When you make someone redundant, you are breaching the psychological contract that exists between the firm and the employee. One of the key assumptions that an employee has (particularly when on a permanent contract) is that the employment will continue. And that assumption’s just been smashed.
Where an employee is failing to perform during their probationary period there is an onus on the employer to provide training to support the person. If the person proves not to be capable of meeting the requirements they may be dismissed. You must still so this fairly.
• Helping you understand the mechanisms of search, considering the time candidates are available;
• Helping you decide which search methods to use for each type of job;
• Explaining the process you should use to probe the labour market and set up your search;
• Discussing what to do when searching (and what not to do); and
• Setting out the plethora of alternative sources of good candidates.
Firms do a great deal for staff. Of course they pay for work done, and give statutory holidays. But it goes a lot further than that. Keeping a good work-life balance and giving recognition and career builds employee commitment. Thinking about total reward helps managers add elements of great benefit to employee and firm without huge cost.
Many managers follow the economists' teaching to claim that people are rational and will strive to maximise their financial gain. But people are irrational. There are some maxims in designing performance-related pay. First, money is not a motivator. But fair reward encourages commitment. Second, offering a financial incentive will encourage isolationist behaviour. Be careful what behaviour you reward!
Broadly, most UK SME managers grant employees the bare minimum of additional benefits over and above salary. In many cases, they’ll award staff the statutory minimum. Yet a few SMEs do give their employees generous high-value benefits. So why the difference, and does it make any sense to offer more than you must? Here we discuss the origins of this minimalist thinking and explore what other options there are for beneficial benefits.