Strategies To Create A Positive Organisational Culture

As business owners, we all like to think that we have a  positive organisational culture.  Ideally, we want the  people who work for us to be happy and see the organisation as positive and supportive.

If our employees work well together and collaborate with each other, we will see increased profitability and growth.

In previous articles, I have talked about sharing your vision so that everyone is working towards the same goal and can understand their own part in that journey.  Where people are trusted and appreciated, they have the impetus and the freedom to be innovative and creative.

Avoiding blame

Where communications are clear and leadership is strong and collaborative, then the climate is right for people to develop and grow.

So how can a blame culture creep into our organisation?   However much we work on sharing our vision and values and communicating our goals, organisational culture is defined by the people who work for us and their interactions with each other.

It is critical, therefore, that we learn to recognise the signs of a less than positive organisational culture and that we act to change the direction before there is a downward spiral.

Benefits of a positive organisational culture

Harvard Business School professors John Kotter and James Heskett did some research in the 1990s over a 10 year period.  Their findings showed that positive organisational cultures were linked to financial growth (a four fold increase).

A positive culture aids recruitment and retention of employees .  It can have an impact on customer service and it gives public credibility to your business.

Reviewing the situation

You may think your company culture is positive, but it is always helpful to review the situation.  Even if your employees are happy and motivated, you may find underlying trends which are less than positive.  If there is no conflict at all in your business, that could be a warning sign.  This can indicate complacency or a lack of confidence in suggesting a change to the status quo.  If you have a lack of diversity in your workplace,  you might find this will lead to stagnation.

On the other end of the scale, what happens when people cannot work well together?  This can lead to bad decision-making, loss of confidence, financial loss – even public embarrassment (remember the recent Ted Baker scandal?).

Warning signs

Many business problems are down to people issues.  You may be concerned about financial slowdown,  governance and legislative difficulties or other business-related difficulties.  But when you drill down into these, they are often rooted in difficulties with employees.

If you struggle to get new products to market, the fault may not be the organisational processes.  There might be a human aversion to risk which is at the bottom of the problem.  If you are finding it difficult to comply with governance or legislative imperatives, have a second look at your employees.  There is likely to be a problem with decision-making, ownership or understanding.

You may be proud of the fact that you collaborate with your employees, and allow them to collaborate with each other.  But have you given any thought to your consultation processes?  The real problem might be that people are spending hours of their time in large, unwieldy and unproductive meetings.

Alternatively, you may be very clear that you do not have a culture of blame in your organisation.  But have you listened to what people are saying to each other?  There might be implied criticism, even where it is not explicit. This can have a really detrimental impact on the confidence and abilities of the person on the receiving end – especially where there is a difference in position within the company.

Putting it Right

It is a fact that most of the problems in business are “people problems”.   We all have our own ways of doing things, our own unpredictability.  We are complex and we are all different.  This can make it difficult to resolve problems, but where you are able to create a positive organisational culture, you will reap the rewards.

The key to successfully changing your organisational culture is based on the same principles I have been writing about recently.  If you can engage with your employees, you will be well on the way to a positive culture.

As a reminder, those principles are:

Have a strong vision which you share with your employees and they can understand their part in helping to achieve the vision;

Give your employees a voice, so they can be confident in giving opinions and making suggestions in a blame-free culture, where they know they will be heard.

Show appreciation  of your employees and recognise their skills and achievements, so they are encouraged to give their utmost.

Build an environment of trust and integrity as a two-way street so that your employees feel confident in your leadership.

Achieving a positive organisational culture

The dictionary definition of culture is as follows: the ideas, customs, and social behaviour of a particular people or society.  In business – your business – culture is based on your values and behaviours.  When those align with your business strategy, then your employees will be engaged and your customers will be happy to buy.

A positive organisational culture allows each person to take responsibility for their own work, their own achievements and successes, their own mistakes.  It allows others to recognise that we all do things differently and the only “right way” to do something is the way that works for the individual and the organisation.  Where people make mistakes (as we all do), there is no blame.

So it is in your hands to create a positive culture within your business and to ensure that it stays that way.   If you can achieve that, then you will find it easier to deal with those business problems and difficulties and you will achieve productivity and growth.

If you think this article is useful and you would like any strategic HR support or information  on dealing with this  – or any other people-related issue in your business – please join our mailing list, or contact us for further guidance.

Jill Aburrow runs an HR strategic consultancy business – JMA HR .  She provides strategic HR advice and support to businesses who want to improve loyalty, growth and profit.  Jill has been a professional strategic HR advisor for over two decades. She is a Fellow of the Chartered Institute of Personnel and Development (FCIPD) and has a Post Graduate Certificate in Employment Law.

Collaboration, Collaboration, Collaboration – Implementing A Positive Employment Culture

In recent articles we have looked at how to implement a positive employment culture in business.  This will help to increase employee loyalty, business growth and profitability.

But who is responsible for introducing employee engagement into an organisation?  And how can trust and engagement be maintained?

Can a strategic HR partner – such as JMA HR – implement employee engagement for you?  The answer to this is that –  whilst we can support, advice and facilitate –  we cannot make it happen.  The change in the organisation’s culture has to come from within –  from the top –  and everyone in the company has a part to play.

Living the dream

It is a bit of a cliché that you need to model the change you want to happen.  You would probably like to have a workforce which is actively engaged in improving your business.  You want them to work towards achieving your business vision and to be an advocate for your organisation.  Your attitudes, behaviours and approach  will all filter down throughout the organisation.  If you are invariably polite, helpful, and friendly to people, then you are a positive role model for your employees.  If you lock yourself in your office and discourage others from interrupting you, then you cannot blame your staff if they do not make an effort to engage with your customers.

In previous articles we have looked at positive ways of interacting with your employees.  If you show trust in people, recognise their efforts, listen to their ideas and concerns and share your vision with them, you are a model for the behaviours and attitudes you want them to demonstrate.

Implementing a positive employment culture

The individuals who have people management responsibilities (including you if you manage others) are key to the successful introduction of a positive employment culture.  Like the senior team, they are role models for the workforce.  But their role is more critical.  They will hear employee views, concerns, ideas – and ensure implementation, or answers.  They are the people in the ideal position to recognise – and highlight – small successes.  You need to provide training and development for line managers, so that they know and understand their role in achieving a high level of engagement.

Other stakeholders

There may be others within your business who have an impact on the levels of employee engagement.

If you recognise Trade Unions and have Union representatives within the organisation, then you need to partner with them. Again, they may need some training or development.  At the very least, you need to consult and collaborate with them on the best ways to achieve success.   Even if you do not recognise Trade Unions, you may have employees who are members of a Union.  Those employees will want advice and support from their Union and if you are aware of such a link, then you may want to inform the relevant Union of your intentions and the (positive) impact you are intending.  In my experience, relationships with Trade Unions work much better where the Union is considered as a partner with the business.  Everyone is (or should be) aiming for the same goal – fulfilled, engaged and happy employees.

The most important player

The lynch pin to all of this effort is, of course, the employee him/herself.  You can implement as many positive practices as possible but if the employee does not engage with you, then you cannot force that to happen.

In my experience (and reinforced by recent research), there are relatively few actively disengaged employees.  These are the ones who are seeking other employment and who are taking every opportunity to give negative views of your business.

It is far more likely that your workforce is largely made up of people who come to work every day, do an “OK” job and are not really terribly interested.  They may take another job elsewhere if the opportunity arises, but they are not actively seeking a change and may stay with you, jogging along, for years.   Think how much your business could grow and thrive if you could catch and maintain the interest of even some of these people.

Where do we start?

The key to a positive employment culture is to actually start engaging with your employees.  It sounds obvious and simple but it is, surprisingly often, the missing ingredient.   You can start by telling your employees what you are trying to achieve and why – and emphasise the benefits for them.  If you collaborate with them on ways and means to achieve their engagement, then it will start to happen.

If you think this article is useful and you would like any strategic HR support or information  on dealing with this  – or any other people-related issue in your business – please join our mailing list, or contact us for further guidance.

Jill Aburrow runs an HR strategic consultancy business – JMA HR .  She provides strategic HR advice and support to businesses who want to improve loyalty, growth and profit.  Jill has been a professional strategic HR advisor for over two decades. She is a Fellow of the Chartered Institute of Personnel and Development (FCIPD) and has a Post Graduate Certificate in Employment Law.

Why Your Business Vision Must Include Your Employees

Let me tell you about someone who runs a successful garden centre. The business is doing reasonably well and employs 20 or so people.  But the owner is frustrated.   His business vision was to design gardens for people and then sell them the plants and equipment to maintain the designs.  He knows he can expand his business hugely, doing what he loves best.

His advertising all includes the garden design offering and he talks to customers about it if he gets the chance – but he doesn’t often get involved in the customer-facing end of the business.  He spends his time producing wonderful designs for gardens which are only in his imagination.

His problem is that he hasn’t told his employees of his vision.  They all know they work for a garden centre and they work quite hard at selling the plants and suggesting suitable tools for customers.  But they are unaware of the garden design option.

One day the owner happens to be chatting to a neighbour of his who runs a motor mechanic business.  The friend is praising the staff at the garden centre, but then says that he wants the derelict area at the back of his garage made-over to provide a garden as a benefit for his staff and customers.  Crucially, he comments that he has mentioned it a few times to the staff in the garden centre, but nobody knew of anyone who did garden design.   One had mentioned a garden designer who they had seen advertising on the internet, but they were based a distance away and the motor mechanic had hoped for someone closer.  But he was going to check out this option as he did not have any other ideas.

Sharing Your Business Vision

The obvious point of this story is that if the garden centre owner had shared his vision with his employees, then they could have directed queries about garden design to the owner.  So he might have been able to move closer to his business vision more quickly.

But there are other reasons for sharing your vision with your employees.  And the way you share it is important too.  Many organisations have their business vision written as a statement and displayed for all to see.  But even if employees know what the vision is, that does not mean they automatically buy into it.

My business is too small to bother about this

Even a business with only one employee (the owner) has a vision of why they exist and what is the purpose they are aiming to fulfil.  In fact, smaller businesses often have a much more clear idea of their vision.

If a business employs someone else as well as the owner, even just one employee, then it is important to share your business vision with that employee.   That person is critical to your success and expansion.  They need to understand that they have an important job, and why it is important.

You need to have a clear vision for your organisation.  You need to understand what it is that you are aiming to achieve and you need to be able to communicate that to your staff.  At this point, you may be thinking “but I just want to make and sell widgets”.   You need to think about what your customers want and how they want it.

Do they want fine quality, high-end widgets for which they will be happy to pay a premium?    You can then have a vision along the lines of “XYZ Company makes the best widgets in the county.  We make our widgets sustainably and sell them to people who want to buy premium widgets.”

Or do your customers want large number of cheap widgets, which are quickly available? In that case your vision can be “XYZ makes thousands of low cost widgets and we keep our customers happy by delivering them the next day”.

You could use either of these as your business vision but you would need to show your employees where they fit into that vision.

Why share my business vision?

  • If your employees know what is your business vision, they will work towards it.
  • As a result of your employee understanding how their own job fits into your business vision, they will feel more job satisfaction and a sense of belonging in the company.
  • When your employee understands how they are working towards the business vision, they will feel more loyalty to the company, more pride in your achievements and will contribute more in terms of ideas, solutions, suggestions.
  • Your employee will feel trusted and valued if they know they are part of your vision. This will help them to trust you as well.
  • If an employee feels trusted and valued and can see the importance of their job, they are less likely to leave to work elsewhere. They are less likely to go off sick. Their loyalty to you and your business will increase.
  • All of these benefits will contribute to growth and profit for your business.

How can I share my business vision?

This is about more than putting up a notice proclaiming what the business vision is.  Many companies do this and there is nothing wrong with it.  But you need to do more.  The danger is the belief that a notice stating the vision is enough to embed that vision in people’s minds.

In my garden centre story above, the owner had included his vision in his advertising, but the employees and customers were still unaware of that vision.  When we read something often enough, it ceases to sink in and have any meaning. The vision statement of a large corporate company where I worked was written in large letters in the reception area.  I walked past it several times a day for six years and I cannot tell you what that vision statement said or what the vision was for that organisation.  Certainly nobody ever talked to me about how my job contributed to that vision.

And that is the key.  Line managers need to speak to individual employees on a regular basis and outline what is the company’s vision and how that individual contributes to it.  Just telling people once is not enough.  It needs to be reinforced regularly.

Team meetings, company newsletters, appraisals, inductions for new staff, any company communications – these are all opportunities to reinforce the company vision.

Tying it all up

Every business, whatever the size, needs a clear business vision to aim towards.  But just because you know your business vision, it does not mean that it is clear to everyone else.  And even if it is clear, that does not mean that your employees are all working towards it.

You need to communicate the purpose of your business to everyone – customers, suppliers, potential clients (advertising) – and, most importantly, your employees.

Your employees need to understand where their job fits into the achievement of this vision.  They need to believe they are an important cog in the wheel.  And this message needs to be reinforced and repeated at every opportunity.

Get this right and it will build trust and loyalty, which are an invaluable asset and will contribute hugely to your business growth and profit.

If you think this article is useful and you would like any strategic HR support or information  to help you understand your business vision and communicate it to your employees – please join our mailing list, or contact us for further guidance.

Jill Aburrow runs an HR strategic consultancy business – JMA HR .  She provides strategic HR advice and support to businesses who want to improve loyalty, growth and profit.  Jill has been a professional strategic HR advisor for over two decades. She is a Fellow of the Chartered Institute of Personnel and Development (FCIPD) and has a Post Graduate Certificate in Employment Law.

How Listening To Your Employees Can Transform Your Business

Listening to your employees is essential if you want to grow your business and be profitable. You need to carry your employees along that journey with you.

They are the face of your business, as well as the engine room,  and their actions on your behalf are key to your business success.  Critically, you must listen to their ideas, hear their concerns and ensure they have the means to voice their ideas and suggestions.

And there is little cost for a huge business advantage.

I am Jill Aburrow and I have been a professional strategic HR advisor for over two decades.

The purpose of this article is to explain “employee voice” and why you should care about listening to your employees.  I will share some of the mechanisms you can use and some of the barriers you may come up against.

Most of all, I hope to inspire you with some of the benefits if you get it right.

What is “employee voice”?

We all spend a great deal of time at work.  How tragic it is that some people are very unhappy at work and just live for the working day to end, or the weekend to start.

The reasons why people are unhappy at work are many and varied.  But if you can give your employees a chance to be heard, then that will be a big start to improving things.  We all need to feel that our opinion matters.

There is a great deal of discussion in management circles and the HR world about “employee voice”.  But this is not just about giving employees the chance to have their say.  It is also about the channels of communication.  Additionally, it is about the arrangements the employer makes for employees to be consulted.  It is about employees being involved in decision-making.   And it is a way of ensuring that your workers can influence things which affect them at work.

So it is not just about hearing your employees.  It is also important for you to consider what they say and act on it.

Why should employers care?

Your employees are the best placed to tell you what works and what does not work in their individual part of the business. If you can gather that information and make productive use of it, then you will improve decision making and innovation in your business.

From an employee perspective, they will feel more motivated and get more enjoyment from their work.  You will benefit from their creativity and increased commitment.  You are likely to see higher productivity and reduced absences and turnover.

What are the benefits of listening to your employees?

Your employees are also in a good position to warn you about any potential problem areas or difficulties.   This might be for them personally, or in the wider team arena.  You can then adjust the working arrangements accordingly. Or you might need to provide training, or move people around to make the best use of their skills.

If you create opportunities for employees to be heard at work, then you are treating them as valued stakeholders in your business.  They will feel able to influence their working conditions and this will help to build trust between employer and staff.

Where the working relationship is good, your employees will feel able to share suggestions for improvements in the organisation.  For this to happen, they need to trust that you will listen to their suggestions and that they will not be blamed if things go wrong.

Mechanisms for listening to your employees

The obvious way for you to be able to listen to your employees is to arrange regular one-to-one meetings with their line manager.  Of course, you need to ensure your managers (including you!) are equipped to listen properly.  They must have the communication skills to hear, deal with and respond appropriately to anything raised.

Some other potential channels for employee voice to be heard are:

  • Team meetings;
  • Trade unions (where they are recognised within the workplace);
  • Staff forums;
  • Suggestion schemes;
  • Attitude surveys;
  • Workplace social media.

It is unlikely that you would use only one of these mechanisms, but you can use a variety which suits your business.

If you have 50 or more employees in your organisation, then the Information and Consultation of Employee Regulations (ICE Regs) apply.  This means your employees have the right to request that you make arrangements to inform and consult with them about workplace issues. If you need support and advice on this, then please don’t hesitate to contact us.

What can go wrong?

If your employees do not feel they can raise issues, concerns and suggestions at work, then it is very likely that they will become disengaged.  The symptoms of this are likely to be an increased absence rate, higher staff turnover, clock-watching.  Their performance may get worse and they may have difficulty in relationships with managers and colleagues alike.

Additionally, employees may use other channels to express their feelings about work.  They may complain about work through external social networking channels.  They are likely to complain to friends and family.  This will not be good for your employer reputation and may have a negative impact on things like recruitment and marketing.  You may find your clients become less satisfied.

Barriers to effective “employee voice”

Sadly, it is not uncommon for employers to find that their employees fail to speak up about concerns or suggestions.   Even where people feel their suggestions could make a positive difference to their work or workplace, they are often reluctant to raise things.

This can be caused by a lack of trust between managers and employees.  There can be a perception that people may be blamed, or even punished, for speaking out.   Even if this is not the case, it can cause people to remain silent, which can lead to major organisational failure.  When the emissions scandal  hit Volkswagen in 2015, one of the factors was shown to be that people felt fearful of speaking out.

Employees may stay silent because they are frightened of being viewed negatively or of damaging working relationships.   In order to combat this, you need to make sure that people feel safe to raise issues or suggestions.  They also need to feel safe to raise a complaint.  This can only happen where there is trust between employees and employer. It is not good enough to say that there will be no blame.  You must demonstrate that this is true.

People may also think it is not worth raising suggestions because “nobody listens”.  This is why it is critical to respond to all suggestions.  This does not mean you have to agree to every suggestion.  But you need to give reasons why you are not going to take up the suggestion.

The changing work environment

The way we work is constantly changing and this brings new challenges with listening to your employees.

The rise of remote working, variable working hours, alternative work arrangements all have an impact on when and how you can ensure you hear your employees. Changing technology can also have an impact.  It is important that you consider this when you are agreeing to changes or recruiting for new jobs.

Another challenge is the increased diversity in the workplace.  There is a need to consider how you communicate with everyone.  Some may have mental or physical challenges.  Others may be affected by cultural differences.  All of these things must be considered to ensure that you consider all needs when you identify mechanisms for your employees to give their views over their work conditions.

Getting it right 

Listening to your employees can bring positive outcomes for your business and for the individuals who work there.

Being able to participate in decision making is important for employees – both for their wellbeing and their motivation.  It can be the means of improving their working environment and conditions. It can give them a sense of control over their own work.  And it can help them to use their knowledge and develop their skills.

If you listen to your employees and engage with them, you are  likely to benefit from their improved job satisfaction.  You will see higher productivity and innovation.  Your absenteeism levels will reduce and staff turnover will improve.  You are likely to see reduced workplace conflict.

If you get it right, your employees will be involved in decision-making and managing change as you will have effective communication and consultation in the workplace. Your managers will be skilled in listening to people. They will seek the views of employees and make sure their responses are appropriate and timely.

If you think this article is useful and you would like any strategic HR support or information  on dealing with this  – or any other people-related issue in your business – please join our mailing list, or contact us for further guidance.

Jill Aburrow runs an HR strategic consultancy business – JMA HR .  She provides strategic HR advice and support to businesses who want to improve loyalty, growth and profit.  Jill has been a professional strategic HR advisor for over two decades. She is a Fellow of the Chartered Institute of Personnel and Development (FCIPD) and has a Post Graduate Certificate in Employment Law.

Why Succession Planning Is Necessary As Part Of Your Recruitment Toolbox

Succession Planning has been around for years.  It has traditionally been something which is only done in larger organisations and if you are in a smaller business you may not think it is appropriate for you.

If this is the case, you might want to think again.  If you want your business to grow and develop in line with potential future opportunities and challenges, then you need to have succession planning in your recruitment toolbox.  Otherwise, you may miss out on a pool of talented, skilled and enthusiastic candidates for your current or future critical rules.

In my two decades as a Human Resources partner, I have seen succession planning in many different businesses.  Where it is done well, it can really ensure that a business is well-placed to take advantage of new opportunities.  It can also remove some of the worry about losing critical skills and experience.

By the end of this article, you will know why you need to include succession planning as part of your recruitment strategy.

What is succession planning?

You need to identify the roles which are critical to your business .  Then you need to plan how you would fill those roles effectively if the current job-holder were to leave the organisation.  This is not just about your managers but any role which requires specialist skills, where speedy recruitment may be difficult.

In the past succession planning was only done by larger companies.  Now, however,  it is recognised as a crucial business tool for any size of business.  Your succession planning should be part of your recruitment planning and strategy.  It is a mix of recruiting externally and developing suitable internal replacements.

For internal candidates, it is an opportunity to gain experience and training in suitable areas to enable them to fill future roles.

Part of your Recruitment or Total Talent Management Strategy

Total Talent Management helps you to consider alternatives to recruiting a direct replacement when someone leaves your employment.  It includes temporary cover, contractors, apprenticeships, work-placement, even automation.  It should also cover succession planning and looking at internal talent.

Every organisation needs a healthy mix of internal and external recruits.  Your current employees have critical business knowledge, are engaged and enthusiastic about your business.  They have skills and experience gained in your workplace.  Knowing that they feature in your succession planning  will make your staff feel valued and is a great way to retain and encourage your current employees.

On the other hand, you also need to bring in new talent, with different ideas and a different approach.  Otherwise your business will stagnate.

Identifying your key roles

The first step is for you to identify the business-critical roles for which you need potential successors.  This may mean one specific role (normally a senior manager), or it might mean a group of highly skilled specialist roles.

Some of the roles may require similar skills to other roles in the business.  If so, then you could consider developing one or more individuals who could fill more than one of those roles.  For instance, there may be a specific technical skill which is part of several different roles.  That skill may be hard to find in the recruitment market.  You could develop someone internally, including giving them some experience in using that skill.  Then you have a candidate all ready to take on any one of those roles should someone decide to leave.

What should be included in a succession planning programme?

There are a wide range of things which could be included in succession planning, depending on your individual business needs.

You may need to arrange some formal training for the identified individuals.  Alternatively,  some informal training from the current job-holder might be enough.  You need to ensure that you include some work experience so that the individual becomes adept at using their new skill in the workplace.

You may need to move people around, so that they get experience in different areas of the business.  Or you might be able to move them sideways into a new role where they can use their new skills.  Where applicable, you might even consider promotion.

It might be worth thinking about secondment.  This could be internal, if your business is large enough.  Alternatively, a smaller company might look at collaboration with another business in the same or similar industry to provide secondment opportunities for employees from both companies.

Who should be a successor?

There is no given way to decide on who is suitable for a succession planning programme.  It should be part of your discussions with your employees – whether formal review sessions, or more informal regular “chats”.

You need to identify whether people are interested in being considered as a successor for one or more roles.  The system must be transparent and all employees need to understand it fully.  This includes the effect it might have on their work life and, potentially, their home life.  For instance, they may need to work different hours.

What are the benefits of succession planning?

Succession planning is a way to include your current workforce as part of your recruitment strategy.  You may already be employing the perfect candidate for that highly skilled role.  It would be a shame to overlook them because you had not planned properly.

Your first action needs to be a review of your business-critical roles.  If the current job-holder left and it would give you a major problem, then succession planning may well need to be your next step.

Of course, succession planning can help you to fill a potentially difficult role.  But the other benefits of a bit of planning are more intangible.

You can give yourself the comfort of knowing that you have a contingency plan in place.  That should save a few sleepless nights. At the same time, your employees will feel valued and engaged.  They will go the extra mile for you, and your productivity is likely to increase.   Your business can grow at the pace you want with plans in place to cover potential future skills gaps.

If you think this article is useful and you would like more advice on dealing with this  – or any other people-related issue in your business – please join our mailing list, or contact us for further guidance.

 

Keeping to the Bare Minimum Wage

I spoke to an employer last week who was quick to tell me that they don’t pay more than the minimum wage.  If someone goes off sick then they only pay Statutory Sick Pay.  He was quick to justify this… “Like any small employer, every penny counts and we cannot afford to pay out anything more than the absolute minimum we can get away with”.  I came away from the conversation feeling very sorry for his employees – and with concerns about the sustainability and growth of his business.

The question is not whether an employer can afford to pay more than the absolute minimum, but whether they can afford not to.

 Keeping Low

Of course, there are obvious benefits of keeping the wage bill as low as possible.  It is the largest outgoing for most employers.  Rightly, they will do everything they can to control it and prevent it from spiralling uncontrollably.

You want to feel you have not wasted that money and have preserved it to spend on other things which will grow your business.

It is also true that pay is not a “motivator”.  You can pay a high salary without seeing reward in terms of performance by the employee on the receiving end.  But money (or perceived lack of it) is a de-motivator.  If an employee feels they are not getting a fair deal, they will have no incentive to go the extra mile for your business.

“Give and Ye Shall Receive”

It is a fact in life that you get back what you give out – if you project love and generosity, then that is what will come back to you.  If you “give” to your employees (in terms of money, and in terms of valuing their contribution in other ways) then they will repay you with loyalty, with support to you and your customers, with performance beyond your expectations.

If you stick to paying out the very minimum, then there is no incentive for your employees to work hard or to put in more than basic performance.  There is a saying I have heard many times in the work place:  “if you pay peanuts, you get monkeys”.

The danger  – if they are a high performer – is that they will “mark time” with you until a better opportunity comes along.  Even worse, if you have a poor performer, is the danger that they may stay with you as they cannot get another role. In that case, they will never be really happy at work and they will only ever perform at the level  at which you value them (ie. the minimum). They will become more and more disillusioned and their performance (already low) is likely to spiral downwards over time as they tick away the days until they can take their pension.

Spreading the Germs

If you only pay the minimum amount possible when someone is off sick, then they will hurry to come into work as soon as they can.  This sounds like a good thing and is the reason why some employers only pay Statutory Sick Pay.  But what if the person has something contagious (even a stinking cold) and comes into work because they need the money?  They pass their germs on to others they work with and, before you know it, the whole team is sick.

And what is the quality of the work someone produces when they are feeling below par?  There is a strong likelihood that their work will be slow and may be full of mistakes.  In the long run, this could cost more than paying them whilst they are off sick and not contributing at all.

Spreading the Love

Again, we come back to the value you put on your employees.  There is a reason why the wage bill is generally the highest bill you face each month.  If you get it right, it is because the people are the highest performing asset you have and will make your business grow and prosper.

If you think this article is useful and you would like more advice on dealing with this  -or any other people-related issue in your business – please join our mailing list, or contact us for further guidance.

 

Increasing Productivity – Not My Problem

It is well reported in the press that the UK has productivity problems.  Productivity levels have not increased since before the financial crisis in 2008.

Small  and medium-sized enterprises (SMEs) make up 90% or more of the private sector and most are aware that there is a productivity problem in UK.  They always believe the problem lies  with “other employers” and none can see that it may start in their own business.  There are many and varied reasons why productivity is low in UK, but some of it is because owners/managers of small businesses don’t recognise that they need support from HR.

They all talk about business challenges, not people challenges.  A quick search on Google for the most common business challenges reveals: recruiting and retention; technological changes; Governance and legislation; Trust; financial management.  All of these challenges can be helped by good HR support.  Other challenges include Brexit; the General Data Protection Regulations (GDPR); gender reporting.

What help can HR provide?

If you have read earlier articles we have published, you will already know some of the areas where HR intervention can help your business to grow and increase productivity – particularly in retaining staff and so reducing staff turnover and recruitment costs.

I have been talking to a variety of different employers in the last few weeks, as part of my search for feedback on the support that JMA HR could provide to them.

The response I hear quite often is that the business (whatever it is) “is too small to need HR support” or “never has any HR problems”.  This is nearly always followed up by a story about a tribunal case they have had to defend, or some particular people-related issues which they have dealt with themselves “without needing to pay for HR”.  They have quite often paid for legal advice and representation though.  Of course, this has not factored in their time or lack of experience in these issues.  It may seem cheaper to “do it yourself” but is it going to be quick, effective, a good use of your time, or to prevent further issues?

Where HR help is needed

Several employers had taken legal advice but not been prepared to pay for HR support.  This is interesting as the legal advice is generally about “cure” and HR support is generally about “prevention”.  There is, of course, an overlap, but my question to employers is whether it is better to spend at your own pace, and at a level you can control, on HR support?  Alternatively you risk getting it wrong.   You may well then have to  spend  on legal advice and support when it becomes urgent and at a level over which you have no control.

If you keep reading our articles, you will get support (at no cost) on a variety of issues which you may face from time to time.

If you think this article is useful and you would like more advice on dealing with this  -or any other people-related issue in your business – please join our mailing list, or contact us for further guidance.