Owning a business today is about managing risk. Whether it's the traditional fire, wind, hail kind of risk or the more perplexing and subtle kind of risk like the economy, we all have a huge exposure to elements both within and outside our immediate control. Prudent business owners spend a good proportion of each working day assessing new threats to their continued business and devising new ways of dealing with these threats. The reward for performing this task effectively is that you get to do it again tomorrow. Failure can quickly reduce a going concern to an unprofitable business or worse still out of business. Of all the sources of risk facing your business today, none is more immediate and more emotionally charged than the risk associated with the actions of the people who work for you. It's the human factor and you've had it since you hired your first employee. Simply put, the continued success of your business can well rest on what an employee says or does. Actions taken, or not taken; words spoken, or not spoken; deeds done, or not done, whether with or without your knowledge or approval can, and most probably will, be used to your detriment if the outcome is undesirable or financially harmful to someone. Because human error or action is a significant risk to businesses everywhere, management techniques have been developed which enable you to manage the risk associated with having employees. Good relations between people at work are as critical for small businesses as they are for large ones. Very small changes can often make a big difference very quickly. For example, regular, open meetings can soon generate better ideas and result in improved job design and greater efficiency. Experience tells us that the way you do something is just as important as what you do. Having the right policies and procedures is vital but they won't work properly unless they are introduced and used in the right spirit. The following points are there to help you improve the effectiveness of your business by focusing on the people you work with: Establish formal procedures that are well communicated for dealing with disputes, grievances and disciplinary matters Publish and communicate plans, ambitions and goals that employees can understand and work towards Listen to your employees views and consider their opinions so everyone is involved in making decisions Establish a pay and reward system that is clear, fair and consistent Have a healthy and safe place to work Value your employees so they can talk confidently about their work and learn from their successes and mistakes Treat employees fairly. Establishing formal procedures Research shows that the key ingredient to making a business successful is communications. The most successful employers keep their employees informed and genuinely listen to their views. However, talking and listening work best within a framework of clearly written procedures for dealing with discipline and grievances and fair and open systems for communication, consultation and health and safety. If the framework is in place then communications become easier and more fluid. Rather than relying on the grapevine to identify problems, employers and employees can work together to resolve issues proactively or manage future change. The introduction of new pay systems or working patterns become opportunities for improvement rather than threats. People need to know what is expected of them in terms of standards of performance and behaviour. All employers are required by law to have both disciplinary and grievance procedures, these are best issued within the written statement of terms and conditions or contract of employment which must be issued within two months of the employee's start date. Grievance procedures are used by employees to help resolve problems they may have at work. Employees need to feel confident they can take their concerns to their manager in the knowledge that: the problem will be dealt with confidentially and fairly there are effective grievance procedures in place for dealing with the problem. Employers may wish to have separate grievance procedures for dealing with sensitive issues such as bullying and harassment. Disputes are bound to occur from time to time and a formal procedure for conducting negotiations can take some of the heat out of the conflict and limit possible damage. Publish and Communicate Plans Everyone at work needs to feel there is a point to what they do. This sense of purpose is largely achieved by identifying goals both at individual and organisational level that everyone can understand. These goals need to be as realistic as possible, reflecting the business's ambitions without placing too much pressure on individuals. In order to make the connection between individuals and what happens to the business, employers need to make sure their business plans are linked to day-to-day work. On an individual level employee appraisal systems are the ideal way of clarifying objectives. Appraisal interviews also give business owners the chance to check that employees understand what is expected of them and an excellent opportunity to give feedback on their performance. Good internal communications are the cornerstone of an effective organisation. There are many ways of communicating with employees and the style of communication can often be as important as the content. In most cases a mix which includes various methods of written, face-to-face, and possibly electronic communication is best. Listen to your employees' views You have a responsibility to consult with your employees. Consultation means genuinely listening to your employees, seeking their views and then taking them into account before making a decision. It may be an idea to establish a once weekly meeting with your employees. Make sure these meetings are focussed and relevant with the opportunity for feedback. Reward Fairly There is much evidence which shows that, when it comes to work, people are motivated by more than just pay. However, unless employees feel they are fairly rewarded then they are likely to be resentful and dissatisfied. This makes it difficult to build a productive relationship. This dissatisfaction can lead to higher levels of absence, employee turnover and conflict. Basic rate systems where pay doesn't vary in relation to achievement or performance are the easiest to operate and work well for many employers and workers. Some companies introduce pay systems with incentives as a way of improving performance and increasing profits. The involvement of employees is seen as key to the development or improvement of an effective pay system. Employers have a responsibility to pay their employees at least the statutory minimum wage. For employees aged 22 years or over this is currently £5.52 per hour. All pay systems should comply with the law on equal pay. Men and women have the right to equal pay if they are doing "like work" or "work of equal value". This is a complicated area of the law and further advice should be sought if you believe you are at risk. Work Safely In recent years, health and healthy living have become increasingly important issues both in society at large and in the workplace. Employers are now looking at issues like smoking, alcohol and stress alongside traditional occupational health issues such as noise, dust and chemical hazards. Sometimes employers need to do more to improve the working environment. For example, employers are required to make reasonable adjustments to working conditions or the workplace where that would help to accommodate a particular disabled person. Employers, workers and their representatives have statutory responsibilities under the provisions of the Health and Safety at Work etc Act 1974 and regulations made under the Act. It is therefore important to review health and safety measures regularly. Included in this responsibility is the requirement to promote health education in the workplace by helping employees maintain a healthy balance between working and home life and taking steps to tackle the problem of work related stress. Valuing Employees If you have the right systems and procedures in place you are already well on the way to developing good relationships in the workplace. Relationships between individuals and employers are more likely to flourish if: everyone is treated fairly and differences are respected and valued work is organised to encourage initiative and innovation managers understand the need for employees to balance personal and business needs people are encouraged to develop new skills. Employers may find that some of these improvements will evolve naturally if people communicate. For example, if managers listen to staff they may find out concerns employees have about the way they balance their life at home and work. Policies can then be developed to change working patterns or job design in order to improve efficiency. Treat Fairly Most forward thinking employers have policies that reflect their commitment to ensuring equality in the workplace. Equality issues, discrimination and harassment are all examples of where employees need to be treated fairly. There are many benefits for employers spelling out where they stand on tackling discrimination and promoting equality. For example, having a short equality policy: helps all your staff feel valued shows staff, potential recruits and customers that you are serious about fairness helps you comply with the law helps win business by showing your business to be inclusive and forward-thinking. Conclusion Following the steps above will help you successfully manage the people in your business and manage your people related risks. If you have these practices in place then you are probably well on the way to building an effective workplace. But what is the real test of how well things are going? You need to ask yourself two questions: Is the working relationship between you and your employees adding value to the business? Is there a climate of trust between you and your employees? Positive employee relations is the key to success because it provides a channel for employees to communicate with you and vice versa. If this relationship works well, it can help to build trust and a cooperative approach to problem-solving and quality improvement. In most businesses the service being provided is predominantly delivered by the employee so employee relations leads directly into key business success areas like customer satisfaction, repeat business and third party referrals etc. Karen Harrison in an independent Human Resources Consultant, working principally for small to medium sized companies who are experiencing a high degree of change. She has 14 years experience in the field of HR working for large companies such as Reuters and Legal & General. She would be very happy to receive your ideas for topics which concern you.
Recommended Comments
There are no comments to display.