the HR Director The only magazine dedicated to HR Directors November 2003 Issue 1 Inside… Diversity We meet Ivan Massow, BT & Ford Preview of the Diversity Day Summit Plus: Willill economiceconomic boomboom mean retention gloom? Calling last Orders! Fresh alternatives to the pub after work How to help employees escape commuting hell We look at HR in Sweden • Advice on conquering your nerves • Age discrimination at work Contents Welcome Contents Welcome to the launch issue of The HR Director – the only magazine Inside… Diversity dedicated to informing HR Directors. Each month we will be dissecting the strategy that is working for other organisations – and aim to do so in 10 Gay Pay Day We meet entrepreneur Ivan Massow a pithy and entertaining way. 12 Pushing the right buttons: Dave Wilson We begin with the good news: the economy is finally showing signs of tells us how diversity has changed BT picking up. But there is always a flip side and your most talented employees might now be tempted to jump ship. Brett Walsh from 14 The Diversity Day Summit Deloitte offers a few ideas for HR Directors who want to avoid an exodus. 16 Bringing policy to life with the Institute for And if the swift shuffle of talented feet is not enough to keep you busy, Employment Studies & Ford next month you must be ready for new legislation which outlaws discrimination on the basis of sexual orientation, religion or belief. Starting on page 10, our main feature provides a host of ideas and Features examples of how to go beyond the laws and improve performance through 4Will economic boom mean retention gloom? diversity. We also spotlight the Diversity Day summit which promises to Deloitte’s Brett Walsh explains how to rebuild be an excellent event. trust and motivation. After all that you might fancy a drink. But before you pop off to the pub, 18 Calling last orders: relaxation not inebriation. consider the alternative ways to relax. Rhymer Rigby talks us through Rhymer Rigby investigates the creative them, with advice from some of the most creative employers around. employers who don’t resort to the pub to get to know their staff The HR Director will be available each month from January. We hope 21 Career off the road: how to help your workforce that you enjoy the magazine and find it useful. We welcome your feedback overcome the commuting nightmare and ideas for future issues. Regulars 8 Legal eyes: Makbool Javaid from DLA explains how to tackle age discrimination at work 24 Distance learning: HR in Sweden 26 Wellbeing at work: Juliette Kellow has advice Peter Kane for overcoming nerves and creating the right Editor first impression Contacts Contacts Letters Contributions: Peter Kane – Editor In future issues, we will carry a letters page – letters We welcome ideas for features. Please send ideas, [email protected] should be sent to [email protected] or including a short synopsis if possible, to Peter Kane. Editorial guidelines are available on request. In the absence Ben Renshaw – Head of Advertising Letters to the Editor of an agreement, the copyright of all contributions, [email protected] The HR Director, 14 Orchard Street, Bristol BS1 5EH regardless of format, belongs to Kane Communications www.thehrdirector.com Subscriptions: Ltd. © 2003 Kane Communications Ltd. The publishers 0117 9055006 The HR Director is distributed free of charge to key HR accept no responsibility in respect of advertisements decision-makers in companies of over 100 employees. If appearing in the magazine and the opinions expressed in Design & production you would like to receive the magazine, email your editorial material or otherwise do not necessarily represent em5 Design & Advertising details to Peter Kane, including your name, position, the views of the publishers. The publishers accept no www.em5.co.uk company, postal address, telephone number and the size responsibility for actions taken on the basis of any 0117 9200 005 of your company (no. of employees). If you do not fall information contained within this magazine. The into the above category, you may still qualify for a free publishers cannot accept liability for any loss arising Thanks to Anna Masserick and Katy Bath for their subscription at this time, although a subscription charge from the late appearance or non-publication of any massive contributions to this launch issue. will be introduced at a later date. advertisement for any reason whatsoever. The HR Director - Issue 1 Nov 2003 page 3 Economic Boom = Retention Gloom? Will economic boom mean retention gloom? As the economy and the job market improve, Brett Walsh, Head of Human Capital Advisory Services at Deloitte asks how HR Directors can ensure retention policies are effective. Recent research has predicted that as the job The cost of turnover market and the economy improve, staff Employee turnover is enormously costly. Losing an turnover rates will soar, as an increasing employee on £15,000 per annum is likely to cost the number of career move opportunities business £15,000 on recruitment and induction costs become available to employees. The Job and loss of productivity. For a business employing 5,000 Recovery Survey, by the Society for Human staff with an employee turnover of 15% it amounts to Resource Management (SHRM) and £11.25 million a year. Some skills are more costly to CareerJournal.com, suggests that employees are sitting replace than others, for example a sales person earning out the downturn, but once activity picks up – as it is £39,000 could cost the company £300,000 to replace. expected to next year – staff turnover in the US could rise significantly. Similar levels of turnover are expected in the UK. Signs of an upturn are already beginning to appear. The Report on Jobs by Deloitte found a notable improvement in the UK job market in August. “HR Directors face two issues; ensuring talent is retained, and attracting the talent that is becoming available on the job market” Demand for staff was the principle driving force behind the strongest rise in permanent placements for two and a half years. Encouragingly, for the first time since May 2001 a rise in the demand for private sector staff was recorded. Apart from the recruitment expenses, lower productivity Employers are beginning to return to the job market to and loss of scarce skills, there is also the less quantifiable take advantage of good staff availability and relatively issue of disruption to teams, loss of knowledge and lower subdued rates of wage and salary growth. As a result, HR employee moral. Directors will face two issues; how do they ensure that their talent is retained, and how do they attract the talent Why is turnover expected to rise so dramatically? that is becoming available on to the job market? During the last two and a half years, businesses have page 4 The HR Director - Issue 1 Nov 2003 Economic Boom = Retention Gloom? been forced to cut costs in order to remain competitive “As businesses in difficult conditions. Staff have experienced cuts in begin to benefit bonuses, training and development, and other key from improved elements of their total reward package. Those businesses conditions, it is that over-staffed during strong market conditions have vital to reinvest in found it necessary to make large cuts to their workforce. learning and According to the CBI, 43% of City firms cut jobs in the first half of 2003. development”. The tough economic conditions have meant that employers have had to achieve more with less, creating a pressured work environment. As a result there are high levels of mistrust and dissatisfaction amongst many workforces. In order to rebuild trust and motivation, HR Directors must review their retention policies. “The tough economic conditions have meant that employers have had to achieve more with less, “Employees will resulting in high levels of mistrust and dissatisfaction find motivation in amongst many workforces”. clear and flexible career paths with Developing an effective retention policy requires an long term prospects understanding of the skills and talent that are critical to that are achieving business objectives. HR Directors must also tailored to their ask what motivates the employees that demonstrate individual needs”. these vital skills to stay. look no further Reed HR has become synonymous with recruitment expertise. For over 40 years, world-class people and technology have ensured our business remains consistently in line with our clients’ needs. That’s why we’re first choice for organisations seeking integrity, innovation and in-depth knowledge - particularly in HR, where we have a long and enviable record of success. Our expert consultants have specific experience within HR and so are able to offer a recruitment service which is truly tailored to your exact needs, whether you are looking to take on more permanent, or interim staff, or are even looking to progress your career. For more details talk to Greg Price. t: 0870 7200246 e: [email protected] The HR Director - Issue 1 Nov 2003 page 5 Economic Boom = retention gloom? Harnessing commitment statistics are more or less similar; job content, career The main aim of a retention policy is to create employee development, company environment and remuneration commitment to the company management and receive almost equal weightings of importance. Learning leadership style. The cutbacks that businesses have been and development was one of the main areas that suffered through are likely to have caused considerable damage to in the downturn and as businesses begin to benefit from employee commitment. Employees do not necessarily improved conditions, it is vital that they now reinvest. understand why the job market dropped; they have only witnessed it through what they have personally lost in Finally, HR Directors need to focus on creating a culture the cutbacks.