Are zero hour contracts right for your organisation?

By Penny Antoniou, Social Care Manager at TPP Not for Profit

Recent government announcements to sanction job seekers who refuse zero-hour contracts, have received a mixed response. With recent statistics from the Office for National Statistics revealing that 1.4 million people are on zero hour contracts, which according to the ONS has increased more than threefold since 2010, we take a look at the benefits, drawbacks and alternatives for charities and other not for profit organisations when considering these types of contracts.

The CIPD results showed that 34% of charities compared with 24% of public sector employers and 17% of the private sector employ staff on zero hours contracts.

Why would you use them?

Zero hour contracts are flexible for both employer and employee. For many charities,operating is becoming increasingly unpredictable, due to changes in funding and the way their services operate; such as service users being given their own budget to spend with providers of care. Therefore they don’t have a regular need for staff and these contracts allow them to meet their users’ needs without wasting funds. For employees who don’t need a set number of hours each week, such as students/carers, zero hour contracts give them the flexibility to work when it suits them.

The government have recently been pushing for more flexibility in terms of staff working hours, home working etc, and the charity sector has traditionally offered more flexibility than commercial organisations. Zero hour contracts offer a lot of flexibility for staff and, unless stipulated in the contract,allow employees to work for more than one organisation, enabling them to ensure they still have a regular income. 

What are the disadvantages?

On the flipside, many people need stability and regular income, so they can manage their everyday bills and commitments. Employees on zero hour contracts can also miss out on benefits, such as pensions, especially when employers offer a certain percentile of salary towards pension contributions. 

People on zero hour contracts may not be fully committed to your organisation if they are working for more than one charity and you may still not have staff available when you need them, as they may be working elsewhere. 

It can be difficult to work out holiday pay, holiday accrued, whether the contract still exists between assignments, especially if they work for more than one employer. It is important to therefore ensure their work is tracked by HR and a good relationship is managed between the employee and manager. 

Zero hour contracts can prevent continuity of care, especially in health care settings where care workers get to know the people they care for and their health needs. Zero hour contracts could result in a breakdown of communication or a lack of staff to cover. 

Not for profit organisations need to consider the negative publicity surrounding zero hour contracts. Only last year, organisations such as Turning Point became the target of news stories. Turning Point did respond to this negative press with a statement; however charities should consider the negative impact on donations and to potential donors compared with the savings they make on these contracts.

Points to consider

Before implementing contracts such as these, organisations should think about their aims and ethos and ensure any contract is consistent with this. Give these contracts to the smallest amount of your overall staffing numbers as possible and regularly review how these are working. Where possible, ensure zero hours staff are receiving the same employment rights as staff with part-time or full-time contracts. 

Ensure you both have a copy of the employment contract and if they are managed by a team/line manager, ensure they are aware of their contract and work in-line with their employment status. At all times the contract should be of benefit to you as an employer and to the employee. 

Consider other types of staffing contracts, such as annualised hours. This offers the employee a fixed salary where they work more hours when there is a need and less otherwise. If more hours are required in addition to the fixed hours, you could consider paying overtime.

Temporary or contract staff also offer flexibility without commitment. By working closely with an agency such as TPP, you could have a bank of candidates available at short notice who are actively looking for temporary work.For further information on our temporary services please contact us on 020 7198 6000 or email info@tpp.co.uk.

For further information or advice on zero hour contracts, you may find the following websites useful:

ACAS

CIPD

To follow the latest news on zero hour contracts visit Google news

A round up of 2012

2012 has been an eventful year in charity recruitment; the shadow of recession is still affecting charity jobs, there have been several significant changes in employment law and nation-wide events gave us all extra holiday time.  TPP Not for Profit were busy throughout the year, volunteering and helping to support the sector in many different ways, as well as supplying high quality experienced charity staff.

In this round up of the past year, we look at what happened during 2012.

January

 
TPP.co.uk mobile site
TPP successfully launched our mobile platform, allowing our candidates to search and apply for jobs directly from their mobile phone.  It helped boost visits to the tpp.co.uk website, and January 2012 was our busiest month ever for jobseeker traffic, with over 22,000 visits (we’ve since passed 25,000).
TPP’s mobile site was also featured in Recruiter magazine.



Innovation for Fundraisers seminar
Presented by two leading industry experts, this free workshop for fundraisers looked at thinking creatively to diversify your fundraising and inspire your teams and supporters.
You can see the slides from the presentation here.

January’s blog post was on How to offer the right salary.

February

New gift aid declaration guidance
On the 24th February 2012, HMRC published updated guidance on Gift Aid declarations for charities and provided new declarations for donation forms. In this article, Wellers accountants take you through the changes to declarations and the best way to incorporate these.

Our February blog looked at how Part time workers can add value to your organisation

March

TPP HR Seminar - Employment Law Update
This seminar was presented by Julie Fewtrell, HR Consultant
You can see the slides from the presentation here.

Are your accounts compliant under the new charities act?
Since 1993 The Charities Act has been recycled through the House of Lords a further two times. The most recent being the Charities Act 2011, which came into force on 14th March 2012. In this article, Wellers Accountants explains which Act to refer and from when, and the differences between new and old. 17 May 2012



TPP raises £4k for Sense
On the 8th March this year 12 employees at TPP took part in the Sense 'Battleshops' Charities Corporate Challenge and raised £3,998 for Sense. You can find out more about the event or see our photos.


NCB CV Workshops
TPP employees provided CV workshops and interview advice as part of the National Children’s Bureau – Skills Development Programme.

Nick Billingham, Manager at TPP, was quoted in How to get hired as a head of fundraising on the Guardian Voluntary Sector Network

March’s blog dealt with Achieving diversity from the bottom up

April

Charity Marketing & Communications Salary Survey
The results of our Charity Marketing & Communications Salary Survey were released in April.  Based on data from over 500 roles, the survey maps out salaries for marketing and communications professionals in the third sector.
You can see the survey results here.






Marie Curie Cancer Care Swimathon
TPP staff members Shelley Hawkins, Emma Lucas and Jo Buckley all successfully completed the Marie Curie Cancer Care Swimathon on the 28th April and raised over £1,100.

Inca Trek Challenge
Charlotte Callin from TPP successfully completed the Inca Trek challenge and raised over £4,600 for the Rainbow Trust Children's Charity.  You can see photos from her journey here.

TPP’s article on Recruitment Trends in International Development was published in Bond Opportunities magazine.

April’s blog was one of our most popular ever and examined Interview questions you should avoid (and what to ask instead).

May

Launch of CPD Voucher
In May, TPP launched our CPD voucher together with the Institute of Fundraising.  All fundraisers successfully placed in a role by us now receive £100 to spend with the Institute of Fundraising to support their ongoing career development.

The CPD voucher has proved extremely popular with both our candidates and their new employers.  More details are available on our website.


KnowHow NonProfit published TPP’s guide on How to avoid illegal or innapropriate interview questions.


May’s blog post look at How many candidates should you interview?

June

Finance Seminar - Risk Management & Governance
This seminar was presented by Kingston Smith, one of the UK's top 20 audit and chartered accountancy firms.
You can see slides from the presentation here.

Flexible Working Survey
In June 2012, we surveyed 376 employers and employees across the sector, asking them about the flexible working options their organisation offered and the options they would most like to receive.
You can see the results of the survey here or see the article on our survey in Charity Times magazine.


To complement the publication of our Flexible Working Survey, June’s blog post was on Five ‘hidden’ employer benefits of flexible working.

July

IoF Convention
Once again, TPP sponsored the Job Board at the Institute of Fundraising National Convention 2012.  Thanks to everyone who came and visited us there!

 

Fundraising Salary Survey
The results of the 2012 TPP Not for Profit Fundraising Salary Survey were released in July.  Based on data from over 320 roles, the survey maps out salaries for fundraising professionals in the third sector. Find out more or read the full survey results here.




July’s blog topic looked at 17 ideas for measuring employee effectiveness.

August

  
The 2012 Olympics
The UK practically shut down for August, as everyone stopped work to watch the 2012 London Olympics and Paralympics.
As well as supplying hundreds of exceptional temporary employees to charities suffering staff shortages, TPP staff also went to cheer on the Olympic Torch.


August’s blog dealt with the The right way to check references.

September

Sophie Butler from TPP was quoted in the Charity Finance Function Survey 2012 from Charity Finance magazine.

Women in finance flagship event: Head hunters – realising your dream job
Rob Hayter, Associate Director at TPP, spoke at this event.  More details can be found on the ICAEW website.

The blog post for September listed our Top tips for managing employee departures.

October

Kingston Run Challenge
TPP Managing Director Tracey George successfully completed the 13k Kingston Run Challenge and raised £400 for Crohn's and Colitis UK.

National Minimum Wage Changes
The UK National Minimum Wage went up from 1st Oct 2012.  Find out more here.



Our article on Using LinkedIn to find your next fundraising job was published on the IoF Conference & Exhibition 2012 Blog.


Amendment to Audit Exemption Thresholds
The audit exemption thresholds for charities changed in October 2012.  Wellers Accountants took us through the changes.

TPP HR Seminar - Managing Culture and Risk
This seminar was presented by Ann McFadyen, Head of Training and Events at the Institute of Risk Management.  You can see the seminar slides here.

October’s blog post looked at Using behavioural interviewing to look behind the mask.

November

Part time Charity Jobs
Research in October from Skills Third Sector showed that while the overall number of workers in the voluntary sector is falling, the number of those working part time has increased. TPP could help your organisation benefit from part time staff.



Centrepoint Sleep Out
TPP staff members Danielle Lock and James Hunt braved the cold in November for Centrepoint's Sleep Out. You can view the photos here.





Institute of Fundraising London Conference
TPP presented at this event on 'Plotting your path to success - what you really need to make your fundraising career shine'.  You can view the slides from our presentation here.

Client Relations Manager Donna Newton took part in a walk to raise money for a Romanian Dog charity.  Donna is also a regular volunteer for Alaskan Malamute Rescue.

TPP Finance Seminar - Top tips for charities in an economic downturn
Our speaker for this seminar was Norma Stewart from Wellers accountants.
You can view the seminar slides here.

Movember
TPP Manager Nick Billingham grew a very fine moustache in aid of Movember.

Our November blog post was all about How to reject candidates without turning them off your brand.

December

Best Recruitment Agency
TPP has been shortlisted for Best Recruitment Agency by the Institute of Fundraising.  If you or your organisation are IoF members, please vote for us.
Why?  Find out more here.




DBS replaces CRB checks
Disclosure & Barring ServiceThe Disclosure and Barring Service (DBS) has now launched, following the merger of the Criminal Records Bureau (CRB) and the Independent Safeguarding Authority (ISA).  Find out more about how this change might affect you.

Coming up in 2013…

We’ve got more planned for 2013.  Here are a few things on the radar at the moment – details will be released in our email newsletters.

A new office to deal with regional recruitment
Having been inundated with requests from charities struggling to find high quality staff for locations outside of London, TPP are planning to open another office to help deal with regional recruitment.  More details soon…

More professional development seminars
We’re currently planning our calendar of free seminars for 2013.  So far, it’s likely to include HR seminars in spring and autumn and a seminar for finance professionals.  If you’d like to be sent details of these when they are finalised, please email marketing@tpp.co.uk

Talk to the leader podcasts
TPP is pleased to announce that we will be sponsoring the next series of Talk to the Leader podcasts from Bertie Bosredon.  In this series of podcasts, charity leaders reveal what they do and why they do it.  Find out more here.

Development Directors’ Forum
TPP will sponsor the meetings of the Development Directors’ Forum, a networking group for Fundraising and Development Directors in the South West region.

Free use of our boardroom
In 2013, TPP will continue to offer any not for profit organisations the free use of our Boardroom and interview space.  More details are on the website.

Thanks so much to all our clients and candidates for choosing to work with us in 2012.  We wish you all a Merry Christmas and look forward to a successful 2013!

The right way to check references

Checking the references of prospective employees is often left until late in the recruitment process, if it’s done at all. Checking references is a great tool for deciding between equally qualified candidates, or for weeding out applicants who won’t be suited to your organisation’s culture. It can be very hard to tell what someone is like to work with on a day-to-day basis from a formal interview.

It’s also increasingly important to check reference as CVs can be incomplete or even contain misrepresentations. There are currently a lot of jobseekers on the market, and the extreme pressure of applying for a limited number of jobs can lead some candidates to knowingly exaggerate their credentials and experience in an effort to stand out above their competition.

In a recent survey by ELAS, one in three managers have admitted to lying or exaggerating about their qualifications in the past. With many charity fraud cases in the headlines recently (the NFA estimates that charities lose 1.7% of their annual income to fraud), it’s even more important for non-profit organisations to protect themselves and vet potential employees prior to offering them a job.

In the case of senior employees, if there is an inconsistency or misrepresentation on a CV and the truth comes out, it can be potentially extremely embarrassing for the organisation involved and potentially damage relations with their donors. Take the recent scandal that ensued when Yahoo’s then-Chief Executive Scott Thompson was found to have an "inadvertent error" on his CV.

When is the best time to conduct checks?

The best time to check references generally varies depending on the responsibility of the role in question and the amount of time spent recruiting.  You don’t want to get to the end of a lengthy recruitment process, only to find out your chosen candidate’s references don’t stack up. However, obtaining references can be a time-consuming process and too difficult to do for every candidate in the running.

Many employers leave reference checks until after the first-stage interviews, when they have narrowed down the pool of potential employees. A previous employer’s opinion can be extremely useful at this stage to decide between candidates with similar experience or qualifications. Another approach is to conduct a two-stage reference checking process, with written requests to verify basic details made early on, followed by detailed telephone conversations later with previous line managers of the favourite candidates.

You will probably have to wait until after a conditional offer is made to the candidate to contact their current employer.

What’s the best way to do it?

There are essentially two ways in which you can get references – in writing or over the telephone. While a written reference may be sufficient for a junior role, other roles are likely to require a phone conversation to get anything but the most basic information.

Some organisations have a policy of not giving references, and will only confirm basic employment details, while others try to shunt you off to the HR department. However, be persistent and try to speak to a line manager, as they will give you the most useful information. Contact the referees in advance (or ask the candidate to do so) and book in a specific time for your conversation.

Who should you talk to?

As mentioned above, a previous line manager of the candidate’s is best, even if they have since left the organisation, as they will have direct experience of managing the candidate on a day-to-day basis. If the candidate has lost contact with their previous line manager, suggest they use LinkedIn to track them down.

Don’t bother with personal references, as it’s highly unlikely you’ll get objective feedback from a candidate’s friends or family. If they’ve had no previous paid employment, talk to someone who has worked with them on a volunteer or extracurricular basis.

If you have any doubts as to whether a referee is genuine, always ring back the organisation’s main number to check their identity.

Please note, you should always have your candidate’s permission to contact referees. Many jobseekers will prefer you not to contact their referees until an offer is made and accepted, especially if they are a current employer. If you have a signed statement of permission from a candidate, it may be worth attaching this to any initial email making contact with a referee to reassure them.

What should you ask?

Essential questions for basic written references include:

• Dates of employment
• Job title and main responsibilities
• Attendance record and number of days sick leave taken
• If they were reliable, honest, hardworking etc
• Any disciplinary actions taken against them
• If there are any reasons why they should not be employed

 Questions for more detailed telephone interviews include:

• What were the main responsibilities of the candidate in their last role?
• What are the candidate’s greatest strengths?
• Do you think the candidate is qualified for this new role?
• What specific qualities does the candidate have that will help them fulfil these responsibilities?
• What kind of management style did the candidate respond best to?
• What sort of office environment did the candidate work best in?
• How well did the candidate handle a specific skill or situation?
• What was the candidate’s reason for leaving?
• Would you rehire this candidate?

Always make sure questions are as open-ended as possible, not ones that solicit simple yes or no answers, and let the referee do most of the talking. Don’t ask leading questions – let the referee supply the information instead, eg instead of “John Smith has told us that one of his key responsibilities was x – is that correct?” ask “What were some of John Smith’s key responsibilities?”.

Don’t ask questions that are designed to solicit negative comments, eg “What are this candidate’s weaknesses?”. Most referees will feel uncomfortable giving bad feedback on a previous employee, and are likely to clam up altogether. Instead, you need to coax information out of them and intuit negative feedback from what is NOT said.

Don’t ask questions which are too general or open to interpretation, eg “What is your impression of this candidate’s character?”. It’s best to stick to the skills involved in the candidate’s old and new positions. Make sure you probe sufficiently into their responsibilities – previous volunteers can be particularly prone to over-inflating their duties.

Don’t forget to check unpaid staff

Reference checks are also an excellent idea for potential volunteers or trustees, particularly if they will be coming into direct contact with your supporters. The Charity Commission estimates that only 23% of charities carry out checks on prospective trustees.

With these unpaid staff, it is even more important to make sure the candidate is comfortable with the nature and timing of reference requests before you contact referees.

Some things to remember…

Stay legal when requesting references. Thomas Mansfield have produced some legal guidelines to conducting reference and other background checks.

Be consistent when comparing candidates. It’s best to prepare your questions in advance and keep detailed notes of the answers so you don’t stray into unconscious bias.

While TPP only supply reference checks as standard for our temporary candidates, all our candidates are interviewed face-to-face before we send over their details, enabling us to pick up any inconsistencies or cultural mismatches prior to shortlisting and allowing us to supply a consistently high quality of employees.

Further resources

100 sample questions for job reference checks

Template for a letter granting permission for reference checks

Background checking services:

Experian

NorthgateArinso

Interview questions you should avoid (and what to ask instead)

Job interviews are the best opportunity a recruiter has to find out whether a jobseeker has the skills and personal qualities required for the role, as well as determining whether the candidate’s personality would fit with the organisation’s culture.

There are some interview questions that are obviously discriminatory and avoided by almost all employers. However, when trying to build a friendly rapport during an interview, it can be easy to innocently stray into ‘grey’ areas which may seem harmless but are in fact discriminatory, and therefore potentially illegal. Employers may think they are making conversation but could be leaving themselves open to litigation.

In this blog, TPP examines how you can find out all the information you need in an interview without straying into potentially litigious territory

This information is for guidance purposes only and not legal advice. Not all the questions below are necessarily illegal, but it is best practice to avoid straying into any of these areas.

Before you start the interview…

Although anti-discrimination legislation can feel like a minefield, it doesn’t have to complicate the interview process.

By simply asking questions in a different way, you can find out the information you really want to know (ie the candidate’s suitability for the role) without asking the interviewee to divulge information about their personal life (that you don’t need to make a decision).

The exception to these guidelines is when there is an occupational requirement for a role, when an employer can objectively justify why a specific type of candidate is required, eg a religious organisation may stipulate that only candidates of that religion should apply, if it is a genuine requirement of the role.

Place of Birth, Ethnicity or Religion

Employers should steer clear completely of any questions regarding a candidate’s birthplace, background or religious affiliation. If an applicant has an unusual name, don’t ask about its origin, as the answer could possibly be grounds for discrimination.

While it is legal to ask about ethnic background on application forms, this is for monitoring purposes only and usually anonymous, and should never be brought up in an interview.

You may want to ask about religious practices to find out about any scheduling conflicts around weekends or religious holidays, but you should never ask a candidate about their beliefs. Instead, simply confirm they are able to work when they will be required to.

Don’t ask: What country are you from? Where were you born?
Do ask: Are you eligible to work in the UK?

Don’t ask: What is your native language?
Do ask: This job requires someone who speaks more than one language. What languages are you fluent in?

Don’t ask: What religion do you practice? Which religious holidays do you observe?
Do ask: Can you work in the days/schedule required for this role?

Marital Status, Children or Sexual Preference

Asking questions about someone’s children is usually just making conversation, but not appropriate in an interview setting. You cannot ask a candidate if they are planning a family, if they are pregnant or about their childcare arrangements.

This also applies to questions about marital status, which could be grounds for discrimination, as some employers may believe that married employees are more stable, or single people may have more time to devote to the job.

Any mention of an applicant’s sexual preference should also obviously be avoided.

Don’t ask: Do you have or plan to have children?
Do ask: Are you available to work overtime on occasion? Can you travel?

Don’t ask: How many children do you have? Do you have childcare arrangements in place if we need you to work out of hours?
Do ask: This job may require some overtime work on short notice. Is this a problem for you? What days/hours are you available to work?

Don’t ask: Is this your maiden name?
Do ask: Are any of your references or qualifications under another name?

Don’t ask: If you went on maternity leave, would you come back to work afterwards?
Do ask: What are your long term career goals?

Gender or Age

Steer clear of any questions that reference a candidate’s age or gender. You should certainly ask about their ability to handle the challenges of the role, but never imply that their gender or age may affect this.

The only question regarding age which is acceptable is to establish whether they are of the minimum age required for the role. A prime example of what not to say to an applicant would be to ask of someone in their sixties, “and how many more years do you see yourself in the workforce?”

Don’t ask: We’ve always had a woman/man in this role. How do you think you will handle it?
Do ask: What can you bring to this role?

Don’t ask: How do you feel about managing men/women?
Do ask: Tell me about your previous experience of managing staff.

Don’t ask: How old are you?
Do ask: Are you over the age of 18?

Don’t ask: How much longer do you plan to work before you retire?
Do ask: What are your long term career goals?

Don’t ask: When did you graduate?
Do ask: Do you have a degree or other qualification related to this role?

Location

It is very common in interviews to ask about commuting distances and times, to make sure the candidate will be able to get to work on time. However, this can be difficult to judge, as how far people are willing to commute varies wildly. Some employees are willing to travel for over an hour, while others think 20 minutes is too long.

In addition, asking someone about where they live could create discrimination issues if it is in a neighbourhood heavily populated by a specific ethnic group or social class.

Don’t ask: How far would your commute be?
Do ask: Are you able to start work at 9am?

Disability or Illness

Interviewers should be careful around any questions related to illness. Asking a candidate to explain any gaps in their CV due to long term sick leave is acceptable, but asking directly if they have any health conditions is not.

Questioning a person over a disability and whether or not it would affect their ability to do the job is grounds for disability discrimination.

Don’t ask: How many sick days did you take last year?
Do ask: How many unscheduled days of work did you miss last year?

Lifestyle Choices

An employer cannot ask an interviewee whether they smoke or how much alcohol they consume. While an employer can set rules for professional conduct and substance use at work, what an employee does in their own time should have no bearing on whether they are suitable for the job.

While you can ask about criminal records on an application form, it’s generally not a good idea to bring it up at interview. Likewise, while some roles require a CRB check, you cannot discuss the findings in a job interview.

Questions about political affiliations or group memberships should not be asked during interviews, unless they are relevant to the role in question. Although you might want to find out if they are involved in any activities that may have an impact on their time commitments, it is better to simply ask if they are able to commit to the role.

Don’t ask: Do you belong to any clubs or organisations?
Do ask: Are you a member of any professional group that’s relevant to this role?

Don’t ask: Are you a member of the Territorial Army/Special Constabulary/Other Volunteer Force?
Do ask: Do you have any upcoming commitments that would require extensive time away from work?

Height or weight

Questions about a candidate’s weight or height are also best avoided unless there are certain minimum or maximum requirements required for the role.

Don’t ask: How tall are you?
Do ask: Are you able to reach items on a shelf that’s five feet tall?

Don’t ask: How much do you weigh?
Do ask: Are you able to lift boxes weighing up to 50 pounds?

How TPP can help

If you need more help with interviewing, please see our articles on Interviewing Advice and 6 common interview mistakes employers make. TPP are always happy to advise our clients on the best questions to ask to rate a candidate’s suitability for a role.

The Pitfalls of Ignoring Poor Performance

Charities are continuing to feel increasing economic pressure and this is having a negative effect on staff morale.  60% of charity staff have experienced redundancies in their organisation, and 55% feel their workloads are getting heavier, leading to stressed and unproductive employees.  And with half of voluntary sector leaders expecting their organisation’s situation to worsen over the next 12 months, the situation is not likely to improve in the near future.

However, not for profit organisations can be reluctant to tackle poor performance in the workplace - only 57% of staff reportedly receive useful feedback on how they are performing.  With over 218,000 employment tribunal claims brought last year, and charities particularly vulnerable to claims, failure to manage underperformance can have serious consequences for charities.

In this article, TPP examines the most common reasons for failing to tackle poor performance, and why these are misconceptions.



"Nonprofits should be kind"

This is an extremely common problem in the not for profit sector.  Most charities recognise that their staff often accept lower pay than in the private sector but expect a higher level of job satisfaction.  Combined with the fact that charities exist to promote ethical values, this can often lead managers to want to be “kind” to their employees, and turn a blind eye to underperformance.

However, failing to tackle poor performance at an early stage is more often than not an unkindness, both for the organisation, whose effectiveness will suffer, and for the employee themselves, who will continue to underperform until their manager has to tackle the problem, which can be a set up for an unfair dismissal claim.  Unproductive employees are also usually unhappy in their job, and treating the problem can improve morale all round.  Being a supportive manager, who proactively handles performance and develops their employees, is not being unkind. Allowing people to fail is unkind.

“We need to follow this through by managing poor performance when it arises. Anyone who hides behind the charity mask on this one and feels it is not compatible with being nice to people is not being professional or businesslike - nor maintaining the charity ethos.”
Valerie Morton in Third Sector magazine


Fear of litigation

Charities are usually heavily reliant on their public image to bring in funding and volunteers, and so are reluctant to enter situations where litigation might result which will give them negative press.  Charity employees can be more willing than most to bring a claim against their employer if they feel they are being treated unfairly, as they have an innate sense of justice and fair play.  This means that voluntary sector managers can be unwilling to speak to employees about poor performance and scared of getting into situations which they feel may eventually lead to dismissal.

Once again, the solution to this is to tackle poor performance at an early stage, rather than simply ignoring it.  Properly handled, an employee may well improve their effectiveness, avoiding the need for dismissal.  But if it does get to that stage, an employee is more likely to feel aggrieved about being dismissed if their employee has not attempted to address and solve the issues leading to the underperformance, and will almost certainly have a stronger case at tribunal because of this.


Worrying about morale

In the current economic climate, when many charities have experienced downsizing, many managers are concerned about maintaining the morale of their team and fear that confronting an employee, particularly one that is popular with the rest of the staff, about their performance may lead to a wave of fear among the team and a drop in morale.

In this scenario, managers are assuming the worst.  Handling unproductiveness sensitively and at an early stage can lead to the employee becoming both more productive and more satisfied, which is likely to positively affect the rest of the team.  If this does not happen, and the process eventually leads to a dismissal, there certainly is a risk that the rest of the team will become worried, but reassurance and support can help to tackle this.  However, leaving that employee to carry on as they are will definitely lead to a drop in morale as the rest of the team have to make up the slack.


Extenuating circumstances

A common reason for underperformance can be personal problems that are unrelated to work.  If a manager is aware of these circumstances, they could very well be tempted to let poor performance slide on the assumption that the employee’s effectiveness will improve once the situation has been resolved.  However, simply ignoring the issue is doing the employee no favours.

Talking through the issue with the member of staff will alert them to your concerns, demonstrate your support in their situation and may lead to a mutually beneficial solution, such as allowing them to take a paid leave of absence.


Losing a star performer

Sometimes, an employee can be a high performer in numerical terms, but can still require performance management for unacceptable behaviour, such as negativity, dishonesty, harassment or bullying.  Managers may be reluctant to tackle this behaviour, even if it is having a negative impact on the rest of the team, for fear of losing their star performer.

Leaving this kind of behaviour untackled ends up sending a message to the rest of the staff that conduct like this is acceptable as long as targets are met.  Staff may become disillusioned and leave due to perceived unfairness.  Performance management should always have the welfare of the team as a whole in mind, not just that individual.


Conclusion

If your beneficiaries are likely to suffer due to a drop in team productivity and morale, is there really any excuse that could be valid for failing to deal with poor performance early on?  A good manager should be able to effectively communicate and document an employee’s poor performance in a timely manner, so that any disciplinary action is never a surprise. If it does happen, it should only be the culmination of a process where the manager is sincerely working to change an employee’s behaviour for the betterment of the organization.


Resources

Further advice on performance management and involuntary redundancy:
KnowHow NonProfit
CIPD
10 point checklist for confronting poor performance
Crash Course: Seven ways to manage poor performance

Training
CS Skills Centre - Managing poor performance
The Centre - Managing poor performance, absence and stress

Healthcare Conferences UK - Managing Poor Performance and Supporting Nurses in Difficulty

Forms & Templates
Various forms are available from HR Bird

Finally, for further guidance on how NOT to conduct a performance review, learn from the master - David Brent.

Free HR Seminar for Not for Profit Organisations

TPP Not for Profit are holding a free HR breakfast seminar on Thursday 20th Oct at Toynbee Hall, London.  The seminar will be an employment law update, covering several in-depth examples of recent case law, with an emphasis on the practical actions that HR Managers of not for profits, or those responsible for HR in their organisation, will need to take.

Follow the link below for more details or to book your free place>
http://www.tpp.co.uk/hr-seminar-oct-11