if your employees interact with customers, the badge helps the customer identify the employee and fosters a closer relationship.

Accountability

You can affix a magnetic stripe on the back of employee ID cards imprinted with a pass code. This allows employees access not only to the main doors of the office, but to restricted areas within the office, certain computer terminals, copiers or other equipment. Each employee has a unique passcode and managers can track in and out times, equipment usage, and restrict usage of some areas or equipment to a few employees.

Benefits

Businesses may negotiate discounts at a local gym or restaurant for their employees, or offer tickets to sporting events or an amusement park. The employee’s ID card can serve as their entry ticket for these events, or can be used to take advantage of a discount or special deal. The business not only benefits from an increase in employee morale, but also from a more positive public image. Employees that are willing to showcase their badges at other businesses around town serve as good advertising and brand building for your company.

Thank you to Beth Van Helden for this guest post; Beth is a web marketing specialist at Datacard Group, who work to provide user-friendly solutions for businesses needing employee, contractor and visitor ID cards. Their secure ID and card personalization solutions are used to issue millions of financial cards and identification documents each day. Follow them on Twitter @DatacardGroup.

Image source

Do we need such a distinction between academic and vocational higher education?

In a recent article, Lord Glasman repeated his suggestions made at last year’s Labour Conference, which were to halve the number of universities and to replace them with vocational training institutions. In his response GuildHE CEO Andy Westwood disagrees, expressing that a return to a system of academic universities and vocational polytechnics is ineffective and besides the point: ‘in higher education, we all have a responsibility to encourage more innovation, more investment, more mobility, more active and prosperous communities and yes, more people with degrees… Yes we need more emphasis on high-level skills and new types of vocational training. But it won’t be achieved by re-establishing a “sheep and goats” system of higher education.’

As Robert Reich suggests when explaining his ‘shrinks and geeks’ concept, whilst these two characters may tend to be separate, when they do fuse, they lead to entrepreneurs:

‘What characteristics are most important in creative workers? One quality you need is inventiveness. You need to be able to take whatever product or service you are providing and figure out ways of making it better, faster, cheaper.

‘The other quality is empathy and insight into what people might want, even though they don’t even know their wants, probably because there’s no product or service to test their wants. I labeled one the personality of a geek and the other the personality of a shrink, because I wanted people to understand in a shorthand way what these were all about. Now, inventiveness and empathy, those qualities, if they’re together in the same person, you’ve got an entrepreneurial genius. But they do tend to be slightly separate.’

It’s clear that university courses need to better equip students for the job market, with recent Adecco research finding that a fifth of UK employers believe school leavers make better employees than university graduates and over a third (36%) believing that the education system is failing to leave young people with critical skills required by businesses.

Two key areas that graduate employees were failing in according to the survey are interpersonal skills (41%) and critical IT skills (41%) – failings with the latter being the subject of a recent blog.

What’s more, with students now expected to pay higher costs for their education, they will in turn expect the university to be more responsible for providing an effective introduction to their working lives.

However, reinforcing the false hierarchy between what are traditionally academic and vocational courses of study seems unhelpful to students as well as to innovation and economic growth; perhaps we should be working harder to erase this arbitrary distinction – what do you think?

Image source: Renjith Krishnan

Top tips for maintaining focus and productivity when working remotely

Thank you to Thomas Wheelson for this post; Thomas writes for OnlineClock.net who are the creators of free, web-based time tools designed to boost your productivity. Whether or not you work at home, you can try their free online timers here. Online Clock’s range of simply designed timers and counters are intended to help those of us who sometimes work from home to be more efficient – if you try them out do let us know how you get on! This spring on the blog we’re welcoming guest posters; please get in touch if you would like to write for us.

Many people dream of working from the comfort of their own homes. It offers more convenience and freedom than conventional offices. However, it also comes with its own challenges, the main one being loss of concentration and focus. There are many distractions, such as kids, television and household chores. Such distractions are a threat to efficiency and productivity. Here are some tips on how to keep focused when working from home.

Designated Workplace

Create a designated workspace preferably in an area insulated from noise. Make it accommodating so that you remain comfortable when at work. Doing this will enable you set boundaries so that fellow family members do not disturb you. It also creates an atmosphere that enhances mental focus and concentration.

Stay on Schedule

A comprehensive schedule will help you organize your time thereby increasing efficiency and productivity. You can structure this schedule in such a way that it revolves around your productive hours. When creating it, remember to include time for meals, breaks and chores. This helps you remain organized during working hours. When scheduling, remember to allow breaks and to be realistic about what is possible; there is little more demotivating than setting yourself optimistic and unlikely goals!

Personal Life Separate

Separate your personal life from work. It is easy for friends and family to assume that you have the freedom to do whatever you want simply because you work from home. As such, they could become a source of constant interruptions which erode productivity. It is therefore essential to set boundaries so that such people do not become sources of constant distraction.

Set Goals

You can also try setting goals for yourself. These will motivate you to remain focused on your work. For instance, you can set a goal to make some extra money every day or take lesser time to complete an assignment. If you fail to achieve these goals, do not give up; keep trying instead.

Take Time Off

Take time off on a regular basis to have some fun. Working every day in the same environment can turn out to be boring and demotivating. Instead of chatting people over social networks, take time to hang out with friends and family. This helps one feel more refreshed and full of energy when they return to their work place.

To Do Lists

Create a to do list so that you can keep track of projects that need to be worked on as well as their deadlines. It also helps you allot a proportionate amount of time on each task. This increases productivity and helps you organize your time better for more efficiency.

Set Timers

There are many websites that offer free online timers that you can use right in your web browser for free, without downloading or installing any software. Use one of these to set an alotted amount of time for each task in your to do list. When the timer’s alarm goes off, you know that you need to move on to the next “to do” on your list.

Turn Off The Social Web

Though social networks help us remain in touch with friends, they decrease productivity because it is simply impossible to connect and work at the same time. You should therefore log off and disconnect your social messengers too. You may also consider keeping your cellphone in silent mode. Remember that concentration is the key to success; do not let friends take it away from you. Schedule important phone calls and set some time to read work-related emails so that you do not have to think about them later on.

For further tips on how to keep focused when working from home, it can be a good idea to consult friends in the same situation, and there are also further tips elsewhere on the web.

Here on the LCP blog see our past posts on leading virtual teams and managing upwards when working remotely.

The end of the default retirement age: what does it mean for employers?

Continuing LCP’s spring ‘guest blogger season’ today we warmly thank guest poster Laura Jennings – from Gordon Dean Solicitors, employment solicitors in Norfolk – for writing this helpful outline on what employers should be aware of following the abolishment of the default retirement age (DRA) last year.

From October last year – after a period of ‘phasing out’ – the default retirement age (DRA) in the UK was completely abolished. This means that employers can no longer retire employees once they have reached the previous default retirement age of 65. Instead, if employers want to retire an employee, they must have more justification for doing so than age alone.

Research conducted by Norton Rose suggests that even though the DRA has been abolished, there is a greater likelihood that employers will offer incentives – monetary or otherwise – to encourage older employees or partners to move on as there is a fear that the end of the DRA will make it more difficult to make space for younger employees – an issue that is a hot-topic currently with the rising numbers of those in the NEET category.

Unless it can be objectively justified, as an employer you cannot dismiss an employee on the grounds of retirement unless you have a compulsory company retirement age in place. You must make sure that all other options have been considered and ruled out, and that the dismissal contributes towards a legitimate aim. A company may implement a company retirement age only if it has objective justification for doing so, for example emergency services. In many cases, business owners are reluctant to introduce a company retirement age even where they have objective justification for doing so because they are worried about legal cases that could potentially be brought against them. More information about age discrimination and objective justification can be found here.

However, there is not a huge amount of guidance available for employers on the subject of objective justification. In a recent case that is still on-going, a partner from a firm of lawyers appealed against the firm’s decision to dismiss him at the company retirement age of 65 as he believed “that the firm could not justify the retirement and therefore was discriminating against him”. While this case only provides an insight into dismissal of partners rather than employees, it will still be relevant to see how the Supreme Court rules and provides an insight into their decisions surrounding social aims and dismissals – a very grey area indeed.

But what does this all mean for employers?

The abolishment of the DRA means that you must tread carefully around issues surrounding retirement and dismissal. If your company needs to have a retirement age, you can find important guidelines and information here.

For those that don’t, older employees must have the same rights surrounding dismissals as other members of staff. Before the end of the DRA, while the process discriminated against older people who wanted to continue to work after default retirement age, there was far less bureaucracy surrounding the issue. In many cases nowadays employers are being forced to performance manage older members of staff out of their jobs. Before, employers may have been more relaxed about conducting performance reviews for employees nearing the default retirement age. But now these must be kept on top of and the correct procedures must be followed so that if you wish to dismiss an older employee on grounds of poor performance, it can be proved that this was done without age discrimination being an influencing factor.

ACAS, (Advisory, Conciliation and Arbitration Service) run training courses and can be approached by employers for free advice surrounding all HR and employment related matters. If you are at all unsure about any issues surrounding retirement and employee dismissals, they should be your first port of call to ensure that you follow the correct procedures which could help you to avoid a case for unfair dismissal being brought against you.

Previous posts from LCP that may be useful include How to avoid employment tribunals, The ageing workforce: is your organisation really prepared? and HR and Employment Law changes for 2012. As always, if you have any further queries we’re happy to advise or point you in the right direction; contact us or comment below.

Also see this case in the news recently where the judge ruled in favour of unfair dismissal for an engineering employee forced to retire at 65, noting that the letter dictating his retirement ‘failed to fall within the required parameters of exercising such an action’.

Are your internships fair? Five steps to ensure placements run smoothly for both business and intern

With the current flurry of news items on unfair unpaid internships, now is not the time to be slipping up on how your business is treating its interns. Whether you decide to pay your interns the national minimum wage or not – which is the legal requirement for interns that are adding value and performing tasks of a paid worker – there are several steps you can take to ensure your intern will be treated fairly, feel valued, and be developed by the experience.

For more on the unpaid internship debate see our past blog – What’s the latest on unpaid internships?

Not only will a fair intern policy keep your business safe from potential employment tribunals and the building media and public outrage against exploitative internships, it will help you to stand out from the crowd and attract the top talent from young people and graduates – who may turn out to be employees.

• Ensure advertisements are clear: Be entirely transparent from the offset about what you are able to provide – if you reimburse travel, what’s your limit? If you say ‘may lead to potential employment’, how likely is this really? Similarly, be realistic about what tasks the internship will involve. Sure, you want your internship programme to attract the top talent, but if you mislead your recruit this could lead to resentment in the longer term.

• Whether or not you pay minimum wage, travel and lunch expenses are really the minimum requirement; not only do they provide a little reward for the intern’s work, they also ensure a wide pool of candidates are attracted to the placement – not just the more financially well-off.

• Consider offering more flexibility; is a full-time or 6 month commitment really necessary? Such requirements can immediately price out some potential interns, and they also limit the experience students can gain before graduating. Consider part-time positions and other flexible working – for example, some work from home could enable those with non-London postcodes to intern in the capital.

• Whatever the terms of your internship, ensure it has a fixed time; a few weeks unpaid work experience may be beneficial to both intern and firm, whereas months of rolling unpaid full-time interning is simply unfair.

• Incorporate a professional development plan into your internship scheme; whilst an element of support should be included in any role, this is even more important if the intern is unpaid. This should always include an induction to the firm, relevant projects for their skills, and regular constructive feedback from managers including an exit interview. Unpaid internships are not always unfair and there is often much more a business can give to a young person than money. This could include training sessions, a learning and development programme, mentoring from another member of staff, and support and advice with CVs and job hunting.

Do you have an internship scheme? What do you do to make sure it’s a beneficial experience for both you and the intern?

Image source: dream designs