Role of Human Resources for a Company/Business going into Administration

Human resource management in administration concerns human resource management as it applies specifically to the field of public administration. It is considered to be an in-house structure that insures unbiased treatment, ethical standards, and promotes a value-based system. Administration is the most common insolvency procedure and is designed to promote company re-organisation and/or efficient asset realisation whilst creditors are kept at bay under the protection of what is called a “statutory moratorium”.

An Administrator is appointed to promote (if possible) the rescue of the company as a going concern. Because the administrator is an agent of the company, his or her appointment does not amount to a change of employer, so employment contracts do not automatically terminate on the appointment.

Generally speaking, if an employee carries on working for a business that an administrator is able to sell, and that employee decides to stay on, TUPE regulations protect the employee’s contract of employment. The new owner will usually take over the obligation to pay what is owed to that employee. Under TUPE regulations, existing terms of employment contracts transfer automatically to the new employer after 14 days. If the new employer refuses to meet the terms of an employee’s contract of employment, then that may amount to breach of contract.

If an employee is made redundant by the administrator, he or she can claim unpaid wages from him or her. However, there is no guarantee that the full amount your staff are owed will be paid, as this depends on whether or not enough funds are raised from the sale of the company and/or its assets. Some debts (known as “preferential debt”) must be paid out before other debts.

Administrators have been busy on the UK high street since the beginning of the year. HMV and Blockbuster were the first to call in administrators and this week fashion retailer Republic is reportedly close, putting around 1,000 jobs at risk.

Sadly, the news that a high street retail business is going into administration has become a regular press feature in the current contracted market. So just what does "administration" mean and what are the implications of this process for employers?

What does administration mean for business?

Despite public perception, when a company goes into administration this does not always mean "game over" for that company. When companies are in financial trouble administrators are appointed to take control of the company with the primary objective of saving the business, which will often entail internal restructuring and job losses. If saving the business is not possible, the administrators strive to achieve a better result for the company's creditors than if the company were wound up without first going through administration. This will inevitably involve sales of the company's assets (and perhaps eventual liquidation).

What role do employers play?

For employers, the primary concern in administration will be to maintain employee relations and work with the administrators to manage job losses. However, once administrators are appointed, employers hand over control of the company to them. It is clear that, from a Human Resources/Employee Relations perspective, there are likely to be conflicting interests between the administrators and the employer throughout the process.

Employers are not authorised to make decisions about the future of the company once it is in administration and are instead obliged to cooperate fully with administrators to sympathetically implement any changes that must be made.

Option 1: Save the company as a going concern

Administrators act as an agent for the company, so their appointment will not terminate the employment of the business's workforce. Staff will usually receive their salary as usual, but it will be important to manage employee morale once administration is announced. Ensuring that staff is well informed and their expectations are managed is key to minimising the risk of employees taking to social media sites to voice their discontent.

Where an administrator proposes to make 20 or more employees redundant within a 90-day period, employers and administrators will need to work together to ensure that the company's collective consultation obligations are met. The fact that the business is in administration will not be sufficient for the company to rely on the "special circumstances" defence for any failure to comply with its collective consultation obligations. Therefore, poor management of staff during an administration process can result in liability for a "protective award" in the employment tribunal of up to 90 days' pay per employee.

Option 2: Sale of the business' assets

Where a company is in administration, the administrators may sell company assets to repay creditors, which may trigger the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). TUPE contains certain concessions where the transfer is insolvent in the hope that it will encourage the rescue of more businesses. For example, employees of a business in administration can expect to transfer to a purchaser but, contrary to the ordinary rules, it is potentially easier for an administrator or a transferee to vary transferring employees' terms and conditions of employment.

Regardless of which route administrators adopt, the process will be unsettling for the workforce. HMV bosses were recently left red-faced when employees took control of the HMV Twitter page, posting tweets about the "mass execution of loyal employees" to reasonable number of followers, with #HMV X-Factor Firing trending as a result. This serves as a powerful reminder to employers that an inclusive process will benefit not only the staff affected but also protect the value in the company's brand.

Companies that went into administration from the year 2007-2013;

http://www.retailresearch.org/whosegonebust.php

Q - What is insolvency?

A - Insolvency arises when individuals or businesses have insufficient assets to cover their debts, or are unable to pay their debts when they are supposed to.

Q - What procedures are open to an insolvent company?

A - These fall into six main categories.  The first four provide the potential for the rescue of the company or its business, while the last two do not:

• Administration
• Company voluntary arrangements
• Scheme of arrangement
• Administrative receivership's
• Compulsory liquidations
• Creditors’ voluntary liquidations

Q - What is administration?

 A - Administration is one of a number of formal English insolvency procedures. 

 There are three entry routes into administration in England:

•  By an order of the court;
• Appointment by a qualifying floating charge holder; and
• Appointment by the company or its directors.

 Administration stops any legal action or process against a company from proceeding, unless the Administrators or the English Court give permission.  This means that creditors can’t take legal action against a company in administration to recover outstanding amounts. 

Q - What is the purpose of the administration?

 A - An Administrator must perform his functions with the objective of -

•  Rescuing the company as a going concern, or failing that;
• Achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (liquidated) (without first being in administration), or failing that;
• Realising property in order to make a distribution to one or more secured or preferential creditors.

 The Administrator must perform these functions in the interest of the company’s creditors as a whole.

Q - What will happen next?

 A - The Administrators will initially review the company’s position and collect information about the company.  The Administrators will assess whether there is there is the support (the employees, the suppliers, the customers and a fund if required) to continue to trade the business.

 The Administrators will take over the day to day control and management of the company.

Q - I am owed money, what notification will I receive?

 A - The Administrators will write to all known creditors of the company (as recorded by the company) as soon as is reasonably practical to inform them formally of the appointment.

 The Administrators will send a report to all known creditors with 8 weeks of appointment.  This report is known as the Administrators’ proposals and will outline steps taken by the Administrators to date and the strategy going forwards.

 The Administrators are also required to provide a written update on the administration to all known creditors every 6 months.  This report will be sent within one month of every 6 month anniversary or earlier if an Administrator vacates office or an extension to the administration is granted.

Q - What is a pre-pack?

A - A pre-pack is a shortened form of the phrase “pre-packaged administration”.  A pre-pack is a deal to sell the assets of a failed company, which is agreed prior to the insolvency, and is then usually completed almost immediately after the appointment of the Administrators.

It can be the best way of preserving value for the business, creditors and shareholders.  If a business enters administration it may result in disruption, uncertainty and a real certainty that the business would cease to operate, meaning losses to all stakeholders.

A pre-pack transaction can mean a smooth transition with enhanced realisations for creditors and the preservation of value for goodwill and the brands of the business.

If a pre-pack is applicable in an administration where you are a creditor, you will be sent information on why the pre-pack was used when you are notified of the appointment. 

Employees 

Q - I am an employee, how does the administration affect me?

A - Employees will be addressed at a local level and all employees will be contacted in writing in due course.  If you are an employee and have a query, please contact your local Human Capital representative at the company in the first instance.

Customers 

Q - What happens if I owe the company money?

A - Your debt will still be due and, if you pay by cheque, please forward payment in the usual way.  If you pay by telegraphic transfer, or some other direct payment method, the Administrators will set up new bank accounts for the company and will contact you in relation to the new bank details as soon as they are available. 

Q - Will the company still supply me post administration?

 A - All customers with ongoing or outstanding purchase orders or supply contracts will be contacted individually by a representative of the Administrators.

Suppliers 

Q - What happens if the company owes me money?

A - On the date of the administration, all amounts that the company owes are frozen.  The company’s assets will be realised and the proceeds, after the costs of the administration, will be allocated to the creditors depending on what type of creditor they are.

Q - How do I know what kind of creditor I am?

A - There are four main types of creditor:

• Secured (split into security via fixed and floating charges);
• Preferential;
• Unsecured; and
• Shareholders / members

Secured creditors have security registered at Companies House. When they have a fixed charge over an asset, the secured creditor will be paid out of the realisations from those specific assets, after the costs of realisation have been deducted. When they have a floating charge over an asset, the secured creditor will be paid out of the realisations from those assets, after the costs of realisation, the preferential creditors have been paid in full and the prescribed part (see below) has been set aside.

Preferential creditors primarily consist of employees for arrears of wages, accrued holiday pay, unpaid contributions to occupational pension schemes and state scheme premiums, all within certain limits. Preferential creditors rank ahead of all other creditors when realisations are achieved from assets where there is no fixed charge registered.

Unsecured creditors are all other non-secured and non-preferential creditors. These are usually the normal “trade” creditors. They rank below Preferential and Secured creditors, with the exception of when the prescribed part is applicable (see below).

Shareholders / members will be the last class of creditor to receive a distribution and they will only receive a distribution after everyone else has been paid in full.

Q - What is the prescribed part?

A - When a secured creditor has a floating charge registered after 15 September 2003, a proportion of the funds available to them is set aside for distribution to unsecured creditors.  This is the prescribed part. (Please note there are some Administrations where there are pre 15 September 2003 floating changes and consequently NO prescribed part.)

Insolvency legislation sets out how the prescribed part is calculated and if it is applicable further details will be provided in the Administrators’ proposals and reports.

Q - Will there be a meeting of creditors?

A - If a meeting of creditors is called, details will be sent in the Administrators’ proposals.  The purpose of the meeting is to allow the creditors to consider and vote on the Administrators’ proposals.  The meeting can also elect a committee of between 3 and 5 creditors’ representatives to assist and oversee the Administrators.

If a meeting is not called, the reason will be given in the Administrators’ proposals and details will be provided at this point in relation to what a creditor needs to do if they wish to call a meeting.

Q -Can you provide me with an estimate of the time-frame for reviewing my claim and paying a dividend?

A - The administration process is complex and it takes time to assess the company’s position and provide an estimate of the quantum or timing for reviewing claims and making a distribution.  The Administrators will include an update of dividend prospects and, if possible, a time-frame in their proposals and reports.

Q - Will you refund the costs incurred in preparing a claim?

A - We are unable to refund the costs in preparing a claim. Consequently, we cannot refund any expenses incurred in obtaining information necessary to make a claim.

Q - Will I get paid for services or goods I have provided before the date of the administration?

A - You will rank as an unsecured creditor (see above).

Q - Should I continue providing services or supplies after the date of the administration and how do I know I will be paid?

A - The company will pay for goods and services rendered to the business after the date of our appointment as Administrators against an appropriately authorised purchase order or letter of undertaking.

Q - I have goods on site for which I have not been paid. I am coming to take them away as I retain title to all goods provided until I am paid.

A - You are not entitled to take away these goods until the Administrators have determined retention of title issues. This involves a process of identifying the stock and reviewing the supply terms. Please contact a representative of the Administrators detailed on the webpage for the company of whom you are a creditor.

Human Resources Role in Mergers and Acquisitions.

Mergers and acquisitions are complex events in organisational life for which we have incomplete understanding, in part because researchers have tended to consider only partial explanations of them. The authors addressed that problem by developing a conceptual framework that integrates theoretical perspectives from economics, finance, and especially strategy, organisation theory, and human resource management to offer a broader process-oriented integrative model. 

The integrative model explicitly describes how synergy realisation is a function of the similarity and complementarity of the two merging businesses (combination potential), the extent of interaction and coordination during the organisational integration process, and the lack of employee resistance to the combined entity. 

The approach differs from traditional methods of studying mergers and acquisitions in three ways:

(1) the success of a merger or acquisition is gauged by the degree of synergy realisation rather than more removed and potentially ambiguous criteria such as accounting or market returns;

(2) the key attribute of combination potential is conceptualised not only in terms of the similarities present across businesses, as in most studies of mergers and acquisitions, but also in terms of the production and marketing complementarity between the two businesses;

(3) the data are derived from a case survey method that combines the richness of in-depth case studies with the breadth and generalise-ability of large-sample empirical investigations.

The framework was tested empirically across a sample of 61 mergers and acquisitions. The extent to which a merger or acquisition resulted in synergistic benefits was related to the strategic potential of the combination, the degree of organisational integration after the deal was completed, and the lack of employee resistance to the integration of the joining firms. 

Furthermore, the analysis revealed that:

(1) independent of any similarities across joining firms, the presence of complementary operations increased the probability of acquisition success by boosting synergy realisation,

(2) organisational integration was the single most important factor in explaining synergy realisation, even to the extent that M&As with high combination potential were significantly more successful when coupled with high organisational integration than when integration efforts were less forceful;

(3) mergers and acquisitions that were dependent on gains from combining similar production and marketing operations tended to elicit more resistance from employees than M&As focused on realising complementary benefits. 

Overall, the findings provide strong support for an integrative theory of mergers and acquisitions.

Whether your business is the purchaser or the target company in a merger or acquisition, your human resources department as well as the human resources workers in the other company play a vital role in the process. Human resources assist or manage any problems or challenges related to people in the organisations as the merger or acquisition process unfolds.

Company Culture

Human resources assists determine if the cultures of the two companies that are becoming one through a merger or acquisition are compatible. Human resources must have a firm grasp on the culture of the company for which they work and must study the culture of the other organisation to make such a determination. Cultural differences may include how the two organisations define and measure success within the organisation; benefits employees enjoy, such as personal time and insurance; how problems within the organisation are handled; the management styles of the two organisations; and the overall attitude of the employees and managers toward business functions and the industry in which they work.

Benefits Problems

During the due diligence portion of a merger or acquisition, which comes after the purchasing company makes its initial offer to purchase the other company, management from the purchasing company assess whether the deal makes strategic and financial sense. Human resources from the purchasing company specifically assess the benefits structure of the other company to uncover any potential problems, such as a pension plan that is running low on funds or a health insurance package that will cost a significant amount for the company to continue offering.

Employee Concerns

People often fear change, and a merger or acquisition creates uncertainty and change for employees both of the purchasing company and the purchased company. Human resources in both companies help smooth out the transition for employees, helping calm any fears as well as answering questions about how the merger or acquisition affects each employee individually. If the employees of both companies do not have as much fear over the change, productivity is more likely to stay at previous levels. Human resources can detect and address any rumours about layoffs, office relocation or other changes employees fear, giving feedback to management about employee concerns.

Changing Roles and Structure

When one company merges with or acquires another, some changes to both organisations may occur, such as eliminating redundant positions or combining teams and departments. The process of altering the two organisations so they work together as one can take months to complete, and human resources plays a vital role in the changes. Human resources communicates to employees changes in who they report to within the company, what team or work group employees are assigned to as well as any changes to different positions’ roles in the organisation. Human resources may work with management and employees to alter the job descriptions of various positions, ensuring everyone understands his role in the newly altered organisation.

R should expect some resistance. However, because HR professionals often get blamed if an acquisition fails, their early involvement is even more critical.

Being involved from the beginning of the process minimises problems and increases the likelihood that the M&A will be successfully implemented, he says. At a minimum, employees from an acquired company will need to be paid the right amount and on time—something that is not always easy to accomplish if HR is called upon after the fact, he explains.

If there is a problem with the amount or delivery of pay checks/wages, the ramifications will be long-lasting because those employees “will never forgive the company.” When HR is included from the start, it has time to put the proper systems in place to ensure accurate, on-time pay checks/wages.

HR also plays a central role in the integration of new employees into the company, especially in cases when an organisation purchases a company specifically to acquire its employees—a concept called “acqui-talent” or “acqui-hiring.”

Get educated about M&As.
“That does not mean you have to be an expert,” Humba-HR-Consultants explains. However, HR professionals who are educated about the M&A process are more likely to be included from the beginning, he says.

HR tends to be considered “more of a roadblock than a help” during the M&A process because HR is likely to address topics such as the difficulty of integrating two cultures and how cumbersome it is to get everyone on the payroll system. But learning about M&As by reading books, attending classes, and participating in online webinars on the subject can help HR professionals position themselves as strategic thinkers in the M&A process.

Be proactive.
“Don’t wait to be told what to do,” he says. Instead, present management with your recommendations to consider as the organisation researches whether to acquire a particular company and before it integrates employees from an acquired company into the organisation. Topics to address include payroll, benefits, policies and procedures, succession planning, training, job descriptions, and titles.

Expedite the layoff process.
If layoffs are necessary during an M&A it is critical to move that process along as efficiently and as transparently as possible. “One of the worst mistakes people can do when they know they have to downsize is to draw it out.”

Bridge the work-forces.
The “absolute best way” to bridge two work-forces is to ask for volunteers from your organisation to transfer for a minimum of 6 months to the newly acquired company and vice-versa, he says, adding that people are often interested in a transfer to be closer to family or for other reasons. “I have never not had a volunteer.”

Ideally, three people in sales and marketing, operations, accounting, or HR from the acquiring organisation should go to work in the acquired company, and three people from the acquired company should be transferred to the acquiring organisation. This approach enables those employees to “truly understand the culture [of the company that is new to them] and become embedded in it.”

Look for role models.
Identify other companies that have completed successful M&As. “Try to reach out to them and learn from them.”

Risk Assessment

Compliance shortcomings could jeopardise a merger when the cost of correcting them affects the offer price and feasibility of the deal. HR must verify a laundry list of compliance reports related to Equal Employment Opportunity,  disclosure mandates. If the company did federal contracting or subcontracting, HR must review documentation for compliance. HR also confirms that internal control procedures for employment, payroll and benefits administration comply with the law. By combing through employment policies, programs and commitments, as well as agreements with labour and outsourcing partners, HR ascertains risk exposure to avoid post-merger surprises.

Cultural Assessment

According to Deloitte, cultural clashes lie behind one-third of merger failures. Culture touches on decision-making, work and management styles. It defines workplace atmosphere, values and risk-taking. Other distinguishing characteristics include dress code, communication practises and career opportunities. Successful integration of two different cultures requires a vision for how the merged company will look and feel. A compatibility assessment by HR identifies that culturally related practises from each company can best support the new organisation's vision. Adopting a best-practises approach establishes a foundation for combined synergy.

Staffing Alignment

HR's cultural integration efforts require a workforce management strategy that considers the skills, competencies and organisational structure warranted by the new entity's strategic objectives. Health, welfare and training programs must be aligned, as do compensation and benefits policies. A personnel profile -- location, function, seniority and experience -- sets the stage for post-merger assignments. Once talent needs are known, HR can use the profile to identify key players and formulate a retention strategy. Concurrently, HR develops relocation, termination and severance policies and timetables to accommodate imminent staffing changes.

Communication

Although employee communications may fall under the domain of corporate communications, HR guides message development. HR's input can ensure that the company keeps everyone informed about time frames, compensation, benefits and other issues that affect them. HR-initiated surveys conducted at each stage of the merger gauge employee acceptance and pinpoint concerns. By advocating management appreciation of and respect for the acquired company's heritage, HR paves the way for a smoother integration. To instill a sense of belonging, Tool pack Consulting suggests the human resource communication strategy include merger milestone celebrations.

Applying for a Job Online.

As innovation takes our technological gizmos to another level, at Humba-HR-Consultants understands that most applications are going to go electronically and mainly on the internet. Applying for a job online is actually an easy thing to do. One can search dozens of job postings to find suitable jobs and submit an application and/or resume with each company of interest without driving all over the place and wasting precious time and money (on gas, etc.). Pretty much all major companies and most small companies offer the option of submitting an application online now, and many companies choose this method as the only way to land a job.

Once you have determined which job(s) to apply for, you will want to visit that company's website. Many times it is better to apply directly with the company. Once you are at the company's website, search for a job, careers, or employment link (usually at the bottom of the page). Usually there is a sign-up process and the application requires you to type in the usual information you would put on a job application, such as name, address, social security number, job history, education, references, etc. Sometimes they will request that you attach or type in a resume for review.

The most important part of any application, especially an online one where you are not able to play up your skills by speaking with the manager, is the job history section and/or resume. When asked for your duties and responsibilities at your previous job(s), you want to highlight things you did that would be relevant to the position you are applying for first. Then you can include other skills you used for the job. You also want to be careful when typing the reason you left your previous jobs. Companies usually have to invest in new employees by training them, and for this reason they want employees who have a sense of loyalty. It is also a great thing to allow them to contact all of your previous employers if they choose to. This tells them that you are a good employee with nothing to hide, and that you believe your past manager(s) will only have good things to tell them.

Once you have completed these steps, double check to ensure you have used proper grammar and spelling throughout your application. Also check things like your name and address for simple errors. There is nothing more annoying than a job application that looks like it was done in haste. Remember that most employers are looking for employees that can pay attention to details and follow instructions.

Some companies usually have an online test following the application to see if you would be a good fit for the job. Consider the questions you are being asked carefully, especially if the test is not being timed. If it is being timed, make sure you are comfortable, relaxed, and have ample time to finish the test in one sitting. You definitely don't want to have pets or children disturbing you while testing!

You will want to make sure you follow through all steps in the application until it lets you know that you are finished, usually by displaying a message that your application has been successfully submitted. This screen will usually also tell you what steps, if any, to take in order to complete your application. Make sure you follow through with any steps mentioned so your application is given proper consideration.

There are thousands of websites where you can post your resume online and complete an online job application. Applicants either apply online via a job board, like Monster.com, or apply online directly at the company's web site.

In some cases, job seekers are required to register and to build an employment profile. Once you've built your profile, you can apply for jobs online and set up search agents to email you when new jobs are added to the system.

Applicants can then apply online for specific positions at any time that is convenient for them, with just a few mouse clicks. At larger employers, and on many job sites, job seekers can keep track of the positions they have applied for.

Here's more information on how to apply for jobs online.

How Online Job Application Systems Work

Some sites let you upload an existing resume with the click of a button. On other sites, you can copy and paste from your resume or use a resume builder that is incorporated into the application system.

Once you have uploaded your resume, you will be able to search for jobs that interest you and submit your application or resume with a click of your mouse.

Applying For Jobs On Company Websites

If you are interested in working for a particular company, visit their website. Career information is usually listed in the "Careers" or the "About Us" section of the site. Follow the instructions for searching for and applying to jobs online. Here's how to apply for jobs at company websites.

What You Need to Apply Online

Online application systems typically ask for your contact information, educational background and employment history. You will need to know when you worked and what you were paid at your previous jobs. You may also be asked what days and hours you are available to work.

Download a sample job application and complete it before you start your online applications. You will have all the information you need, ready to enter.

Online Employment Tests

Depending on the company, you may need to take - and pass - an online test to be considered for employment. Pre-employment tests, also called talent assessments, employment tests, or career tests, are used to help an employer identify candidates who will be a good fit for jobs at the company.

Employers (ASDA/Walmart's pre-employment is an example-http://www.asda.jobs/stores/hourly-paid-roles-in-stores/application-process/) that utilize testing often do it in conjunction with an online job application, so you will take the test when you apply for a job. The results of the test will determine whether you are invited to interview. Read more about online employment tests and how to take them.

Check Your Application

Before you click the Submit button, it's important to double-check your application for errors. Typos and grammatical errors count, so carefully check your application. If you're not sure your spelling is correct, use Microsoft Word and spell/grammar check; then copy/paste into the online application.

Issues affecting the HR Managers.

As the world embraces itself the after effects of the European recessionary period, at Humba-HR-Consultants we took an intensive research to on how the approach employee job securities and safety at large - in order to concentrate on the more pressing issues of achieving the organisational goals. There are many significant human resources issues facing both employers and employees today. With the development of both small and larger-scale businesses, the need for human resource management – and the foresight and ability to avoid the problems that accompany it – is growing. What are the main issues faced by employers and employees, and how can these be successfully nullified?

A leap of faith.

Human resources (HR) issues commonly experienced by employers include establishing productivity, recruiting employees, arranging and carrying out training, and preventing discrimination. Workers in personnel management also face challenges such as resolving conflicts and keeping workers safe. Establishing and distributing benefits, encouraging and maintaining diversity, and handling outsourcing are major concerns as well. How each business deals with its specific human resources issues depends on the HR manager or director as well as company policy. No matter what approach a business takes, addressing these issues usually is an ongoing process.

Productivity

A primary goal of a human resource department is to manage and organize employees so that they can be as productive as possible, as this generally leads to more revenue. HR personnel, therefore, think very critically about the number of people per shift, team assignments, motivational offers like bonuses, and keeping morale high. These factors can have strong correlations, so the difficulty is how to make changes in one area without overly affecting another. It can be challenging to make modifications and “correct” arrangements that don’t strain the company’s budget.

Recruitment and Outsourcing

The best way to effectively manage a workforce is arguably to know how best to recruit that workforce – after all, it’s far easier to work with a group of people that you are already familiar with through the recruitment process. Perfecting the different facets of this process, from attending careers events and writing effective and accurate job advertisements right through to knowing the best way to conduct an interview, are key-methods to minimising the problems any HR executive may face in the future.

Personnel management workers have always been responsible for at least some aspects of employee recruitment. They have to find methods, such as attending job fairs and sending out promotional mailings, to generate interest in particular positions and the company as a whole. Many companies face an even bigger problem in this area, however, because globalization means that companies are competing with each other around the entire world rather than just one small area or country. Modern employees also are looking for jobs that provide more of a balance between employment and family. Companies sometimes need to offer more in terms of benefit packages or incentives, as well, because people increasingly look for jobs that reduce their risks in unstable economic situations.

Outsourcing refers to companies giving work to independent contractors outside the company rather than to in-house employees. Independent contractors are freelance workers who pay their own taxes and insurance. Outsourcing is one of the most common human resources issues, as many businesses are hiring freelancers rather than creating more overhead costs by taking on additional in-house employees. Overhead costs include equipment and workspace as well as benefits such as medical insurance.

Recruitment has become a marketing exercise in recent years. Knowing how to properly generate interest in a company or a specific job placement is paramount to recruiting the right candidates. Worthwhile employees are increasingly seeking jobs that address their need for a better work-home-family balance, and good HR departments are becoming more aware of this. Companies also need to consider the prospect of job security for employees, as they are often more concerned with stability, health benefits and their employment in unstable economic conditions than ever before.

Outsourcing is also a major part of human resource management’s role in a company, as many companies – particularly in an economic downturn – choose to hire freelance workers to complete additional tasks rather than taking on salaried employees in-house. When outsourcing, human resource managers do not need to consider overheads like taxes, working equipment costs or benefits, as these are met by the freelancers themselves.

Rights, Discrimination and Conflict Resolution

Many countries are now governed by strict laws that make rights abuses and discrimination in the workplace severely punishable. As it is illegal in these countries to discriminate based on age, gender, religion and race, HR managers need to be aware of this and their methods need to reflect this. Most companies see diversity as forward-thinking and teamwork-promoting, as well as fostering a sense of equality. As well as following recruitment protocols that take diversity – and its legal implications - into account, human resource management departments may need to prepare for higher levels of disagreements and more distinct methods of resolution.

Companies often value diversity because it provides different modes of thought and experiences that can generate new ideas and better productivity. It also fosters a sense of equality that is well-suited to teamwork. Businesses look to their HR departments to build diversity into the workplace, as those in personnel management generally are responsible for company recruitment, hiring, promotion, and termination. Many places have laws that make various forms of discrimination in the workplace illegal, so human resources workers have to recruit and train in a way that follows both legal and business standards. Since more employees are aware of their rights, a modern HR department may also need to handle a potential increase in complaints about discrimination.

Conflict resolution is a major part of a HR manager’s job in that it is always easier and cheaper to keep an existing employee than to recruit and train a new one. As such, the conflicts that arise from different departments, workers and employment levels need to be resolved effectively. These can range from property theft and destruction and physical and verbal harassment to management incompetence and payroll management issues.

Even though members of personnel management departments work hard to find employees who are a good fit for the company’s culture, the wide range of personalities, experiences, and skill sets found in the workforce mean that some conflicts are bound to happen. Investigating complaints of verbal or physical harassment is common, but other conflicts, such as those involving broken promises from managers, stolen property, and other problems, also occur. This is one of the biggest human resources issues for companies because it is almost always cheaper to retain an employee than to find and train a new one. If HR does not resolve conflicts when they are present, resignations or firings can result, which ultimately costs the company money.

Training and Safety

For almost every business, training is a major part of day-to-day operations, as every business is different and therefore has different practices to follow. Training is also an investment process – new, potentially brilliant candidates all need to start somewhere, and investing in talent through both basic training and preparing senior executives for the next step up can pay off when done right by organised and skilled HR managers. It is HR’s responsibility to fit the training around day-to-day work, factoring in time, financial costs and third-party coordination for each company department and budget.

Training is needed in virtually every business and industry because every company has its own policies and procedures employees must follow. It is HR’s responsibility to figure out how to conduct the training so that operations are not interrupted or strained. The department also determines how training sessions and seminars factor into the company calendar and budget. Coordinating with third parties involved in the training is also necessary, in some instances.

Safety is also a major part of training organisation, as many businesses follow practices that minimise risk and promote safety, whether they are using specialist, potentially dangerous equipment or not. Even incorrectly-positioned chairs or too bright LED computer monitors can cause extensive health issues, so everything right down to these small issues need to be considered when organising staff and departments.

Workers often use equipment that, if not properly used, can result in accidents or health problems. Even something like a desk that is not ergonomically positioned can be a potential injury source. The HR department has to take this into account when it organizes workers. It also investigates allegations of unsafe equipment or managerial direction.

These are only some of the major issues faced by human resource departments today – there are many more, much smaller problems that can slip under the radar. Rather than investing in more employees or working longer hours to keep up with every single eventuality, it might be more worthwhile for the company’s bank balance and the HR manager’s work-life balance to invest in some new HR software instead – so the management can keep their eye on the bigger issues.

Benefits

Virtually all companies offer some benefits to employees, either to appear competitive or to comply with local, regional, or national regulations. HR directors work with the heads of companies to create benefit policies and packages. Common employee benefits include health insurance, life insurance, a dental plan, and employee product discounts. When employees are terminated, their benefits usually are too, so HR must keep records of the exact hiring and termination dates of each employee.

What "(HR)-Human Resources", truly mean and reflect!

Often you are asked to explain what HR means and what their function is within an organisation; and when you try and explain what you do for a living, - you even have to go to the extent of explaining that it’s back-bone of the organisation but still some do not understand this concept mainly because it was once referred to as Personnel back in the day.
 As the world has evolved the organisation has grouped most aspects of personnel; recruitment; selection; training; development; retaining; discipline and dismissal of employees under the Human Resources Department. These responsibilities have now been solely accounted to the HR department amongst other sensitive and more analytical responsibilities that are part of the organisation at large.

Many successful businesses find that they thrive when all of the parts are working together towards the same goal as researched by Humba-HR-Consultants. A problem often arises when several people are put together simply because people often have differing opinions. When a bunch of people are put together to work on a project, oftentimes infighting can be the result. Human resources department is often the place to go when things like this happen.

The human resources department of a business can help with sexual harassment, worker relations and has generally improved over the course of the past ten years. 

Many human resources departments of businesses are often in business for the sole reason of solving problems related to worker relations. One of the problems that are often presented in many workplaces is the issue of sexual harassment. Sexual harassment is when one employee makes sexual advances toward another employee that are often unwanted and unwarranted. Human resources fix this problem by taking the employee that is performing the harassment and enrolling them in courses to manage the behaviour. This is a most effective way to deal with employees who feel that they must make lewd or unwanted advances toward other employees.

Human resources departments aim to increase good behaviour between employees. Often, when working in a fast-paced or high stress environment, people feel the need to attack one and other especially if they view each other as not contributing a sufficient amount. Human resources can solve this problem simply by putting both of the parties in counselling and making them realise that they can work together peacefully and towards a common goal. 

Often anger or stress management is required in these situations to help the parties deal with their emotions Human resources departments have evolved over the past ten years in that there have been many new methods introduced to deal with inter-office relations. Counselling has become a very viable method that is used to calm and correct the behaviour of those who are not performing up to expectations or are exhibiting bad behaviour. Other methods involve using psychological methods which have demonstrated to be extremely useful in a number of occasions and which companies have found to be useful in business situations. Human resource departments have further demonstrated themselves to be a very vital and necessary part of businesses.

Many businesses have found that a company works well when all of the parts are striving towards the same goal. The problem that often arises from this line of thinking is when the employees themselves start experiencing problems due to exhaustion, stress, or anger. This can lead to great amounts of distress in the workplace. This is when human resource departments come in handy. 

For situations where people are fighting amongst themselves or a person has a grievance against their co-workers, human resource departments feature a variety of tools to help the process of coping or solving the problem along. The human resource department of a business can help with the different aspects of the workplace ethics, like sexual harassment, inter-employee office relations and has progressed a great deal in the past ten years. So if you or someone you know is having problems in the workplace, no matter if they are related to stress, sexual harassment, or anger, turning to your human resources department or if you are a company executive, hiring a human resources department may be your ticket to creating a healthier and happier workforce and becoming a happier person yourself.

Preparing one, to best suit-the HR Department.

In today's economy, many people are looking to start a career in human resources. The human resources field is growing quickly, and offers opportunities to make a good salary. At Humba-HR-Consultants we urge people to invest in continuous personal education in order to get the best enjoy and stay on top of their jobs. The median income for individuals working in the human resources industry is significantly above those of other fields. Government experts expect the jobs prospects for human resources to be good in the future and for the field to grow as a whole despite outsourcing.

Many people looking to enter the human resources field ask what degree they should be pursuing. There are professionals working in human resources with several degrees ranging from business to public administration. There are even HR professionals without a college diploma, however its always commendable that they find a relevant path that can assist them to have some sort of solid education in order to escalate within the department if they chose to make HR their sole career.

Many positions in the human resource field require candidates to possess at least a bachelor’s degree from an accredited educational institution CIPD – UK; SHRM – US; ABE - UK. Perhaps the degrees that prepare candidates for a career human resources best are bachelors or masters degree in human resources. Those who make the hiring decisions will prefer candidates with these degrees. This does not mean human resource professionals without a degree or without a human resources degree will not succeed. Ultimately, succeeding in human resources is about relationship skills, work ethic, and professionalism. But, in order to enter the door to a career in the HR field and have opportunities for advancement, a degree is a necessity. As the job market continues to tighten, a degree is even more valuable. A college diploma can separate a good candidate from a great one and a great one from one who is offered a position.

There are several education options available to those wanting to start a career in HR. They range from certificate programs to associate, bachelor, and masters degree programs. Some human resource professionals even have earned a doctorate degree. Most doctors of human resource management are professors or university employees though. As with most professions, the higher you’re level of education, the better your job prospects. Salaries tend to increase along with level of education.

Degrees in HR are offered at hundreds of campuses across the World. Student can earn human resource management degrees at both traditional or non-traditional colleges and universities. Many programs are offered online by for profit institutions. These schools cater to working professionals with careers and families. The University of Phoenix- US, Kapella University- US, Kaplan University-US, and the Keller School of Management-US, Coventry University-UK, Birmingham City University-UK, De Montfort University – UK, East Anglia University - UK are some of the more well known schools that offer HR degrees.

The cost of an HR degree varies widely, depending on geographic location of the educational institution, whether or not it is a public or private institution, and if it is non-profit or for profit. Some graduates with an HR degree graduate with no debt. Others graduate with substantial financial obligations or more in form of student loans. This makes it vitally important than people do an ample amount of research before deciding on which college to attend.

HR degree programs focus on benefits management, employee retention and satisfaction, and other employment related issues. Many offer opportunities for internships and help graduates find a job upon graduation. Classes of many for profit programs are taught by human resources professionals already working in the HR field who impart real world knowledge and examples to students. Many such instructors possess only a master’s degree. However its a personal choice to develop yourself and stand out even to reach a doctorate level of education.

          "Change is good especially for the better, for it is the only thing that is guaranteed!"

Ways to Show Appreciation to Employees.

Every now and again each and every employee wants to feel appreciated and in most cases its just a simple "thank you", for your daily duties that enables the organisation to go forward or earn it; its reputable status. Therefore at Humba-HR-Consultants we intend to focus at the attributes of employee appreciation other than incentives and bonuses. You can tell your colleagues, co-workers and employees how much you value them and their contribution any day of the year. Trust me. No occasion is necessary. In fact, small surprises and tokens of your appreciation spread throughout the year help the people in your work life feel valued all year long.

Happy employees are productive employees, and productive employees are the driving force of any business. However, sometimes business owners can get caught up in work, work, work and forget to show their appreciation to hard workers. Everyone likes being appreciated, and it’s pretty easy to dish it up.

Here are 5 little great ways to show appreciation:

1. Say Thank You–and Mean It Train all managers and supervisors to say thank you for a job well done or anytime an employee goes above and beyond what’s required. It’s also important for very small businesses to do so, even if it means taking time out of the busy owner’s day. A heartfelt thank you, preferably in person whenever possible, goes a long way. Remember that employees are not required to excel, they’re only required to do the bare minimum.

2. Foster a Team Environment From annual retreats to a gift of team clothing from a reputable site like Nubian Royalty Clothing (www.nubianroyalty.com), working together as a team matters. When a business invests in quality team shirts for a company softball team, it gives employees something tangible to hold onto. Ideally, let employees have a say in the clothing so that they feel like their opinion is important (because it is).

3. Actually Celebrate Birthdays Don’t let the famous birthday cake scene from “Office Space” dissuade company birthday celebrations. Forget lumping monthly birthday parties together unless the business has hundreds of employees (in which case, separate departments can celebrate independently). Invest in a quality cake and carve out 30 minutes to appreciate a birthday. Get employee input to figure out exactly what kind of celebration they would like.

4. Encourage Personalisation of Space it’s no secret that cubicles can look like a farm, but employees should feel comfortable when at work. Encourage employees to decorate their space with photos, clippings and anything else they’d like. To kick start the process; give employees a small plant that will flourish in any condition. Living things naturally make people feel more alive, and create oxygen, too.

5. Reassess the Review Process No employee looks forward to annual reviews. It’s a time when shortcomings are highlighted and employees worry about their place in the company. Work with a professional in the field to restructure the review process. Focuses on what the employees have achieved just as much as what needs improvement (if anything). Remember that reviews are not an excuse to find something wrong. Employees are the skeleton of a business companies would not exist without them. Show them some appreciation, and watch productivity soar.

Looking for ideas about how to praise and thank co-workers and employees? The opportunities are endless and limited only by your imagination. You can thank employees in these 40 different ways in your workplace.

 Here are ten ways to show your appreciation to employees and co-workers:

• Praise something your co-worker has done well. Identify the specific actions that you found admirable.

• Say thank you. Show your appreciation for their hard work and contributions. And, don't forget to say please often as well. Social niceties do belong at work. A more gracious, polite workplace is appreciated by all.

• Ask your co-workers about their family, their hobby, their weekend or a special event they attended. Your genuine interest - as opposed to being nosey – causes people to feel valued and cared about.

• Offer staff members flexible scheduling for the holidays, if feasible. If work coverage is critical, post a calendar so people can balance their time off with that of their co-workers.

• Know your co-worker’s interests well enough to present a small gift occasionally. An appreciated gift, and the gesture of providing it, will light up your co-worker’s day.

• If you can afford to, give staff money. End of the year bonuses, attendance bonuses, quarterly bonuses and gift certificates say "thank you" quite nicely. Tech-Smith staff receives a percentage of their annual salary for their end of year bonus.

• Almost everyone appreciates food. Take co-workers or staff to lunch for a birthday, a special occasion or for no reason at all. Let your guest pick the restaurant.

• Create a fun tradition for a seasonal holiday. Re-Cellular employees draw names for their Secret Santa gift exchange. Alison Doyle, About Guide to Job Searching, also works in Career at Skid-more College where they do a "gift grab" at their holiday party.
  
  Some organisations match up departments or people who don't normally work together as a unit and assign a day to provide gooey, healthy or scrumptious treats for the other groups. It's a great mixer, an opportunity to show off our culinary skills and a morale builder - to say nothing of the sugar high.

• Bring in bagels, doughnuts or another treat for staff and co-workers. Offerings such as cookies or cupcakes, that you've baked personally, are a huge hit. (Have you tried baking cupcakes in ice cream cones? People love them.) Another hit? Bring chocolate - chocolate anything.

• Last, but not least, provide opportunity. People want chances for training and cross-training. They want to participate on a special committee where their talents are noticed. They like to attend professional association meetings and represent your organisation at civic and philanthropic events.

These are my top ten ways to show appreciation to employees and co-workers. Stretch your imagination. There are hundreds of other employee and co-worker appreciation ideas just waiting to be found. They'll bring you success in employee motivation, employee recognition and in building a positive, productive workplace.

Employee appreciation is never out-of-place. In fact, in many organisations, it's often a scarce commodity. Make your workplace the exception. Use every opportunity to demonstrate your gratitude to employees.

Understanding, measuring and managing critical success factors, is increasingly important to ensuring the survival and future prosperity of organisations, in these times of economic recession and uncertainty.

Most organisations know their success factors, however few organisations have:

• worded their success factors appropriately
• segregated out success factors from their strategic objectives
• sifted through the success factors to find their critical ones – their critical success factors
• communicated the critical success factors to staff.

It is the CSFs (Critical Success Factors), and the performance measures within them, that link daily activities to the organization’s strategies.

In these trying times knowing your CSFs maybe the deciding factor in survival.  If your organisation has not completed a thorough exercise to know its critical success factors (CSFs) performance management cannot possibly function.
 Performance measurement, monitoring and reporting will be a random process creating an army of measures producing numerous numbing reports, full of measures which monitor progress in a direction very remote from the strategic direction of the organisation.  Very few, if any, of the measures in these reports could be defined as ‘winning KPIs’ as they have been derived independently from the CSFs.

Besides focusing on the relevant performance measures, thus significantly reducing the number of performance measures used, knowing ones CSFs will reduce the number of reports that are produced at the end of the month. CSFs, and are reporting progress too late, well after the ‘horse has bolted!’ so the question has to be asked “Why do we have them?”  Pareto’s 80/20 rule most certainly applies with reporting, with 80% of management’s need being met by 20% of the reports prepared.

  Many of these ‘monthly’ reports are not related to the

The process outlined in this article will crystallise and communicate the organization’s CSFs.  The beauty of the method, like all great methods, is that it is a simple methodical process, which can be run by in-house staff.  In order to find our CSFs we need to first know our success factors.

Some relevant success factors for these turbulent times

Set out below are some relevant success factors for these turbulent times:

• Supporting local businesses.
• Delivering in full, on time, all the time, to our key customers.
• Prioritising all activities that will collect cash quickly from major accounts.
• Finding better ways to do the things we do everyday.
• Maintaining a safe, happy, and healthy workplace .
• Implementing innovative ideas from staff quickly.
• Finishing what we start.
• Starting only value-adding projects.
• Selling a greater share of our profitable products to our key customers .
• Increasing repeat business from key customers.
• Encouraging our key customers to be active advocates for our business.
• Increasing adaptability and flexibility of staff.
• Attracting quality staff to the organisation.
• Maintaining a ‘stay, say, strive’ engagement with staff.
• Maintaining regular recognition of staffs’ contribution.

Appreciation will continuously be tweaked with generations to follow because of its complex, fast paced evolving innovation and especially economic factors which are fluctuating on a regular basis.