On the first day of Christmas my inbox gave to me...
A new boss in Janu - ary
The new calendar year is a popular time for senior executives to take up the reins, particularly if the financial year-end is 31 December. Strong leadership involves being visible to staff, something explained very helpfully by Mark Jackson in his article, ‘Walk slowly among your people and smile’ on 14 July 2010.
Watch out for any psychopath-type personalities in your boardroom. Holly Andrews explains the impact dysfunctional leaders can have an organisation in her 10 November 2010 article ‘Snakes in suits – are there psychopaths in your boardroom? And Philip Whiteley’s article ‘Meet the new boss’ on 18 February 2010 looks at how hierarchical, mechanistic organisations are missing some real opportunities. Our news item, ‘Autocratic leaders who don’t listen are bad for business‘ (11 August 2010) is also a reminder of how, controlling, autocratic leaders can end up stifling their organisations’ growth because their aura of power inhibits team members contributing key information for good decision making.
However we would hope that notice of a senior executive’s imminent start date would be rather longer than this and that the recruitment processes were robust and insightful.
On the second day of Christmas my inbox gave to me:
Two keen apprentices and
A new boss in Janu - ary
Don’t forget that the National Minimum Wage (NMW) is £2.50 for apprentices under 19 and for over-19s in their first year of apprenticeship. And the number of over 50s taking up apprenticeships has doubled in nearly two years (see our editorial on 6 October ). Useful further information is available from www.apprenticeships.org.uk – Lord Sugar does not have a monopoly of them…
On the third day of Christmas my inbox gave to me:
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
When reviewing HR and payroll systems, look at what could be saved with an integrated system where data is entered only once (see Dennis Keeling’ article ‘Once is enough’ on 21 April 2010. You also need to consider how much scope there is for your employees to update their own personal details, holiday requests. Self service technology is, according to Keeling in his article, ‘Integrating Self Service’ on 22 September 2010: “a very worthwhile HR service, with little administrative overhead on the HR department but a great asset to the managers and staff.” Finally, with cloud computing catching on rapidly, now is the time to decide how your organisation could capitalise on this technology. See Keeling’s ‘Up to the Atmosphere’ on 3 December 2009.
On the fourth day of Christmas my inbox gave to me:
Fo-ur festive temps
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
Don’t forget that any students taking up temporary work over the festive period – typically those working as Santa’s helpers, ice rink supervisers and shop gift wrappers are being reminded that they may not have to pay tax on the income they receive over the festive season. HMRC has reminded them that as long as their total earnings for the tax year are less than the personal allowance of £6,475, they will not have to pay any tax. But to ensure that employers do not take tax off their earnings before it goes into their bank accounts or pockets, students have to fill in a form, P38(S).This can be found at: www.hmrc.gov.uk/forms/p38s.pdf.
Those who fail to fill in the form and who do pay tax can claim it back afterwards, by submitting a form P50. The P50 can be downloaded at www.hmrc.gov.uk/pdfs/p50.pdf.
Anyone who worked over the summer and earned less than £6,475, but paid tax on those earnings, should also apply for a refund as they could receive a Christmas present of £340 from the tax office.
See also Neil Tipping’s article ‘The students are coming’ in The People Bulletin, 1 July 2009.
On the fifth day of Christmas my inbox gave to me:
Five ex-tra days’ leave
Fo-ur festive temps
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
Extra holiday is a popular tax efficient benefit offered by many employers – including our own employer at The People Bulletin. The employee elects for a reduced salary, the reduction can be priced based on an agreed formula and no tax or NICs are paid on the additional days. For example:
With holiday priced at 1/260th of salary per day, an employee earning £52,000 would sacrifice £200 a day. Five extra days of holiday purchased is a sacrifice of £1000 gross pay. The employer saves £128 (£1,000 x 12.8% NIC) and the real saving to the employee of buying the five days is £590 (£1000 less 40% tax plus the 1% NIC). It is important that employees are notified of the opportunity, deadlines for submission (eg end of January for deductions to be taken through the 2011 payroll) made clear and documentation all signed off. See also Elaine Gibson’s article on salary sacrifice: ‘Payroll perk or benefit in kind?’ on 11 August 2010.
On the sixth day of Christmas my inbox gave to me
Six bottles of bubbly
Five ex-tra days’ leave
Four holiday student temps
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
If the bottles of champagne were a gift from your employer, note HMRC rules for additional benefits in kind. And if the bottles were included in a social event provided by the employer remember that the exemption for company entertainment before HMRC would regard a corporate social function as a benefit in kind (which would attract tax and NI) is £150 per person per annum. For example, a summer party and a Christmas one cannot add up to more than £150 a head including VAT. For further guidance see HMRC’s guidance EIM21690 – Particular benefits: annual parties and other social functions.
If you were buying the bottles to give to your staff, just check out your expenses policy before pressing ‘buy’ on that online order form. In a year where inappropriate expenses have somewhat dominated the headlines you don’t want any unwelcome ones of your own. Lorraine Owens’ practical article ‘What has an expenses policy ever done for you?’ and try doing the tester quiz she sets is a very useful revision aid!
However, if the bottles were from a supplier or a client, it is sensible to get your procedures reviewed now in preparation for the implementation of the Bribery Act 2010. The full implications of this are discussed in Fiona Bolton’s article ‘Bribery and Corruption’ on 6 October 2010.
Helen Besant-Roberts of accountancy firm Hurst suggests five action points for employers:
- Act now. Preparation will avoid businesses being caught out when the Bribery Act is implemented.
- Understanding bribery risks. Familiarise yourself with the key categories of offence –bribing another person; receiving a bribe; bribing a foreign public official; a corporate offence of failing to prevent bribery; and a “consent and connivance” offence for directors.
- Train and educate. Ensure all staff are well informed of the code and create an anti-bribery ethos within your company.
- Construct a code of conduct. This is to outline all policies and procedures to help guide staff and associates. Set out a statement of commitment outlining a zero tolerance policy and make the consequences of failing to abide clear.
- The future. Don’t create a code of conduct and sit back. Monitor and review with regular auditing and compliance checks.
On the seventh day of Christmas my inbox gave to me
Seven principles for inspiring employees
Six bottles of bubbly
Five ex-tra days’ leave
Four holiday student temps
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
Terry Barber’s article ‘The seven principles for inspiring employees’ on 16 June 2010 is worth reviewing when looking at how to improve performance and retention in 2011.
To recap:
- Authenticity - get out of the image management business for yourself and your company.
- Connect with others’ dreams - use these difficult times to uncover the latent dreams and ambitions of your key talent.
- See in others the abilities they don't see in themselves - take time to be observant. Quit the craziness long enough to notice the talent in those around you.
- Speak and live with credibility - I also refer to this principle as leading with moral authority.
- Inspire with great stories - The emphasis here is looking and telling stories that have a lesson.
- Help people to live on purpose – remind them that what happens at work is only a portion of their life.
- Create a culture of inspiration – Chasing numbers and making decisions by looking only at the ‘bottom line’ causes us to be reactive and impulsive.
On the eighth day of Christmas my inbox gave to me
Eight absent workers
Seven principles for inspiring employees
Six bottles of bubbly
Five ex-tra days’ leave
Four holiday student temps
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
At this time of year the inclement weather can cause problems for workers just trying to get into work, plus the winter sickness bugs also take their toll. For general information on managing absence, see Louise McCartney’s article from 22 May 2009 ‘Not in today’. Common problems are:
- Transport – you don’t have to pay staff who do not turn up to work but it is sensible to adopt a flexible approach. See our story ‘Snow chaos returns with a vengeance immobilising UK workers’ for reasons why.
- Sickness – ensure you have sickness policy in place and stick to it. Victoria Cook’s ’10 top tips for managing sickness absence’ on 16 June 2010 are a useful reminder and Adrian Hobbs’s article ‘Sick pay – how it works’ (24 November 2010) is an important reminder on how not to get caught out by the statutory sick pay system.
On the ninth day of Christmas my inbox gave to me:
Nine new fire extinguishers
Eight absent workers
Seven principles for inspiring employees
Six bottles of bubbly
Five ex-tra days’ leave
Four holiday student temps
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
How long is it since you had your fire extinguishers checked? Figures from the UK fire safety industry show that about 80% of all fires are put out using a portable fire extinguisher before the arrival of the fire and rescue service. Furthermore, estimates suggest that extinguishers save 24 lives and prevent 1,629 fire-related injuries each year, as well as saving the UK economy £500 million. If most of your employees have no idea which extinguisher should be used for what type of fire or mainly view them as convenient door stops (there are five main types of portable fire extinguishers) you need to look at your fire safety training. See Steve Solomon’s article ‘Fanning the flames’ from 31 July 2009.
On the 10th day of Christmas my inbox gave to me
Ten payroll givers
Nine new fire extinguishers
Eight absent workers
Seven principles for inspiring employees
Six bottles of bubbly
Five ex-tra days’ leave
Four holiday student temps
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
Only around 3% of UK workers give to charity through their pay, whereas in the US this is as much as 30%. Duncan Bannatyne’s article from 22 October 2009, ‘Geared for giving’, makes the case for more employers setting up workplace giving schemes. Further information on how to set up a scheme is available from the Payroll Giving Centre, run by the Institute of Fundraising. You also even have an opportunity to win a National Payroll Giving Excellence Award!
On the 11th day of Christmas my inbox gave to me:
Eleven awful tribunal warnings
Ten payroll givers
Nine new fire extinguishers
Eight absent workers
Seven principles for inspiring employees
Six bottles of bubbly
Five ex-tra days’ leave
Four holiday student temps
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
OK these are more likely to be e-alerts from services like this one about the latest doings in the Employment Appeal Tribunal, but you don’t want to end up being another employer horror story. Owen Warnock’s article 'Employment litigation on the rise' (14 July 2010) looks at the reasons behind the steep rise in claims brought against employers in the 12 months to March 2010. Failure to consult on redundancy, and unfair dismissal claims were all culprits.
Sue Johnson told The People Bulletin on 16 June 2010 that “a record number of high awards of compensation in discrimination cases were made in 2009. There were 14 awards for over £100,000, more than twice as many as the previous year.” Her article, ‘Discrimination compensation payouts rocket’ is a clear reminder of how many employers are still tripping up on this one.
If you are unlucky enough to find yourself in possession of an ET1,the notification an employee (or former employee) has to use to commence legal proceedings, it is important to follow the correct procedure and take legal advice.
Michelle Gray sets out the whole procedure in her article ‘Going legal’ on 21 January 2010.
On the 12th day of Christmas my inbox gave to me
Twelve-hour working days
Eleven awful tribunal warnings
Ten payroll givers
Nine new fire extinguishers
Eight absent workers
Seven principles for inspiring employees
Six bottles of bubbly
Five ex-tra days’ leave
Four holiday student temps
Three technology tutorials
Two keen apprentices, and
A new boss in Janu-ary
The UK works some of the longest hours in Europe and the reasons for this cannot always be laid at the door of whip-cracking employers and nervous employees frightened about losing their jobs in an economic downturn.
Martin Scott’s article ‘More time less stress’ observes that the ‘not enough hours in the day’ problem often lies in ourselves and how we use the time we do have. It is worth taking another look at what he lists as ‘time traps’ such as tackling the ‘easy to do, quick reward’ items on a to-do list first. Or doing the urgent so that there is no time left for the important.
More worryingly, one research report we picked up on suggested that working long hours was not only bad for your health but could kill you. 'Long hours could be a killer' (16 June 2010) reported on some medical research on UK civil servants that “those who worked 10 to 12 hours a day had a 56 per cent increased risk of heart disease, heart attack, or death.”
That’s all from us, folks!
So on that cheerful note it’s a Very Merry Christmas from The People Bulletin and here’s to a more prosperous and trouble-free 2011. We are back on 13 January 2011; but in the meantime, in preparation for festive season, we recommend some revision of our Christmas survival guide from 17 December 2009 ‘Festive slips, trips and tribunals – an employer’s guide’. In a nutshell – Christmas decorations have not been outlawed by the Health and Safety Executive, be careful who says and does what at the Christmas party and wouldn’t it be great if your senior managers sent a motivating and rousing Christmas message to all staff?