Ishara Andrew (CC1607443) – February’17 Cohort – 5RST – HM To be able to undertake talent planning & recruitment activities 2.2 - The only way to reduce the effect of lost leadership is through a strong succession planning program that identifies and fosters the next generation of leaders through mentoring, training and stretch assignments, so they are ready to take the wheel when the time comes. In the face of skills shortages and a lack of confidence in leadership potential, succession planning has gained popularity, and is now carried out in both large and smaller organisations. Succession planning programmes typically include the provision of practical, tailored work experience relevant for future senior or key roles. The aim is for the organisation to be able to fill key roles effectively if the current post holder were to leave the organisation. Firstly, LPCH must identify the business-critical positions or roles in the organisation for which potential successors are needed. Succession planning typically covers the most senior jobs in the organisation, together with short-term and longer-term successors for these posts. The latter group are in effect on a fast-track and may be developed through job moves within various parts of the business. This focus on the most senior posts means that even in large organisations, only a few hundred people at any given time would be subject to the succession planning process. The relatively low numbers involved can help make the process more manageable. Lloyds Pharmacy Clinical Homecare need to be able to find people with the right skills to fill key positions. As an organisation LPCH must consider barriers to leadership and good people management in practice, and emphasises that development of future leaders must be aligned with supportive organisational processes such as reward and recognition, decisionmaking, cross-functional working, and organisational culture. Taylor’s staged approach to succession planning Taylor (2010) identifies a staged approach to succession planning which has traditionally been used: Identify the critical positions that are to be included in the process Define the capabilities that each of these positions will require in the future Identify and assess possible candidates for these positions Provide these individuals with focused development so that they could assume these positions in the future Regularly review the progress of each identified successor. This traditional approach has, in most organisations, now been replaced by more contemporary approaches and Taylor suggests several reasons for this. Taking his reasons and turning them from a negative to a positive stance, we uncover criteria that should underpin a good succession planning process: Selection should be objective It should not produce clones of people already in the positions It should encompass diversity and not disfavour women, ethnic minorities or other minority groups It should not be elitist It should conform to the principles of the best Human Resource Management (HRM) practice. Not all organisations carry out succession planning. Some are too small to be able to offer career pathways and opportunities for progression, others feel it is incompatible with diversity, whilst some may not have the resources to undertake it. Of course, there could be reluctance by people who feel it is planning for their own exit! There are, however, several benefits. Below is a succession planning cycle adapted by CIPD 2014 Participants in succession planning programmes may be selected either by informal methods, such as conversations with managers, or by more formal techniques, such as the performance review process and/or the assessment of competencies, However, there should not be an over-reliance on competencies because they may be too limiting and mechanistic to assess skills such as leadership. Therefore, career development planning needs to be a continuous process where both employers and employees work in conjunction to create a conducive environment, so they both achieve their objectives at the same time. 2.3 – Should LPCH be looking to downsize, the information and the statistics generated through a successful career development system should assist in making the right decision when it comes to employees and future proofing the grading. Downsizing’, ‘redundancy’ and ‘layoffs’ are different names for similar processes where there is a planned reduction of jobs in an organisation. These three terms are used when an organisation has too many employees, which can happen for several reasons including: Because of a strategic shift in an organisation’s focus or market position When it's faced with an economic recession and/or declining market share Has been growing in an unsustainable way. Redundancy is one of the most traumatic events an employee may experience. Announcing redundancies can have an adverse impact on the morale, motivation and productivity of the whole workforce. The negative effects can be reduced by the employer’s sensitive handling of redundant employees, as well as those who are staying. (Avado) Can we downsize without redundancies? This should be the first question that HR practitioners ask. John Philpott, the CIPD’s Chief Economist, notes six downsizing alternatives to redundancies: (John Philpott, ‘Labour Cost Savings from Alternatives to Redundancy’, 2009, CIPD Impact journal, issue 27, pp. 24-7) 2.4 – As stated by CIPD, effective recruitment is central and crucial to the successful day-today functioning of any organisation. It depends upon finding people with the right skills, expertise and qualifications to deliver organisational objectives and to contribute positively to the values and aims of the organisation. But it also depends upon finding people with potential for development because recruitment is not just carried out to fulfil current needs. Recruiters should always be aware of and refer to future that have implications for organisational resourcing. LPCH also need to be fully aware of equal opportunities legislation and understand how discrimination can occur both directly and indirectly in the recruitment process. Organisations should monitor their recruitment processes continuously to ensure their validity, and that they are non-discriminatory. Job Analysis - Before recruiting for a new or existing position, it's important to invest time in gathering information about the job. This means thinking not only about the content such as the tasks making up the job, but also the job’s purpose, the outputs required by the job holder and how it fits into the organisation’s structure. This analysis should form the basis of a job description and person specification/job profile. Job Description - The job analysis leads to writing a job description. This explains the job to candidates and helps the recruitment process by providing a clear guide to all involved about the requirements of the job. Job descriptions should focus on the work someone needs to achieve rather than the skills and experience, as this is more likely to result in choosing someone with the right abilities. Person specification - A person specification or job profile states the necessary and desirable criteria for selection. Increasingly such specifications are based on a set of competencies identified as necessary for the performance of the job. There are many approaches to writing job descriptions, but they all typically include: The job title The main purpose of the job, duties and responsibilities The location The grade of the post or some idea of the rate of pay The position in the organisation Any special working conditions (e.g. anti-social hours or the need for a criminal record check). Some organisations prefer to replace competency frameworks for job or person specifications. These highlight the competencies required to perform effectively in the role, rather than qualifications and previous experience. The idea is to focus on the candidate’s current and potential levels of ability rather than their previous performance. Typical factors found in employer competency frameworks include: Communication skills People management Team skills Customer service skills Results-orientation Problem solving. A competency-based description should still include an indication of the role’s responsibilities. 2.5 – Before considering the importance of the good practice, we need to outline the relevant legislations and legal requirements in relation to recruitment & selection. The main legislations we must consider when recruiting & selection are as below; Equality Act 2010 Data Protection Act 1998 Freedom of information Act 2000 These are mostly based on principles that support working relationships: Equality and fairness Removal of bias Data protection Background checking Right to work. In the UK, the main piece of legislation covering discrimination in recruitment is the Equality Act 2010. It sets out a range of protected characteristics. It is illegal to treat anyone less favourably based on: Age Disability Gender reassignment Marriage and civil partnership Pregnancy and maternity Race (including ethnic or national origins, colour and nationality) Religion or belief (including lack of belief) Sex Sexual orientation. In terms of recruitment, the most obvious duty for an organisation is not to use any of these protected characteristics to decide on appointing or rejecting a candidate. Exceptions apply to some protected characteristics, where the nature of the work means certain groups must be excluded, or may be encouraged to apply (a genuine occupational requirement). In the UK, the Data Protection Act (DPA) 1998 sets out employers’ obligations around handling, using, storing and destroying personal information. This allows applicants to request copies of any personal data an organisation holds about them. In a recruitment situation, this means successful and unsuccessful applicants have the right to see interview notes, shortlisting notes or any other documentation the organisation has made about them. Organisations using personal information must make sure the data is: Used fairly and lawfully Used for limited, specifically stated purposes Used in a way that is adequate, relevant and not excessive Accurate Kept for no longer than is absolutely necessary Handled according to people’s data protection rights Kept safe and secure. 2.6 - Below table shows advantages & disadvantages of different recruitment methods. Method Advantages Disadvantages Internal Recruitment Cost Effective & Less time consuming/ Candidates are familiar with the business culture & values Advertising in the social Media Cost effective/ Can reach a large pool of candidates/ flexibility and easy Recruitment Agency Good Knowledge of the market place/ Excellent contacts with job seekers Creates another vacancy which needs to be filled/ resentment amongst unsuccessful internal candidates Difficult to measure effectiveness/ Maintaining job advertisements can be time consuming/ hart to active job seekers High costs/ time consuming/ They decide which candidates to put forward Below table shows advantages & disadvantages of different selection methods. Method Advantages Disadvantages Individual Interviewing Assessment Centres Body language and facial expressions are more clear/ develop a relationship/ less stressful for the candidate Can be adaptable to all type of position/ All candidates are measured objectively to the same criteria Time consuming/ more bias responses/ Stage fright of the candidate and might not get the outcome desired. Time consuming/ administration costs (food & beverages) Can give false hopes to candidates 3.1 - Once an organisation has spent a great deal of time & effort recruiting, selecting and on boarding employees, the last thing they want is for employees to leave. To encourage staff to stay with the company, we should always consider what motivates each individual person. Reward & recognition seems to top the list of the motivation factors. There are many academic theories regarding motivational factors such as Herzberg’s Two Factor Theory model and Abraham Maslow's hierarchy of needs. however, there are also many other reasons why an employee may choose to stay or leave. When a desirable employee leaves an organisation, it is also known as dysfunctional turnover, this can damage a company massively and cause disruption operationally. It takes time and training for the recruit to get up to a reasonable standard to fill in the gap of the employee who has left., or might not reach that level at all. At times, there may be a need to hire two junior employees to replace the talent we have lost. This can be a huge cost to the company in hiring, salary and training and development to mention a few. The costs surpass any possible benefits. Colleagues who are leaving might be top performers & others might have irreplaceable skills that are hard to come by, making it difficult and expensive to recruit substitutes. 3.2 - The reasons why people stay in their jobs are just as important as the reasons why they leave them. An important part to consider in successfully managing employee retention is the state of the psychological contract ‒ otherwise known in legal terms as 'implied terms'. The psychological contract can be defined as the unspoken perceptions and mutual obligations and expectations between employers and employees. These are not necessarily set out in the formal employment contract. Some elements of the psychological contract will be inferred from behaviours or custom and practice. It is important for employers to establish and maintain a positive psychological contract with employees as a basis for producing sustainable business value. (Avado 2017). HR, in partnership with the broader business, can design policies and behaviours that place the kinds of cultures that lead to retention. The following few good practice principles are just the tip of the iceberg when looking to implement and secure retention strategies. Table below will show some of the reasons why an employee leave & what we could do as an organisation as best practice in the future to retain and to make employees want to stay. Avoid redundancies whenever possible‒ redundancies lower morale. Review how far the organisation’s practices reflect its values‒ employees tend to have low trust in the organisation. Train line managers in people management skills‒ employees are more likely to trust their line manager. Ensure middle managers commit to key messages‒ mixed messages will have a negative influence on employee attitudes. Inform and consult employees‒ they are more likely to see the outcome as fair. Take care to fulfil commitments you make to employees‒ managers say employees show more commitment to their employer than vice versa. Put more effort into managing change‒ employees often believe change is badly managed. Give employees more responsibility‒ autonomy increases satisfaction. Use employee attitude surveys to get a clear idea of what is happening in the organisation‒ employees often do not share senior managers’ views of reality. Don’t rely on tight management and close supervision‒ this will reduce employee satisfaction. Use recruitment and appraisal processes to clarify the 'deal'‒ employee expectations Trust employees to do a good job‒ most are highly motivated to do so and will respond to the trust you show in them. Don’t rely on performance management systems to motivate employees‒ you need to engage hearts and minds. (Avado 2017) Reason for leaving Bad relationship with the manager or colleagues Negative opinion of the company Retention Initiative Management training/ HR mediation/ team building activities, internal transfers Clear communication/ clear policies/ focus on equal opportunities Dissatisfaction with reward & recognition Flexible benefits scheme/ external benchmarking with similar companies to ensure salaries are competitive Outside work commitments Dissatisfaction with the working environment Career progression/ promotion Flexible working arrangements Investment in maintenance of equipment Succession planning/ learning & development opportunities. Below table shows strengths and weakness of different approaches of retaining talent. Method Advantages Disadvantage Enhanced salaries Excellent way of retaining talent by offering salary increases. Help employees maintain better work life balance Could be a strain to company finances and budget Sometimes workforce planning could be challenging Retention works adversely when employees who are non-performing are retrained & negatively impact company’s finances. Flexible working patterns Training & Development This could be one of the motivational factors for employees to stay with a company. Recruitment Errors Explaining and inform clearly what the job in detail at the interview. Clear job description & person specification. Sometimes organisations are not clear about their expectations and work profile which makes employees feel that they are a mismatch and they tend to leave the organisation realising that their potential is not fully utilised. 4/4.1 - If redundancies are unavoidable, the following principles should be followed. Organisations should have a formal procedure for redundancy. In many organisations, a formal agreement may have been made between management and trade union or employee representatives. Organisations should go through the following stages as a minimum: Planning Identifying the pool for selection Seeking Volunteers/ Voluntary retirements Consulting Employees Selection for redundancy Appeals and dismissals Suitable alternative employment Redundancy payment Counselling and support When 20 or more employees at one establishment are to be made redundant, collective consultations with recognised trade unions or elected representatives must start before a set date. For dismissals of 100 or more employees, this is at least 45 days before the notification of redundancies. For dismissals of 20-99 employees, this is at least 30 days before the notification of redundancies. However, the ‘20 or more employees at one establishment’ rule is currently the subject of litigation which may affect when the consultation provisions apply in future. At the start of the consultation process the employer is legally obliged to give the following information to the representatives: The reason for the redundancy dismissals Some of the fair reasons for redundancies should be as stated below; 1. 2. 3. 4. The need for the job no longer exists and will not be completed by anyone; The business goes bankrupt or has the need to downsize due to advanced technology. Staff reduction for certain tasks becomes necessary due to a slowdown in business; The position performed by the employee is no longer required due to restructuring or reorganisation where the work may be redistributed between several other employees; 5. A merger or takeover occurs and the position is no longer required. The probable consequence of not agreeing to the correct procedure could be a claim of 'Unfair dismissal' and an often lengthy and time-consuming Employment Tribunal. Also, (depending on the employment contract and employee eligibility) the company may need to pay severance monies more than what is necessary. (Avado 2017) The number of proposed redundancies and their job types The total number of employees affected The proposed methods of selection The procedure to be followed in dealing with the redundancies The method of calculating redundancy payment. Employers are also required to consult individual employees and give them reasonable warning of impending redundancy. When the consultation is complete, the employer may need to choose individuals from within the selection pool. These choices must be based on objective criteria such as: Length of service (only as one of several criteria) Attendance records Disciplinary records Skills, competencies and qualifications Work experience Performance records. The organisation can select, for example on competency – related grounds, the weakest employee, in terms of their contribution to the company to be dismissed through the redundancy process. Employment tribunals look favourably on selection procedures based on a points system which scores each employee against the relevant criteria. However, employers must take great care in the choice and application of the criteria to avoid factors which may be discriminatory. For example, selection of part-timers could be discriminatory if a high proportion of women are affected. Scoring should, if possible, be carried out independently by at least two managers who know all the employees in the selection pool. Marks from the two assessors should then be added together to give a total score for each employee. The employer should notify in writing all individuals who are selected for redundancy that they are ‘at risk’ of redundancy, and invite them to a meeting which is the first part of the individual consultation. At least one further consultation meeting should be held, with the actual number of meetings depending on what the employee must say. The employer must consider any argument that the employee puts forward to avoid the redundancy. Once the individual consultation is complete, the employer must decide whether the employee is to be made redundant. The employer must give employees notice in writing of their redundancy – statutory notice or contractual notice, whichever is greater. They must also be explained the redundancy payment they will receive. An employee should be allowed to appeal against the decision to make them redundant. Making someone redundant because of their age, sex, sexual orientation, marital status, disability, race or religion, or any other protected characteristic, will be a breach of the Equality Act 2010. Disciplinary Dismissal – Employees who persistently break rules become a liability and subject to the outcome of a disciplinary hearing and depending on the severity and the frequency of the offence. Reasons could be inappropriate behaviour, lack of capability and many other reasons stated in the company disciplinary procedure. Maybe considered as “gross misconduct”, The nature of what and what is not gross misconduct should be clearly defined in the company disciplinary procedure subject to the ACAS code of practice on disciplinary & grievances. All activities should be clearly documented. The dismissed employee may have the ground for appeal to an employment tribunal for unfair dismissal. To be potentially ‘fair’, a dismissal must be for one of five reasons: capability or qualifications conduct illegality or contravention of a statutory duty some other substantial reason redundancy Retirement – is in the main, when an employee chose to finish working, to retire. The legal retirement age in the UK currently is 65 years of age, however people may choose to work if as long as they like. There is no compulsory retirement age, if the employee chooses to work, they shouldn’t be discriminated against. (www.gov.uk/retirement-age). Many people choose to take flexible retirement options when they reach their retirement age, rather than leaving paid employment completely. If an employee becomes unable to meet the needs of the job role through factors related to age, any exit should be managed through the performance and capability procedure. Good practice in the management of retirement is for there to be ongoing discussions with all employees about their future intentions and a range of options available when retirement starts to be considered. The retirement options may include the following: Moving from a full-time to a part-time contract Stepping down to a role with slightly less responsibility Winding down – gradually reducing working hours Atypical contracts, perhaps including an extended period of leave Retiring from permanent employment but remaining on the company books as a consultant. (Avado 2017). Such options have proved very popular. In a survey carried out by the Centre for Research into Older Workers (CROW), it was found that 80 per cent of the respondents (people currently in fulltime work) would like to stay in work beyond their expected retirement dates. Only nine per cent would like to do so on a full-time basis while most would like to stay on only if they could work part-time, occasionally or on a consultancy basis. Taylor & Woodhams (2016) Bibliography Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Malcolm Martin and Fiona Whiting – Human Resources Practice – 7th Edition Charles Leatherbarrow & Janet Fletcher – into to Human Resources Management – 3rd Edition Lloyds Pharmacy - Clinical Homecare. 2017. Homepage - Lloyds Pharmacy - Clinical Homecare. [online] Available at: http://www.lpclinicalhomecare.co.uk Avado - cipdcampus.avadolearning.com – CIPD level 5 – 5RST – Study material ACAS - www.acas.org.uk - Redundancy & retirement XpertHR - xperthr.co.uk – Workforce Planning & Retention Strategies CIPD - cipd.co.uk – Redundancy & Retirement John Philpott, ‘Labour Cost Savings from Alternatives to Redundancy’, 2009, CIPD Impact journal, issue 27 Randstad - workpocket.randstad.co.uk Stellar HR- stellarhr.co.uk – Redundancy Fact Sheet