HR Administration

Are your staff getting their legal holiday entitlement?

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We’ve had a couple of interesting support questions this month at SMB Towers regarding calculation of employee holiday allowances. In both cases, customers were taking on new employees part way through the holiday year and did not agree with our calculations regarding the amount of paid time off a new employee should be able to take outside of public holidays.

This got us thinking and, after a little digging around through our small business network, we found a number of businesses weren’t meeting their legal obligations regarding the amount of paid holiday being offered to new starters and part time staff. Their thought processes went something like this:

If an employee is starting three months into the year, and I usually give 20 days’ holiday plus public holidays, then that new employee should get 15 days (three quarters of the year) plus whatever holidays are left. Right?

At first glance, this is a simple and easy way to calculate holiday allowances for the year.

At second glance, this is actually incorrect, and could leave you open to a nasty legal situation. Here’s why.

In the UK, employees are covered by Statutory Leave Entitlement, which entitles them to 5.6 weeks, or 28 days, paid leave for a full time employee working a full year. Employers can, and mostly do, include the 8 public and bank holidays as part of that leave, leaving 20 days of “bookable” holiday time.

When calculating how much holiday a full time employee should get if they start their employment part-way through the year, you first need to calculate the pro-rata amount of total holiday days. In the example above, the new employee is working for three quarters of the holiday year, so is entitled to 28 days * 75% = 21 days of paid leave.

Now you need to look at how many public holidays actually fall in the working period. If the employee started on the 1st April 2014 and your holiday year ran from January 1st to December 31st, this employee would actually be working during 7 of the 8 public holidays. Subtract that from the 21 days of leave, they are left with 14 days of “bookable” holiday, not 15.

Now let’s assume your holiday year runs from April 1st to March 31st, and the employee starts three months into the year on 1st July. How does it look for this employee?

Again, they’re working three-quarters of the year, so get 21 days of total leave entitlement. However, only 4 public holidays fall in this period (Summer Bank Holiday, Christmas Day, Boxing Day, and New Year’s Day), so this employee would have 17 days of “bookable” holiday. Yes, it may seem they get to book more time off, but actually they have exactly the same amount of paid holiday as the first employee.

Most importantly, both employees are getting their full statutory entitlement and you, the employer, are meeting your legal obligations.

The government have a great calculator on their website to work this out for you – https://www.gov.uk/holiday-entitlement-rights – or better still you can let SMB.co.uk do the heavy lifting and handle all of the calculations for you. Our platform calculates the exact amount of holiday any employee should receive, whether they are full time or part time, including how much of that time is “bookable” for each employee.

Are you managing absence entitlement correctly?  See what we can do to make things easier for you – register for a free 14-day trial of SMB.co.uk today.

Image thanks to Pixabay

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The future of HR is mobile

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We all know that technology has dramatically changed how people work; but for a growing number of employees worldwide, it’s also changing where they work. The International Data Corporation (IDC) says 1.3 billion people will work remotely using mobile technology by 2015. At 37.2% of the entire workforce, that number represents one in three workers taking the ‘office’ out of ‘office job’. Easy mobile working enables employees to be productive on the move and makes it easier for companies to provide better flexible working benefits.

This is an increasingly important factor for employers to consider, and a recent study found that, for Generation Y workers, benefits such as workplace flexibility, work-life balance and the opportunity for overseas assignments are more of a draw than financial rewards. If companies don’t embrace this flexibility, they may find their employees getting a little too mobile and leaving altogether!

With warmer weather (hopefully) just around the corner, at SMB.co.uk we’re looking ahead to the summer months and anticipating a further rise in demand for flexible working by employees across the country. To accommodate a mobile workforce, employers need an HR management system that enables employees to stay productive – even in the park. Here’s what a great mobile HR solution looks like:

  • It lives in the cloud, so you can access the system anywhere with an internet connect at any time of day
  • It’s secure so your sensitive employee data is stored safely
  • It operates on desktop, laptop, tablet and mobile devices
  • The interface is clean and intuitive for easy browsing on the move
  • Employees have unique self-service accounts on which they can monitor their details and submit holiday and sick leave requests
  • The dashboard provides a clear and coherent picture of employee holiday time available and company absence schedule so you don’t need an HR manager to tell you when someone is away.

Is your HR mobile-ready? Future-proof your HR with a mobile employee management system – register for a free 14-day trial of SMB.co.uk today.

 

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Where were you on Monday?

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If you were in the office on Monday there is a good chance you felt a bit lonely. It is estimated that a record number of office workers phoned in sick on the day that is now commonly known as “National Sickie Day”. The mass workplace absence that occurs each year on the first Monday of February has been correlated with a combination of depressing February factors, including bad weather, the short days and the financial hangover from Christmas.

While most bosses give their employees the benefit of the doubt when it comes to short-term illness absence, unforeseen employee absence, especially when on a large scale, does come at a huge cost. On National Sickie Day, businesses across the UK are estimated to have lost £34million. In addition to lost productivity, there are less financially obvious repercussions of staff shortages, such as how it can considerably sap workplace energy and the number of admin hours some companies spend tracking employee absence.

For small to medium-sized companies, employee management tasks can be time-consuming and administration-heavy, with absence management being one of the most complicated. Evidence of this can be seen in a recent CIPD report, which found that employee absence costs businesses an estimated £595 per employee every year.

We all get the occasional cold or flu and need to take a day away from the office to get better (and to not infect the rest of the team!). However, to ensure your business runs as smoothly as possible, it is advisable as an employer or HR manager to regularly review short-term absences, to see whether there are any patterns to any employee’s absences (e.g. a collection of Fridays or absences grouped around bank holidays) so that these patterns can be addressed if necessary. It is also helpful to review absence histories as an indicator of whether absence patterns are improving or getting worse. This may enable further discussions with employees around possible underlying causes when patterns are unusual or the number of days taken is higher than average.

To reduce the cost of short-term absence, it is essential to have an efficient, reliable and inexpensive system in place to manage it. To help guide you in developing and managing an employee absence policy, we have created a free eBook that will get you on your way to better absence management.

In addition to information on how to handle sick days, the eBook covers the following topics:

  • Absence levels on the rise
  • Holiday entitlement
  • Short-term illness absence
  • Long-term illness or injury absence
  • Return-to-work plans
  • Bereavement absence
  • Maternity leave
  • Paternity leave
  • Designing your absence management policy

Download your free copy of our best practice guide to absence management here.

Image thanks to Pixabay

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In search of cloudier climes: moving to an online HR system

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2014 is well and truly underway and as everyone settles back into work many of you will no doubt be dreaming of packing your bags and jetting off to sunnier climes. At SMB.co.uk, we embrace a cloudy outlook and we’re more concerned with a different kind of journey – one that makes sense at any time of year. Instead of packing your swimming costumes and sun cream, you should be thinking about collecting all your data and migrating your employee management system to the cloud.

There are a number of reasons why businesses of all sizes are making the move to an online HR environment. The benefits of cloud-based software include:

  • Better management of increasing data volumes.
  • Lower costs incurred using OpEx model instead of CapEx.
  • Scalability for fluctuating data needs.
  • Security controls to keep private data private.
  • Anytime access, anywhere, on desktop and mobile devices.

So you’ve made the decision to move your employee management system to the cloud – what now? Before you pack your digital suitcases, here are some things to tick off your list:

Cloud HR migration checklist

  • Compile an inventory of all your employee information and HR documents.
  • Determine your data management needs, and plan ahead for future developments, which a scalable cloud solution will accommodate.
  • Before migrating your system, identify any sensitive or confidential information to ensure that it is transferred and stored in a secure fashion.
  • Have a business continuity plan in place and make sure that the migration to the cloud is swift and smooth, avoiding any downtime.
  • Try before you buy! Moving your employee management system to the cloud is an important step in the development of your business, so it makes sense to test the waters first. That’s why SMB.co.uk offers a 14-day free trial that lets you experience first-hand the benefits that an online HR management system can offer.

Do you manage staff absence, holidays and sick leave? Download your free absence management eBook today!

Image thanks to Pixabay

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(Sh)red tape: the 7 bits of business paperwork we’d love to destroy

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Do you dream about slicing up printed forms and burning bank statements? Ever find yourself making origami swans out of all kinds of unnecessary administrative paperwork, when you could be spending that time growing your business? We know how you feel! But fear not: small businesses in Britain and further afield in the EU are looking forward to a future of reduced red tape, thanks to promising moves by governments to cut down on business admin. A lighter legislative touch is due to be applied to small, disruptive companies in order to break barriers to entry and help them thrive.

At SMB.co.uk, we’re delighted by these developments: we know that too much red tape can bind the hands of entrepreneurs – not just when it comes to employee management (though it has its fair share), but to all business functions. Overkill on printouts, forms and pointless documentation doesn’t just harm the environment, it stifles business growth. We prefer as little admin as possible and secure cloud document storage. So, in the spirit of paperwork slashing, we’ve put together a list of the top 7 documents that we (as entrepreneurs ourselves) know small businesses owners fantasise about shredding!

1. CVs and recruitment documents

Good employee management starts well in advance of a new start’s first day in the office. CVs and all recruitment related documentation should be saved securely using a cloud HR software tool. That way you’ll have a good record of the entire employee lifecycle and be able to improve your recruitment processes. Hire good staff; dump bad paperwork!

2. Meeting agendas and minutes

As if the meeting wasn’t time-consuming enough, you’re left with scribbled or hurriedly-typed notes to shuffle afterwards. In an increasingly cloud-based business world, where even physical meetings are being replaced by digital huddles, we can do without the extra hard copies.

3. Personnel files

Paper employee records have a habit of growing bigger than the employees themselves. Give them the chop (the files, that is, not the employees!) – if only to give your straining office shelves a rest.

4. Absence, holiday and sick leave requests

Absence management is one of the most complicated HR tasks when managed badly. If you’re over-reliant on paper and spreadsheets, it’s time to upgrade to an intelligent management tool that calculates holidays and displays allowances clearly – even for complicated shift patterns. Anything else should be consigned to the shredder.

5. Training programmes

With lots to keep under control, from employee requests for training, to the planning and implementation of learning programmes, it can feel like training management itself requires an intensive course in HR organisation. Why not switch to an intuitive online system and put all that pointless paper to better use by incentivising the workforce a staff origami competition.

6. Health and safety reports

Don’t get us wrong, health and safety is paramount in business management, but the EU has recognised the need to rethink requirements for small businesses. For example, the plan is for SMEs in low-risk sectors to no longer have to keep written health and safety records. Great news! We suggest the destruction of any newly-redundant paperwork in a (properly controlled and supervised) fire.

7. Invoices and bank statements

As with the previous entry, banking and finances are also crucial to any commercial enterprise. But paper statements and payment notices? No thanks. Cancel those hard copy statements and go digital. The planet – and your postie – will thank you.

Does ditching paperwork and embracing the smarter digital option sound appealing? Why not see how intelligent software can revolutionise your HR management – try a free 14-day trial of SMB.co.uk today!

Image thanks to Pixabay

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