Business advice from is4profit » chartered institute of personnel and development

Private Sector “not interested” in Recruiting Former State Workers

The is4profit team — Fri, 25 Feb 2011 10:58:39 +0000

More than half of firms in the private sector would not consider employing former public sector workers, as they don’t believe they have the right skills, Barclays research has revealed. The survey of 500 executives of UK businesses of all sizes by Barclays Corporate found 32% were “not at all interested” in employing public sector workers that have lost their jobs, and 25% said they were “not very interested” in employing them. The research also highlighted that small firms with a turnover of less than £5 million were the least interested in employing former state workers. Barclays Corporate managing director, Kevin Wall, said that there is an aversion to hiring public sector workers in some industries. “It’s short-sighted of employers not to be prepared to look more closely at an individual’s experience, work ethic and ability to learn.” Chartered Institute of Personnel and Development (CIPD) public policy adviser, Mike Emmot, said that employers are put off by the bad press public sector staff receive. “It’s a convenient myth that public sector workers are overpaid and do ‘non-jobs’, but in fact a lot of the problems in the sector are caused by institutional management issues rather than the ability of the workers.” Emmott added that, in reality, most public sector workers have transferable skills that private sector firms can benefit from. “Most of these people are very capable, they just need to be judged individually on their track record, their merits, their CV, and on what account they can give of themselves. Most will have transferable skills that are needed in the private sector. For example, if they have done clerical work, or worked on helplines, or have had a professional role in waste management, there are parallel jobs in the private sector.”

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SMEs Sign “no NIC rise” Petition

The is4profit team — Tue, 09 Mar 2010 11:21:32 +0000

Business groups have called on small firms to sign an online petition demanding that the Government scraps its planned National Insurance Contributions (NICs) rise in April 2011. As part of its efforts to shrink the large public spending deficit, the Government intends to raise NICs by 1 percentage point in April 2011. But the decision has angered business leaders who see it as a “tax on jobs”, which could jeopardise an upturn in the labour market by discouraging businesses from taking on new staff. The British Chambers of Commerce, the Federation of Small Businesses (FSB), the Confederation of British Industry and the Chartered Institute of Personnel and Development (CIPD) are among the organisations all opposed to the increase. “We urge the Government to work with business groups to find alternative ways to close the UK’s budget deficit ― beginning with a credible plan to reduce inefficiency in public sector spending,” the groups’ petition reads. “Any Government has to realise that additional taxes on businesses, especially small-and medium-sized companies, must be a last resort, not an easy way forward.” FSB national chairman, John Wright, said that the Government needed to take “real action” to tackle unemployment, rather than increase NICs contributions which he said could cost the country “thousands of jobs”. The FSB also said that the move could lead to a loss of 57,000 jobs across the UK. According to the CIPD, 12% of employers intend to recruit fewer staff because of the hike in NI rates. However, HM Treasury spokesman, Jonathan Tutton, said that the Government had set out a clear plan to halve the deficit over four years and that “tough choices” had to be made. “As part of this, National Insurance will rise by one percent from April 2011 which will raise £3 billion a year from 2011 to 2012 and go towards consolidating the public finances.” “Those on modest incomes will be protected, by raising the starting point at which national insurance is payable. As a result no-one earning under £20,000 will pay any more NICs.” To access the petition, visit the No NICs Rise website www.no-nics-rise.co.uk

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Employers take steps to avoid Redundancies

The is4profit team — Wed, 28 Jan 2009 01:01:00 +0000

Businesses are avoiding redundancies by putting a hold on recruitment and cutting back on agency workers, according to the Chartered Institute of Personnel and Development (CIPD). A survey of nearly 900 businesses, carried out by the CIPD and accountancy firm KPMG, revealed that 50% have brought in a recruitment freeze, while 44% have terminated temporary or agency workers contracts to prevent making cutbacks to in–house staff. CIPD public policy adviser, Gerwyn Davies said: “Measures such as recruitment freezes, shedding temporary workers and introducing short–term working are clearly not without pain, but they can often be preferable to redundancies” “There can be a high cost to making staff redundant, as letting skilled staff go can risk low morale among those left behind, as well as long–term damage to the future prospects of the business. However, these findings highlight that there are alternatives which can help minimise the impact of the downturn on the organisation.” he said. The research also revealed that almost a fifth of businesses have increased their flexible–working practices and one in seven have introduced short–term working — where staff are asked to work shorter hours each week or take unpaid leave for a fixed amount of time. According to Davies, for businesses with no option but to make redundancies, good internal communication is vital. “Firms have to show it’s a decision they haven’t taken lightly. Failure to show empathy with staff or properly explain why redundancies are happening is likely to spark rumours, and could result in poor morale and a negative image for the company.” he added A spokesman for the Federation of Small Businesses added: “More than a third of our members are having to reduce employee hours and future hiring to combat the credit crunch.” “However, there are other avenues for firms to bolster their business and avoid redundancies — for example, by diversifying their services. They could also save money by being more energy efficient, moving to a smaller office or seeking new, more affordable suppliers and finance.” You can read more about Redundancy in our employment index.

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Career Changes abandoned as staff cling to jobs

The is4profit team — Sun, 18 Jan 2009 01:01:00 +0000

Employees are scrapping plans to make New Year job changes because of instability in the employment market caused by the economic crisis, according to the National Endowment for Science, Technology and the Arts (NESTA). A NESTA survey of 2,000 workers found that eight in ten employees said they would be sticking with their existing job, saying they felt lucky to be employed in the current market. Four in ten said they are choosing to stay in jobs they do not enjoy, rather than look for a better job elsewhere. NESTA chief executive Jonathan Kestenbaum said: “Employees have decided that where they can, they are going to sit tight, work harder and try to ride out the recession,” The survey also revealed that 50% of employees plan to work harder to boost their prospects in their current role, and more than 80% believed that the competition for jobs that do exist is fiercer than ever. Chartered Institute of Personnel and Development (CIPD) adviser Claire McCartney said that the unstable job market meant there was an opportunity for employers to improve employee motivation and engagement levels. “At the moment, employees will be looking at internal opportunities for training and promotion rather than thinking about changing employer. By offering individuals scope for development, businesses are more likely to hold on to key staff, and improve morale and levels of engagement in the workplace at the same time.” McCartney added that businesses which are suffering in the downturn need to be honest with staff. “Ask your staff for input if parts of the business aren’t doing well, and get them involved. That way, employees are more likely to understand if you can’t afford promotion or a pay rise this year.”

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Redundancy a Costly Solution to Recession woes

The is4profit team — Tue, 13 Jan 2009 01:01:00 +0000

Redundancy is not necessarily the best money–saving solution for recession–hit firms — costing businesses up to £16,375 per employee laid off, the Chartered Institute of Personnel and Development(CIPD) has claimed. The direct cost of redundancies for employers is typically between £10,575 and £16,375 per employee laid off — this includes redundancy payments, the need to create new job positions and recruiting for these roles. This calculation comes amid predictions that many businesses will be forced to make redundancies this year in an attempt to cut costs and survive the recession. CIPD chief economist John Philpott said: “While making people redundant can seem one of the most straightforward ways of cutting costs, redundancy is itself a significant cost to most organisations with a number of direct and indirect or hidden costs. This is particularly true if redundancies are an employer’s first resort in difficult times and have to be quickly reversed by renewed hiring when economic conditions improve,” “Our cost predictions are likely to be a conservative estimate and provide a hard business case for why redundancies should be a last resort in the downturn. The redundancy cost calculated applies to many small businesses. However, some smaller employers offer less generous redundancy payments, and in these cases the total cost would be less.” he added. They added that figures do not include the indirect costs of redundancies, which can include a fall in employee productivity due to low morale, and resignations from other staff members. Recent research from Orange revealed that 43% of small firms expect to make staff cuts this year, 28% don’t expect to make cuts and 9% plan to use more flexible working practices. “Employers should hold their nerve and focus on retaining talent and investing in the skills of their people. It is these people with their commitment, productivity and ability to add value who will ultimately keep individual businesses and the whole of the UK competitive, and put us in a strong position to recover from the downturn quickly.” Philpott added. For more information about redundancy and employees’ redundancy rights, read our Redundancy article

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Childcare Vouchers to Help Staff

The is4profit team — Thu, 18 Dec 2008 01:01:00 +0000

Childcare voucher administrators have urged employers to take advantage of the tax savings vouchers offer to help staff with children through the recession. Childcare vouchers allow employees to use up to £243 of their monthly salary to pay for childcare, without paying any tax or national insurance contributions (NICs) on this amount. The vouchers can be redeemed at any approved nursery, crèhe, play scheme, child minder or after–school club. Early Years Vouchers, a childcare voucher administrator, pointed out that employers who introduce a voucher will also benefit by making savings on their NICs. It claimed that employers can save up to £227 per working parent per year. Early Years Vouchers director Amanda Ward said: “By offering money–saving benefits, such as childcare voucher schemes, organisations can not only retain qualified employees, but also produce a positive working relationship between employer and employee. Before long, employers will be expected to offer such schemes in the same way they would do a pension scheme, for example.” The Chartered Institute of Personnel and Development rewards adviser, Charles Cotton, said employers will also benefit from parents being able to arrange childcare around their work. “It shows the business in a good light to its employees, and it also helps people to achieve work–life balance — if working parents have childcare vouchers they can balance their commitments more easily and will not have to take time off to look after the children,” said Cotton. Employers can choose to run their own childcare voucher scheme or use a voucher company which will carry out the administration for them. For more information on setting up a Childcare Voucher Scheme, visit the Daycare Trust website To find out more about employer–supported childcare, visit the HM Revenue & Customs website

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Small Firms Fail to Mediate Workplace Disputes

The is4profit team — Sat, 26 Jul 2008 01:01:00 +0000

More than half of small firms are failing to use mediation to help prevent workplace disputes escalating to employment tribunals, according to employment advisory service Acas. In mediation, an impartial expert talks to both sides separately and helps come up with a solution that both accept. According to Acas, mediation is usually quicker than taking legal action, often lasting less than one day, and is almost always less expensive and stressful. “Small businesses often don’t think their problems are suitable for mediation, because they aren’t aware of all the circumstances in which it can be helpful,” said Acas mediation project manager Gill Trevelyan. “Mediation can help resolve workplace disputes, such as bullying and harassment claims, before they escalate to employment tribunal claims.” “Small firms think it is only for disputes between a manager and an employee, but it can actually be used for problems between employees, if that’s causing a business problem,” she added. “It can be used at any stage, before, part-way through or after formal procedures, if people feel the situation hasn’t been resolved.” According to recent research from the Chartered Institute of Personnel and Development (CIPD), 49 per cent of employers who use mediation do so to avoid the cost of taking a case to an employment tribunal. The research also highlighted that of those firms which used mediation, only three per cent had to take the case to tribunal. “Poor conflict management does not just lead to management time being wasted and significant financial cost but also creates stress, leads to employee absence, dysfunctional teams and damages morale and productivity,” said CIPD employee relations adviser Mike Emmott. “Providing managers with informal mediation skills would allow them to step in and attempt to resolve disputes before they escalate.” Further information on resolving disputes through mediation can be seen in our Handling grievance & discipline procedures article. For more information on Acas’ mediation services visit the Acas website

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Staff Loyalty Strong In Small Firms

The is4profit team — Fri, 18 Jul 2008 01:01:00 +0000

Small–business owners are creating strong staff loyalty and practising effective staff retention, according to a Barclays survey Some 29 per cent of respondents to the Barclays Local Business survey employ somebody who has worked for them for at least ten years; with a further 32 per cent having an employee who has remained with the business for between five and nine years. Moreover, two–thirds of small businesses still employ their first ever recruit. The survey found these first recruits tend to have an attachment to their job, staying with the business for an average of 5.3 years. “Employees in smaller establishments are closer to their boss,” commented Mike Emmot, employee relations adviser at the Chartered Institute of Personnel and Development (CIPD). “There’s more of a sense of what the organisation is trying to do, what they are there for and where they fit in. “Staff need to know what’s wanted from them, but they also need to know that their managers are willing to listen to them, and where you’ve got a shorter management chain there is more confidence that people will take notice of what they are saying,” he continued. “Another element of retaining employees’ loyalty is having mutual respect. You have to treat people on a basis of trust and deliver what people expect from you.” The CIPD has carried out extensive research on employee attitudes in collaboration with Professor David Guest, Professor in Organisational Psychology and Human Resource Management at King’s College London. The research found that the smaller the organisation, the more likely the employee will feel loyal to it. Barclays claimed that the staff loyalty revealed by its survey is a reflection of employers’ loyalty to their staff in small firms. Barclays Local Business marketing director John Davis said: “Not only are the UK’s small business owners committed to their business for the long term, but they are committed to their employees. For two–thirds to still be employing their first ever recruit is a remarkable achievement, and testament to the strength of the relationships that make small businesses work. “This loyalty could be just as important to business success as more commonly touted skills, like tough negotiating and sharp sales skills,” he added. For guidance on staff retention, visit the CIPD website

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Credit Crunch Worries Cause Staff Sleepless Nights

The is4profit team — Tue, 08 Jul 2008 01:01:00 +0000

Employers have been advised to help staff manage stress in the wake of research from hotel group Travelodge revealing that three–quarters of employees are losing sleep because of concerns about the credit crunch. Failure to support employees whose stress levels are rising is likely to lead to reduced productivity and higher levels of sickness absence, according to the director of the Stress Management Society, Neil Shah. Commenting on a the Travelodge survey, which revealed that estate agents are getting less than six hours sleep a night due to concerns about falling high prices, Shah said: “Obviously the credit crunch is putting pressure on individuals, and there has been an increase in stress over the past few months. People are concerned that their jobs may become redundant, as well as being fearful of their own financial situation. “Stress can have a massive effect on a business’s productivity, as people might be off sick due to stress, and those that soldier on are still working far below their usual productivity,” he added. “In these difficult economic times, employers need to look not just at how they can tighten their belts, but how they can support their workforce to ensure they are giving them maximum output,” said Shah. The Travelodge research revealed that staff in the building trade, accountancy firms, the IT industry and engineering firms are also losing significant amounts of sleep due to concerns about their financial security. “It’s no surprise that in the industries worst hit by the credit crunch are where employees are losing most sleep,” said Travelodge director of sleep, Leigh McCarron. “Money worries and job security are key drivers of stress, which in turn leads to significant sleep loss.” Chartered Institute of Personnel and Development employee relations adviser, Ben Wilmott, added: “Employers that invest in training and developing their managers to ensure they exhibit the behaviour that manages stress at work will reap benefits in terms of reduced conflict and staff turnover, as well as increased motivation and commitment.” For information on how to reduce staff stress levels, download the free guide published by the International Stress Management Association and supported by the Health and Safety Executive www.hse.gov.uk/stress/standards/ For more information on stress management visit the Health, safety, premises section of the Business Link website www.businesslink.gov.uk

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CIPD Urges Employers to Use Web 2.0 to Attract Recruits

The is4profit team — Tue, 17 Jun 2008 01:01:00 +0000

More employers should take advantage of the recruitment opportunities presented by web 2.0, according to the Chartered Institute of Personnel and Development (CIPD), writes Kate Horstead. The CIPD research found that just one in five businesses use second generation Internet technology, so-called web 2.0, to help them hire staff. Web 2.0 includes tools such as social networking, blogging, podcasts and online audio-visual material. However, the survey also revealed that 56 per cent of employers believe social networking websites are useful for engaging potential jobseekers. “Web 2.0 technology provides an opportunity to bring the employer brand to life and allow potential employees to experience what it is like to work within the organisation,” said CIPD organisation and resourcing adviser Deborah Fernon. Principal consultant at IT consultancy Puffbox, Simon Dickson, agreed that web 2.0 can be beneficial to employers wishing to attract staff. “Web 2.0 puts a face on an organisation,” he said. “People want that personal touch, and they want dialogue. It makes sense to be transparent and open, and this is as good a way to do that.” “The technology enables firms to express their personality, talk in a natural voice, and do it quickly and easily without some big IT process,” added Dickson. However, the CIPD research also highlighted that almost a third of employers are concerned that damaging comments may be posted about their organisation if they open it up to web 2.0. Fernon also warned that employers who use social networking to vet candidates should be careful how they use the information. “In the quest to find the right person for a job, social networking sites could be at best irrelevant and at worst misleading,” she said. “All candidates would have to have similar profiles before information is used, and this poses challenges as not everyone has a social networking profile.” added Fernon.

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