Dear Subscriber,

My vision, my hope and my objective, is to help you add value to your company via the information contained in this (e) newsletter.

Sounds simple doesn’t it, and it is. To help we have experts in their field guiding you on issues that matter to you. Rather than waiting for you to have a problem that requires our HR services, I would like to help you avoid those issues now.

This month I thought I would share with you my recent experience of attending the Entrepreneurs Forum conference in Newcastle where I was pleased to hear that Jeff Grout would be speaking. Jeff is an acclaimed public speaker, listed in the '100 Best Business Speakers in Britain', former business coach to Sir Clive Woodward and Chairman of the recent CIPD conference in London.

Jeff explained that recruiting the wrong person can cost two times that persons salary so we must all take particular notice of the processes we follow when recruiting. His pointers are valid and as a lot of people forget the interview process is truly a two way process, I would like to share them with you:

1. Demonstrate what you would be like to work for as a boss – your attitude right down to the basics of saying please & thank you!
2. The pace of opportunity – people are not always looking at 4 to 5 year timescales but more realistically 1 to 2 years.
3. Have a distinctive & compelling employer brand
4. Win the attraction game – look at how you source your candidates

He also discussed being different in your approach, and as you may recall from last months newsletter, this is something we at Exclusive Human Resources pride ourselves in.

Watch this space - starting from January we intend to revolutionise the world of HR recruitment from the way fees are structured to the guarantee periods you should expect.

Mark Ions - Director

www.exclusivehr.com

Jonathon Stokes is a solicitor practising in the fields of employment law and commercial litigation. He has considerable experience in advising on third party pressure cases and the effect on employers. This often combines with the vexed subject of TUPE transfers.

An interesting conundrum has arisen recently in the context of a third party to dismiss an employee.

The employment appeal tribunal had to deal with this point recently in the case of Greenwood v. Whiteghyll Plastics Limited.  Mr Greenwood was employed as a shop fitter.  His employer had contracts with various store chains including Morrison’s, one of the employer’s major customers. Following complaints made by Morrison’s who then barred Mr. Greenwood from their premises, Whiteghyll dismissed Mr. Greenwood on the basis that they were unable to find alternative work for him.

It has long since been accepted that pressure from a third party is capable of justifying an employee’s dismissal; equally clear is that in deciding whether an employer acts reasonably or unreasonably in so dismissing is in part determined by the injustice to the employee caused by such a dismissal. Thus, there is a requirement to consider matters such as the length of service of the employee, his or her work record and the difficulties he or she may face in obtaining other employment.

In this context, it is easy to see that unless you document and record the consideration of the injustice to the employee an unfair dismissal may well result.

Whilst, logically, dismissal in such circumstances should be fair for “some other substantial reason” - if you are unable to establish that you at least considered the position of the employee you may be in difficulty.

There is a further point.  Let us say that in considering the degree of injustice to the employee you conclude that the injustice would be so great that to dismiss may well be unfair.  What would happen then if you legitimately did not have another position into which to put that employee?  It would seem that the employer in that situation is in an unenviable position.  It cannot force upon the third party the presence of the employee in question and unless it could effectively “bump” another employee to create a position for the employee under threat, almost inevitably, they will dismiss knowing that the employee has a claim for unfair dismissal.

Perhaps we will have to wait and see what view the tribunal takes when faced with an employer which, to protect its own position, wrongly concludes that there is little injustice in dismissing an employee (for whom there is no other possible work available) in circumstances where the employer would have known that the injustice was considerable.

Due in sometime now: Amendments to Sex Discrimination Act to make it fully compliant with Equal Treatment Directive.

6th April 2008: Corporate manslaughter and Corporate Homicide Act 2007.

Put off to 2010: Extension of SMP, MA and Statutory Adoption Pay increase from 39 to 52 weeks.

Waiting: The right under the Work and Families Act 2006 for a mother to return to work after 6 months but before the end of her maternity leave period and pass the remainder of her leave as additional paternity leave, some of which could be paid, to the father.

Jonathon can be contacted at: Jonathon Stokes Solicitors, Churchill House, 12 Mosley Street, Newcastle, NE1 1DE, 0191 2308103 or by email 

Last month we received some very interesting, topical questions from readers relating to reward & benefits so we decided to put them to an expert. Dave Gibson is an Accountant & Business Advisor for Tax Assist and answers as follows:

Question: I want to reward my employees for their hard work over the past year.  I know if I pay them an end of year bonus I will need to account for income tax and national insurance through the PAYE scheme but I actually want to purchase my staff presents rather than cash. Do I still need to account for tax and national insurance on this, and is there a possibility that I could settle the liability on their behalf? (Managing Director, Newcastle)

Answer: Unfortunately, if you purchase gifts for your employees each will receive a P11d benefit in kind based on the value of the assets or goods that you have gifted.  The employees will be charged tax but not national insurance on the value of the gifts. The company will have to pay a class 1A National insurance at 12.8% on the market value of the gifts at the end of the tax year.

As only the tax liability is payable by the employee, you can actually make a voluntary agreement with the Inspector of Taxes to meet the tax payable on the benefits in kind that you give to your employees. This is known as a PAYE Settlement Agreement (PSA).  Once you have a signed agreement for a tax year, you do not have to enter the items covered on form P9D or P11D, operate PAYE on them or assess NIC liability for included items which are liable for Class 1 or Class1A NIC.

You will actually pay Class 1B NIC on the items included in any PSAs and meet the tax liability on the total amount of the gifts to your employees.  This will result in your employees paying no tax on the gifts they have received.

Question: Some of my employees have asked that rather than attend the annual Christmas dinner if I would give them the equivalent via a food and wine hamper.  I am happy to do this but can you tell me whether or not they will have to pay tax on this? (HR Director, Sunderland)

Answer: The provision of events such as Christmas parties, open to all staff, will not lead to taxation unless they exceed £150 per head for the tax year. However if you wish to give items such as hampers, then this will have to be taxed through the payroll or the P11D form.  A way round this would be to apply by letter (there is not a form) to your PAYE inspector and ask for a PAYE Settlement Agreement (PSA) to be set up, detailing what items would be covered.  You cannot include large regular items such as sole-use company cars, car fuel, salary, bonuses, round sum expenses etc.  The agreement has to be renewed each year. As the employer you would then be liable to pay the tax and National Insurance over.

If you have any questions you would like put to Dave for Decembers edition please email me directly.

TaxAssist Accountants are the accountancy and tax service for small business. They are the largest national network of accountants, looking after some 24,000 businesses. Based in North Shields Dave can be contacted on 0191 258 7676.

Each month we will be profiling one of our HR Associates. This month:

'Making the move'

Fiona, an associate with Exclusive Human Resources shares her experience of becoming an HR consultant.

I always thought I would be a “corporate woman”. However a few years ago the seed of setting up on my own started to germinate. I was at risk of redundancy for the third time and thought there must be better options out there. But a role came up in London and I started a five year commute. Then in 2005 I became pregnant and knew my travelling days were up.

Being at home for a year with my little one was great but I was beginning to feel brain dead and wanted to get back into the world of work. It was at this point I started to seriously explore the option of my own business.

I was lucky enough to be recommended an excellent business advisor. She took me through the whole business planning process, constructively challenging my thinking and making me consider key issues including who were my clients?; why would they buy from me?; what services was I going to provide?; when and where would these services take place? This in itself wasn’t difficult but sticking to it can be.

It is very tempting to “have a go” at projects outside your sphere of experience, but if it goes wrong it can seriously damage your reputation. As a consultant you need to be operational from the minute you start the assignment. Years of experience gained in large organisations have proved invaluable in conjunction with staying up to date with current developments in the HR arena.

In building the consultancy, networking has been vital. Networking itself has got a poor image, the usual one of business people dishing out cards and desperately trying to sell something. But we effectively network everyday, it’s simply the people we know: from work colleagues to services we patronise to friends and family, and building mutually supportive relationships with them. For me, personal recommendations have accounted for 75% of business. Being an associate opens up new networks and provides growth opportunities for all parties.

In three years I have travelled from corporate HR woman to mother to business woman. During that time it has been immensely challenging and rewarding in equal measure but I wouldn’t go back for the world.

To book an appointment to discuss your HR Consultancy requirements with Fiona call 0191 438 7989. You can also book to listen to Fiona speak at the 'HR for Small Businesses' Seminar taking place on November 22nd.

One NorthEast's Regional Image team are inviting businesses across the region to play their part in raising the profile of North East England by using stunning regional images available for download from here.

Part of the 'Passionate people. Passionate places' campaign, the images are free of charge to use, and are a fantastic way to showcase North East England through your websites, literature and marketing materials.

Next Month: 'Passionate about business - North East England'

For more information and to find out how you can benefit from the campaign, please visit here or call 0191 229 6924.

Iain Ramsey, The Regional Image team, One NorthEast

1. Increase Your Body Fat: You can’t fail to have seen all the press reports about obesity recently. Not only are we in the midst of a growing worldwide epidemic, we’re now seeing clear links between obesity and certain cancers, including breast, bowel, pancreas and leukaemia. The very latest World Cancer Research Fund research says that even people who aren’t overweight should slim down if they want to reduce their risk. And we haven’t even mentioned arthritis, heart disease, strokes and diabetes. Sorry to depress you, particularly if you’re sitting there tucking into a cream cake, but we have to face facts – if we want to live long and healthy lives, we must take responsibility for our own wellness and start shedding that fat today.

2. Eat All The Wrong Foods: “So, tell me what you ate yesterday,” I said during a recent consultation with a friend, “Did you have breakfast? “Oh, no,” she responded, sticking a false nail on her index finger, “I never eat breakfast. I had a few cups of tea mid-morning, though.” “And for lunch?” “I had some digestive biscuits.” “Right…” I said, groaning inwardly, “After that?” “I had a packet of wine gums mid-afternoon.” “OK… What did you have for dinner?” “The other packet of wine gums,” she said gaily, “Well, they were on a BOGOF offer at Asda.” (Personal Wellness Coach falls off sofa.) “Honestly, Claire,” she continued, brushing glue on the next nail, “These stupid nails are always breaking. And my skin is so dry…”

Mmmm… Ever heard the saying, “You are what you eat…?”

3. Don’t Drink Enough Water: When you get your usual mid-afternoon energy slump, think again before you reach for your favourite choccy bar. The cry of “Feed me!” generally means “Water! Water!” And if you aren’t drinking enough, you’ll feel sluggish, lack concentration, have headaches and suffer from constipation. Water is an also amazing catalyst in losing weight and keeping it off. Here’s why. When you’re dehydrated, you don’t flush your kidneys properly and they won’t work at their efficient best. Your liver, which has far better things to do with its time, like metabolising fat, then has to step in and give them a helping hand. Result: more fat is stored. So, eight glasses per day, please. And no, before you ask, two litres of Diet Coke doesn’t count.

Next Month: Disaster Zone – The 21st Century Diet

Claire Hedley BSc MA Chartered FCIPD is a Personal Wellness Coach specialising in personalised weight loss and wellness programmes. If you want to dazzle your colleagues at the office Christmas Party and need help to get into that gorgeous little black dress (or indeed, tuxedo), call her on 07913 944708, email or review her website. 

hr circles blog by Charlotte Housden, Business Psychologist and HR Consultant

Find it hard to quantify the value your function adds to the business? Worried that you and your colleagues are less well received than IT or Finance? No representation on the Board to help drive through the strategy?

Aren’t these things we fret about in Human Resources?

To read more click here

Free Lunch time Seminar ‘HR for Small Businesses’

Thursday 22nd November @ Design Works, Gateshead, 12:30 to 13:00.

A free HR Audit is available for every business attending with substantial discounts off our 'HR Foundation package'.

Places are limited - To secure your place please email me directly.

Eversheds Employment Law Update - CIPD Event Sponsored by Exclusive Human Resources

Tuesday 22nd January 2008 @ Vermont Hotel, Newcastle upon Tyne
Networking, Buffet & Coffee from 18:00 with event commencing at 18:30.

Interim HR Manager - Paying up to £50,000

Initially this is a three month contract with a view to additional project work potentially lasting up to 6 months.

We are proud to be exclusively representing this multi site, engineering business based in Durham...

To read all about this exciting opportunity please click here or to review all of our current vacancies please click here or call 0191 438 7989

An area a lot of companies fail to address when recruiting is salaries. Each month we will give you an up-to-date salary benchmark for a given HR position within the North East & Cumbria. Utilising our live, active and specialist database of HR professionals we are able to accurately guide you on current market conditions.

This month we start with HR Officers/HR Advisors:

Range: £16,500 all the way up to £41,000
Typical: £26,000
Benefits can include: Pension, bonus, flexitime, car, phone, health care, laptop and share schemes

The information shows the confusion that exists in HR and that job titles quite often account for very little. When someone leaves your organisation, rather than simply replacing at a like for like level, check you are in fact paying the correct market rate, and not as in the example above, pay too little or far too much!

Next month: HR Managers

For an informal discussion on either your own salary or your HR departments salaries, please call 0191 438 7989 or email us directly.

Please take a second to read this quote from Chris Cardell, a world leader in Advanced Thinking:

“Have you any idea what it's like to wake up in the morning and know that you're going to make a difference to people's lives? - there's no getting out of this if you've got a 'boring' job. I've seen train guards brighten up people's day, widget sellers who take such an interest in their customers' lives that their monthly sales soar. Because guess what, this philosophy doesn't just make you more successful - it can totally transform the quality of your working life. Because even if you regard your job as mundane or boring, the purpose of you going to work has now shifted from 'paying the mortgage' or whatever, to enhancing the lives of the people around you. So if this message has meant anything to you, please take action now.”

We hope you have found this newsletter informative, helpful and enjoyable. If you have any suggestions on future articles or indeed you would like to contribute please email us directly.