Contract

Contract

In my work as HR Consultant I meet a lot of companies as I solve staff issues for them. Very often when giving them advice on particular issues, like disciplinary issues it is wise for me to have a look at their contract of employment, just to make sure they are covered from all angles.

The answer I get time and again is that there is no need to look at our contract, it is fine and we have been using it for years. Still I insist on seeing the contract. Often there is a problem. Important clauses are missing or incorrectly worded. Sometimes it is just one piece of paper which states this is a contract of employment.

When I point out that it isn’t a valid contract, the answer is mostly: “Oh, but I really trusted the guy who gave it to us”. Yes, he probably is a nice guy, but he isn’t a specialist on employment legislation. He might have copied and pasted the contract from another nice guy and this is how you end up with something which will cause serious trouble when you don’t need it.

Once I saw a contract copied straight from the internet, it looked good at first sight but on inspection it turned out that it was a US Contract of Employment! This contract wouldn’t go down well before an Irish Rights Commissioner.

It used to be in Ireland that you didn’t need a contract of employment. It was all between employer and employee and whatever they had agreed, as long as it wasn’t too far off, was valid. This all changed when the EU Directive on Terms of Employment (Information) came into play and became Irish law in May, 1994. We have to face the fact that this piece of legislation is in play now for more than 18 years. Technically you don’t need a contract as a Statement of Terms and Conditions of Employment covers you, but most companies use contracts, as contracts have the benefit that both parties sign it.

As a minimum the following items should be addressed in a Contract of Employment: -

·         Full names of both employer and employee

·         The address of the employer

·         The place of work or a statement that the employee is required to work at various places

·         The title of the job or the nature of the work

·         The date of the commencement of the contract of employment

·         In case of a temporary contract of employment, the expected duration or in a fixed term contract the date on which the contract expires

·         The rate or method of calculation of the employer’s remuneration and details as to what intervals the payment of remuneration will be made

·         Any terms or conditions relating to hours of work including overtime

·         Any terms or conditions relating to paid leave

·         Any terms or conditions relating to sick leave or for payment due to incapacity as a result of injury

·         Details of pensions or pension schemes

·         The period of notice which the employee and employer is required to give

·         Reference must be made to any collective agreements which directly affect the terms and conditions of employment 

·         Employers are obliged to notify employees of any changes to their terms and conditions of employment as soon as possible but no later than a month thereafter

Furthermore an employer is required to hand over the company disciplinary and grievance procedure which need to be compliant with the Code of Practice of Disciplinary and Grievance Procedures. Most companies make this part of the contract of employment.

I presume you will dash off now to have a look at your contract, if you have any questions give a call at 065 7071933.

Continuous Career Development

I received a query regarding what work ethic should be expected from a fully qualified accountant. It related to an accountant who commenced the day at the exact agreed starting time and was consistently outside the office front door at exactly 5:30 pm, the precise time his contractual working day ended. Wouldn’t you expect something different from a fully qualified accountant? I would.

It all comes down to a positive attitude and commitment to your career.  Few employees realise that they at all times remain responsible for their own career. Some think that now being in employment that the employer is responsible for their career and its development. Most employees forget about developing their own career until it is too late.

There is a huge demand for career development assistance when a crisis arises. How do I write an excellent CV, how to conduct a really good interview are questions often asked. People want a quick answer to a sudden calamity. There are very few employees who engage in continuous career development and if you meet one you should take him / her very seriously.

What do I mean by continuous career development? Employees who have an organised approach towards career development, plan their career in practical steps and are always prepared for the next stage. How do they do this? They start by reading ‘Self Help’ books like Stephen Covey’s ‘Seven Habits of Highly Effective People’ or Jack Canfield’s ‘The Success Principles’.  These employees make a point of reading books, articles and journals in their field of expertise every day for at least half an hour. Slowly they develop their expertise and over years they become real experts in their field of work.

‘Self Help’ employees have a pro-active attitude and don’t complain if something doesn’t work out. They take responsibility for their own actions and are responsible for their own career. That is why they plan their steps in building a career, work hard and come up with new ideas on how work can be done faster and better. You don’t have to tell them what to do as they have already anticipated it and are working on it. ‘Self Help’ employees also plan their own education, what courses would be useful to follow and how they fit in with their career plan.

‘Self Help’ employees work with other people and engage with their colleagues on how to make work easier and better. Not just sitting back and complaining but actively seeking how we could improve our own working conditions. Not just being positive on their own but trying to involve their colleagues by giving an example how things can be done better.

Employees, who work continuously on their career plan their activities; are on time for work even come in early to make sure that nothing unexpected will happen at work that day. They use time management skill to plan their days and they don’t leave work at their exact finishing times, especially in these economic difficult times.

If you are interested to talk to me about continuous career development give me a call at 065 7071933.

Start Now with your Effective Performance Management

We are well into a new year and it is time to start organising this year’s performance management review. Even though you might say it is too early and you only do Performance Management at the end of the year when the yearly evaluation is due.

If you wish to increase the average performance of your employees then it is now time to start working on the performance management of your employees. You need to indentify employees Key Performance Indicators at the start of the year. Find out what is essential for your business and what employees need to have achieved to make the year effective for both company and employee.

Let the employee first present his ideas on objectives which should be achieved at the end of the year, starting with the objectives with the highest priority. Next the manager introduces his ideas on the employee’s key objectives for the upcoming period. Discuss the differences and obtain mutual understanding and agreement about a set of three to a maximum of six key objectives. Remember the key objectives should fall logically in the employee’s key results areas and should be important for accomplishing the organisational objectives. The manager typically has the ultimate responsibility and authority to set the final objectives. However, showing empathy and demonstrating good listening skills will facilitate the employee’s acceptance of objectives that address genuine business needs. Remember that research shows that employees will normally set higher objectives for themselves than what a manager would have set. Giving employees a strong input in their own objectives will result in better objectives for the organisation. However ensure that some employees don’t overstate their case by setting too difficult objectives.

Once the objectives are set, make sure that the objectives are not ambiguous. The usual test is that an objective should be SMART: -

-          Specific – As a clear and precise as necessary to avoid misinterpretations

-          Measurable – Measurable defines how the manager will know whether the quantity, quality, cost timeliness of the result have been met. Measures preferably are numeric, i.e. they define units to be tracked.

-          Agreed, Achievable and Ambitious. Both manager and employee should say ‘We can do it’ the aim is to provide for the ownership of objectives not the imposition. Account should be taken of the employee’s capabilities and resources.

-          Related – The objectives should be related to the Mission, Vision, Values and Plans of the organisation.

-          Time-bound – A specific date for end results has been set. The more complicated or longer and important the objective is the more checkpoints the manager require.

Common sense suggests that when the employee agrees to work on up to six objectives, it would be a good idea to identify their order of importance. Ranking them on importance can help the employee discuss priorities and agree on what is really important in the job. It also avoids employees wasting time on less important objectives and avoiding the really important ones.

After setting the key objectives then coaching employees becomes important. Coaching is the art of facilitating the performance, learning and development of another. The essence of coaching in a working environment is to explore and increase the potential of an employee and using this to mutual benefit of both company and employee. To coach is to listen to how employees handle situations and ask clarifying questions in order to let the employee become aware how they should act effectively in the future. Coaching is a very effective way of developing your employees to become more resilient employees who are able to handle more situations on their own. You need to assess that your employee is ready for coaching. There are two basic requirements to successfully coach an employee. The employee needs to be: -

Ø  Able to do the job

Ø  Willing to do the job.

If the employee is not yet fully trained then instructions and training need to be completed to ensure that the employee can handle tasks on their own and from that point onwards coaching can apply.

If the employee is able but not willing to perform their task a more directive management style is required. You need to tell the employee what and when to do their tasks in clear and unambiguous terms and only after the employee has proven to be willing to do the work then you can delegate more responsibilities.

It takes time for managers to coach employees however, the returns will be great once employees become more independent and able to handle different situations. It is an investment at the start but you will gain more time once the employee and you become confident that they are able to handle various situations independently.

All of this will enable you to make a good start to your annual Performance Management. If you have any questions regarding performance management you can give me a call at 065 7071933

A Contigency Strategy for an Uncertain Year!

Best wishes for the New Year! However, at the start of 2012 we know that another difficult year will be ahead of us with many uncertainties! Few know what is exactly is going to happen in 2012 and taking into account the worst case scenario with the possible collapse of the Euro a very difficult time could lay in front of us. This could affect both well run export companies and local companies servicing the Irish market.  So as owner / managers and HR managers we need to ask us what actions do we need to take to be prepared for what might happen?  What we need to what is a Contingency Strategy for the current climate. What themes should a Contingency Strategy contain? I will list a number of themes: -

·         Contingency plan – In difficult times an organisation needs to plan how to survive. As there may be very volatile times ahead a contingency plan must be in place on what to do if the Euro collapses or if Ireland is forced to leave the Euro zone. We need to investigate a number of different scenarios such as Ireland leaving the Euro and devaluating by 20% or 40%. To get an understanding of what actions are needed we have to conduct a SWOT analysis. This will identify the Threats, Opportunities, Strengths and Weaknesses the organisation faces and will establish what needs to be done. 

Special attention must be given to labour costs as this is for most companies the biggest component of their overall costs. If the actions require that savings have to be made immediately, then employees may have to be laid off or put on short time. The list of actions is not complete and other issues will need to be addressed, however it is essential that the organisation has developed a contingency plan which can be followed through.

·         Flexibility – You need to make arrangements that people become more flexible, flexible in working hours, tasks, responsibilities and skills. Companies need to develop a culture of flexibility where employees understand why flexibility is important for the future of the company. Flexibility doesn’t have to be negative for employees as there can be important work life balance issues which can be resolved by creating flexible work arrangements which can serve both employers and employees.

·         Communication – One of the most important things managers need to do in difficult times is to keep communicating with their employees. Tell them what the plan is for the year and make them aware that you have a plan and what they need to do to make it successful. Silence is golden but not in this area! If times are tough you can’t barricade yourself in your office, you need to mingle, give employees confidence, encouragement and explain what is expected from each staff member. Remember: ‘Where there is no vision, the people perish.’

·         Performance Management – If this has not yet been done it is time to bring in a simple yet effective performance management system whereby staff member knows what his department has to achieve in the next 6 to12 months and what each employee has to achieve to keep his department and company successful. If you have a performance management system in place you need to review if it is still effective and if it is being used everywhere. Performance management is an important tool to get all employees focussed on what they need to do to make the company successful. Communication on what has proven to work and what doesn’t work is essential. During these difficult times it is crucial that repeated underperformers are weeded out of the organisation.

These are some practical ideas to prepare small & medium size companies for the difficult times ahead. Essentially this is the time to have a contingency plan, to put a SWOT analyses for your organisation in place and to distil what actions are essential for survival. If you want to talk to me regarding SWOT analysis and how to handle particular issues regarding these uncertain times don’t hesitate to give me a call at 065 7071933.

Equality in the Workplace - An Employer's Guide

All Irish companies, regardless of their size, need to be aware of and address the issue of equality in their company policies. Equality legislation requires that no person is discriminated or treated in a less favourable way than another person on any of the nine grounds mentioned in the equality legislation.

Equality issues, including discrimination, remain significant in the workplace and in the course of employment. Employers therefore should have proactive measures in place to inform and protect their employees and the company. An employer is responsible for all equality issues within the workplace and should deal with equality issues, including discrimination, by having in place effective policies and procedures.

I am very proud to have worked with ISME, the independent small and medium size business organisation, and the Equality Authority on this equality guide for employers.

This guide provides companies with the necessary information in order to prevent discrimination from taking place in their workplace, through helping them to prepare their own equality policies and procedures. A business, which has the necessary equality policies in place (equality and diversity policy, equal status policy and bullying and harassment policy), has made their employees aware of the correct behaviour and provided it adheres to these policies, has a first line of defence in case of a complaint against them.

Employers are liable for anything done by an employee in the course of his or her employment, unless the employer can prove that he or she took reasonable practicable steps to prevent the discrimination. Then under vicarious liability the employer could be held responsible.

An example is where an employee discriminates against a foreign employee of the company by calling him names, referring to his country of origin. Whether this incident happened in the workplace or in a work related function outside the workplace, the employer is responsible.

If a company wants to protect itself, it will need to put in place measures to prevent discrimination, such as:

• An equality policy.

• A bullying and harassment policy.

• An equal status policy.

• Proof that employee’s received a copy of the policies or that employees had easy access to the policies and understand the policies.

• Proof that managers and supervisors were trained regarding equality.

• Proof that the policies were explained to employees and that they were made aware of and understand their responsibilities.

Once the company becomes aware of potential issues, the person designated to deal with equality should speak to the individual concerned and establish what happened, what is necessary to resolve the issue and document the discussions.

If there are breaches of the equality policies, the employees, customer or visitor can bring a claim against the business through the Equality Tribunal in the first instance or to the Rights Commissioner, Labour Court or Circuit Court.

In addition to the legal requirements, there is evidence that initiatives that promote workplace equality and foster diversity can bring significant benefits for both employees and employers. There is a positive relationship between the adoption of equality policies and employee performance outcomes, including reductions in absenteeism, labour turnover, improved employee relations and innovation and creativity. There are also positive outcomes for the employees, such as commitment, job satisfaction, life satisfaction, reduced stress, etc.

Equality in the Workplace - An Employer’s Guide will be launched on Friday 11^th November 2011 at the ISME Business Conference, RDS, Dublin.

Campbell International has had a long association with the Equality Authority in assisting small and medium size organisation with equality issues. If you have any queries in relation to equality in the workplace please do not hesitate to contact Kenneth Buchholtz of Campbell International at 065 7071933. 

Responsive to Change

“It is not the strongest species that survives nor the most intelligent but the ones most responsive to change”- Charles Darwin.

This was written on a wall in a conference room at Zimmer, Shannon when I was attending an information session for human resource managers. It makes you stop and think, especially in these turbulent economic times.

Every HR manager can tell you how quickly people get used to something new which they like and get very upset if this is taken away. This applies to any group of people. I see it with my family, voluntary groups, business groups and employment situations. Yet if you wish to be successful you need to be receptive to change in order to survive. This applies to single persons and groups of people in organisations.

People tend to be more effective if they are familiar with tasks and have to perform them in a routine or repeated way. Even with behaviour it works like this if you can repeat the same behaviour for 28 days it becomes a habit and you then will routinely perform this new behaviour. Yet once you get used to it, it will be difficult to let it go again.

Yet we see, as Darwin mentioned, that if you are more receptive to change you will be more successful in survival. 

How can you manage this receptiveness to change with your staff in your company? Is there a structured approach to managing change? There are a number of things you could do which would be helpful if you need to change things in your organisation

Communication – Have good communication structures in place and explain the reasons why the company is taking actions. Organise information and consultation sessions with your employees and keep them abreast regarding the developments which affect the organisation. Be timely with your information, do not let your employees read or hear about changes at the company trough, newspapers or television.

Trust – Create an environment of trust between management and staff members. Trust is only built up over a period of time yet trust can evaporate in a very short time period. Be straight, honest and diplomatic with your staff members. Trust is built by being a positive influence, being consistent and being predictable in your behaviour.

Goal Orientated – Staff members need to know what is the goal of the change what will be achieved with the change and what is the required end result of the exercise. A very novel way could be to involve staff members in setting the goals – you might be surprised to see what they come up with.

Project Management – A good way to organise the whole change process is using project management methods to structure the change process. Project Management makes you organise your resources and people available to achieve the change process and to have a clear timetable regarding what has to be achieved.

Regularly Change - Organisations need regular change. If you haven’t changed anything in years it will be difficult to manage any change as there will be fierce resistance. If you change too much too fast people get tired of it and get irritated about the need and pace of change. Remember most people prosper in a familiar environment in which they know what is expected of them and what their tasks are. If this becomes unclear because of the pace of change it can backfire on the change process. Change needs to be at a steady pace if it isn’t it will destroy the structures necessary to be able to work effectively.    

We have learned that change needs to be constant, that the organisation needs to be aligned with their environment and needs to be responsive to change. Change must be on the agenda of any management team and can’t be taken off when business seems to be going fine again.

Finally grant us the serenity to accept the things we cannot change, the courage to change the things that we can, and the wisdom to know the difference.

The Verwoerd Case - The difficulty with Dismissal.

In recent days the newspapers reported the dismissal of Ms Melanie Verwoerd by UNIFEC Ireland. Again this case highlights the importance of following the correct procedure when handling a dismissal or any other disciplinary issue.

If the newspapers are correct then it seems that those important procedures weren’t followed. Sending an e-mail with the message that the employee is dismissed is absolutely not the way to handle this. Not only is it extremely insensitive and impolite but it goes against all disciplinary procedures and codes of practice. Natural justice in such circumstances has to take place, this means that the following should have happened: -

·         The employee must be presented with the case against him / her;

·         The employee must be allowed to be represented;

·         The employee must be permitted and allowed to state their case

·         The employer must hear and be seen to hear the case being made

The employer must only form judgement and come up with a final conclusion after having considered all the facts disclosed.

From the newspaper report this doesn’t seem to be what happened. It was reported that Ms Verwoerd received two years salary as compensation which is the maximum compensation under the Unfair Dismissal Act. Does giving the maximum compensation make it alright?! Unfortunately, this normally applies only if employee and company have agreed to such a severance payment with a signed severance agreement which mentions that certain conditions are fulfilled which both parties have agreed and the agreement has been signed by both parties. If there are no specific conditions mentioned and there is no signed agreement then the payment is basically a voluntary payment from the company to the employee and as such doesn’t affect the dismissal case.

This case once again highlights that a dismissal is still not understood by a lot of senior managers and as a result serious mistakes are being made.

It is essential that the Code of Practice on Discipline is followed. If you follow the essential steps of the code of practice then employees can be fairly dismissed for the following reasons: Conduct, Capability and Competence and Redundancy. In cases where the conduct, capability and competence of an employee aren’t up to the required standards the first thing a manager or supervisor needs to do is to give a verbal warning. While giving a warning you must inform the employee regarding the departure of required standards, what action of improvement is required, when will the matter be reviewed again, what time limit is on the warning and what action will be taken if the improvement is not made. As you probably have to prove as a company that the dismissal was fair you need to prove that you gave the warning by putting it in writing as well and preferably you give the warning in the presence of a fellow manager. If the agreed improvements do not take place then you should give a written warning. Again you must inform the employee regarding the departure of required standards, what action of improvement is required, when will the matter be reviewed again, what time limit is on the warning and what action will be taken if the improvement is not made. Again give the written warning in the presence of another manager, as you might have to refute any allegations of unfair behaviour made against you at a later stage. If the necessary improvements do not materialise or other misdemeanours occur during the time limit of the warning, then the Final Written Warning comes into play which is given again in the presence of a fellow manager. You need to explain again what is required from the employee and how long the warning stands. If the necessary improvements do not come about or other wrongdoings happen during the time limit then a disciplinary meeting, as in previous warnings, needs to be conducted in which natural justice has to take place. In coming to a final decision the manager must reflect that the sanction must be appropriate to the charge. If there is a dismissal this must be not seen as excessive, the manager must have approached the hearings fairly and objectively.

It sounds like an impossibility that any employee will let it come to three warnings and still hasn’t got the message, however, it has happened and will happen again tomorrow, so be prepared!

As the employee in a dismissal case is probably going through one of the worst moments in their life, always be polite and respectful to the employee. This is always helpful for both parties.

Unfortunately, as Ms Verwoerd’s case is going be a costly affair the real losers will be the children who UNICEF supports.

If you want to talk about any how to handle a disciplinary issue give me a call at 065 7071933.