Virtually every business needs employees. We cannot do it all ourselves and if we tried our horizons would be seriously limited. But employing people is fraught with dangers. Getting it wrong can be terribly expensive in more ways than one.

The most obvious dangers concern the law. Employment law is tight these days and employers can be left with the impression that it is all too one-sided, that whenever anything goes wrong it is always the poor old employer that gets it in the neck and ends up writing a big cheque. But that view is not strictly correct. It is true that there are precise procedures that need to be followed but if they are and each case is approached in a considered and consistent way no employer should find themselves on the wrong end of an Employment Tribunal award.

More importantly though, there is a great deal more to the employment of people than the essential matter of keeping out of the tribunals. Happy, contented staff are more productive, more considerate towards both clients and colleagues and less prone to make costly and client-losing mistakes. Happy offices attract and retain good people and if you have ever worked in an organisation that suffered a high turnover of staff you will know how desperately debilitating it can be. For more on this see the previous page HR - Staff Turnover.

So what makes a good employer? We can distil it down to these key areas:

Systems
You need a simple set of rules, consistently and firmly applied with understanding. If everyone knows the rules of the game there is much less risk of people getting it wrong. You may already have an Office Manual and if so this should cover everything, but if not draw up a staff handbook. In this outline your policy on everything to do with the people in your organisation and how you want them to work for you. You will need to set out clear policies on:
a) Hours of work
b) Flexitime, if you allow this and the rules that go with it
c) Holidays and all the rules that surround them, possibly covering whether you want to contain
  holidays at certain times of the year such as January if you have a lot of Schedule D clients and
  the inevitable rush to the deadline on January 31st, whether you want to limit the maximum length
  of any holiday period at one time, or how you control the numbers allowed to be away at any given
  time from each department.
d) Termination, firstly what an employee must do if they wish to leave and of course what you will do
  when they resign, covering things such as entitlement to pay for holiday allowance not taken and
  any restrictive covenants (but keep in mind that unless these are very reasonable they may not be
  enforceable.
  (incidentally, exit de-briefing interviews are a very good idea).
e) Policies on smoking and alcohol
f) Grievance procedures
g) How employees can make complaints and to whom they should talk
h) Discrimination, harassment and bullying
i) Training
j) Promotion policies
k) Disciplinary procedures
l) Sickness periods
m) Retirement policy (and remember that this has been affected by the latest changes in the law -
  see HR - Facts & Figures)

….and so on. This list is not exhaustive or complete and you need to spend a little time working out what should be on it and then what your policies are or are to be. As we said, if the rules are clear, and if they are applied fairly and consistently, you should be able to avoid many of the stresses that can arise. Above all, though, do remember that people all have lives outside the office. If your policies can be flexible enough to allow for your colleagues’ personal lives you will reduce stress and will gain a lot of goodwill among your people.

Support and approachability
A major cause of stress in the workplace is the feeling that we lack support, that no one understands the pressure we are under and that no one cares. We may also feel that there is no one to go to if we need help or advice. People do not like to acknowledge that they cannot cope. They are reluctant to admit to weakness and feel that their futures may be threatened. As a result they struggle on, overloaded and perhaps trying to deal with work for which they are inadequately qualified or experienced. Risk management goes out of the window and the danger of costly errors rises.

Poor managers are too busy. They fail to delegate and so take too much work upon themselves. They then have no time for subordinates and, being under pressure, will often waive them away. They also fail to communicate with their people and so do not pick up on problems until they become serious and damaging to the firm.

Good managers make themselves available. They put time into building good working relationships with their team and they understand that delegation is a powerful tool, that those to whom work is delegated will often feel trusted and pleased. They also understand that management needs time and that they must keep a portion of their day free to take good care of it. They can see that it is the performance of their whole team that matters, and not only the work that they do themselves.

And by making themselves available to their team they provide the support and assistance that results in an efficient, well-run and productive unit.

Appraisals and Career Development
If we know exactly what is expected of us and how we are measuring up we are far more contented and motivated than if we work in a sea of uncertainty. Good appraisals are positive, constructive, avoid criticism, and focus on the future. They re-visit the findings after three months or so to ensure progress is being made on the decisions taken and they allow the upward flow of constructive feedback, so that senior people find out how their staff see their performance.

Pay
Surveys have been done to discover why we all go to work. There are many reasons but perhaps surprisingly money features quite well down the list. People need to enjoy what they do, to work with people they like and to feel that their employer is fair, reasonable and appreciative. They see their pay in that light: provided it is fair and makes them feel valued they do not always expect to be paid the highest salary.
Performance pay can be motivating and is seen as a just reward for effort and success but targets have to set carefully. Too high and they can be highly de-motivating which can in turn be stressful, while too low and they can lead to false expectations. It is not surprising that many firms believe that regular salary reviews, discussed openly with individuals and focusing on the commercial contribution each is making, are the best policy.

Premises
When we go to work we need to be comfortable. A good employer takes care of staff and does everything reasonably possible to ensure their comfort and safety. Many firms resent spending money on décor or furniture and yet a bright, cheerful office will impress clients and put employees in a much better frame of mind. Poor lighting or ventilation, old and uncomfortable furniture, worn out carpets or tatty décor will be depressing and after all, who wants to go to work every day in a good suit only to return home feeling grubby?

The Social Side
The expression “Those that play together stay together” was written for couples but applies as well to working teams. An ideal working relationship needs an element of closeness and mutual support and this is strengthened when your people do things together outside work. What they do is not important as long as they enjoy it but good employers will encourage such events and help with the cost. It is worth it.

Absenteeism
You can control this. Back-to-work interviews are helpful after periods of sickness so that the individual sees it being taken seriously. Note the cause and the treatment undertaken on their file – it will be valuable in dealing with a malingerer but may also enable you to spot an issue at work that may be the real cause – bullying, for example, or excessive pressure. Keep good records so that anyone who is only ever sick on Mondays can be dealt with, sensitively but firmly. Remember always to keep an open mind rather than simply assume that someone is being lazy. Above all, keep in control but remain receptive and supportive.

Records
Above all, keep good records. Every detail needs recording: Recruitment and selection records, terms of employment, holidays and sickness and so on. This file will be especially valuable when you have a problem with an employee. Perception can be highly misleading. When a partner under pressure comes to you and tells you that "Sheila is off again!" you may need to do something about it. But your records may show only two absences this year. Diving in with both feet would only be damaging.
So record everything so that when you need to take any action at any time you have the facts.

Recruitment
Sadly, there are those that are not exactly honest in their CVs or in interview. You may do this already, but if not consider whether any background checks are appropriate. FEs certainly need to be checked out and references must be taken up, if only for the sake of your PI cover. There may also be the question of successor practices for senior people. In any event, don't simply rely on what you are told. Ask the important questions at interview, noting the answers carefully. Then, at least, if you later find you have been lied to over something important you will be able to dismiss immediately without problem. And then do some digging. Some firms these days will not give references other than to simply confirm employment and dates but I have often found that a discrete and friendly phone call, with a promise that the discussion is off the record, produces all you need to know. People in this profession are generally very helpful.

Driving on the Firm's Business
Few firms realise it, but this is an important area in which the employer can be liable for anything an employee does wrong. And most firms have staff travelling on business in their own cars - to and from court or clients, or even just to take the post. You need to make sure that they have business use cover on their insurance. A photocopy of their certificate and/or schedule on their HR file is a very good idea. I came across an excellent policy offered by Aon. Provided you already have a group motor policy with them, perhaps for example for the partners, you can take out cover for employees that adds "business only" and means their own private car policies do not need changing (with the inevitable question of who pays). These cost only about £50 each and provide an excellent solution. They also mean that an employee who has a bump on business suffers no loss of no claims bonus on their own policy, and there is no argument about who meets their policy excess. Aon's motor department is at 01268 578367 - speak to Lee Curtis.You then need to have policies that cover good practice while driving and I can do no better than refer you to the Fleet Monitor article on this. It lays out all the things you need to consider and decide upon and it is well worth reading. OK, they have a product to sell but you don't have to buy it and the advice is sound. Click Here.You also can be liable for things such as using a hand-held mobile phone while driving. Yes, that's right, the employer is also liable, as with so much here. Good, clear policies, carefully advised to employees, are essential or you could be in trouble.