Dear Deliveroo…

An open letter to Will Chu, founder of Deliveroo

Dear Mr Chu

I read with interest your recent comments that you’re unable to offer the riders who work for Deliveroo better terms and conditions because to do so would ‘risk the flexibility’ that they enjoy.

I fully understand that entrepreneurs who have a great business idea aren’t always experts in things like marketing, finance or – in this case – managing people. But most of those who make a success of their business get expert advisers to guide them through these issues and ensure that they support their business aims in a legal and effective way.

I can only assume that you haven’t done so when it comes to employment matters, so I’m happy to correct some misapprehensions you seem to have.

Firstly, you suggest that it’s up to the Government rather than your company to define individual employer status. Actually, it’s not. There are a number of long-established legal tests that can be applied to determine whether someone is an employee, a worker, or self-employed. It may be true that 21st century economy needs 21st century legislation – and certainly the Government are looking at this at the moment – but at the moment the existing legislation does seem to be able to deal with most situations, even in the dynamic ‘gig economy’.

Secondly, employment status doesn’t prevent you offering flexible working arrangements or work patterns.  I’d have thought the data you collect on ordering times for takeaway meals would allow you to identify regular peaks and troughs in demand and schedule your labour requirements accordingly. Using a bank of casual labour, paid through the payroll, would allow you to offer sick pay, holidays and pensions to your regular core workers and supplement these at peak times.  It’s a bit of a 20th century solution, but sometimes old ideas still work effectively

Finally, I have to say that trying to disguise the nature of the working relationship – by using phrases like “invoice” not “timesheet” and “branding guidelines” instead of “uniform” – won’t cut the mustard if you’re challenged. Employment Tribunals will look at what actually happens rather than the words on a page and are pretty adept at seeing through sham arrangements.

I’m always happy to help growing businesses avoid simple employment mistakes and so if you need some further advice please give get in touch, although if you do have 15000 workers I’d probably suggest you need to have some full time in-house expertise. You might find my book helpful though, it sets out clearly and simply what entrepreneurs and small business owners need to know about people management.

Best wishes

Simon

 

Ch..Ch..Changes

Over the last few weeks, there seems to have been a welter of articles and events on the changing shape of work and –  as a consequence – how we need to throw our models of change and organisational design out of the window. Whether it’s the robots coming to take our jobs, the gig economy, globalisation or Brexit, everything’s changing and we’re living in scary new world where nothing is certain.

Except perhaps it’s not changing quite as much as we think. For example, recent data suggest that the rate of increase of the use of robots has actually slowed across Europe in the last five years and is at a lower rate in the US. That might speed up again but even now is only at a level of 2.5 robots per 1000 workers.

Similarly, the gig economy – as recognised by a recent CIPD report – still only forms a small percentage of the workforce, most of whom remain in traditional employment relationships. Even if we extend that to all self-employed workers, despite the growth in recent years they still only form around 15% of the working population.

I’ve been hearing about the impact of the VUCA world for at least 5 years now. Looking around, most of the organisations I work with are still structured in a very similar way to the way they were in 2012 – and I suspect they will not look that different in 2022.

The reason – humans adapt slowly to change. The technology to create driverless cars may exist, but until they are socially accepted they won’t take off. And that won’t be until numerous ethical and political issues are resolved. How many people talk to Siri/Cortana/Alexa currently? A growing number, but still only a tiny minority. Many humans find the idea of conversing with an inanimate machine a difficult concept. It will come no doubt, but over a longer timescale than the proponents suggest.

So while we should review our models and theories of change (particularly dumping the outdated Lewin model in the dustbin of history) we should remember that change will be controlled by the speed that humans want it to – not simply by the fact that we have the ability to do something.

Thinking Outside the Payroll

What exactly are the “Human Resources” of an organisation? 

The easy answer is that they are the people who work for a business, charity or public body. But while in the past, for the overwhelming majority of organisations, this term was synonymous with “employee”, these days that’s frequently not the case. And I’m not just talking about trendy hi-tech firms either – the chances are that if you’ve ordered anything for delivery recently, whether online or from a store, it will have been delivered by a self-employed contractor, not an employee of the company. Nor is it uncommon in many organisations to have sub-contracted out ‘ancillary’ services to others (indeed, that’s how I make my living!!)

So why is that an issue for those of us who work in HR? Well, there are lots of reasons:

·         It won’t be enough to know about “employment law” – HR professionals will need to understand the full range of legal relationships that people can have with organisations, and be able to advise on them. The excuse that “x is a freelance, nothing to do with us” won’t wash in future

·         How will we hire and fire in the future? Some of the time-consuming processes that we use to recruit, or dismiss, are not only not necessary but don’t fit with those who are working in a non-traditional way. And given that recruiting consultants or freelancers has been a traditional responsibility of procurement departments or line managers, how do we get involved without creating a turf war?

·         If we have to recruit people differently, do we also need to start rethinking how we develop them? And indeed, exactly who do we need to consider developing?

·         We talk a lot in HR about behaving “ethically”. If we start to use labour as a resource to be taken up and dropped when necessary for our business, how does that square with behaving in an ethical manner?

·         Even if you don’t accept the ethical arguments, there are several clear business reasons why HR will need to change. The whole “psychological contract” between businesses and their workforces will change and our practices will need to as a consequence

·         Things that we devote a lot of time to currently – like the nebulous concept of “employee engagement” – may become pointless; if workers aren’t all employees then chasing after engagement becomes a meaningless exercise.

That’s not to say we need to throw out everything we do in HR. Nor am I suggesting traditional employees will disappear – they will still form the majority of the workforce for the foreseeable future (at least for the remainder of my working life anyway!). But what I am suggesting is that we need to rethink exactly how – and why – we do a lot of things if the profession is to remain relevant in 21st century organisations.