As a small business you might ask ‘why do I need HR?’ if you have a small headcount and everything seems to be going well.  An HR Consultant is often engaged to support and advise when there are employee related issues or problems. That might be a situation involving redundancy, a disciplinary, grievance or dismissal.  Of course, ensuring that these situations are dealt with correctly is very important.  We do our job, help you to resolve the issue and that’s that.  All good.  But there IS more to HR than troubleshooting of this kind, and it’s important even (or I would argue especially) for small businesses. The way your people are managed will have a direct impact on their success, and by implication the the success of your business.  In a small business where the headcount is under 50, each employee has a greater proportional impact on the working environment, the team, the success of the business and how well it functions.

What do I need to know about HR?

The Chartered Institute for Personnel and Development (CIPD), states that Human Resources Management (HRM) is:

“…the function within an organisation that focuses on the recruitment, management, and direction of the people who work in the organisation. HRM can also be performed by line managers.”

There are multiple stages in an employment relationship, some of which are included in the definition above.  If we look at this in more detail, the stages are:

Employees experience these activities during their journey with you, their employer. But you won’t positively impact the success of your people and your business without considering the ‘how’ in each of these areas. Let’s look at each stage in more detail:

Attraction

What skills, knowledge and experience do you need, and how will you attract these people in a competitive recruitment market?

Recruitment

What are your recruitment methods, and do they successfully identify if the candidates have the skills, knowledge and experience you need?  How many of your new starters leave before they finish their probationary period with you?

Onboarding

How can you ensure effective onboarding of someone into their job and the company, enabling them to become productive quickly and begin making a positive impact on your business?

Development

How do you develop your onboarded employees? What development and progression can you provide so that your people become better and better at their jobs and become the experts, managers or leaders of the future?  Or do people leave to get that development and progression?

Retention

How do you treat your employees while they’re with you? What can you offer them that will keep them loyal and engaged?  Or might they always be on the lookout for the next opportunity elsewhere?  How do you make sure you keep all the knowledge, skill and experience you have supported and developed from walking out of the door, reducing your ROI, and increasing your costs?

Separation

How do you treat leavers? Does that change depending on whether they’re a voluntary or involuntary leaver? What do your current employee population observe when others leave, and does that process feel dignified, respectful and make them feel glad they still work there?  Could your leavers be employees of the future, once they’ve gained other experiences, and would they want to return to you?

And the cycle continues…..

What should I do?

In short, the first stage would be to look at what you currently do.  Ask yourself and selected others 5(ish!) key questions:

1. Are your people processes efficient and effective for the business and your people?
2. What kinds of experiences do your employees have at the various stages of the employee lifecycle?
3. What kinds of behaviours do you value? Do you see these demonstrated by your managers and employees consistently in their interactions with each other?
4. What kind of employer do you want to be?  How does that link in with your brand marketing and PR?
5. How high is your employee turnover? How successful are your attempts to recruit new talent?

This is just the start of the process, and it will lead to further conversations and questions, no doubt.  Maybe this next year is the year you start to take a strategic approach to your people management practices?

If you’re asking yourself “Why do I need HR?” and you’d like more information, or if you would like support to look at any or all of these areas to make your business even more successful, get in touch.

Obviously, employers are always keen to make successful hiring decisions. However it is common for a new hire to be unsuccessful in probation. This is often because it transpires that they don’t actually have the skills and experience needed for the job.

Why does this happen?

There are two potential answers to this question:

• The criteria for the job was not correctly defined at the start, and / or
• The questions during the selection process did not successfully establish the skills and experience of the candidate.

A great deal of management time and effort (and often direct cost) goes in to recruiting and onboarding a new employee, so when it doesn’t work out, more management time goes in to dealing with the problem. There are often direct costs in paying notice in lieu and untaken holiday when the leaver is processed.  You then end up doubling the recruitment costs and time for filling that role, when you repeat the process to recruit a better replacement.  So, getting the selection process right, makes business sense.

Tips for making successful hiring decisions:

• REALLY think about the job you need to fill. Consider the skills and experience that person needs to have.
• Create a job ad and job description which clearly articulates the qualifications, skills and experience you’re looking for. This will enable potential applicants without the skills you need to self-select out of the process.
• Involve more than one person in the shortlisting and interviewing process and spend time preparing together.
• Devise interview questions which are open and based on the candidates’ experiences. Plan to have a two-way conversation with them about it, so you can assess them against what’s required.
• Probe the candidate on their experience to ‘drill down’ in to the detail.  This will eliminate any potential embellishments, assumptions or misunderstandings about the experiences they have actually had.
• Ensure all candidates are interviewed in the same robust way, regardless of whether they are recommended by a contact, or you have worked with them before.
• Ensure one of the interviewers is taking notes of the candidate’s responses (the content, not their opinion about it). This will serve as an accurate reminder about the candidates, so you can discuss your thoughts about them effectively afterwards.
• If you’re in doubt about a candidate, ask them back, or meet them for coffee so you can ask them more about the areas where you feel less convinced. Or involve a third interviewer to do this – prepping with them about the areas of focus/concern.
• Do not appoint someone just because they are the best in an unsatisfactory group of candidates. If they do not have the essential skills and experience, and these areas cannot easily be developed or trained upon joining, do not appoint them.

Not everyone has a natural ability to interview well, but training or coaching can help your managers run an effective selection process, so they can find the right person for the job.

If you or your team need support in making more successful hiring decisions, get in touch.

The topic of bullying at work was in the mainstream media in April 2023 after the resignation of the then deputy prime minister, Dominic Raab after an investigation in to claims of bullying made against him; especially after his underwhelming acceptance of the allegations against him, famously stating that “in setting the threshold for bullying so low, this inquiry has set a dangerous precedent” in his resignation letter.

Dominic Saab’s resignation came less than two years after Priti Patel (then Home Secretary) was accused of bullying and was found to have been in breach of the ministerial code.

What is Bullying?

When it comes to dealing with bullying at work, as a business you need to identify or define what ‘bullying’ is, so you can ensure your employees have a clear understanding of what it actually means.

In guidance from ACAS they say that there is no legal definition of ‘bullying’ but it is described as unwanted behaviour from a person or group that is either:

• Offensive, intimidating, malicious or insulting
• An abuse or misuse of power that undermines, humiliates, or causes physical or emotional harm to someone.

This behaviour could be a pattern or a one off, face to face, on social media, emails, phonecalls, outside of work or in work, and it can go unnoticed by others. It could be among peers, or in a senior/junior relationship (and despite what you might think, a senior person can be bullied by a junior person).

The union Unison also has some clear guidelines and defines bullying as persistant offensive, intimidating, humiliating behaviour, which attempts to undermine an individual or a group of employees.

Likewise Indeed.com has some advice about bullying, describing a workplace bully as someone who repeatedly harms or mistreats employees by causing them pain or engaging in other forms of physical or verbal harassment.

Legal firms often describe bullying as offensive, intimidating, malicious, insulting or humiliating behaviour, or an abuse of power or authority which attempts to undermine an individual or group of employees, and which may cause them to suffer work-related stress.

There is no shortage of information about what bullying may involve, leaving organisations with no room to claim ignorance on the subject.

Examples of bullying

Bullying takes different forms, so to illustrate the breadth of possibilities, it’s helpful to outline some examples to bring the topic to life.  Examples could include:

• Setting someone up to fail / setting impossible targets
• Spreading malicious rumours about someone
• Making humiliating comments about someone online
• Undermining someone’s authority
• Undermining someone’s competence with constant criticism
• Ridiculing someone openly, by blaming or criticising them in front of others
• Making threats about the security of someone’s employment if they exercise a right, or make a reasonable request

At work, it’s unlikely the bullying will take a physical form, and it will be more verbal and emotionally challenging behaviour.

Reality

If someone expresses upset about another person’s behaviour towards them does that automatically make them a bully?  Unfortunately, there are shades of grey when it comes to this issue.  The investigation into a complaint will be key in identifying if it was a reasonable response to someone’s behaviour.

If a someone says, “Your shoes are an interesting colour!” and the recipient of the comment states they are offended or feel belittled, does that mean they’re being bullied?  The question is whether it was reasonable to expect someone to be offended or feel belittled by a comment.

However, if someone says, “Come on, old man, do you need a sit-down?!” even as a joke, the question of whether it was reasonable to be offended by that comment may be easier to answer.  But it’s rarely that easy, so the investigation into the behaviour and the context needs to be done with an open mind, and with the definition of bullying and the relevant complaints procedure front and centre.

Direct financial risks to your business

The most obvious risk employers will be concerned about is the risk of a legal claim.  So what does that actually mean, and what is the risk?

Under the Equality Act 2010, if the bullying is due to a ‘protected characteristic’ then it is classed as harassment.  Protected characteristics are:

• Age
• Disability
• Gender reassignment
• Race
• Religion or belief
• Sex
• Sexual orientation
• Pregnancy (also covered under direct discrimination legislation)

Any harassment claim at an employment tribunal under the Equality Act 2010 has an uncapped potential award. This means it’s difficult to quantify the potential financial risk, but the cost of defending a claim will be substantial (by current estimates, upwards of £15k), without including the compensation the Tribunal panel may award, if the claim is successful.

The other risk of a bullying claim is for constructive dismissal (Unfair Dismissal). This would arise if the employee feels the bullying is so bad they have no option but to leave.  Awards for Unfair Dismissal are capped at around a year’s salary, or c.£90k, so still represents significant financial risk.

Indirect financial risks to your business

The impact of having a workplace which tolerates (or fails to address) bullying could be serious.  Your workforce will operate in a state of fear,  afraid to make mistakes or put forward new ideas.  This does not engender creativity or engagement at work, both of which will affect your productivity.

Your attrition rates will increase as employees leave what they feel is a ‘toxic’ culture. As a result your recruitment costs will go up, and you will lose talent.

In addition, do not underestimate the power of reputational damage.  Social media platforms provide an opportunity for unhappy employees to share their experiences. With the advent of websites like Glassdoor, employers who fail to deal with bullying will quickly be exposed, making it even harder to attract and retain talent. It may also affect the success of the business. Potential customers may choose a competitor due to the reputation you have as an employer, directly hitting your bottom line.

Practicalities of dealing with it

The first thing to do is make sure you have an anti-bullying and harassment policy place. You should ensure it’s shared with all your workers, and that it is followed. This is a communication and training piece, AND a leadership one.  Leaders must lead by example, otherwise the policy ‘isn’t worth the paper it’s written on’ (to coin a phrase).

Best practice is for employers to create an inclusive culture.  Peter Cheese, CEO of the CIPD states workplaces should have a “safe culture where people can speak up, where differences are respected and celebrated.” Research by the CIPD shows that employees are looking for an inclusive and supportive culture.

As well as having a policy and communicating it to everyone, leaders and managers need to ‘walk the walk’. Managers need training to recognise bullying, encourage people to flag concerns to them, and ensure they investigate and address it.  There should be a consistent approach, therefore following policy and procedure is key.  The investigation must have integrity and confidentiality so any subsequent decisions are fair and reasonable, and are seen as such.

Dealing with bullying is never easy, undoubtedly, but it needs to be done reduce risk to your business. If you have concerns about culture in your business and you don’t know where to start, get in touch here.