Don't Forget About Your Valuable Retention Tool - Stay Interviews
Exit interviews are common amongst many Irish workforces. They are used to determine what prompted an employee to leave and to provide a final chance to persuade them to stay. Stay interviews give an organisation an opportunity to assess what improvements can be made now to avoid further resignations. They provide a more personal platform than what is currently in place from engagement or satisfaction surveys. It also allows for the building of trust between employees and managers, where both parties can discuss ideas.
A stay interview conducted between a manager and an employee can give an overview of what encourages the person to stay, the improvements that can be made, and what caused them to look for external opportunities. Identifying these issues early and acting on them contributes to long-term retention, increased motivation, improved productivity, and overall success for both the business and its people.
What should a stay interview look like?
Interviews don’t need to be long; they can be completed in as little as 20 minutes. Key questions to cover in the meeting could be what employees look forward to and what they dread about work each day, whether they would recommend the company to others, what would make their role more satisfying and how they would like to be recognised and valued.
What happens after a stay interview?
Organisations that decide to conduct stay interviews should remember that their workforce will expect an outcome so be prepared to implement positive changes. Failure to do so can increase frustrations amongst staff and make them feel that their voice is not heard.
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Preparing for New Sick Pay Rules
Until now, Irish employers have not been obliged to pay employees during sick leave. The new legislation changes that.
The new statutory sick pay rules are due to come into effect imminently in Ireland. Irish employment contracts may provide for a limited period of sick pay, but this has always been at the discretion of the employer. If employers chose not to provide this, affected employees must apply for state-sponsored illness benefits subject to PRSI contributions.
This is now going to change. The obligation to pay an employee sick leave will now be on the employer.
What are the changes?
Under the new regime employees will have an entitlement to three days of paid sick leave this year. This is then due to go up to five next year, seven in 2024 and ten in 2025. The increases will be made by way of ministerial order each year. Factors including the state of the economy generally must be considered by the minister when making their decision.
The draft bill does not specify the amount of statutory sick pay. It simply states that an employer must pay a prescribed daily rate for a statutory sick leave payment. The intention of the government is to place a cap on the amount of statutory sick leave. It has been suggested that an employer will only be obliged to pay up to 70% of wages subject to a cap of €110 a day.
Employees will need to have at least 13 weeks of continuous service before they are eligible for statutory sick pay. It’s important to note that employees will be obliged to furnish a medical certificate in respect of each day of statutory sick leave.
If an employer already provides more favourable sick leave benefits to an employee, they will not be obliged to comply with the statutory sick pay rules. However, the employer will have to demonstrate that any discretionary or pre-existing scheme is more favourable than the one provided in the legislation.
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What You Need to Know About Staff Handbooks
The most essential document governing the employment relationship is the contract of employment. If you don’t want your employment contract to be too long and untidy you should be referring to your staff handbook when talking about grievances, discipline, dignity at work, anti-bullying, and other workplace policies.
Staff handbooks should be easy to read, and a copy should be easily available to all employees. New employees must read the handbook and indicate that they have done so by giving their signature. It is important to review and amend the policies regularly to ensure any changes in the law or best practices are reflected.
Most important policies and procedures in the workplace
In Ireland, the most important policies, and procedures to have in place are those covering
- Grievances
- Discipline
- Dignity at work (anti-harassment, anti-bullying, and equal opportunity)
- Health and Safety
Other topics that should be considered are, sick leave, holiday leave & pay, hours of work, internet and email usage, dress code, expenses procedure retirement and pension benefits etc.
Bright Contracts
With Bright Contracts, we provide ready-made handbooks that fully conforms to the latest employment law guidelines. The software allows you to add additional sections to handbooks, edit, delete or reorganise the built-in- content and you can easily add your own. You can preview your handbook at any time while you build it and print or export it when it is ready. It’s great as you need no employment law knowledge, we do all the hard work.
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How to Dismiss an Employee
Unfortunately, as an employer or business owner, you need to know how to dismiss an employee. No matter what the reason is there is a process that you should always adhere to.
The most important thing to consider is the reason for the termination and if you have taken any steps to try and assist your employee. If you are dealing with an underperforming employee, you shouldn’t automatically think of dismissing them. You should instead understand why the employee is underperforming and assist them in any way to help them improve.
Investigate the situation
The first thing that needs to be done if you are considering dismissing an employee is to formally investigate the situation. Be sure that the documentation clearly outlines the initial complaint or disciplinary issue with the employee as well as the relevant details of the investigation itself. A full list of participants, including what was said in any of the interviews.
After completing the investigation, you may discover the complaints or performance issues that were raised in the interviews were a misunderstanding, a false allegation or not a fault of the employee in question. In most cases, the situation can be resolved with a conversation.
Provide a warning
If after investigating and you conclude that the employee is at fault, you will need to provide them with an official warning. Where the complaint is minor or does not require further action no other disciplinary action needs to be taken.
For more serious incidents, make sure that the employee understands that you are giving them a warning and what the next steps will be if they fail to improve.
Be Professional
If you have conducted your investigations, issued a warning, and have proof of the breach of contract, then you have no option left but to dismiss your employee. For the protection of the company, it is vital that you have the right reasons and supporting evidence for the dismissal. When it comes to delivering the news, you must do this face to face with the employee.
You should adhere to the following points:
- Be prepared, and calmly explain the reasons for the dismissal
- Reiterate the previous warning that has been given and refer to the documentation
- Ensure that the process is short and does not linger for longer than necessary
For legal reasons, you should document and issue the dismissal in written format.
Honour existing agreements
Just because the employee has left does not mean that you can ignore any post dismissal laws that are in place. You must continue to follow both the company policy and legal protocols, including the payments for all hours worked up until the moment of dismissal. If you are required to give your employee two weeks’ notice you may dismiss them immediately, but you will need to provide them with the equivalent of two weeks’ pay.
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Unfair Dismissal Claims & How to avoid them
An unfair dismissal can occur when your employer terminates your contract of employment with or without notice or the employee terminates their contract of employment with or without notice due to the conduct of your employer.
A dismissal is automatically considered to be unfair if you are dismissed for any of the following reasons:
- Membership or proposed membership of a trade union or engaging in trade union activities
- Religious or political opinions
- Legal proceedings against an employer where you are a party or a witness
- Race, colour, sexual orientation, age, or member of the Traveller community
- Pregnancy, giving birth or breastfeeding or any matters connected with pregnancy or birth
- Availing of rights under legislation to maternity leave, adoptive leave, parental leave, carer’s leave, parental leave, or force majeure leave
- Unfair selection for redundancy
Steps to avoid Unfair Dismissal
Have clear policies
It is important to ensure that all new and current employees have access to the companies’ policies regarding harassment, dress code and attendance policies. The policies must be easy to read for the employee and available to them at any stage during their employment. These policies are not only to keep employees informed but they are used as important reference points to use as the employer during the disciplinary process. Failing to follow these policies can result in an unfair dismissal claim.
HR & Equality training
Employers need to make sure that the dismissal is thoroughly thought through beforehand and is not an impulsive retaliation to an employee’s actions. By providing training for all staff members involved in the dismissal process you will know that the process is being conducted legally.
Keep track of employee conduct
Terminating an employee can sometimes devolve into a he-said she-sad argument with no clear winner. Without proper documentation, it can be difficult to terminate an employee without fearing an unfair dismissal claim. When you begin to see that an employee might not be suitable for your company, start keeping track of their misconduct. Use a word document or journal to keep track of any problems the employee encounters. For example, take note of any time they showed up late or were not dressed appropriately.
Implement a performance management plan
When you first discuss with the employee about potentially dismissing them, you will need to set up a performance management plan to give your employee a chance to improve. If you still need to terminate this employee, the document plan shows that you tried to help your employee. Employers can do this by setting up parameters and goals for their improvement.
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What you Need to Know About Retirement Ages
In contracts of employment and employee handbooks, many Irish employers include a mandatory retirement age. In October 2021 the report of the Commission on Pensions was published. The report has recommended that legislation should be introduced to prevent employers from setting a compulsory retirement age below the state payment age which is currently 66.
In 2021 it was intended to further increase the State pension age to 67 from 2021, but the legislation was enacted in 2020 that suspended the increase. The Pensions Commission’s report has recommended that legislation should be introduced to prohibit employers from setting a retirement age below the State pension age. This will not affect an employee’s ability to retire at an earlier age if they choose to.
The Pensions Commission also recommends that the State pension age should increase gradually by three months per year from 2028 to reach 67 in 2031. Additionally, further increases should be implemented every second year after 2031, with the State pension age eventually reaching 68 in 2039.
It is likely that The Commission’s report has been referred to the Cabinet Committee and is being considered to bring an implementation plan to the government by the end of March 2022.
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Redundancy Payment Amendment
The Redundancy Payments (Amendment) Bill 2022 was published on the 21st of January 2022. The legislation will amend the Redundancy Payments Act 1967 to provide payments from the Departments of Social Protection to employees who were laid off during the pandemic. (13th March 2020 – 30 September 2021) Currently, periods of lay-off in the final three years of services do not count as a reckonable service. They are excluded from the amount of the statutory redundancy payment.
The Bill seeks to give employees who have lost out on their reckonable service while they were laid off during the pandemic a special payment of up to a maximum of €1,860 tax-free. This aims to close the gap in employees’ redundancy entitlements and ensure that the employee being made redundant will receive the same total redundancy payment as if they had not been laid off due to Covid-19.
To qualify for this entitlement, an employee must qualify as normal for a statutory redundancy payment. Employers may apply for the payment on behalf of the employee to the Department of Social Welfare. If the employer refuses to do the application for the employee all necessary information and documentation must be available to the employee. The amount of payment will be determined by the difference between the lump sum to which the employee would have been entitled to on redundancy if they had not been laid off due to Covid-19 and the amount to which the employee is entitled to be made redundant. Employers need to ensure that all their records in relation to any layoffs during the period (13th March 2020 – 30 September 2021) are up to date.
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Let's Talk Redundancy
Redundancy occurs when an employee loses their job due to circumstances such as the closure of the business or a reduction in the number of staff. There are many reasons why an employee could be made redundant, such as the financial position of the company, lack of work, reorganisation with another organisation, or the company closing completely. Being made redundant can be an extremely tough situation for the employee, it is important as an employer to understand how the employee may feel at this time and make them aware of the support that is available to them.
Who is eligible for redundancy?
An employee is entitled to a redundancy payment after they have two years’ service. To be eligible for a redundancy payment:
- The employee must be over the age of 16,
- Be in employment that is insurable under the Social Welfare Acts,
- Have worked continuously for their employer for at least 104 weeks over the age of 16
- Your role has been made redundant
Part-time workers cannot be treated any different to the full-time workers but still must meet the requirement of the two years’ continuous service.
Redundancy Procedures
Employers must follow certain procedures when making an employee redundant. They must be fair and reasonable upon the selection of choosing people to be made redundant.
Some examples of fair selection include:
- Last in, first out - The newest staff is the first to go
- Voluntary redundancy
- Point system - Employees doing the same job are ranked by objective criteria such as attendance record, the standard of work done, skills and qualifications.
If employees feel they have been unfairly selected for redundancy you can bring a claim of unfair dismissal.
Notice of redundancy
The notice period (time given to employees before they are made redundant) goes up depending on how long the employee has worked for the employer.
- Between 2-5 years – 2 weeks’ notice
- Between 5-10 years – 4 weeks’ notice
- Between 10-15 years – 6 weeks’ notice
- Over 15 years – 8 weeks’ notice
Offering alternative work
Before the role can be made redundant, the employer may offer the employee another job in the business. This is known as alternative work. This alternative work should be given to the employee in writing and provide full information about the offer.
If the employee accepts the alternative role, they may take it up on a trial basis for up to four weeks. However, the employee will not be entitled to claim redundancy if:
- They accept a new contract with immediate effect, and the terms of employment are the same as their previous contract
- They accept an offer in writing for a new and different contract which will start within four weeks of their previous contract ending.
If the employee refuses a reasonable offer of alternative work from the employer, they may lose their entitlement to a redundancy payment.
If the employee loses status, have worse terms and conditions of employment or must travel an unreasonable distance to work this will not be considered as a reasonable alternative.
10 Tips for Employee Retention
For employers, the pandemic was a test like no other. It may have been the biggest challenge faced in the world of HR. Unexpected changes to the lifestyle of the workplace meant that employees found themselves working in the comfort of their homes.
Facing challenges tends to make teams stronger. Employees learned new skills, employers invested to make remote work successful and found ways to work together no matter the circumstance. How you handle these challenges reflects the company culture and future growth of the company and having employees want to stick around.
If you are struggling to retain employees here are some tips on how to retain employees.
1. Positive onboarding experience.
Just because you have employed a new employee does not mean the hiring process is over as soon as they start. Month two is the exact same as day one. Ensuring that your employees have a positive and engaging starting experience is important to making sure your recruiting process is going well.
2. Highlight the benefits
Nowadays perks and benefits are the icings on the cake when you are attracting applicants. Whether you offer a competitive salary, hybrid working models or wellness programmes make sure to outline benefits that are suitable for everyone. Having the right benefits in the workplace can improve employee engagement.
3. Promote Flexible/ Hybrid working
Realistically the traditional office 9-to-5, five days a week is becoming a bit old fashioned and not appropriate for most people’s lifestyles. By incorporating flexible working schedules and telecommuting you may find that employees appear more productive and satisfied. It is important to detail flexible/hybrid working arrangements in the employee contracts, so no conflict arises. Bright Contracts now has a hybrid working policy in the handbook section of the software as well as a hybrid tick the box section in the contract section. A sample document detailing the hybrid arrangements is available on the Bright Contracts Ireland website.
4. Recognition
Every employee likes to be appreciated and thanked for all their hard work. Giving employees recognition for a job well done is an important part of ensuring that there is continued employee engagement. Ways of recognising employees could be appreciation at company meetings, giving out regular promotions or employee appreciation events.
5. Highlight Development
Ensure you allow your employees to further enhance their skills to become even better employees. By you supporting employee development will lead to the best employees sticking around.
6. Reward Employees
As well as offering salary incentives why not add other reward programmes to help retain employees. Rewards like offering gift cards, bonuses and additional annual leave will not only attract employees to the company but help retain employees.
7. Provide up to date equipment and software
A huge complaint at many companies is how outdated the equipment and software is within an organisation. Not only does this make employees inefficient but it also indicates that your company does not have any interest in staying up to date with the latest tools and technology.
8. Communication
There is nothing more frustrating than a company with bad communication with its employees. Make sure your company is creating channels for honest and specific feedback to and from employees. Try to focus on direct communication, one-on-one conversations when it is possible. Furthermore, provide employees with digital spaces to allow workers to come together and solve issues without having to go through management.
9. Familiarity with Senior Management
Making sure senior management know that an employee exists will help make employees feel acknowledged and results in employees being loyal and committed to the job. One of the most common complaints voiced during an exit interview is that employees do not feel acknowledged by senior management. The employee should be introduced to senior management on their first day and employees should have the chance to partake in company discussions and have their ideas listened to.
10. Allow the employee to use their talents and skills
A motivated employee wants to contribute work to areas outside of their job description. You should allow your employees to use experiences from the past to their current role to result in an overall positive employee engagement. For example, if an employee has a skill in video editing and they work in the marketing department, allowing them help or have input in the production of a company video, will overall have a positive impact on their role in the company.
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What you Need to Know About the Gender Pay Gap Information Act 2021
The Gender Pay Gap Information Act was signed into law on the 13th of July 2021. It will amend the Employment Equality Act 1998. This legislation introduced gender pay gap reporting to Ireland. The technical elements to this Bill have not been published yet but, The Act promotes the making of regulations through which reporting requirements will be specified. It is unclear what the specific reporting responsibilities for employers will be.
What is it?
The Gender Pay Gap is the difference in the average gross hourly pay of women compared with men in an organisation. It should not be confused with the concept of equal pay for equal work. The existence of the gender pay gap does not indicate discrimination by employers or that women are not receiving equal pay for equal work. Employers are required to pay employees on the same terms when they do “like work” which is defined as work that is the same, similar, or work of equal value.
What does the employer have to do?
The Act will require organisations to report on the gender pay differences between male and female employees. For the initial first two years of The Act, it will only apply to employers with 250 or more employees.
What information needs to be reported?
- Mean and median hourly remuneration for full time and part time employees
- Mean and median bonus remuneration
- Percentage of all employees who have received a bonus or benefits in kind.
The act also indicates further regulations that may be proposed to provide further clarity on:
- The class of employer, employee and pay to which the regulations apply
- How the remuneration of employees is to be calculated
- The form, manner and frequency in which information is to be published
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