People Matter January 2019
Five New Year’s resolutions
from The HR Dept
When you’re planning 2019 for your business, be sure to include some proactive HR measures to help you get more from your team. We share HR tips and advice every week in our blog. Here are some recent ideas that would make top HR New Year’s resolutions.
One. Address that underperforming employee. It’s easy to put off, but underperformance is a major drag, impacting any or all of service delivery, morale, profits and opportunity-cost.
When doing this, spend a bit of time observing your team to ensure you’ve identified the real under-performers – it’s not necessarily obvious. Always-late Aisling might have a stretched home life but be super productive at work, while Helpful Henry often volunteers a tea round but isn’t doing much else!
Two. Look into new learning and development opportunities. Continuous learning is a key to success and helps engage staff. It doesn’t have to be formal training. How about some monthly in-house knowledge-sharing sessions, led by different team members?
Or if you do want something more formal, ask us about our range of training courses designed to take your team to the next level – from leadership and people management to interviewing and recruitment.
Three. Check your contracts and employment statuses. The rise of the gig economy has led to many people being wrongly classified as self-employed. They’re taking their companies to court to claim the employment rights they’ve been denied. It’s something we advise on regularly and in time will be addressed in legislation.
Four. Carry out a risk assessment. Every business is legally required to have done this and keep a written record, but risks change over time. So why not ensure you’re still on top of health and safety in 2019? If you need help identifying hazards, determining the level of risk or putting controls in place to manage them, talk to our experts.
Five. Plan an enjoyable activity or team-building day. It’s important to have some fun along the way, and now’s a great time to give your team something to look forward to, lifting spirits in deepest, darkest January.
SMEs cautious in 2019
Several headwinds have created a cautious mood among small businesses this year. That’s according to the Small Firms Association (SFA), which publishes an annual survey examining the sentiment of businesses with less than 50 employees in Ireland. Last year the mood was cautiously optimistic.
Brexit, difficulties in attracting staff and the rising cost of doing business are cited as causing this drag on sentiment. Even so, two in every three companies are planning to recruit and invest in their business this year.
Staff often represent both the biggest cost and the main strength of a company. So it’s natural that managing them will also be one of the biggest causes of worry. Increasing your HR support can provide peace of mind. And, at a time when caution reigns, help you get recruitment, people management, payroll and everything else that goes with running a successful team spot on.
Making a good first impression
“Fail to prepare, then prepare to fail” is a maxim that’s often given to interviewees. But it can equally apply to the interviewer if you are to make a good impression yourself. To do this, your questions should be considered in advance. There’s an obvious need to avoid subjects that could breach equality law, such as pregnancy. And it’s also wise to steer clear of contentious topics like politics, or pressing for answers too vehemently.
Think about the time and place of the interview, making sure they are reasonable and set the right tone for your company. Some people like to stage interviews in the informal setting of a café or restaurant. If you opt for this, ensure it’s not a place where you or your interviewee could be interrupted by acquaintances. For help upping your interview game, talk to your local HR Dept.
Budget changes go live
On 1 January some of the changes announced in October’s budget came into effect. Here’s a rundown of those which affect employers.
One of the changes with the widest impact concerns employers’ PRSI rates. The weekly threshold for the higher rate is now €386 (previously €376). And Classes A and H of PRSI rates have risen by 0.1%. This is to fund increases in the National Training Fund Levy. Bear in mind too that there will be a further increase of 0.1% to these rates next January.
Also significant, if you employ low-earning staff, is the increase to the National Minimum Wage. This has gone up from €9.55 to €9.80 per hour.
And perhaps the biggest change of all this month is the implementation of PAYE Modernisation. From 1 January, you should be reporting your payroll data in real-time to the Revenue. Previously this was done on an annual basis via the P35. It’s a major change and the indications over the last few months were that many SMEs would not be ready for it. If you are behind on this, it’s our understanding that it could put you more at risk for a full Revenue audit, so catch up quick.
If you need help adjusting to these budget changes get in touch with your local HR Dept. Our payroll solutions will help you get up to speed. Further budget changes, like new parental leave entitlements, will come into effect later in the year. Rest assured that we will keep you up to date so that you stay compliant.
Sacked too soon
When disciplining an employee, it’s vital you follow the right steps. Even if you feel you’re on firm ground, a procedural error could cost you dearly in a labour court.
Last October, a man was awarded €29,000 after being sacked (for theft) as an airline security worker. He’d taken a €5 magazine from a bin. The court found that other sanctions should have been considered and his dismissal was disproportionate when length of service, track record and the value of the magazine were considered.
This January, a woman was awarded €4,000 after she’d been dismissed from a supermarket chain for leaving work with a bottle of wine which hadn’t been paid for. Regardless of what happened with the wine, the court found the dismissal tainted with procedural unfairness. This was because, during the investigation and disciplinary process, the woman hadn’t been supplied with the honesty or staff purchase policies she was accused of breaching.
Don’t make the same mistakes. If in doubt, talk to us.
The weather’s generally rubbish, the days are short, and many people are broke and on diets after Christmas. It’s not surprising January supposedly features the most depressing day of the year. How does all this affect your team each January?
If productivity takes a dive or the atmosphere sours, showing a little awareness and taking a couple of proactive steps could work wonders. Think what will work for your team, of course. But for many people, encouraging achievable exercise goals – like a daily step challenge, for example – and simply getting some fresh air and daylight at lunchtime could be a great start.