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Appraisals and Objective Setting Toolkit

Appraisals and Objective Setting Toolkit

As we head into 2021, it’s essential to be sharp on appraisals. As well as offering a great opportunity to regularly check in with your employees – which is especially important for those who are remote working – it is crucial for businesses to operate in a lean and efficient manner.

  • Identify what’s working well for you
  • Uncover what’s not working so well
  • Create an action plan to address this

Whether you have no official appraisal policy in place or you just need to refresh your old routine, our Appraisals Toolkit should provide you with everything you need to make a start.

We’ve included some templates to help you along – helping you make the most out of your limited time and budget at this difficult time. We sincerely hope that it helps you power forward with focus and determination.

 

Appraisals Toolkit

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Can we take away any positives from 2020? By Helen Fleet

Can we take away any positives from 2020? By Helen Fleet

2020 …WHAT….A ….YEAR!! It’s unlikely that anyone will walk away from this year without feeling bruised in some way. With positive news on the vaccine and the real hope of normality in 2021, it’s time to think about the positives we can take away from what was a year like no other.

What did our clients learn?

No denying those initial weeks back in March were hard but our clients shook themselves down and battled on. During those dark months, they learnt the following…

 

Client Mix

Some clients found they were too reliant on a small number of clients. They had always known this was a risk, but they believed good service in normal times would keep that work secure. The pandemic took this out of their control and one lost client had a significant impact on their business.

Lesson Learnt

Build a wider client base and monitor reliance on larger clients.

 

Efficiency

With staff furloughed they found new and more efficient ways of working. For some clients that has meant making redundancies but, in the knowledge, they can build a stronger more efficient business as they grow again.

Lesson Learnt

Regularly review how we deliver our service and if we could do it better.

 

Overheads

It’s easy for overheads to build as you grow your business without checking if you still need them, what level is needed and if you are getting value for money. Of course, property costs are the most obvious with people moving from large offices to hybrid homeworking and smaller spaces. Our clients reviewed everything from marketing spend to IT support to ensure they were as lean as possible.

Lesson Learnt

Set a regular timescale to review overheads and ensure we are getting value for money.

 

Cashflow

No-one foresaw the significant loss of business in such a short space of time that we did. Whilst some clients had reserves others did not. The various government initiatives helped several clients through this period, but it has focussed their mind on what they feel is a minimum cash balance.

Lesson Learnt

Know your monthly income required to remain cash neutral. Build a plan to retain three (or your choice) months’ worth of overheads in cash.

Personal Traits

Several our clients recognized new traits in themselves. Personally, I realized I was calm in a crisis and through all our updates had an ability to make the complex simple.

We can all take this new awareness and build on it to help us personally and professionally.

 

What are your positives?

Reflecting on this, think about the following questions. What can you do with the answers to make your business perform better in 2021?

Consider:

  • What do you know about your business that you didn’t before?
  • Do you know what doesn’t work for your business?
  • Have you seen any efficiency improvements?
  • Do you need to expand your service offering?
  • Do you need to build a broader client base?
  • What positives can you take away from how you personally reacted to this year?

 

More about Helen Fleet

Helen Fleet of HF Financial Strategy works as a finance director and guides companies to delivering their financial and business objectives which can include cashflow planning, pricing reviews and ways to improve profitability.

If you’d like to know more about Helen, visit her website here or follow her on LinkedIn.

End of Year Reviews

End of Year Reviews

What a year 2020 has been. It’s put a strain on us all: mentally, physically, personally and professionally. So, as we come to our end of year reviews, how should we approach them?

We take a look at the importance of regular appraisals, emotional intelligence, setting targets for 2021 and how to assess personnel that may have been furloughed or missed a significant chunk of time due to the coronavirus pandemic.

Read on to discover more…

 

End of Year Reviews

End of year reviews are annual meetings held to evaluate performance and identify any causes of concern or improvement. They provide an important opportunity to:

  • Identify areas of weakness and create a plan to address this
  • Refine responsibilities – referencing priorities and workload
  • Identify opportunities for development – with reference to training or next steps
  • Agree measurable targets and next steps

However, as well as being an opportunity for examination and assessment, end of year reviews also act as a great time for employees to celebrate their achievements. By reflecting back on the year, both parties can recognise the progress made by the employee and explore exciting next steps.

Remember, the review process is the ideal opportunity for employees to share how you can help them perform better!

However, it’s fair to say that this year is a bit different. With many employees absent from the business, forced into new homeworking conditions and mass uncertainty about what the future holds, it’s important to adapt accordingly.

In the next section of this blog, we will advise how you can lead a suitable review in the current climate.

 

Acting with Empathy

Research shows that empathy is one of the key drivers of overall performance and that teams with more empathetic bosses produce better results. Therefore, with a difficult year under our belts, we urge you to actively act with empathy.

Whilst we’re not suggesting that you simply let employees off the hook for the year, now more than ever, managers must apply an appropriate dose of context with their judgements, rather than viewing performance as just black or white.

Employees are facing a multitude of toils and trouble – with fears of job loss, stress and concerns for health having a significant effect on the workforce as a whole. Therefore, having the emotional intelligence and sensitivity to navigate a successful appraisal in the current circumstances could prove more difficult than anticipated.

When assessing your employees, consider:

  • How can I reassure and support the employee?
  • Has the pandemic impacted results?
  • Would I expect leniency if I missed my targets?
  • How can I fairly judge performance?

Whilst analysing progress is key to a successful appraisal, ensure that this is well-balanced with time to check in with the employee, their wellbeing and their plans for the future. Remember, it wasn’t the choice of some to work from home and it could have uprooted feelings of great difficulty or isolation.

Discuss how you can better support them – considering how you can help nurture growth and development. Whilst it’s understandable that many employers wont’ be in a financial position to fund training, pay rises or even promise job security, it may be possible for personnel to utilise this quieter period to undertake free training to further their skills.

It may be useful to point your employees in the direction of The Skills Toolkit for free digital courses that can help teach new skills, recap fundamentals or further knowledge.

 

Looking to the Future

One aspect of reviews this year that will prove to be especially difficult is setting attainable targets for 2021. Whilst the economy is unstable and uncertain, it’s very difficult to predict how businesses will fare. Therefore, this needs to be reflected in targets and the usual increase in performance or productivity may need be reviewed.

It’s important to:

  • Set SMART objectives
  • Be realistic – recognise that targets may need to digress from previous years
  • Focus on what is attainable in the current circumstances
  • Set targets that asses the quality of work produced, not just quantity
  • Consider reviewing targets quarterly

Finally, when making plans for the future and discussing next steps, consider how this will look in the coming weeks and months. Will home working be permanent? How will this affect how employees are measured? Do you need to increase the frequency of reviews or touch-base more? These are all questions that must be answered when putting plans in place for 2021.

 

How to Assess Furloughed Staff:

This year is like no other. Shocks to the economy have meant that much of the workforce have experienced reduced hours, furlough or been absent from the business for weeks or months at a time. So, how should you assess your furloughed staff?

An Employer’s Standpoint:

As an employer, there is no issue in carrying out appraisals whilst your employees are furloughed, since taking part in the appraisal would not count as work.

However, the person who is leading the appraisal (ie, the manager), could not be furloughed whilst appraisals are being conducted. This is because the appraisals are counted as work for the manager or company representative leading the meeting.

Considerations:

Just because an employee hasn’t been present for the whole year, it doesn’t mean that you should skip your end of year appraisal.

This meeting is greatly beneficial for both the employer and employee to check in, refocus and identify how to progress. Failure to do so may result in:

  • Employee confusion, upset and anxiety
  • Uncertainty for the future
  • Outdated or inappropriate goals or targets

How do you measure new starters? Or those that have returned from maternity leave? Measuring employees on a part-time basis isn’t a new concept. As with most plans this year, it just needs a little adapting.

 

More Support – For Them and For You:

Feedback shouldn’t just be provided once a year in an annual review. In fact, most employees respond best to continual feedback from their managers. To discover more about continual feedback, read our blog here. It’s a great way to provide more support for your employees, especially as many businesses continue with remote working.

For more support and information on how to conduct your staff appraisals, contact us today! We’re experts in supporting you with even the most complicated people-management headaches, so that you can rest easy knowing that you’re doing best by your business and employees.

 

Setting Targets for 2021

Setting Targets for 2021

Setting targets for a business right now feels like an impossible task.

It’s been said before this year that forecasts are pointless because they are so soon out of date. As a result, people assume they don’t achieve anything. Even more so this year, people feel that setting targets when the world changes so much from week to week is a fruitless exercise.

It will not come as a surprise that I disagree.

 

 

Why set targets now?

From experience, it seems that forecasts are prepared and targets are set for two main reasons:

  • To prepare for differing scenarios of business performance
  • To drive a change in behaviour

In 2020 especially, preparing for differing scenarios is key to survival. It enables you to react quickly to changing conditions.

 

Preparation for changes in business performance

Even before the pandemic, clients looked to a forecast to help them prepare for the what-ifs. It helped them to understand the impact – both good and bad – ahead of time.

The most common priorities have been:

  • Planning growth and the related costs – Think recruitment, management investment time, marketing strategy or increased overheads
  • Funding – Understanding what funding might be required to grow the business or alternatively needed to fund any reduction in income
  • Capacity – Do you have the right level of staffing, how can you manage ebbs and flows
  • Scenarios – What would 10% more or less income mean for your profits and cashflow

Once the targets are set, vulnerabilities can be identified and plans to deal with them accordingly.

The next step is to set the detailed objectives required to deliver the targets set.

 

Driving Behavioural change

Our clients are self-motivated and know what they want from their business. They don’t look to a forecast to drive a change in their own behaviour. However, in cascading those targets to employees, they see it as driving behavioural change throughout the business. This goes far wider than the simplest example where sales targets are linked to remuneration.

Sharing the objectives of the business with staff results in:

  • Greater staff retention – Staff are bought into the aims of the business for the year ahead and motivated to help achieve them.
  • Reduced pressure – Sharing the objectives of what you want to achieve and the actions to achieve it with staff doesn’t leave all the tasks at your door.
  • Quicker results – Shared objectives are achieved more quickly and not bottle-necked with you as the business owner
  • Innovative ideas – Openness encourages ideas and staff will contribute new ways of thinking all working to achieve your targets
  • Staff objectives – The sometimes-onerous task of writing staff objectives happens organically with the forecast aims cascaded down into the detailed requirements which can be more easily allocated across the workforce

So, with all this uncertainty around – the reason to forecast is to help businesses cope. It enables businesses to plan for the worst and the best and understand the impacts now. Setting detailed targets for you and your staff follows on from the high-level forecast and will help you to achieve your aims.

 

Get your finances on track with Helen Fleet:

Helen Fleet of HF Financial Strategy works as a finance director and guides companies to delivering their financial and business objectives which can include cash flow planning, pricing reviews and ways to improve profitability.

If you’d like to know more about Helen, visit her website here or follow her on LinkedIn.

 

 

Occupation: Full Time Parent

Occupation: Full Time Parent

Coronavirus has highlighted an issue that’s been present for years: employees are concerned about being negatively judged for needing working adjustments to accommodate their children. But what will the knock-on effects be and why do we need to act now to support working parents?

We take a look at the ongoing issues that working parents face, outline your legal standpoint and discuss what ‘reasonable’ adjustments can be made as society faces a modern-day childcare crisis.

 

UK Childcare Crisis

Childcare has been a hot topic since schools shut in March – exposing a lack of support for over 13 million working parents in the UK. That’s about 40% of the working population.

However, this is an ongoing issue. With entire year groups having to isolate and schools being forced to shut, this isn’t a problem that’s going out of the spotlight any time soon. So, why should employers get on board?

The UK is experiencing a childcare crisis – with a recent survey revealing that a lack of childcare played a role in almost half of female layoffs since the pandemic hit. Furthermore, even our keyworkers felt the strain with 67% forced to reduce their hours due to a lack of access to childcare.

It seems unlikely that any working parent will avoid childcare difficulties at some time over the coming months. So, let’s take a look at some of the issues contributing…

 

Issues of being a working parent

Lack of support for working parents

Have you ever felt concerned to admit to childcare issues or felt worried that you’d be met with a negative response? Well, you’re not the only one.

In fact, of those working mothers that did experience a lack of childcare during the pandemic, over half reported that they were met with negativity from their employer. Moreover, it’s likely that this fear will increase as we head into a recession and the peril of redundancy grows within society.

The lack of support goes beyond the employer, however. At current, accessing support is more difficult than ever. Whilst grandparents may be isolating or friends are unable to mix bubbles and pitch in together, many are looking to paid support in the form of nurseries or childminders.

Yet, they’ll be met with a nasty struggle – as many working parents may have found. Only 56% of local authorities have enough childcare for parents working full-time, meaning that childcare spaces are hard to come by, especially at such short notice.

High expenses

Despite the need for childcare to be seen as economic infrastructure, the investment simply doesn’t match and prices for childcare are snowballing out of control, as one of the most highly-regulated sectors push prices up year-on-year.

However, parents are left to brunt the cost of this regulation. In 2020, parents are paying an average of £6,800 for a part-time nursery place. That’s 5% more than last year – well ahead of inflation which sits at 1.50%.

Therefore, with childcare costs becoming an increasing strain on the family unit, it’s concerning to see that families are opting to reduce their groceries in favour of childcare, or feel forced to cut their hours to access tax-free support.

A backstep for equality

The role of a mother has shifted from a stay at home mum to working a triple shift – looking after the home, the family and a job.

As the primary caregiver in the UK, it appears that working mothers are perhaps the worst-affected by the childcare crisis, with a recent study revealing that 72% have been forced to reduce their hours (capping their earning potential) due to a lack of childcare.

But what will be the long-term affects of a mother having to put her career second?

  • Higher levels of female unemployment
  • Less women in senior roles
  • Reduced diversity
  • Increased gender pay gap

With 46% of working mothers stating that childcare was a deciding factor in their redundancy since the pandemic broke, this issue cannot be ignored any longer.

Therefore, in order to avoid taking a step back into the 40s, we must act now to support working parents as a whole.

 

Legal standpoint

As employers

An employee is entitled to take reasonable time off as “dependants leave” but only in specified circumstances. There is no statutory obligation on employers to pay the employee for the time off and what is “reasonable” is not mandated.

An employee also has a separate entitlement to take unpaid parental leave of up to 18 weeks (per child), at any time until the child is 18; but advance notice must be given (whereas time off for dependants is designed to deal with emergency situations).  One type of leave could transition into the other.

For more information about the rights surrounding work and childcare, download our detailed 9-page explainer in our Return to Work Toolkit.

As employees

In addition to dependants leave and unpaid parental leave, anyone who has worked for 26-weeks continuously has the statutory right to submit a formal flexible working request.

The request can include possible changes to work arrangements, such as:

  • Reduction or variation of working hours
  • Reduction or variation of the days worked
  • Working from a different location, eg home.

 

Employer Support – Going The Extra Mile

With all that said, what can employers do above the legal minimum to make the lives of working parents better? Well, here are just a few things to consider:

Normalise Working Parents

Everyone knows THAT news segment where the toddler broke in during an interview on BBC. But, have you seen how they handled the more recent interview with Dr Clare Wenham and her toddler’s unicorn? Normalising parenting can go a long way to reducing anxiety around childcare.

As with all change, ensure your leadership get on board and lead by example – being a parent and being a professional should not be a paradox.

Flexible Working

As the pandemic escalates the shift away from ‘traditional’ ways of working, it’s important to carefully consider your employee’s requests and try to be as accommodating as possible. Failure to do so will likely push them towards a decision of ‘work or home’ – meaning that you could lose out on quality talent.

Download our free flexible working request form and flexible working methods explainer here.

Be Understanding

Simple and effective: showing compassion and understanding to working parents can reduce the fear surrounding this widespread issue.

In such stressful times, employers should be making it as easy as possible for working parents to follow the rules and government guidance. For example, if an employee is concerned that they will lose their job if required to care for children forced to isolate, they may be encouraged to illegally break the isolation period to hide issues from their employer. This will put your workforce as a whole in jeopardy.

To combat the negative experiences of many, we must establish a safer, more understanding environment where employees are able to be transparent about the issues they face – without fear of an adverse reaction.

Policies

Putting formal policies in place to protect both the employee and employer can help establish a more collaborative approach to problem-solving. For example, by having a homeworking policy in place, employers can feel in control of individuals who seek to work from home on a more permanent basis.

Download our free policies here, including:

  • Homeworking policy
  • Health and wellbeing policy
  • Flexible working policy

Gender Pay Report

Whilst it isn’t legally required by all businesses, publishing an annual gender pay report can help employers to become conscious of inequalities within the business.

Consider checking in on the differences between genders in regards to pay, promotional opportunities and recruitment. The first step of righting a wrong is identifying it, after all!

 

Need more help?

During these testing times, the team at Crosse HR are trying to do their bit – supporting small businesses by providing free templates to help time and resources go further.

However, if you require further expert HR support and consultancy, please get in touch. Contact Crosse HR for shrewd, sensibly priced HR solutions you can rely on.