FRIDAY HR FAQS – Can an employee take annual leave whilst on long term sick leave?

Understandably an employee who is on long term sick leave and taking their annual holiday might make some employers raise their eyebrows, after all if they are well enough to take annual leave, why can’t they return to work?

Not quite, employees on long term sick leave are entitled to take annual leave and there are a multitude of reasons why an employee might be on long term sick leave from work and this does not impact their ability to use their accrued annual leave.

Some key points to consider:

  • Employees on sick leave continue to accrue holiday in line with the Working Time Directive.
  • If company policy is that holiday cannot be carried over into the following year, it is not lawful to enforce this onto employees on long term absence, they must be entitled to carry it over.
  • Even though employees are entitled to take annual leave, as an employer you are not able to force employees to take it whilst on sick leave nor are you able to tell them that if they don’t use it they will lose it on their return.

As an employer you have a duty of care to your employees so it is important to consider their rights in this situation.  Think about the reasons why they may be taking their annual leave, rather than presuming this is indicative of them being well enough to return to work.

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One key reason that employees might want to use some of their accrued leave during their absence is financial necessity. Whilst some employers are able to offer benefits to their employees such as Income Protection or Critical Illness, a large majority, particularly small to medium sized business, are not able to. For this reason and depending on the employer and the length of the absence, they may no longer be on company discretionary sick pay, but on statutory sick pay and beyond the 28 weeks of statutory sick pay, be living on no pay at all. Taking annual leave, which is paid at their usual salary rate, can be a financial necessity at a difficult time.

Other reasons for employees taking leave might be to reduce the amount they have in preparation of a return to work, or they may need to take annual leave for their own well being. Taking annual leave doesn’t necessarily mean that they are going abroad or taking a wild holiday!

As an employer, it can be beneficial for the employee to take some of their accruing annual leave whilst on long term sickness:

  • It can help improve the well being of the employee – financially and psychologically.
  • Allowing leave to be taken during extended periods of absence, will reduce the amount that they will be entitled to when they return to work, which would then therefore reduce them needing to take more time out of the business for holiday.
  • If the employee decided to leave the company, any accrued leave not taken would need to be paid out and depending on the length of the absence, this could be a substantial sum of monies to be paid at one time.
  • Remember, there is no real reason for refusing annual leave and doing so could potentially put an employer under breach of contract (for lack of trust and confidence), as they have no valid reason for declining leave, as they can not claim operational reasons.

Whilst we acknowledge that employers generally want to encourage employees to return to work, they should also support them to improve their well being.

One way to ensure clarity for all parties, is to have comprehensive annual leave and sickness policies, which need to be reviewed regularly to ensure legal compliance.

If you would like further HR advice on handling long term absence get in touch with HR Revolution:+44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk where our expert CIPD HR professionals are waiting to help you with any questions you may have.

HR Revolution; supporting you, your employees AND your business.

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Our new website has launched…

We are excited to announce our new and improved website has been launched…

We’ve listened to our clients and customers and made some key changes.

We our proud that we take an innovative approach to HR, cutting through the industry jargon to help make a real difference to any business, by providing excellent HR consultancy and HR support.

We know HR can be a scary prospect for businesses both big and small and there is a lot to take in.  However we ask questions that other HR consultancies don’t, because we want to make a positive impact on your business and understand your people, by providing excellent HR and Talent services in the form of employee documentation, support, management and advice regarding employment queries and processes.

Come and take a look:

Website Launch 1 - hr revolution - outsourced hrIf there are any of our services that you would like to discuss in more detail or
might be interested in then please give us a call on: +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk where our expert CIPD HR professionals are waiting to help you with any questions you may have.

HR Revolution; supporting you, your employees AND your business.

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How to calculate part-time holiday entitlement

Currently in the UK there are more than eight and a half million people working part-time, so if you are an employer who has part-time employees you need to make sure that they benefit from bank holiday leave, even if they don’t work on bank holidays.

So read on for some advice on how to ensure you don’t disadvantage your part-time workers and keep on top of your legal requirements.

For all employees, the minimum statutory holiday entitlement by law is 5.6 weeks, bank holidays included, which companies are not obliged to give as paid leave, however most companies choose to include them as part of the annual leave entitlement.

For part-time employees, the same applies, minimum statutory leave is 5.6 weeks, but how do you work in the bank holidays? and what if any employees don’t work Mondays or Fridays when bank holidays normally fall?

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Most of the UK’s bank holidays do fall on a Monday or Friday so in companies that give paid bank holidays, and where part-time employees don’t usually work on these days, those part-time employees would end up receiving proportionately fewer days’ leave than their full-time colleagues.

To prevent this inequality, many companies give their part-time employees a pro-rated bank holiday allowance. This is calculated based on the number of hours worked, regardless of the days that are worked and irrespective of whether or not they would be bank holidays.

Let’s take an example of a company where the full-time employees get eight bank holidays, there are usually 8 bank holidays per year in England and Wales, as paid leave on top of their normal allowance. They work five days a week for a total of 40 hours, so are effectively receiving 64 hours of bank holiday leave (8 days x 8 hours = 64 hours).

To pro-rata this for a part-time employee working two days a week, the company would give 25.6 hours of bank holiday leave. That’s calculated as: 16 hours worked per week/40 hours maximum working time per week x 64 hours of bank holiday leave.

This bank holiday entitlement for part-time workers calculator breaks it down step by step for you into a formula:

(number of hours worked per week/number of hours in a full-time week) x (number of bank holidays x hours per working day).

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This does cause minor issues in that you may end up with part-time employees working parts of days. In the example above, the 25.6 hours would be rounded up to 26 hours, which for an eight hour day is three and a quarter days. Taking a quarter-day holiday – or two hours in this case – is sometimes difficult for a company to administer.

If the part-time worker is due to work on a bank holiday, then they would need to book it as holiday as normal and it would come out of their total holiday entitlement.

You don’t need to follow this method to calculate bank holiday for your part-time workers,  there are other options such as calculating in days etc but you must ensure they are consistent and fair and that both their part-time and full-time workers are treated equally.

If calculating annual leave is something you struggle with, you are not alone and we can help! HR Revolution have the perfect solution for you in the form of breatheHR, easy to use HR software, which has a holiday allowance calculator perfect for working out part-time employee allowances.

It is always prudent to get HR advice when calculating holiday, so if you have any questions, please get in touch with us to find out more:+44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk where our expert CIPD HR professionals are waiting to help you with any questions you may have.

HR Revolution; supporting you, your employees AND your business.

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Putting a few HR myths to bed…

At HR Revolution, we’ve heard our fair share of HR myths and misinformation, so we thought we would list below the most common ones and why they are just that…

Employees don’t have a contract unless there is something in writing

A contract of employment is an agreement between an employer and employee whether it is verbal or in writing. Once work has commenced the employment relationship has been forged. A full contract of employment does not need to be given writing to make the agreement legally binding, however it is worth bearing in mind that it is a legal requirement for an employer to provide at least a statement of written particulars to an employee within one month of starting.

You can’t make a pregnant employee redundant

Yes you can. However it must be a fair procedure, you have to be very careful that there is no risk of discrimination in the selection process. Also be mindful that once a pregnant employee goes on maternity leave, they have extra legal protection by having first option on any available positions that they are qualified to do if placed at risk of redundancy. Make sure you take HR advice!!!

 No one can take you to tribunal without two years’ service

It is a common misconception among employers that dismissing an employee who does not have two years of service will mean that they are “safe” from an employment tribunal claim.  But an employee can and for a range of reasons such as discrimination related to any of the nine protected characteristics, like underpayment of wages of the National Living Wage or National Minimum Wage, breach of working-time regulations in terms of holiday pay or a breach of contract.

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I can decide if I want someone to be self-employed

No, there are strict rules for deciding the status of people in a business. It is unhelpful that HMRC and employment law rules are different in deciding if someone is an employee, a worker or self-employed as the recent cases of Uber and Pimlico Plumbers can attest!

You don’t have to give part-time employees the same benefits as full-time employees

Part-time employees must suffer no disadvantage, so must have the same benefits as full-time employees. Many benefits can be pro-rated for part-time employees, such as holiday allowance.

Casual and zero-hour employees do not get holiday

All employees and workers accrue statutory holiday from day one. This is 5.6 weeks prorated to hours worked.

I am not able to contact sick employees

Not at all, as an employer you have a ‘duty of care’ to keep in touch with a sick employee when they are signed-off to see how they are. However, this doesn’t entail daily calls and emails as this could lead to a harassment case. Also, regular contact should not just focus on their return to work, but their well-being and if any realistic adjustments could be implemented to help their return.

So there you have it a few HR myths debunked…

If you need and HR advice or guidance give HR Revolution a call and see how we could help: +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk  where our expert CIPD HR professionals are waiting to help you with any questions you may have.

HR Revolution; supporting you, your employees AND your business.

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5 challenges of managing remote teams

Remote working or ‘working from home’ has become increasingly popular over recent years and with good reason. Businesses are changing and, in turn, so is the requirement for us all to be herded like sheep into grey office spaces miles from our homes. Business owners are starting to realise that certain employees can actually increase their quality of work and levels of productivity by being allowed the flexibility of remote working.

However, with an ever expanding global workforce, it’s becoming more and more important to be aware of the issues that arise in regards to effectively managing productivity within more productive remote teams, once you know what these are you can then decide whether or not it is a astute move for your business.

Below we list the 5 biggest challenges:

1. Accountability and visibility

Building trust between a manager and employee; if they aren’t sitting at their desk where you can see them, then how do you know they are working? If this isn’t addressed early on and you don’t have management information to see how and what they are delivering it will be an issue and one that could spiral out of control.

Out of office work concept Man sitting at vintage natural rough wood desk working on laptop computer drinking coffee at cafe terrace surrounded green park with color sunbeams back light

2. Isolation and communication difficulties

If you have employees working remotely within different time zones, this may lead to a feeling of isolation for team members. If your employees also speak different languages there’s an added level of communication to factor in in order to make the team and business work.

3. Culture

A business that has their whole team or the majority of it’s employees working remotely will likely have to work harder than most to ensure it’s company culture is established and that individuals well-being is looked after. Remote working can cause a lack of team communication and therefore a poor company culture and team community – leading to employees feeling disconnected from the overall company mission and goals. A clear company culture and a feeling of purpose are essential for creating a motivated team, without these the team can begin to feel isolated and employees may become dissatisfied with their roles.

4. Security – both physical and digital

Policies and processes for office and online security are fairly straight forward to manage, but when you have remote workers the needs of those individuals may change because their working set-up is different. If appropriate security procedures aren’t dealt with as part of the remote working setupit could cause major issues and potential danger to business functionality. If remote workers feel unsupported or at risk this can quickly lead to disengagement and a loss of productivity.

5. Trouble separating work/home balance

The inability to ‘turn off’, is an ongoing issue for all workers, but these issues seem to increase with remote workers.  Working from home can lead to longer working hours and no real definition between work and home environments, this can result in longer or unpredictable hours worked, increased stress, a strain on personal and professional relationships and the threat of one or both sides taking advantage.

Having a balance between work and life is a very important and even more so now companies are offering new and improved perks to help support workers. Having a balance between work and life is very important and even more so now companies are offering new and improved perks to help support workers. Remote working can be a great incentive for employees – encouraging trust and reducing travelling time and costs. But on the flip side it can become a negative issue that results in low engagement, lack of productivity, burn out and even resignations. It’s worth remember that working remotely can be difficult and isn’t for everyone, especially if you are unable to define the difference between remote working and under-working!

Please be aware that a failure to address these challenges can cause decreased productivity and employee engagement, an impact on overall team morale, increased employee turnover and a negative impact on business outcomes.

If you need any help or guidance with managing remote teams do get in touch, HR Revolution are here to help: +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk  where our expert CIPD HR professionals are waiting to help you with any questions you may have.

HR Revolution; supporting you, your employees AND your business.

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Cost saving HR

When you’re running a business you know that your people are your greatest asset, by recruiting and developing a team of talented and motivated individuals, you can ensure that you’re putting your business it the best possible position for smashing your strategic goals.

However, if HR is becoming a drain on your resources then it’s clear that something is wrong, effective people practices should be saving you money, don’t ignore the problem it’s time to get the help you need.

HR Revolution have the solutions and below we list the ways in which you can cut your costs, whilst bringing about fantastic results.

1.Invest in training/education

The more you know, the better you can perform. This applies to anyone in your workforce, think about how you can build their capability and skill, improving their output, training should really be seen as an investment rather than an expenditure.

2.Nip problems in the bud

Sometimes, dealing with HR issues can involve difficult and awkward conversations and it can be tempting to bury your head in the sand hoping that the problems will fix themselves. Needless to say, this will rarely bring about the results that you really need.

Ensure that you are tackling issues head-on, and that you’re giving your managers the capability and confidence to do the same.

3.Say “thank you”

I’m sure even in the uncertain economic times, plenty of business owners would like to be able to give their hardworking employees a pay rise, but simply can’t afford it, but it’s essential to look at the bigger picture and consider the other elements of your reward package that keep employees motivated and engaged. Never underestimate the value of showing your employees that they’re valued, and that they’re doing a good job a ‘thank you’ costs nothing.

4.Offer flexible working

Flexible working is an attractive prospect for many employees and can offer them a greater work-life balance. Business owners are sometimes wary about allowing their employees to work remotely, but it’s something that would be worthwhile to consider.

Think saving money on travel costs, IT, energy, and more and if you get it right, you could end up getting much more from your team.

5.Don’t cut corners

When cost saving is at the forefront of your mind, you need to keep sight of your priorities. You may need to save some cash, but this doesn’t mean that you should let quality and procedures slip.  If you neglect to carry out important HR discussions, such as performance management reviews and disciplinary hearings, you might cut costs in the short term, but you can guarantee that you’ll be paving the way for bigger, more expensive problems in the future.

6.Get your admin in order

Admin is a really important part of HR systems in any business. It’s vital that you keep timely and accurate records. Depending on how you manage this though, it could easily turn into a drain on your resources.

HR Revolution has the answer in the form of our fantastic HR information solution breatheHR, your online HR manager if you will.

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7.Supporting your employees

If you spend your time trying to second-guess what you employees really want, then you’re going to end up wasting money, when it comes to developing policies and practices that get the most out of your team, and drive them towards achieving big things communication is the key.

Can you honestly say that you’re regularly and consistently collecting feedback from your workforce, and taking action on the findings? You could carry out employee surveys, or run focus groups. The specific schemes aren’t as important as the fact that you’re getting your employees involved in decision-making, and taking their views onboard.

8.Outsource your HR

HR Revolution can offer you a full HR audit, detailing the core areas of your HR platforms and procedures, highlighting everything you need to make changes to help get your employees and business back on track. Again, this isn’t a cost, it’s an investment and one that could see a return many times over as HR Revolution has the people solutions that you have been looking for.

If you would like to discuss any challenges you are facing or get some practical advice, then get in touch HR Revolution are here to help: +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk  where our expert CIPD HR professionals are waiting to help you with any questions you may have.

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How to onboard new employees effectively

Getting the onboarding process right is one of the most important things a company can do, get it wrong and the results can be devastating on the bottom line. If employees don’t have a positive onboarding process it can lead to them leaving their job out of frustration, or feeling that they don’t have a worthwhile place within the company.

So what is Onboarding?

New employee onboarding is the process of getting new recruits adjusted to the social and performance aspects of their new jobs quickly and smoothly. It is the process through which a new hire will learn the attitudes, knowledge, skills and behaviours required to function effectively within a company.

Onboarding isn’t about giving your new employee a computer and showing them to their desk! A truly effective onboarding process needs to be much more than just a morning or a day. It needs to be a continuous process, one which serves to engage, train and develop, giving them the tools for future success.

So why is onboarding so important?

Your employees are your greatest asset as they determine whether or not your business will succeed and grow. Investing in your people is a guaranteed way to capitalize on your investment, so keeping employees informed, engaged, productive and loyal is well worth the effort.Remember developing a highly effective on-boarding process;

  • Engages your new employee from the very beginning, setting a precedent that you value your employees.
  • Gets everyone on the same page in terms of the company’s expectations.
  • Increases employee engagement.
  • Improves employee retention.
  • Integrates new recruits into your corporate culture.
  • Reduces costs by preventing future spending on re-hiring and re-training.
  • Increases work performance and productivity.

The onboarding process

An effective onboarding process;

  • Provides ongoing, clear, concise and consistent channels of communication.
  • Facilitates technical learning throughout the employees first three months.
  • Aligns new employees to key business strategies.
  • Sets milestones to gauge and measure new employee success.
  • Discusses their job description, setting company expectations right from the outset.
  • Presents information in easily-digestible amounts, as if it is not managed properly, the first week in a new job can be information overload.
  • Reinforces the brand and other positive aspects of the company culture.
  • Ensures you cover all the key elements such as health and safety and fire evacuation procedures.

Essentially having a company culture capable of attracting, developing and retaining talented employees!

Download our free guide to successful onboarding here.

Or if you would like any practical help or guidance on anything outlined above, please get in touch: +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk  where our expert CIPD HR professionals are waiting to help you with any questions you may have.

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National Living Wage/National Minimum Wage increases: what you need to be aware of

On Sunday 1st April 2018 the National Living Wage (NLW) and the National Minimum Wage (NMW) rates will be going up.

The NMW will rise as follows:

NMW 2018 - HR Revolution - outsourced HRThe NLW will mean all staff over 25 must be paid at least £7.20 per hour.

Please note that the rate change for the first pay period begins on or after 1 April.  So if this is in the middle of a pay period, the rates do not change until the beginning of the next pay period, for some people say paid quarterly, it can be some time before the rate has to be paid if 1 April is in the middle of a pay period.

A new rate will apply to the next pay reference period that begins on or after the date:

  • a rate increase begins
  • an employee reaches a new age bracket

It is worth noting that the NLW target of £9 by 2020 will have a major impact on your wage bill, changing your pay structures and raise all sorts of HR and payroll issues.

The HMRC has been very clear that employers are more likely to be at risk of getting it wrong for workers paid at or slightly above minimum wage rates; other common minimum wages errors to be aware of are:

  • Unpaid working time – not paying all the hours worked by employees e.g. time spent travelling between work assignments or during training.
  • Deductions from a worker’s pay, or payments by workers to their employer for items or expenses that are connected with their job such as uniforms.
  • Failing to apply the correct rate of pay for apprentices in their second year.
  • If under 19 or in the first year of apprenticeship (refer to age bands). The apprenticeship rate does not apply to Higher Level Apprenticeships.

It is very important that employers understand the new rules so that employees receive at least the minimum pay they are legally entitled to. The HMRC will be stepping up enforcement and failure to pay the correct amount could result in financial penalties of 200% of the pay owed, the risk of publicly named and even the possibility of a criminal prosecution.

Food for thought indeed, and with these increases taking effect soon it is a great time for companies to ensure their policies, procedures and payments systems are updated in line with increased rates and budgets are adapted accordingly.

If you would like any practical advice or guidance please get in touch and see how we can help: call +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk  where our expert CIPD HR professionals are waiting to help you with any questions you may have.

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Keeping your business compliant

In our opinion when you are an HR consultant, you can often find yourself having in-depth conversations about how business owners can avoid legal action or help with an issue. However, we offer services that go way beyond that add real value to your business, we can help boost your profits, create a happier and more productive workforce and achieve big strategic goals.

Although steering clear of expensive and potentially reputation-damaging legal action is something that many business owners are very keen to do, for obvious reasons, if you’re worried about ending up on the wrong side of employment law, then it’s important that you take some positive steps towards minimising the risk.

Let’s take a look at how HR Revolution could help you keep your business practices compliant, up to date, and above board.

Know the law

As a business owner, it’s your responsibility to keep up to date with the law. New pieces of legislation are passed on a regular basis, so it’s vital that you stay on the ball. The last thing that you want is to find out that new provisions came into force, rendering your existing policies and procedures unlawful.

This might seem like a huge burden, but it doesn’t have to be. HR Revolution will ensure that you get the information that you need well in advance, and are given useful, practical advice so you can implement the necessary changes.

Implement consistent people policies

People policies are there for good reason; they outline acceptable standards of behaviour, make your expectations clear, and map out what will happen if a problem occurs. If you decide though that they should only be applied to some employees some of the time, then you could be accused of discrimination.

The bottom line here is that your whole workforce should be held to the same standards. You’ve no doubt spent a great deal of time creating and implementing your policies. They’re there to help you, so use them properly!

Always keep records

If problems arise, having a comprehensive paper trail can be extremely useful. Your documentation should clearly outline the details of each stage of everyday employment situations, such as absences, performance discussions, grievances and so on.

You can find solutions that will allow you to safely store information of this nature online, or on secure systems. This isn’t always necessary, but it will absolutely save you time in the long run and make sure that your records are up to date, accurate, and confidential.

Give your managers the capability they need

As your business grows, it’s unlikely that you’ll be personally handling all people management practices and if you ensure your managers have the HR training they need, you could avoid finding yourself in a situation whereby your operations aren’t compliant with the law.

It’s down to you to make sure that your managers are consistently compliant. When you invest in your leadership team, you’ll find that many potentially volatile incidents can be quickly defused before they spiral out of control.

Not many business owners would intentionally break the law when it comes to how they treat their greatest asset – their employees, but if you aren’t vigilant, you could find yourself in a tricky situation.

If you’ve decided that it’s time to take control when it comes to complying with employment legislation, then get in touch on +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk  where our expert CIPD HR professionals are waiting to help you with any questions you may have.

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Why your business needs HR Revolution

As a small business owner, you might be tempted to cut costs and eliminate your HR function. After all; your managers can probably hire, terminate and discipline their employees without assistance from HR – especially if you only have a small team. Right?

Wrong. There’s a lot more to human resources than hiring and firing; there’s payroll, benefits, performance reviews and much, much more and you have to make sure you’re doing all of that in compliance and following employment law.

So – does your small business really need HR? Absolutely. Here are a few reasons why:

Hiring an on-boarding

Hiring and on-boarding a new employee can take a lot of time; time that as a small business owner, you don’t have. If you have positions that need to be filled (and growing companies often do), you need someone who can dedicate their time to hiring and everything that it involves. That means recruiting, sifting through cvs, screening applications, setting up interviews, selecting candidates and more. Hiring new employees is incredibly important for your business – you want to find the best talent and the best fit the first time around, so you don’t end up wasting time or money. And to do that, you need HR.

Employment Law

Another reason you need a HR professional; they know the ins and outs of employment law, all it takes is one mistake when hiring or terminating an employee, and you could end up in a tribunal. If you don’t know employment law, you could be putting yourself, your business and your reputation at risk.

Employee documents

All businesses collect data relating to their employees – their HR records – including personal information such as pay, sickness absence, or hours worked. HR records should be stored hard copy or electronically, but it’s important for businesses to keep information well organised and in an appropriate system, so that it complies with relevant legislation and can be easily accessed, especially in light of the General Data Protection Regulation coming into effect in May.

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Employee handbooks

Do you have an employee handbook? If not, it’s definitely advisable, take a look at our ready to use handbook template. Even if you only have a few employees, you still need a manual or handbook to lay out the rules, regulations and expectations you have for your employees. Handbooks make it easier for employees to know exactly what’s expected of them, but they can also be used to cover your back in case of employee disputes.

HR on a small business budget

The bottom line? Every business, however small needs some kind of HR presence, there are a number of things that HR professionals can do for a business that other employees just can’t. It will save time – and likely money – in the long run by using HR from the start and outsourcing could be the solution you have been looking for.

If you would like to discuss how Outsourced HR can help your business call: +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk  where our expert CIPD HR professionals are waiting to help you with any questions you may have.

HR Revolution; supporting you, your employees AND your business.

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