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  1. Interview bias and how to avoid it

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    Have you ever recruited someone and thought, well they were nothing like they were at the interview?  Maybe your unconscious bias is to blame.

    The Horns and Halo Effect

    This game show contestant caught my eye.  What was your first thought when you saw him?  Mine was “I bet he is good at making cakes”.

    I have absolutely no evidence of whether or not Alan is good at making cakes.  He didn’t say he was. Even if he did, how would I know he was telling me the truth?  Honestly, I only thought this because he looks uncannily like Great British Bake Off host, Paul Hollywood.

    That is the “horns and halo effect”.  Something about them reminds you of someone else.  You then attach those attributes to the person in front of you.  They look or sound like someone you have worked with before.  Perhaps you thought they were great.  Perhaps you didn’t.  This bias could affect your decision.

     

    How long to decide

    When you go to collect your candidate for interview, you want them to be great.  In reality, within seconds of seeing them, you make your decision.  You interpret their answers through the bias of your first impressions.  You spend the rest of the interview trying to prove yourself right.  This can lead to bad hiring decisions.

     

    How to overcome interview bias

    • Before you start to recruit, decide what knowledge, skills and attitudes you need for that role.
    • Draw up a checklist of the important points things you will want to assess.
    • Plan your interview questions in advance.
    • Look thoroughly at their CV. Check for gaps, unusual claims or job moves.
    • Allow plenty of uninterrupted time for the interview.
    • Ask each candidate the same planned, core questions.
    • Have more than one interviewer.
    • Listen carefully to their answers – don’t assume.
    • Where possible, set them an appropriate test.
    • Now look back at your checklist.  How did they compare?

     

    Your candidates are judging you too.  Their first impressions will help them decide if they will fit in and if you will be good to work for.

    If you would like to discuss this further, please contact me.

  2. Contractor or Employee – You Decide

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    If your business uses a contractor, now is the time to carefully consider if they are really an employee.  From April 2020, businesses with more than 50 employees or a turnover of £10.2m need to clearly establish which one is correct.

    Why is this important?

    It is estimated there are around 500,000 personal service companies (PSCs) operating in the UK.  The worker charges for their work through their PSC.  They pay less tax and National Insurance.

    There is concern that some contractors should truly be classed as workers.  The trouble is, HMRC has not had the resources to police this fully so changes are coming.

    From April 2020, the burden of categorising the contractor’s tax status will fall on the Company. Get it wrong and your company could face huge costs.  The payment the contractor has received may be treated as net wages.  This may be grossed up and you may be responsible for paying the tax and National Insurance.  You could also face a significant fine.

     

    How do I check if a contractor is really an employee?

    You could find that someone you took on as a contractor some time ago has slipped into becoming an employee.  Maybe they were really good so you started using them more.  Now they work for you full time and on different jobs.  They’ve been with you for ages.  You have no intention of them leaving your business and they don’t work elsewhere.  Sound familiar?

    If you use contractors, you need to start looking at this now.

    • Identify any contractors you are using. Do you have anyone who provides their services through a PSC or regularly bills you for their time?
    • How much autonomy do they have in terms of how they deliver a project? If they have little or no control, it may indicate they are employed.
    • Do they have the right to substitute someone else to do the work in their contract?
    • Is there “mutuality of obligation”? In other words, is there an ongoing requirement to offer and accept work?  An open ended contract where the worker is asked to perform different tasks looks more like employment.
    • Importantly, what actually happens in practice? Don’t just look at what the contract says.

     

    How do I change from contractor to employee?

    Once you have identified which contractors may actually be employees, consider making them an offer of employment.

    Many people have chosen to be a contractor for tax reasons.  If they now need to become an employee, expect they will want their pay to increase so their take home pay is the same.  Please speak to your accountant to help you calculate this.

    When you are ready, speak to the worker concerned.  If they are not willing to become an employee, you may need to consider whether you can continue to use them after March 2020.

  3. When good employees become problem employees

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    It’s a problem I come across sometimes.  An employee has been great for many years.  Then a change creeps up on you.  You realise they are making more mistakes.  They are no longer meeting their targets.  Their attitude seems different.  Can this really be happening and how do you address it?

     

    Arsenal’s problem employee

    Laurent Koscielny joined Arsenal in 2010. He has made over 350 appearance for the club.  He has also been club captain for several years.  During that time I’ve seen him doing everything he could for the team, being injured many times in the process. Before this summer, I’d have said he would have done anything for his employer. Something has changed.

    When asked to go on a preseason tour to America, he refused.  Arsenal told the World what had happened.  It seems the relationship between club and employee has completely broken down.  What could have been done to avoid this?

     

    What triggers problem behaviour?

    It is highly likely there has been a trigger for Koscielny’s behaviour.  It is rumoured he wants to move back to France.  He is also said to feel his return from major injury was poorly handled.  Koscielny has worked for many years under a different boss.  Last summer that changed.  The change in management style may have been causing him stress.

    If your employee is behaving differently, you need to first establish why.  Personal issues, management changes and bitterness over decisions made could easily be affecting your employees too.

     

    Finding out the cause

    Consider examples of how you think things have been different.  Examples can be a useful way to explain your concerns.

    Make the opportunity to talk to them in a relaxed and private environment.  Make sure you are not going to be interrupted.  Turn off your phone.  Whatever it is, it is important to them.  If you are distracted this will be seen as proof you are not interested.

    Tell them that you are concerned about them.  Say that you wanted to ask if they were OK and if there is any support they need from you.  Encourage them to talk about anything they are struggling with.  The most important thing here is to show you are listening.

    Consider if there is anything you can do to support them. They may be looking for more training, better communication or more flexibility.  They may have personal issues that they have not known how to raise.

    Like Koscielny, they could just be determined to move on.  If you can at least have a dialogue about this, you can manage the situation better.

     

    For more information on how to hold a difficult conversation, please contact me.

  4. Getting your holiday pay sums right

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    Summer holidays are around the corner. The law says that when someone is on annual leave, they must be paid their normal pay. The question is, what is “normal” holiday pay?

    For someone who is paid a basic salary only, it’s easy. Just pay them as you would usually. However, if someone’s pay packet includes regular extras, you may need to pay more than you realise.

    Regular payments

    If your employees regularly earn commission, overtime or other payments while they are working, be careful. Such payments can be considered as “normal pay”.

    Let’s say your employee, Sam, is contracted to work eight hours a day. In reality, he works an hour’s paid overtime most days. When he is on holiday, he can’t work that overtime. That means he will receive less pay than usual.    Similarly, if his daily work involves selling products for which he gets commission, he won’t be able to earn commission while he is off. His holiday pay would not be the same as his “normal pay”.

    How to calculate holiday pay

    Let’s say Sam earns a basic salary plus commission. In the last year, he has earned £3,000 in commission. He has two weeks’ holiday. How do you calculate his holiday pay?

    If his commission is earned by selling goods most days, it will count as “normal pay”. You must therefore include it in his holiday pay. To do this, calculate his average daily commission in the 12 working weeks before he took holiday. As of April 2020, you will need to take the average over the previous year.

    Alternatively, if Sam earned £1,800 commission in January and £1,200 in September, his commission earnings are irregular. They would not be considered part of his “normal pay”. He would simply be paid his salary.

    A few final points

    Just to complicate things further, this only applies to 20 days of the minimum 28 days per annum annual leave. This is due to the UK having a more generous minimum holiday entitlement than the EU law demands.

    If you fail to pay any additional regular earnings as holiday pay, the costs could be significant. Potentially, the claim could be backdated by up to two years.

    This is a confusing topic. If you would like to discuss any individual concerns, please contact me.

     

     

     

     

     

     

  5. Mental Health at Work

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    Approximately one in four people experience a diagnosable mental health issue every year.  The number of issues I see in work has certainly increased.  Whether there are more issues or more awareness, I could not say.  The fact is, we need to give more support to those that need it.

    How does mental health affect work?

    Some mental health conditions are like diabetes or asthma.  Part of a person’s make up.  That said, anyone can be affected.  Worries about finances, caring for others or problems at work can all lead to stress or other conditions.

    According to HSE figures, 15.4 million working days were lost to stress, anxiety or depression in 2017/18.  Put another way that equals 59,231 full time workers.

    It is not just those that are off.  What about those that are still coming into work?  They may be distracted, performing poorly and impacting on others around them.  Ever wondered why someone had stopped performing but been afraid to ask?

     

    What can employers do to help?

    I felt I needed understand more about mental health at work.  I have just qualified as a mental health first aider.  In the same way a physical first aider learns about how to deal with cuts, burns even heart attacks, I’ve been learning how to support someone with mental health issues.

    The course teaches you about different conditions.  It shows you what signs to look for and how to help.  I would recommend it to anyone.  Even simply listening to someone’s concerns properly can make a huge difference.

    There are simple steps you can take to help your workforce.  For instance, caffeine has been found to be a depressant. Why not introduce decaffinated tea and coffee as an option?

    You can display leaflets, contact  numbers and information.  Mental Health First Aid England (MHFA) have a great range of resources on their website such as their 10 keys to happier living poster.

     

    Mindful Employer

    Another useful resource is Mindful Employer.  This is an incredibly affordable employee assistance programme.  Run by an NHS trust, it provides support for both employees and their managers in supporting good mental health.

     

    It is in everyone’s interest to support good mental health at work.  Please do contact me if you would like to discuss further.

  6. Appraisal time at Arsenal

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    So, we’re coming to the end of Unai Emery’s first year as Arsenal Manager. In my fantasy football world, it is time to start thinking about his appraisal.

     

    Appraisal preparation

    As you would expect, we need to prepare properly. Before Unai’s appraisal, I want to find out:

    • What targets he was set.
    • How well he has done in achieving those targets.
    • Whether anything has affected his ability to achieve those targets.
    • What he has done particularly well.
    • What he could have done better.
    • What targets I would like to set for next year.
    • What support he needs to achieve those targets,

    Targets set

    My targets for Unai had to be:

    Specific

    Measurable

    Achievable

    Realistic

    Time-bound

    It was Unai’s first season in charge. I recognised that he faced a lot of HR issues: poor performance, lack of motivation and a need to attract good talent. Frankly, the kind of HR issues many businesses face.

    My own personal targets for Unai took this into account. I wanted a top six finish and quarter final of the Europa League. I’m happy with what he has achieved so far.

    Reflecting on recent events

    I am writing this blog as Arsenal hit their worst form of the season. Three losses in a week. I mention this as it is very easy for an appraisal to be swayed by recent events. If Unai’s appraisal had been held after they had won the Europa Cup (I can dream), I might be singing his praises more highly.

    If you are going to have annual appraisals, keep notes throughout the year so you have a more balanced view.

    Targets for next year

    Now that Unai has had time to learn about the Premier League, I’m looking for improvement next season. A top four finish, certainly. To win a trophy? Absolutely.

    More specifically, I’d like at least 15 more points away from home. Our away form has not been good enough this season. It is a major weakness he needs to address.

    Support he needs

    I’m sure Unai would say he needs financial support to reach these targets. Even though we had significant injuries at Christmas, he wasn’t able to buy any players.

    We know that Aaron Ramsay will be leaving for Juventus, Petr Cech is retiring and there will be other leavers, so we need to recruit.

    Review

    Having established what Unai needs to achieve and what support he needs, I will be assessing results throughout the year. It is no good simply looking at this year’s appraisal in a year’s time and deciding nothing has changed.

    Similarly, having agreed funds need to be spent, there is no point giving him the money three weeks before the end of next season and wondering why things haven’t improved. In the real world, that’s what often happens with promises of training.

    For support with real world appraisals, please contact me. That includes you too, Arsenal!

     

  7. The importance of wellbeing

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    The New Economics Foundation defines wellbeing as “how people feel and how they function, both on a personal and social level, and how they evaluate their lives as a whole.” I’m sure you know yourself that if you don’t feel good, you can’t perform at your best. Why would it be any different for your employees?

    Investing in the wellbeing of your team can reduce sickness absence, improve productivity and reduce turnover.  There are some simple measures you can take.  Most of these won’t cost you a penny.

    Mental health and wellbeing

    Managers should be approachable.  Check in with your team and ask how they are. The more approachable you are, the more comfortable employees will feel talking to you.  The quicker you deal with an issue, the less likely it is to become a real problem.

    We are becoming much more aware of mental health issues, which can only be a good thing.  What if you could spot the signs of someone struggling with their mental health much earlier?  Consider training as a mental health first aider.

     

    Workplace demands

    Stress is cited as the number one cause of sickness absence.  It accounts for 44% of all ill health cases.

    The demands you place on your team, could be causing them stress.  Can you truly make these statements?:

    • people’s skills and abilities are matched to the job demands
    • jobs are designed to be within the capabilities of employees
    • employees’ concerns about their work environment are addressed.

    If not, are you being fair to your employees?  What could you do to redesign the job or job roles to address this?

     

    Timing

    I recently had a discussion about when to send out marketing material. It surprised me that most people there looked at non-urgent work at weekends. Personally, I do not check emails during evenings or weekends. I need that space. I think we all do. Sometimes too little thought is given to our own wellbeing.

    Understandably people want to offload a problem before they finish for the day.  They send an email to clear their desk.  The receiver may feel compelled to respond or worry about the problem overnight.  By all means write those emails but don’t send them until first thing the next day.  That could save some restless nights and lead to better responses.

     

    Encourage Exercise

    Set up a cycle to work scheme publicise it to your team. The cost to you is very minimal but the benefits to them can be huge.

    As many of my clients will know, I have to get my steps in every day. Instead of taking up a meeting room, why not allow employees to walk and talk if they have something they need to discuss? I find I can often be at my most creative when I’m walking.

     

    Healthy alternatives

    A bowl of fruit won’t cost very much but can encourage your employees to eat more healthily.

    According to Cancer Research, 19% of adults smoke now.  The ONS say it was 22% before the smoking ban was introduced.  You can’t stop your employees smoking but could you make it less convenient?

     

    Flexible working

    Employees want more flexibility in where or when they’re working. Millennial’s seem to value this highly.

    New technology has made flexible working much easier. Cloud-based systems, sharing apps and the paperless office can all help. Greater flexibility could save you money in overhead costs, better recruitment and retention, as well as reduced absence rates.

     

    If you would like support to improve wellbeing at work, please do contact me.  I might be walking when you call but that’s a good time to talk.

"Debbie Glinnan (of Parallel HR) is extremely professional and very organised. Debbie offers sound advice with an impartial opinion. I have relied on her confidentiality and trust throughout our working relationship and would recommend Debbie to advise on any aspect of Human Resources."

Debbie Williams, Deputy Managing Director