If you’ve ever been given responsibility for hiring, managing or developing people, you’ll know that human resources and talent management are fraught with potential problems.
Here, Alyson Pellowe of People Vision looks at the key areas that every business manager should know about.
Middle managers and unit heads are not responsible for implementing an organisation’s IT strategy. When there’s a problem with the computer network, they are not expected to fix it. Very sensibly it’s all left to IT experts.
Which is why some human resources managers look at their IT counterparts with something approaching envy. HR policies and processes need to be aligned with organisational goals, and the HR team should work as a partner with the business departments – but unfortunately this is rarely the case. Responsibility for human resources is frequently filtered down through the organisation to land on the desk of departmental bosses and team leaders.
In fact the day-to-day implementation of human resources policies, talent management and personnel practices is, in many organisations, in the hands of people who have had little if any training in the matter at all.
In large companies, responsibility for good human resources practice devolves to non-specialists throughout the company. In smaller organisations, without a dedicated human resources function, responsibility for all personnel matters can fall to a wide variety of people from a PA to the MD or indeed anyone willing to pick up the baton.
All of which can constitute a serious operational risk.
On the one hand, employment law is changing rapidly at national and, more frequently, at European level. Then there are the difficulties attached to managing human relationships. It can be an incredibly sensitive task and grievances can occur which need careful handling. Even the best intentioned of managers can make the situation worse. And not all managers have the best of intentions, particularly in times of acute stress.
So what does this multitude of managers need to know about human resources?
The first step is to become acquainted with the legislation that applies. For example, employees are entitled to receive the minimum wage plus four weeks’ paid holiday a year and must receive itemised pay statements – all of which should be safeguarded against the employer’s insolvency. The notice period of any employee is also laid down in law, as are the requirements for redundancy pay and the right to time off to look for another job in a redundancy situation.
Equal opportunities legislation is also far-reaching. In addition to the recent ruling on age, employees cannot be discriminated against on the grounds of gender, race, religion or belief, sexual orientation, disability or pregnancy. And pregnancy itself attracts certain other rules and regulations: maternity leave and pay, paternity leave and pay, and parental leave. Parents of under-fives must have their requests for flexible working seriously considered, and those adopting children are entitled to statutory leave and pay. Employees also have a right to dependant care leave – though this is not paid.
Employees are also entitled to leave in certain other circumstances, including jury service or other public obligations. Officially recognised union representatives must be given time off for their duties, as must safety representatives.
Individuals cannot be dismissed for being a member of the union, for bringing a health and safety complaint or for asserting any other statutory right. They cannot be dismissed unfairly, and anyone who is asked to leave must be given written reasons.
It’s a fairly exhaustive list. Fortunately managers do not need to know the intricacies of the law – that can safely be left to legal teams and the human resources department, if there is one. However they must be aware of areas in which the law applies to prevent them getting into potentially difficult or even expensive situations.
But managing human resources is not just governed by the statute book. There are best practices to aim for that are designed to help organisations get the most out of their employees and the investment they have made in them.
These start with recruitment and workforce planning. Recruitment is often a hand-to-mouth occupation. When a vacancy arises it is filled as soon as possible. But, ideally, managers should take a more strategic approach and align recruitment with the overall business goals, to make sure they have the right people in place to deliver their long-term plans.
Recruitment can be an expensive process: a recent CIPD survey put the average direct cost of replacing a member of staff at £2,500. The indirect costs, including the time spent recruiting, inducting and training add considerably to the bill. So it’s essential that the selection decision is the right one.
When it comes to interviews it’s not just the candidates who need to prepare. Interviewers need to work out what they need to know and how they will get to that information.
A set of standard questions to be asked of all candidates should help differentiate between them, and it can be helpful to prepare a form to record responses. But interviewers shouldn’t stick rigidly to their script. An interview should look, feel and sound more like a conversation than an interrogation, and good interviewers will explore interesting ideas and pieces of information that come to light in the course of the discussion.
The key is to ask questions that illicit detailed answers, rather than simple yes or no responses. After all, the purpose of the interview is to get as full a picture as possible about the candidate and their suitability, supported by evidence, rather than intimidating them. If particular skills are required it’s also worth devising specific tests to assess them.
The interviewer should also bear in mind the anti-discrimination legislation. Potential pitfalls include asking about marital status, the number of children, or social activities. And, mindful of the Data Protection Act, which allows any candidate to see written comments, interviewers should be careful about what they note down during and after the interview.
Having selected the right recruit, managers should ensure that a proper induction process is in place. This introduces new members of staff to the company, its policies and procedures, and the people they will be working with. After the induction the individual should truly understand what the company does and what his or her contribution will be.
The next area that managers need to be aware of is maintaining good employee relations on an ongoing basis, and the vital role that effective communication plays. One of the most common reasons why employees feel demotivated and unengaged is that they don’t know what’s going on – and no-one is interested in their views.
Good communication requires tailoring the message to the audience, choosing the right medium, and selecting the appropriate level of formality. Stories of employees being sacked by text are an acute lesson in getting communication wrong. Not only does it open the organisation up to a potential law suit it intimidates remaining employees.
Newsletters, bulletins, notice boards – these can all keep staff informed. Managers should also consider how they communicate with individuals: certain information is better presented face to face, rather than in emails.
Maintaining good staff relations lasts through the entire employment life-cycle – from induction, through appraisals and performance management through to the exit interview.
The third broad area of best practice for the non-HR manager is employee rewards. Pay and benefits form a considerable proportion of most organisation’s costs and is one of the main attractions for job-seekers. It’s also a prime motivator for existing employees, so companies need to make sure that it doesn’t become a de-motivator.
Managers must also ensure that the reward package is appropriate and will attract and help retain the right calibre of candidates. The challenge is to get the right mix of elements, and make sure the value of each one – such as mileage, gym membership, pension or company car – is visible to the employees. Managers also need to monitor the impact of the benefits package on performance, and ensure that it remains cost-effective.
However, benefits do not remain static, and pay reviews should be a regular part of a manager’s job. Pay should be related to delivered results, and not to presenteeism, and will ideally be reviewed as part of the appraisal process. Managers should also be aware of the pay structures that exist within the organisation and the long-term consequences for the organisation of changing pay levels.
The fourth and final area that companies need to consider is that of employee development and talent management. It is beneficial to the organisation to ensure that the skill-set of its employees are up to date and in line with business needs. A strong training and development plan will help form a workforce that is able to take on the new challenges inevitable in today’s business.
Offering in-depth training and development schemes can also be motivational to employees who appreciate the opportunity for self-improvement. It’s also highly attractive to potential employees.
Managers should therefore identify and then prioritise the organisation’s training requirements, and decide the most appropriate method of delivery. The trainee should also be briefed to get their buy-in and early involvement. And, like all facets of human resources management, it should be measured and then refined accordingly.
The so-called ‘war for talent’ means that talent management strategies are becoming increasing important for organisations. They need to be able to recruit high-flying individuals, identify potential stars within their organisation, and establish how best to nurture and encourage that potential – for example through coaching and mentoring schemes.
All these elements are closely interlinked of course, and in reality most companies achieve a slightly watered down version of best practice, adapting it to fit their own circumstances. However, best fit human resources can significantly reduce an organisation’s risk and enhance its value. Attracting and retaining the right talent is both a measure of achievement and the means of realising business success.
