Everything stops for tea

Over the last couple of days, this tweet – which shows NHS workers being sent a teabag as a ‘reward’ for their efforts – has appeared repeatedly in my timeline. It’s attracted a variety of responses – the majority negative –  but some have argued that it’s a ‘nice’ thing to do and a recognition that the opportunity to take a break from the workplace can be beneficial.

As with many things related to people management, context is all important. When staff consider they are underpaid, over-stretched and/or constantly dealing with crisis management, a token, even if well intentioned, can seem insulting. It shows a complete failure to appreciate the situation from the frontline employee perspective. On the other hand, a non-financial gift can often be a more effective form of recognition of effort or achievement in a situation where the individual is already satisfied with their pay or working conditions,

Similarly, making a big song and dance of a small reward can be counter-productive. Telling staff that they are going to receive something for their work raises people’s expectations. To follow this up by  providing them with a teabag or cupcake is almost certainly going to be poorly received. In contrast, an unexpected gift – even if small – can be a nice way for a manager to thank their team for their work, and will usually be welcomed.

Managing reward and recognition is a complex mixture of economic, psychological and sociological factors. Get it right and it can result in a well-motivated and productive workforce. Get it wrong and it can have many unwanted consequences. Don’t indulge in gesture management – think through what you are doing and why you are doing it, otherwise you may find your positive intention leads to negative results.

Edit: The Chief Executive of the NHS Trust concerned has recently published a Twitter thread explaining why they took this action, as part of a wider process – you can read it here: https://twitter.com/M_J_Hopkins/status/1558043577569234946?s=20&t=3uXk2vvDoflQedGAiRgcXw. If anything it reiterates the point in my main post – that reward gestures need to be thought about fully.

HR’s Donald Trump moment?

There has been a view for many years that the UK is governed by what has been termed the “Good chaps” theory of government – that there are certain unwritten rules and conventions that are understood by all parties and which everyone works within, even if there is profound disagreement on the issue at hand. Some commentators argue that this has disappeared in recent years as certain politicians have wilfully disregarded these understandings in order to gain a particular advantage or objective. (It was also in evidence in the Donald Trump years in the US, where Trump would say or do things that shocked people, not necessarily by their intent or outcome but the fact that he said or did them at all)

The world of work in the UK had a similar Trump type moment yesterday when P&O Ferries announced via Zoom that they were sacking 800 UK crew immediately and intended to replace them with cheaper foreign staff via an agency. Much of the shock and anger from politicians, HR professionals and others was not so much around the decision (other companies in the past have announced far bigger changes or lay-offs) but the fact that they did so in a way in which broke all the unwritten rules of employment relations in the UK. Even if they can legally do something in a particular way, most companies would approach a decision like this with an understanding of how they would be expected to behave.

P&O are not the first company to break these norms – in fact it has always gone on, even in the days when trade unions were stronger. But they are a high profile well-established ‘household’ name and consequently the expectation would be that they would do things ‘properly’.

An example of Donald Trump breaking the political norms by making personal comments about rival John McCain

What P&O have also done is shown how weak UK employment law is in protecting employees from an employer determined to behave in this manner. They will have factored in not only the cost of 800 potential unfair dismissal claims (all of which they are likely to lose) but also the fact that it will take 18 months -2 years before a tribunal hearing takes place (and even then they could refuse to pay, meaning individuals would have to take further legal action to enforce their claims). By which time many  ex-employees will have given up and the news story will have died down.

So what is to be done? More, and/or stronger employment law is the cry from certain sections. But as has been pointed out when there is a call for the UK to have a written constitution to resolve the reliance on ‘good chaps’, this wouldn’t solve all the problems – and would take time to go through parliament.

A better solutions, in my view,  would be for existing laws to be more easily applied – not only by tribunals being made faster and their judgments more easily enforced, but by the use of a properly funded statutory body similar to the Health and Safety Executive) with powers to hold bad employers to account. We already have a pretty impotent “Director of Labour Market Enforcement” within the Civil Service so the basic structure is there.

But also, HR professionals need to stop living in their unitarist utopia and accept that there is a need to recognise that employees often want different outcomes from their employment relationship. And so we need to be more open to negotiation , compromise and the role of trade unions or other employee representatives. That means going back to the ‘good chaps’ theory of employee relations, that there are unwritten rules that we all follow. P&O may be a particularly egregious example but they are in many respects the ‘tip of the iceberg’ for modern HR and business practices.

Relocation, Relocation, Relocation

One query that I receive regularly from my SME clients is how to handle the people aspects of moving business location. Below are some of the common issues and some suggestions on how to deal with them.

a) Can staff refuse to move – even if they have a mobility clause in their contract?

In a word, yes. What many employers don’t realise is that relocation is legally a form of redundancy, since redundancy is defined in law as no longer requiring a particular job role at a specific location. So, you need to comply with the normal rules on consultation (in practice, since companies rarely move at 24 hours’ notice, you will probably have been consulting with staff about the move for some time anyway).

In most cases you will be offering employees an alternative – the same job on the same pay, just in a different location. But in a redundancy situation the question is whether it is ‘suitable’.

If you are relocating from Liverpool to Leeds, the extra travel time and costs, or the need to move house, may mean that it’s not suitable for many employees. Even if they have a mobility clause requiring them to work from ‘company locations’, suitability will still depend on a lot of factors.

Even a small move, which doesn’t appear to have the same issues, can still fall foul of this suitability issue. A move from Manchester City Centre to Salford Quays (roughly 3 miles) probably wouldn’t inconvenience many staff. But an employee with primary school age children, who lives in a commuter town outside Manchester, for example Buxton, may need to get an earlier train to get to work on time, causing problems or increased costs with getting children to school, as well as the extra cost of travel across Manchester. It may not be a ‘suitable alternative’ for them.

So, factor in potential redundancy costs when planning a business relocation – while most of your staff will not have a problem, there may be some who do.

b) Do we have to pay relocation expenses and if so for how long?

There’s no legal requirement to. You may want to, as a gesture of goodwill and to smooth the transition – especially if there are significant extra costs (e.g. having to cross a bridge and pay toll fees). If you do, you can decide or agree how long it is for – some companies will do for between 6 and 12 months.

c) Do we have to replicate facilities e.g. car parking or a canteen?

Only if it is a condition of individuals’ employment that you provide these benefits. If it is then you must do so – or if it isn’t possible provide an equivalent benefit, e.g. a car-parking allowance. If it’s not, then you’re not required to do so.  You might want to take the facilities you currently have into account when choosing your new location.

Remember, moving is disruptive and unsettling for many people – even if they can see the rationale for doing it – and so taking their welfare and personal circumstances into account after a move makes good business sense.

Office buildings as seen from Pall Mall, Liverpool

If we took a holiday it would be so nice

Conservative Prime Ministerial hopeful Jeremy Hunt caused a stir this week when he announced that, if elected, he would cancel all Civil Service holidays in August in order to make sure that preparations for a No-Deal Brexit were fully implemented. But can an employer simply just cancel holidays, especially if they have already been authorised and staff may have paid out for a trip away?

It may surprise you, but legally the answer is yes. In fact, in certain sectors (e.g. the NHS or emergency services) it’s not that uncommon – think for example of nurses and doctors having leave cancelled because of a winter flu epidemic.

However, it’s not quite that straightforward. Firstly, there are minimum periods of notice which must be given to cancel someone’s holidays. Unless you have a different written agreement, this is the same length of time as the period of the holiday. So someone who’d booked a fortnight’s leave must be given two weeks’ notice of cancellation.  As the new Prime Minister is only expected to take office a week before the beginning of August, and unless the Civil Service has specific rules, Mr Hunt would not have time to stop someone taking two weeks off at the beginning of August.

Secondly, you need to have a clear and urgent business reason. Preparing for an imminent ‘disorderly’ departure from the EU in 12 weeks would probably fit this description, as might things like a high level of staff sickness, or a major and unexpected change in business. If you don’t have a valid reason, however, you might find yourself facing a claim for constructive dismissal.

Thirdly, cancelling someone’s holiday is not likely to motivate or endear them to your business. So you need to balance the short-term issue against the longer-term impacts.

This post doesn’t cover the issue of whether you are liable to compensate people for losses caused by a cancellation. Most travel insurance policies wouldn’t cover cancellation by the employer, potentially leaving your staff significantly out of pocket. Not being a lawyer, I can’t say whether individuals would have grounds to make a civil claim for their loss (if you are a lawyer reading this please feel free to comment) but if they can you might find yourself exposed to significant liabilities.

So, overall, cancelling holidays is something that can be done, but it is an extreme decision to take and would require extreme circumstances, and a proper evaluation of the pros and cons, before I would suggest you do it. As with so much of employment law, the rule is

“Just because you can doesn’t mean you should”

via GIPHY

 

You scratch my back…

You scratch my back…

Much has been made of the deal between courier firm Hermes and the GMB union which gives self-employed ‘gig economy’ workers various benefits, such as holiday pay, provided they sign up to follow delivery routes laid down by the company rather than simply set their own delivery route.

One interesting side debate that has occurred among some HR professionals is whether this deal is indicative of the lack of trust that businesses have in employees, and the underlying assumption that employees are inherently less productive than the self-employed unless they are controlled.

It’s an opinion, but one which I think is incorrect. It seems to ignore that work is a complex relationship, with economic, psychological and sociological aspects, which has at its heart a ‘bargain’ – I (the worker) will give you (the business) my time and skill in return for pay, a safe environment and fair treatment by the employer. The power in the relationship usually lies with the employer although there can be times when the employee has the upper hand.

The nature of any bargain is that if I give something up, I expect something in return – otherwise it’s not ‘fair’. So in this situation, the employer giving extra money to individuals wants something back for it – in this case a higher degree of control over the working arrangements. It doesn’t necessarily suggest a lack of trust (the existing system of drivers setting their own routes seems to have worked well enough for both sides) but a recognition that the relationship has subtly changed – and crucially still feels fair to both sides.

Think about it this way. When you are dating someone it’s a fairly loose arrangement, a little like true self-employment. When you’re not with your boy/girlfriend, there’s a certain element of trust (you assume that they are not dating others when you’re not around) but generally you don’t bother too much about what they are doing. When you move in together, the relationship changes –  you give up certain things (the ‘right’ to come and go as you please, watch what you like on TV, decorate your room in a particular way) in return for other benefits. No-one is suggesting that loss of control over the TV remote or letting your partner know where you are implies a lack of trust or an inherent belief that single people have more freedom than the cohabiting. You each make a bargain to give certain things up in return for other things, in order to preserve fairness and balance.

So rather than examine the specifics of the GMB-Hermes deal, look at it in the round – it’s about maintaining equilibrium in the relationship.

(If this all sounds a bit theoretical and airy-fairy, there  are some real practical implications in the world of work –  find out more here)

people walking on street between concrete buildings

Photo by Irina Iriser on Pexels.com