Sage Blog

It’s a fresh new year. What better time to take a look at your business, set some achievable goals and set yourself up for success in 2012?

Go for a run every morning. Stop eating chocolate. Prunes for breakfast.

Personal New Year’s resolutions are often unrealistic and lose their appeal by February.

When it comes to business resolutions though, you need to think hard about what’s achievable and how to make it happen. A set of carefully considered goals can be your blueprint for the year and help take your business from strength to strength.

But where to start? Here are some suggestions to help you get going.

Don’t be a stranger to your customers. The beginning of a new year is the perfect time to revisit customer relationships. Ask your customers how you’re doing and how you might make improvements. Ask for honest feedback and don’t take it too personally. Just promise yourself you’ll strive to improve.

Look after your staff. Nurturing talent and staff welfare has fast become a ‘hot topic’ for all organisations, with many looking to improve internal collaboration. Make 2012 the year you stay on top of your HR, employment law and health and safety matters.

Time to upgrade? Take a fresh look at your business technology. Is it still up to scratch? An outlay now on more up to date technology could speed up key processes, saving you money and resources in the long run.

Batten down the hatches. Make sure your network is fully protected against viruses and hackers and is sufficiently backed up now. As we all increasingly make use of computer systems, it’s essential that the data stored on them is secure.

Update your site. When was the last time you refreshed your website? Has the content been changed recently? As a constantly evolving technology, websites can quickly look dated. Your website is often your first point of contact with customers, so make a pledge to spruce up your site if it’s needed.

These are just a few examples of how you can use the New Year as a stimulus to help make 2012 the most prosperous year you’ve ever had.

Matt Forrest, Sage People Advice Team

It’s that time of year again.  In October, a couple of changes will be applied to UK employment law that will affect every business in the country.

But don’t panic. Although these changes could make a big impact to your employees, your responsibilities are minimal. We’ve covered the basics here, but for our Sage People Advice customers you can always call us for more detail specific to your business.

Firstly, the national minimum wage (NMW) rates will increase on 1 October

That means you’ll have to pay at least:

• £6.08 per hour for workers aged 21 or more.
• £4.98 per hour for workers aged 18-20.
• £3.68 per hour for workers aged 16-17.

You’ll also need to pay any apprentices who are under the age of 19 at least £2.60 per hour, as well as those aged 19 and over who are in the first year of their apprenticeship.

If you provide any workers with accommodation, the accommodation offset will be increased to a maximum of £4.73 per day.

The second change - is a big one.

From 1 October 2011, the Agency Workers Regulations 2010 will come into effect.

These regulations give agency temps a right to the same basic working and employment conditions as they would have had if they had been directly employed by the hirer to do the same job.

An agency temp will have to work for a qualifying period of 12 weeks, in the same role, with the same hirer, before they are entitled to equal treatment.

Occupational social security schemes, such as company pension schemes and occupational sick pay, are not included in basic working and employment conditions.

What’s more, all agency temps will be entitled to certain rights from the first day of an assignment, including access to canteens, childcare facilities, car parking and the right to be notified of permanent vacancies.

So what do I do?

Now you’ve got this information, you’re ahead of the game. Make sure that you start planning now to ensure you can make these changes to your business in plenty of time.

In terms of agency workers, it will be the resourcing agencies that have the bulk of the extra administration.

It’s a good idea to get in touch with your agency now to make sure you both have everything you need to start October without a hitch.

Matt Forrest, Small Business Team

Sage People Advice: For help with any areas of HR, Employment Law and Health and Safety for your business, contact our Sage People Advice team on 0845 111 2450. Alternatively, for a one off consultation, why not call our Pay As You Go team on 0844 8877 999

Parts of London and other major UK cities have been affected by rioting and criminality. Many businesses were looted, damaged or totally destroyed during the period of violence. Our Sage People Advice team have put together some useful advice to help businesses affected.

As many business owners survey the damage in the aftermath, we’ve broken down the advice you need in terms of paying employees and receiving compensation.

Do I need to pay employees if they can’t return to work?

If your business is open, you’re not obliged to pay an employee if they can’t or won’t come to work due to the violence, unless their contract of employment specifically states that they are entitled to salary under those circumstances.

However, unless there is a contractual clause within your contract to allow deductions from salary, any withheld payments could result in an unlawful deduction from wages claim.

Depending on your employees’ contracts, you can take the following options:

• Advise your employees that any time off work in these circumstances will be unpaid.
• Pay them on a discretionary basis, but only in exceptional cases.
• Ask them to take the time off as paid annual leave.
• Pay them as normal, but ensure that they make up the lost time.

If you can’t open your business due to damage, your employees are still entitled to be paid for that day.

Am I insured against looting?

If you’re in any danger whatsoever, you should never try to protect your building or property. Your business premises insurance should provide cover for fire, looting or any damage caused.

Most commercial insurance policies will cover you for damage to your premises, including the interruption to your business as a result.

Some policies will also cover those businesses which are not damaged, but whose trade will be affected by the aftermath.

Contact your insurer to check what you are covered for and arrange for immediate help if needed.

What if I’m not insured?

The Prime Minister has confirmed that an 1886 law, which allows insurers to pass on some of the cost of riot-related claims to the police, will apply, with the Government ready to make up any funding shortfall.

In addition, under the Riots (Damages) Act, uninsured businesses can seek partial compensation from the police.

The Government will also:

• Set up a £20million support scheme to help businesses get back up and running.
• Enable local authorities to grant business rate relief, by funding at least three-quarters of their costs.
• Defer tax payments for businesses in greatest need.
• Stop liability for council tax and business rates for the most seriously affected businesses.

If it’s likely that your business won’t open for a substantial period of time, and you can call our Adviceline for further advice and guidance.

If you need further advice on this or other HR, Employment Law and Health & Safety advice can find out more about our Sage People Advice service on 0844 8877 999

The Sage People Advice Team

If you ask any business how to get the most out of their existing team, the answer is usually “coaching”.

Coaching has become more and more popular, across all industries, as a way of increasing productivity. It’s a way of bringing new skills in, without the expense of recruiting.

So is coaching a quick win for a bigger turnover? Not exactly. You need to do it right.

If you do choose to train your team, it’s important to make sure that you, and your employees, get the most out of it. There’s no point throwing money at unsuitable training that wastes everyone’s time and energy. We’ve been providing Sage software training to our customers for over 20 years and we know you need to make it relevant, make it achievable and make it matter.

Who’s on board?

The first thing to consider is who you train. Do you coach everyone in your business? Or do you just coach the more senior members?

It might be cheaper just to coach those in higher positions, but do they really need more training? In fact, a lot of the time, it’s the more junior workers who get the most out of coaching.

Plus, those junior workers might lose morale if they see all the coaching resources going to their managers while they continue working as they were.

Consider if everyone needs the same type of coaching. Different training might suit different members of your organisation better than others. It’s a good idea to work out what you want to get out of a training session before it starts. That way, you can identify the best courses for each individual or group.

David Attenborough or David Brent?

Next, think about who is delivering the coaching. To save money, some businesses rely on their own managers to perform this role. However, coaching is a skill that not all managers possess.

Most like to think that they can educate and inform, but it’s best to take an objective look at who’s actually trained in delivering particular training modules.

External agencies are a more expensive proposition that could end up being more beneficial in the long run. There’s usually a reason that they specialise in coaching for businesses.

Joanne Waddell, Sage People Advice Team

Sage People Advice: For help with any areas of HR, Employment Law and Health and Safety for your business, contact our Sage People Advice team on 0845 111 2450.

Blessing or curse?

Social networking is undoubtedly changing the face of business. Experts are increasingly encouraging businesses of all sizes to embrace the technology that sites like Twitter, Facebook and LinkedIn can offer.

Matt Forrest, Small Business Team

But at the same time, there are regular media stories about employees getting sacked for posting libelous or malicious content about their employers.

A recent survey has said that almost half of UK businesses have banned social media sites entirely during office hours.

So which is it?

The answer, rather predictably, is a bit of both.

It’s true that businesses have never had the opportunity to reach so many potential customers and employees as they have now, in this dawn of online social networking. But it’s also a fact that left unchecked, some employees could post trade secrets, private information or content that could badly damage a business’ reputation.

Allowing managers to use Facebook, but banning other employees sends the wrong message to your workers: that there’s one rule for bosses and another for workers. This could severely damage morale and should be avoided if you can.

Social media at Sage

Here at Sage we take a similar common sense approach and have policies in place to protect both our people and our own reputation. We believe that it is important to be present in all of the channels that our customers are having conversations in and we embrace social media for this reason.

A better idea is to put a social media policy in place.

Those helpful people at our HR advice service,  Sage People Advice, suggests that your social media policy should encourage employees to:

• Only post meaningful, respectful comments.
• Use common sense and common courtesy: it’s best to ask permission to publish or report on conversations that are meant to be private or internal to the company.
• Keep responses appropriate and polite, especially when disagreeing with others’ opinions.
• Never comment on anything related to legal matters that the company may be involved in.

Remind your employees that this policy is still relevant when they are posting about work, even outside of the office and their working hours.

For more help with HR, Employment Law, Health & Safety advice for your business, contact our Sage People Advice team on 0845 111 2450.

Matt Forrest, Small Business Team

As part of our Sage People Advice service we keep our customers up to speed with HR, employment law and health and safety advice. One of the top topics with our customers lately has been the changes in paternity rights and what they need to do to make sure they tick all the boxes.

Matt Forrest, Small Business Team

Paternity rights; what’s changed?

Recently, paternity rules changed, meaning that new mums can transfer, or donate, some of their maternity leave over to the child’s dad (or the mum’s partner).

If you have any eligible new dads, they can potentially take up to 26 weeks’ additional paternity leave, on top of the two weeks’ ordinary paternity leave they are entitled to, after the birth or adoption of a child.

They’re also entitled to additional paternity pay, if the mother (or other adopter) has returned to work with at least two weeks of their statutory maternity or adoption pay outstanding.

How will this affect my business?

At this stage, it looks like the number of dads who actually request additional paternity leave (APL) or pay will be quite low. Remember that this extra right can only be taken instead of their partner’s maternity leave: she’ll have to return to work.

However, it’s still a good idea for you to prepare for the possibility of this happening: if any expectant fathers tell you that they want to take APL, will you be ready?

For instance, you’ll have to make sure that you have the resources ready to cover any male employee’s APL, just as you would for maternity leave.

To make sure you’re not discriminating against anyone, you’ll also need to make sure that your maternity packages are matched by your paternity packages.

Likewise, as with women on maternity leave who have the automatic right to “jump the queue” for a suitable alternative job in a redundancy situation, men on APL can now enjoy the same right.

Dads on APL also have the same right as women on maternity leave when it comes to keeping in touch days: make sure you offer them this opportunity.

What do I need to do now?

In addition to preparing for any APL requests, there are practical things that you can do now. If you haven’t already, you should update your maternity policy, your paternity policy and any related documents and forms to reflect these changes.

Matt Forrest, Small Business Team

Sage People Advice: For help with HR, employment law, Health & Safety advice for your business contact our Sage People Advice team on 0845 111 2450.

No matter what size or type of business, from a high street florist to a multi million pound engineering company, your biggest asset is your people. Your people are critical to the success of your business and at Sage we follow these rules from getting the right employment law and HR advice, to building trust.

Rule 1 – Get the right people on the bus

Start as you mean to go on. Recruiting the right people with the right skills is essential. Set yourself up for success by deciding on the exact type of candidates you want to attract and settling for nothing less.

Rule 2 – Teamwork

It’s no use hiring talented people if they won’t work as team. Employing people who fit your culture can be just as important as hiring those with the right skill set. Some people may not suit the atmosphere and feel of your business and it can affect motivation and productivity. Consider introducing candidates to the rest of the team informally to see how they get on.

Rule 3 – Ask if you have the right people in the right places every six months

Every business goes through periods of evolution and change. Sometimes it’s organic, but sometimes you should make changes to increase your business’ effectiveness. Are any talent gaps forming, or are someone’s skills not being fully realised?

Rule 4 – Create the right framework and your team will be self-organising

Set clear goals and ensure each individual has a job description and knows their role, and the role of other teams, within the business as a whole. How they interact is crucial in your overall efficiency.

Rule 5 – Empower your people

Give your people the tools to do the job themselves. You’ve hired them for a reason and they will often appreciate your trust in them to fulfill their role. That said, always let them know they can come to you with concerns.

Rule 6 – Clear the route for your people so they can do their job

Take the time to ask your people if there are any issues stopping them from achieving their potential within their roles. Ask for honesty and be prepared to make changes if you need to.

Rule 7 – Trust

Open and honest discussions with your team can get the best out of everyone. If you’re facing issues, get them out in the open and work as a team to overcome them. It’s a cliché, but you really can’t buy respect or trust.

Rule 8 – Celebrate your team’s success

It’s always worth thanking your team for a job well done, and celebrating success as often as possible. Even if cash bonuses aren’t in the budget, sincere thanks and appreciation are valuable tools in forging strong bonds within your business.

Rule 9 – Be prepared to lose your best people as they grow

It’s inevitable that the career paths of some individuals may take them out of your business. Remember that no-one is irreplaceable, and make sure that no processes are reliant on just one person, in case they ever leave.

Rule 10 – If you need advice, make sure you know where to get support

HR and employment law is a large and complex area. Sage People Advice can help. We’ve got flexible options, from a single phone call to a 12-month contract to help support you with any employment queries. For more information call us on 0845 111 2450.

Matt Forrest, Small Business Team

Our recruitment expert, Tracey MacLeod, gives her tips for successful recruitment from advertising to appointment.

Jim Scott, Head of SageCover

You don’t need me to tell you that HR and payroll is a major concern for businesses. That’s something your employees will do if you get it wrong! But you might not know that seven out of ten small businesses have needed to seek advice on HR and payroll issues that have impacted their business. 

The challenge for small businesses is the speed that the legislation changes. The Chartered Institute of Personnel and Development (CIPD) identified that twenty significant changes have been made to the UK employment law since January this year.

Barometer for British Business

During May we carried out our Sage UK omnibus, this surveys 1,500 of our 800,000 customers to get a better picture of the challenges facing UK firms and provide a barometer for British business.

The survey found that only 22% of firms employ a dedicated specialist to deal with HR and payroll issues. But for the majority it’s a huge challenge to find their way around the complex legislative landscape by themselves.

Understandably, many are seeking specialist advice such as our HR Advice service.

Working with our SageCover team also gives me a clear idea of the issues facing businesses. This team provides help to our customers in the day-to-day running of their business, and they’d certainly agree with the survey; there are a large number of businesses struggling to get to grips with HR and payroll issues.

Critical to business success

There is no question that HR and payroll is about far more than pay, rewards and policies. It is about knowing your employees and understanding their needs in order to establish a long-term and productive relationship. Getting your company’s HR and payroll right is critical to the success of the business.

Firms need to be in the best position to take advantage of every new opportunity as we emerge from the recession, and having a highly committed and motivated workforce underpins that. People understandably have a low tolerance when it comes to errors in things so personal as their pay or paternity leave, so making sure your business has the correct procedures and support is vital to maintaining a competitive business.

Staying up to date with HR and payroll issues can seem daunting if you’ve not got dedicated resource in your business, but here are some things you can consider:

Getting to grips with legislation

Legislation affecting payroll changes regularly, so make sure you are always up to date with the latest developments by dedicating at least one hour a month to reviewing the HMRC website. The HMRC also runs EmployerTalk forums, which take place every week across the UK.  The sessions last for half a day and include three half-hour presentations on relevant topics and an ongoing exhibition.

If you’ve got SageCover with your Sage 50 Payroll software then you’ll already have access to expert HR Advice. But, if not, then you might want to consider signing up for our free HR legislation alerts or join our comprehensive HR Advice service.

How much is employee absence costing you?

According to the CIPD’s 2009 survey, the average cost of absence per employee per year is now £692.  Capturing your company’s HR information using software will help you to monitor absences and spot trends. This can help you identify potential gaps and plan ahead. You can also work out the cost of absence to your business and identify if this is an area that needs to be addressed.

Jim Scott, Head of SageCover

One of our services here at Sage is to help customers navigate HR issues and make sure that they are advised on changes to the law.  Many of our HR Advice customers appreciate our plain English approach and clear advice on HR legislation. The introduction of “fit notes” is one of the many areas where we have been working hard to make sure our customers have the information they need.

Georgie Cragg-James is a Senior HR Adviser for Sage HR Services

The change from traditional sick notes to new fit notes came in amid a whirlwind of controversy and confusion. Now that the dust has settled and fit notes have been trialled for real, we’ve put together what we hope will prove to be a useful guide to using them.

What is a fit note?

Technically called a statement of fitness for work, a fit note is provided by a doctor to an employee who has been off work for longer than seven days. The fit note will advise you, as an employer, whether your employee is fit enough to return to work.

What does a fit note do?

In the fit note, your employee’s doctor will select one of two options; that the employee is either:

• Unfit for work; or
• may be fit for work, taking account of the following advice.

If the doctor has written that your employee may be fit for work, they will then offer advice about the circumstances in which they could return to work, for example:

• A phased return to work.
• Altered hours.
• Amended duties.
• Workplace adaptations, such as them working on the ground floor only.

Do I have to take the doctor’s advice?

You don’t have to follow the advice given in the fit note if you think it’s impracticable. After discussing the advice with the employee, it’s your decision whether to allow the employee back to work. You’ll know more about any health and safety issues in your workplace than the doctor.

If you can’t provide what the doctor has suggested, tell this to your employee and treat them as being unfit for work. The employee doesn’t need to go back to their doctor for a new fit note.

However, if your employee’s illness could be described as a “disability”, you need to understand what “reasonable adjustments” you can make to allow them to come back to work.

To get a picture of how this process works, take a look at these real-life case studies:

Case study A

Julia is 31 years old and works as an administration assistant in a small company. She has been off work for six weeks with severe back pain for the third time in a year.

In her fit note, her GP advises that she ‘may be fit for work taking account of the following advice’.

The advice is that Julia:

• May need time off to attend physiotherapy after a referral.
• Should avoid static postures by taking more frequent breaks and be able to sit/stand when she needs to.
• Should have a workstation review.
• Should consider a referral for occupational health advice.

In the fit note, the doctor also ticked ‘a phased return to work’, ‘amended duties’ and ‘workplace adaptations’.

The doctor noted that this will be the case for eight weeks and he will need to assess Julia’s fitness for work at the end of this period.

Julia and her manager discuss the advice on the fit note and how her health condition affects her ability to do her usual job. They agree that Julia should observe a phased return to work with more frequent breaks during her shifts. Her manager has also organised for a workstation review and an occupational health assessment to identify any action that may help prevent future episodes.

Julia immediately returns to work under these conditions and is back to her normal hours after four weeks.

Case study B

Eric is 47 and works in a retail store on the service desk, but also stocks shelves and works on the till. He has chronic anxiety and has been off work for three weeks.

He would like to return, but has concerns about coping with customer complaints that make up some of his role.

In his fit note, Eric’s GP advises that he ‘may be fit for work taking account of the following advice’.

The advice is that Eric:

• Should avoid customer facing duties.
• Should observe a phased return to work.

The GP additionally advises that Eric’s employer should consider creating a support network at work.

The doctor noted that this will be the case for three weeks and he will need to assess Eric’s fitness for work at the end of this period.

Eric and his employer discuss the advice on the fit note and agree that Eric should return to work on a phased return to a non-customer facing role, before gradually returning to the services desk for shorter then longer periods.

Additionally, Eric’s employer arranges for an experienced member of the team to become a ‘buddy’ to support him and advise on techniques to deal with handling difficult customer issues.

Eric returns to work immediately and returns to normal duties after three weeks.

Georgie Cragg-James, Sage HR Advice Service

As well as translating the law into plain English, Sage HR Advice Service advises you of forthcoming changes to the law and gives you all the tools you need to remain compliant.