My eleven year old son has been an avid follower of this season’s Apprentice. He is eager to pick up knowledge of the ways of business, man management and team play. Isn’t it interesting how we take pleasure in watching a program where if an individual makes a business mistake they get fired? Current legislation, however, doesn’t make it that easy. In the real world Nick and Margaret would meet with the candidate informally to ascertain whether there were factors affecting performance. Should Sir Alan be doing anything else to support the candidate – perhaps some training? In the board room session we would finish with Sir Alan, Margaret and Nick agreeing SMART objectives and a specific improvement plan together with the candidate. Sir Alan would turn to the candidate and utter “with regret”, point to the candidate and proclaim “you’re on review”.
Ironic isn’t it that as a society we readily adopt a “you’re fired” mentality, but legislation is taking employment regulations in the opposite direction. What is the right answer?
Right now businesses need flexibility more than ever. Roles need to be made redundant in order to save money and save other jobs. Like it or not businesses managers will try to select those individuals whose performance is sub-optimal, those with poor attendance records, those who are difficult to manage first. Legislation does not allow companies to confuse the two issues and can make the process for both employee and employer too long.
I have great sympathy with smaller companies, who do not have the breadth of business to cope with the current downturn. It needs to be easier for those companies to adjust their workforce quickly. Although the Government is being lobbied by organisations such as the CBI, current legislation needs to reflect the fundamental change in economic conditions and quickly.
But before Managers start shouting “you’re fired” at their staff, they should take note that employees are being very supportive to their employers right now. Many of our clients have been able to negotiate pay cuts for senior managers and staff in order to save jobs. Employees have accepted pension holidays, benefit deferrals in the interests of helping their employer. I have never experienced a more pragmatic work force.
Mike O’Connell, CEO, Isosceles Finance
Tags: HR outsourcing, human resources, Interim FD, Outsourced accounting, Outsourced finance, Outsourced HR, Part time FD
