HR Update - November 2024

November – the month of the Scorpios! And what a busy month it has been! Last month saw the release of the Labour Government’s Employment Rights Bill and the release of the new budget. More importantly, I celebrated my birthday on the 10^th and have been busy catching up with all of my lovely clients this month to start to develop an action plan for dealing with the impending changes.

Appraisal Season

For many, November and the end of the year, is appraisal season, an opportunity to sit down with employees and review the achievements and challenges of 2024. Recently, there has been much discussion surrounding the efficiency and effectiveness of the traditional once-a-year appraisal.

Try as we might to avoid it, managers are often afflicted with recency bias when conducting performance appraisals. Recency bias is the tendency to overemphasise the importance of recent experiences or the latest information we possess when estimating future events or appraising behaviour over an extended period of time. Recency bias often misleads us to believe that recent events can give us an indication of how the future will unfold. After all, how many of us can really remember what happened in the first half of the year? This often results in reviewing objectives with a more focused view on recent events which could lead to premature or late promotion opportunities and a lack of relevant and actioned training and development plans.

You might have heard in the news that GE (General Electric) abolished its traditional ‘rank-and-yank’ performance system (a system originally popularised by former CEO Jack Welch, where a company ranks its employees against each other, and terminates the employment of the people at the lowest end of the ranking), and have moved to a system focused instead on frequent and informal ‘touchpoints’. Under the new approach, GE adopted continuous conversations between managers and employees on a 1-2-1 basis, replacing formal appraisals with regular coaching sessions which focus on real-time adjustments and forward-looking development. Other companies like Adobe and Deloitte also transitioned away from the traditional approach adopting one similar to GE.

What are your thoughts? Is your appraisal process robust, without bias, inclusive, effective? Would adopting a similar approach help improve productivity in your organisation? Remember we are here to help refine or revolutionise your process if needed.

 

Holiday Season

In a year that seems to have moved at lightning speed, we are now fast approaching holiday season. It is a great time to celebrate team and organisational success and enjoy socialising with colleagues. However, without wanting to sound like the fun police, it is also important to keep in mind that workplace social events, whether formal or informal are still professional environments. Here are some best practices to ensure everyone has a positive and respectful experience:

1.     Set a Dress Code – No one likes to wonder ‘what should I wear?’ and indicating a dress code will help to ensure appropriate dress attire is worn to social events, even if the event is off-site and out of hours. It may also help colleagues for who require more clarity to feel comfortable in a social situation.

2.     Be Mindful of Alcohol Consumption – We have all been to work events where the drinks are flowing and we have been cornered to discuss some underlying workplace drama or observations. Or where we have witnessed someone’s best dance impression of Nikki Minaj!  However excessive drinking can impair judgement and lead to regrettable behaviour, impacting workplace relationships and reputations. Save the beer fear and always act responsibly when consuming alcohol at workplace events. Also, make sure there are inclusive options for those who choose not to drink or do not drink for cultural or religious reasons. The sober curious movement is growing and many employees would prefer something different to free beer 😊

3.     Respect Personal Space and Boundaries -  A festive atmosphere shouldn’t override respect for personal space and comfort. Remember that casual interactions should remain respectful and inclusive, ensuring everyone feels safe and welcome.

4.     Reminder on appropriate behaviour – Sending a gentle reminder to all staff on the companies policy or expectations for appropriate behaviour at workplace events never goes amiss. Also remember that employers now have a proactive duty to protect employees against sexual harassment.

Budget increases and salary values

Money – the hot topic in every board or SLT meeting. Since the release of the budget by the Chancellor, significant changes have been made which could impact businesses whatever the size of the organisation. It was revealed that the National Living Wage will rise to £12.12 per hour and the National Minimum Wage (for 18-20 year-olds) to £10.00 per hour, starting in April. While this benefits low-wage employees, smaller employers may feel the impact. Also to be introduced in April is an increase in employers' national insurance (NI) from 13.8% to 15%, and the NI threshold will drop from £9,100 to £5,000. In order to assist small businesses, the employment allowance will rise to £10,500, enabling organisations to employ up to four full-time employees at the new wage levels without paying NI. 

If you would like some advice on reviewing your salary banding or benefits packages- your HR Partner is happy to help.

 

Case Law Snippet – Sex Discrimination

A medic has been awarded £6,000 by a Glasgow employment tribunal after her company director asked if she was pregnant when she mentioned she had a ‘surprise’ to share with him. Lesley Coia, an employee at Event Medical Group is quoted as having felt “astonished and embarrassed” when she arrived for her shift and upon telling Gareth Hughes that she had a surprise to tell him he responded by asking if she was pregnant. He later remarked that “if she was not pregnant, he could give her a hand to get pregnant”.

Judge MacLean ruled that these remarks amounted to direct sex discrimination after considering “how the second respondent (Hughes) would have treated a male medic in their twenties advising he had a surprise”.

Employment Associate for Birketts, Daniel Hales said: “While the award of compensation serves as a reminder not to make unwanted comments or assumptions about a pregnancy, this case is also a textbook example of how employers can unfortunately make matters worse by carrying out an unfair disciplinary investigation into the complaint.” A reminder that what one person may consider to be just ‘banter’, may be wildly inappropriate to others.