Natural HR https://www.naturalhr.com/ All-in-one HR software that grows with your business Mon, 08 Jan 2024 15:38:58 +0000 en-GB hourly 1 https://wordpress.org/?v=6.2 https://www.naturalhr.com/wp-content/uploads/2019/11/cropped-favicon-32x32.png Natural HR https://www.naturalhr.com/ 32 32 4 million employees change career due to lack of flexibility – CIPD https://www.naturalhr.com/2023/09/21/4-million-employees-change-career-due-to-lack-of-flexibility-cipd/ Thu, 21 Sep 2023 13:14:49 +0000 https://www.naturalhr.com/?p=21271 It’s not exactly a brand-new revelation that workers are wanting greater flexibility from their employers as they chase a better work-life balance, particularly in the wake of the pandemic. However, a recent study conducted by the CIPD reveals the true extent of this demand: an estimated four million people in the UK have changed careers due to a lack of flexibility at work. This statistic sheds light on the growing importance of work-life balance and the impact it has on individuals’ professional trajectories. But what are the underlying factors driving this? Work-Life Balance: Achieving a healthy work-life balance has become...

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It’s not exactly a brand-new revelation that workers are wanting greater flexibility from their employers as they chase a better work-life balance, particularly in the wake of the pandemic. However, a recent study conducted by the CIPD reveals the true extent of this demand: an estimated four million people in the UK have changed careers due to a lack of flexibility at work.

This statistic sheds light on the growing importance of work-life balance and the impact it has on individuals’ professional trajectories. But what are the underlying factors driving this?

Work-Life Balance: Achieving a healthy work-life balance has become increasingly crucial for individuals across all age groups. For example, juggling multiple responsibilities, such as caring for children or elderly parents, has become a common challenge. Employees who face rigid working hours or lack of remote working options often find it difficult to manage their personal commitments, leading them to explore career options that offer greater flexibility.

Wellbeing and Mental Health: The importance of mental health and wellbeing in the workplace has gained significant attention in recent years. A lack of flexibility can contribute to increased stress levels, burnout, and diminished job satisfaction. As individuals prioritise their wellbeing, they are more likely to seek career paths that provide a supportive and flexible work environment.

Career Development and Upskilling: In an ever-evolving job market, continuous learning and development are vital for career progression. Individuals who feel limited in their ability to pursue training or education due to inflexible work arrangements may seek alternative career paths that offer the opportunity to upskill and grow professionally.

Changing Workforce Dynamics: The composition of the workforce is changing, with Millennials and Gen Z employees making up an increasingly greater proportion of the workforce. These generations often prioritise flexibility and work-life balance, valuing experiences and personal growth as much as financial rewards. Employers who fail to adapt to these changing expectations risk losing talented individuals to more flexible organisations or industries.

The Impact on Employers and Industries

The CIPD findings have broader implications for employers and industries in the UK. Organisations that are unable or unwilling to provide flexible work options may face challenges in attracting and retaining talent at a time when employers are already on the back foot. Additionally, industries that traditionally offered limited flexibility, such as healthcare or manufacturing, may experience a shortage of skilled professionals as individuals seek more flexible sectors, such as technology or creative industries.

Adapting to a Flexible Work Culture

To address the changing landscape and cater to the demands of a flexible workforce, employers should consider implementing the following strategies:

Clear Flexible Working Policies: Develop and communicate clear policies that support flexible working arrangements, including remote work, flexible hours, compressed working weeks, and job sharing opportunities. This allows employees to tailor their work schedules to meet their personal needs while still contributing to organisational goals.

Technological Infrastructure: Invest in technology that enables seamless remote work and collaboration, ensuring employees can work effectively from anywhere and reducing the need for rigid office-based schedules.

Managerial Support: Equip managers with the necessary skills to manage remote and flexible teams effectively. This includes fostering a culture of open communication, setting clear expectations and goals, and evaluating performance based on outcomes rather than hours worked.

Employee Wellbeing Initiatives: As previously mentioned, employers are now generally far more conscious of mental health in the workplace, but reduced face-to-face time can make it harder for colleagues to identify when someone could be struggling. It’s therefore even more important to prioritise employee wellbeing by offering resources such as mental health support, flexible leave policies, and wellness programmes. These initiatives demonstrate a commitment to the holistic wellbeing of employees, leading to increased job satisfaction and loyalty.

The CIPD’s study’s findings indicate that employees are flocking to new career paths in their millions due to a lack of flexibility, and it’s clear that the pursuit of work-life balance and personal fulfilment is reshaping the employment landscape. To attract and retain top talent, organisations must embrace flexible working arrangements, adapt to changing employee expectations, and prioritise the wellbeing of their workforce. By doing so, employers can foster a culture that not only meets the needs of their employees but also drives productivity and success in the long run.

If you’d like to find out more about making a career change as positive an experience as possible for your employees, download our free guide.

If you want to get the best out of your employees – whatever their working patterns – then you can truly unlock your people’s potential with HR software. Discover for yourself in a free demo from Natural HR here.

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What is Career Cushioning? https://www.naturalhr.com/2023/09/08/what-is-career-cushioning/ Fri, 08 Sep 2023 15:17:30 +0000 https://www.naturalhr.com/?p=22185 In a bleak economic outlook plagued by inflation, rising interest rates and uncertain hiring practices, the concept of ‘career cushioning’ has entered more into HR’s consciousness. Career cushioning refers to employees taking proactive measures to mitigate the damage of potential job loss and leave them better placed to bounce back into work in the event of sudden unemployment. Career cushioning can involve actively monitoring job market trends, networking, and staying updated on industry developments to maintain a sense of job security, or can even go as far as actively applying for new roles. According to research by recruitment firm Robert...

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In a bleak economic outlook plagued by inflation, rising interest rates and uncertain hiring practices, the concept of ‘career cushioning’ has entered more into HR’s consciousness. Career cushioning refers to employees taking proactive measures to mitigate the damage of potential job loss and leave them better placed to bounce back into work in the event of sudden unemployment.

Career cushioning can involve actively monitoring job market trends, networking, and staying updated on industry developments to maintain a sense of job security, or can even go as far as actively applying for new roles. According to research by recruitment firm Robert Walters, more than a third (37%) of workers are taking contingency steps in this vain.

When quizzed further about what preparation they’d done, two-thirds (66%) said they’d been monitoring the job market and 43% had updated their CVs. Meanwhile, a third (33%) revealed they were actively applying for jobs.

In this blog, we explore the concept of career cushioning, the reasons why it has become essential in today’s job market, and practical strategies for employees to navigate job security in these uncertain times.

Reasons for the emergence of Career Cushioning

The current economic climate is characterised by rising inflation and interest rates, along with the lasting impact of the pandemic on hiring practices. These factors have created an atmosphere of uncertainty, leading employees to seek ways to protect their careers.

Economic indicators suggest a potential recession looming on the horizon. The financial crash of 2007 and the ensuing job losses aren’t too distant in the memory and employees are recognising the need to prepare for potential job instability, embracing career cushioning is a pre-emptive strategy. Given that the world of work is vastly different now than it was just a few years ago prior to the pandemic, any sense of job security is likely to be far more fragile.

What does Career Cushioning look like in practice?

Continuous Learning and Skill Development:

To enhance job security, employees will see benefit in continuous learning and skill development. This includes staying updated on industry trends, acquiring new certifications, attending workshops, and engaging in online courses that align with their professional goals. This proactive approach ensures they remain relevant and valuable in a changing job market.

To learn about how to utilize HR to maximise your learning and development, listen to our free webinar.

Networking and Building Connections:

Actively networking within the industry expands employees’ repertoire of professional contacts. Attending conferences, seminars, and industry events provides great opportunities to meet like-minded professionals and potential employers. Building this strong network increases the likelihood of finding alternative job opportunities should the need arise.

Maintaining an Updated CV and Online Presence:

Employees will be regularly updating their CV to reflect their most recent accomplishments, experiences and skills gained. Additionally, they could be more active and looking to maintain an updated online presence on professional platforms such as LinkedIn. These platforms provide a unique way for potential employers to discover their skills and experiences.

Side Projects and Freelancing:

Engaging in side projects or freelancing can provide an additional income stream and broaden one’s professional network. These opportunities can serve as a safety net during uncertain times and may even lead to new career possibilities.

Staying Informed and Flexible:

Regularly monitoring industry news, economic trends, and company developments helps to stay informed about potential job market shifts to stay up to speed. A flexible mindset and an openness to exploring new roles, industries or locations increases the chances of finding alternative employment options in the event of instability.

By continuously updating skills, networking, and staying informed about industry trends, employees can create a safety net of alternative opportunities during times when the future can appear highly uncertain. Taking these steps provides a sense of security and increases the chances of a softer landing should job loss occur. Adopting this approach can empower individuals to proactively manage their careers and adapt to unforeseen circumstances.

What can employers do?

Speaking to People Management, Ian Moore, managing director of HR consultancy Lodge Court, said said that in spite of these “troubling” figures, there are ways that employers can mitigate this risk. “Employers need to show their staff that they value their work and commitment and must listen to their concerns, questions and feedback,” said Moore.

He added that, to get to this stage, employers must first identify warning signs that certain colleagues may be “growing tired of their role”, including “being vague about future plans, reducing their performance and showing decreased motivation.”

Moore said organisations could help combat this by “checking people can cope with their workload, putting career progression plans in place, and carrying out regular satisfaction and culture surveys”.
“These steps will ensure your employees feel valued and appreciated and have a clear, long-term role in the company,” he continued.

If you’d like to find out how you can boost employee engagement in your organisation with the power of all-in-one HR software, book your free demo of Natural HR today.

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How can HR recruit and retain the over 50s? https://www.naturalhr.com/2023/08/28/how-can-hr-recruit-and-retain-the-over-50s/ Mon, 28 Aug 2023 07:22:38 +0000 https://www.naturalhr.com/?p=22188 In the midst of a war for talent there is a growing recognition of the value and experience that older workers bring to organisations. As the workforce demographic evolves, it is essential for HR professionals to adapt their recruitment and retention strategies to ensure the inclusion and engagement of the over 50s. Gen Z employees are set to make up a third of the workforce by the end of the decade, so many organisations will naturally have placed a big focus on the demands that this demographic has of its employers. However, some industries are suffering with older workers taking...

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In the midst of a war for talent there is a growing recognition of the value and experience that older workers bring to organisations. As the workforce demographic evolves, it is essential for HR professionals to adapt their recruitment and retention strategies to ensure the inclusion and engagement of the over 50s.

Gen Z employees are set to make up a third of the workforce by the end of the decade, so many organisations will naturally have placed a big focus on the demands that this demographic has of its employers. However, some industries are suffering with older workers taking early retirement which serves to exacerbate talent shortages. Not only that, the younger workforce will lose out on the invaluable skills and knowledge transfer they would benefit from by working alongside their more experienced colleagues. Losing this demographic also hinders company culture, given the reduction in the different perspectives and experiences on offer.

In this blog, we explore how HR can encourage those in this age bracket back into employment, avoid age discrimination, and prevent biases in recruitment.

Encouraging the Over 50s back into Employment

Flexible Working Options:

Offering flexible work arrangements, such as reduced hours, part-time schedules, or job-sharing opportunities, can attract experienced professionals who seek a better work-life balance.

Skills Training and Development:

Providing opportunities for upskilling and reskilling can empower older workers to adapt to evolving roles and technologies, increasing their confidence and job prospects.

Mentorship Programmes:

Establishing mentorship programmes that pair older employees with younger colleagues fosters knowledge transfer and creates a supportive culture that values the contributions of older workers.

To ensure a fair and inclusive working environment that older professionals will want to join and stay in, organisations must actively prevent age discrimination both in the workplace itself and in the hiring process.

Avoiding Age Discrimination at Work

Raising Awareness:

Conducting regular training sessions for employees and managers on age discrimination, its impact, and legal obligations can promote a culture of awareness and understanding.

Reviewing Policies and Procedures:

HR should review and update policies to eliminate age-related biases and ensure equal opportunities for all employees throughout their career progression.

Encouraging Reporting:

Establishing clear channels for reporting age-related discrimination and providing appropriate support mechanisms for employees who experience discrimination helps in addressing issues promptly and effectively.

Preventing Age Discrimination in Recruitment

Remove Age-Related Criteria:

Avoid specifying age-related requirements in job advertisements, as this can discourage older candidates from applying. Focus on skills, qualifications, and experiences relevant to the role.

Diverse Interview Panels:

Create interview panels that consist of individuals from different age groups to minimise unconscious biases and ensure a fair evaluation process.

Age-Blind CV Screening:

Implement anonymised recruitment processes where age-related information is removed from CVs during the initial screening stage. This helps evaluate candidates solely on their skills and experience.

As the workforce continues to age, it is imperative for HR professionals to adapt their practices to recruit and retain the over 50s effectively. By implementing inclusive strategies, raising awareness about age discrimination, and eliminating biases in recruitment, organisations can harness the wealth of experience and skills that older workers bring to the table. Creating a diverse and inclusive workforce not only benefits the individual employee but also contributes to the overall success and growth of the organisation. By valuing and leveraging the talent of the over 50s, HR can drive positive change, foster a culture of age diversity in the workplace and mitigate the risk of talent shortages.

If you’d like to find out how your recruitment and retention processes could benefit from the power of all-in-one HR software, book a demo with our friendly expert team today.

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Part-time holiday pay entitlement calculator https://www.naturalhr.com/2023/08/04/part-time-holiday-entitlement-calculator/ Fri, 04 Aug 2023 09:12:04 +0000 https://www.naturalhr.com/?p=20517 The post Part-time holiday pay entitlement calculator appeared first on Natural HR.

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Part-time workers holiday entitlement calculator

How do you calculate employee entitlement if an employee joined mid-year or works part-time?

Calculating the holiday entitlement of part-time employees can be a challenge, but our holiday calculator makes it easy. Our tool uses pro-rata calculations based on the annual holiday allowance to provide accurate and reliable results. With our calculator, you can ensure that your part-time employees receive their fair share of holiday entitlement.

Calculate pro-rata holiday entitlement for your part-time staff in England, Wales, Scotland or Northern Ireland, using our holiday allowance calculator below.

How to calculate holiday entitlement for part-time workers

Almost all full-time workers in the UK are entitled to 28 days’ paid leave. This is known as statutory leave and can include bank holidays also. But what about part-time employees?

Holiday entitlement calculations for part-time employees are a little more complicated, however, that’s where we come in!  We’ve created this guide to help calculate annual leave for your full and part-time employees, starters, leavers and shift workers.

Below we will explore the UK holiday entitlement system and provide a few handy holiday accrual calculator methods that will help you work out employee holiday entitlement.

A part-time employee is pro-rated to a full-time employee’s entitlement and is based around their working week. To calculate their holiday entitlement, use the following formula:

Weeks holiday entitlement x number of working days worked per week = Holiday entitlement in days

Examples of annual leave entitlement for part-time employees

Using statutory minimum entitlement of 5.6 weeks

Part-timer’s working weekStatutory annual entitlement
One day a week5.6 days (5.6 x 1 = 5.6)
One-and-a-half days8.4 days (5.6 x 1.5 = 8.4)
Two days11.2 days (5.6 x 2 = 11.2)
Two-and-a-half days (half a week)14 days (5.6 x 2.5 = 14)
Three days16.8 days (5.6 x 3 = 16.8)
Four days22.4 days (5.6 x 4 = 22.4)

If you plan to offer more vacation time than the legally required amount, make sure to provide a proportional amount to your part-time employees. Here’s an example: If full-time employees are given 33 days of annual leave, a person working four days a week should be allowed to take 26.4 days of vacation per year (calculated by 4 divided by 5 multiplied by 33, which equals 26.4).

As per legal regulations, rounding down an employee’s leave is not allowed. However, there is an option to round up their leave if desired, though it’s not mandatory. For instance, if an employee’s vacation days are 26.4, rounding it up to 26.5 is possible, but decreasing it to 26 is not permissible.

According to statutory provisions, employees receive a maximum of 28 days of annual leave.

Bank and public holidays

It is worth remembering that the term bank or public holiday is not in our Working Time Regulation (WTR) laws.  This is known as Statutory Leave.  WTR is made up of 4 weeks under section 13, and then section 13A is country-specific, in the UK this is 1.6 weeks.

When it comes to calculating statutory leave entitlement, a week is considered as 5 working days regardless of an employees weekly work schedule for a full time worker. To determine the number of days an employee is entitled to under section 13, you simply multiply 5 by 4, which gives you 20 days. Meanwhile, section 13A grants 8 days of leave. Some contracts may include the 28 days as a whole, while others may list the 8 days of Bank Holidays separately. Additionally, some contracts may not specify the number of Bank Holiday days, which could potentially allow for additional days off if the government declares an extra holiday for state reasons (e.g. coronation). However, if the contract clearly states the number of Bank Holiday days, there is no legal obligation to grant additional days off under UK statutory leave should the government announce additional days. In this case, the employee would need to use their current allowance to cover the extra holiday.

Sometimes, there can be problems when part-time employees who work less than five days a week are obligated to take off bank holidays because the business is closed.  The majority of Bank Holidays fall on a Monday, and if the employee does work a Monday they will have to use a higher percentage of their pro-rated holiday compared to someone with another day of the week as their non-working day.

If you have established mandatory holidays on specific dates in your system, you may need to modify an employee’s statutory day if they work on that day. Their entitlement would need to have this day returned to them for it to then be booked at a later date.  If the employee does have this non-working day off then their balance will be correct at being reduced by one day.

A straightforward and just approach to calculating entitlements is to treat all holidays as a collective sum, and for the employee to request time off for each specific date. This method also helps maintain compliance with regulations.

How can you calculate holiday entitlement for hourly paid or shift workers?

Employees that are paid hourly or have no set hours of work (i.e. employees with a zero-hour contract) also qualify for the equivalent of 5.6 weeks of paid holiday. In proportion to the number of hours they work.

There is no legislation of how to convert the 5.6 or more weeks entitlement into days or hours for these workers, so employers are obliged to work this out in the fairest way possible to them. We would highly recommend seeking professional advice on this matter if you have any questions.

Calculating annual leave as a number of hours per year

In cases where an individual’s work hours vary from day to day, their holiday allowance may be stated as a number of hours per annum.

If your full-time employees receive a total of 33 days per year (25 days of annual leave and 8 bank holidays), the entitlement of a part-time worker who works 20 hours per week would be calculated as follows: 20 hours per week multiplied by 6.6, which equals 132 hours of holiday per year.

Again, this calculation includes the bank holiday entitlement.

If an employee who works part-time for 5 hours on a Tuesday and 7 hours on a Wednesday decides to take those days off as vacation, they will lose 12 hours from their annual entitlement.

 

How do you work out holiday entitlement for leavers?

Assuming an employee’s holiday entitlement is 28 days per leave year, and an employee is leaving 90 days into the holiday year, you can calculate their entitlement using a similar formula to that of new starters.

To calculate holiday entitlement by the actual (i.e 365 or 366 days) days in a year, work out the number of days between the start of your holiday year and an employee’s leaving date. Then divide this number by 365 (or 366).

For example, if an employee’s leaving date is 31st March and your holiday year starts on 1st January, there are 90 days between these two dates. Simply divide this by 365 and multiply by 100 to arrive at the percentage of full holiday allowance entitlement for this employee.

90 / 365 = 0.25 x 100 = 25%

Assuming your annual holiday allowance is 28 days, this employee would have been entitled to 7 days. This is 25% of 28 days.

Bank holidays and any holidays already taken should be deducted from the 7 days they have accrued. If any holiday entitlement remains, this should be paid with their final pay. Equally, if the departing employee has taken more holiday than the days accrued, employers can reclaim these days as a deduction from their final salary.

You can also calculate holiday entitlement for leavers by the number of actual days worked (i.e. 260 days).

If an employee is leaving on 30th September, they have worked 191 days so far this year. This excludes weekends and 4 UK bank holidays.

Again, simply divide this by 365 (or 366) and multiply by 100 to arrive at the percentage of full holiday allowance this employee was entitled to.

191 / 365 = 0.52 x 100 = 52%

If your holiday allowance for a full year is 28 days, this employee would have been entitled to 52% of 28 days which is 14.5 days.

Do you need help calculating holiday entitlement?

We know just how headache-inducing calculating holiday entitlement can be. That’s why we’ve made it simple with our HR software. Automatically calculating holiday allowances for new starters and leavers, Natural HR makes these tedious calculations a thing of the past. Get a free demo to find out how you can ditch these calculations for good.

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Sign up for our monthly newsletter.

Frequently asked questions

What does the holiday accrual system mean?

The holiday accrual system does what it says on the tin. Every month that an employee works, they accrue 1/12th of their holiday entitlement. The Working Time Regulations 1998 allows employers to use an accrual system to work out how much holiday leave a worker has built up during their first year of employment.

For example, a worker who works 5 days a week has been in your employment for 6 months and your holiday entitlement is 28 days.

28 days / 12 x 6 = 14 days of annual leave entitlement for the 6 months they have worked for you.

In the second year of their employment, workers that have been subject to an accrual system will then be entitled to all of their holiday allowances on the first day of the new holiday year.

Booking time off and annual leave requests

If an employee wants to book time off, then they must give you at least twice the amount of notice of the time they want off e.g. two weeks’ notice for one week’s leave.

As a business, you should have an agreed process for your employees to follow when requesting annual leave. Whether that’s using a paper form or an online holiday management system, and this should be clearly outlined and communicated to your staff.

It is possible for an employer to refuse a request for annual leave, but, again, you must give as much notice as the amount of leave requested and it is best practice to provide the employee with a reason as to why their annual leave request was denied. Not doing so could result in your employee feeling unvalued and understandably disgruntled.

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Calculating casual (zero-hours) contracts holiday pay entitlement https://www.naturalhr.com/2023/08/04/zero-hour-contracts-holiday-pay-calculator/ Fri, 04 Aug 2023 09:00:54 +0000 https://www.naturalhr.com/?p=20569 The post Calculating casual (zero-hours) contracts holiday pay entitlement appeared first on Natural HR.

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Casual (zero-hour contract) employee holiday entitlement calculator

How do you calculate employee entitlement for casual (zero-hour) contract employees?

Calculating the holiday entitlement of zero-hour contract employees can be a challenge, but our holiday calculator makes it easy. Our tool uses calculations based on the annual holiday allowance to provide accurate and reliable results. With our calculator, you can ensure your zero-hour contract employees receive their fair share of holiday entitlement.

Easily calculate holiday entitlement for zero-hour contract workers with our holiday pay calculator below.

Calculating holiday entitlement for casual (zero-hours) employees can be a complex task. Our team of experts provide comprehensive guidance on all the factors to consider.

Moorepays HR & Employment Law Advice Line receives several queries each week regarding these matters. Common queries include:

  • Are casual workers entitled to holidays?
  • What’s the difference between a variable-hour employee and a casual worker?
  • What is the correct calculation for paid annual leave for a part-time worker?
  • Are bank holidays automatically included in a year’s leave entitlement?
  • When should the holiday year start for a new starter?

If you have any queries regarding casual (or zero-hour) workers, you’ve come to the right place.

What is a zero-hours worker?

A zero-hours worker used to be the term for an employee working differing hours per week. However, in 2020, the Government issued new a definition for zero-hours workers. Their new definition is that of a casual worker.

A casual or zero-hour worker means that:

  • There is no mutuality of obligation between the employer and casual worker
  • The person only works on an ad hoc basis, and is not permanently on the payroll
  • You as an employer do not need to give them work
  • Likewise, the worker can either accept or refuse any offered work

Typically, a zero-hour or casual worker is only employed for a brief duration by the employer. They may serve as a bartender for a restaurant during a busy season for three months, cover shifts at a takeaway while the delivery driver is absent, or provide interpretation services for a project for an unknown period. Each temporary job is viewed as a distinct employment opportunity.

While employers are not required to offer any guaranteed work hours, the employee is not obliged to accept any work offered to them. They can also work for other employers, making this casual contract mutually beneficial for both employers and employees.

Note: A self-employed individual does not fall under this category. While they can accept a zero-hours arrangement, they remain self-employed.

Reduce workplace stress and save valuable time with custom workflows and pay calculations.

Zero-hours or variable-hours?

Prior to 2020, what was once labelled as a zero-hour contract is now recognised as a variable-hours contract. The individuals working under variable hours typically hold permanent employment with varying weekly work schedules, establishing a mutual obligation between the employer and employee.

It is crucial to avoid confusing these two categories of employees since they receive different calculations for their holiday allowances and compensation. Please read this article to learn more about variable workers.

Are casual workers entitled to paid annual leave?

Individuals working on casual contracts possess identical legal safeguards as conventional ‘full-time’ or ‘part-time’ staff. A common inquiry we receive is whether casual workers are eligible for paid annual leave. The straightforward response is “yes”.

Just like full-time employees, casual workers also earn holiday entitlement. However, confusion arises when a casual worker works for a couple of weeks in January and then has no further work until April. Despite this situation, they still have the right to accrue full holiday entitlement based on their completed work during their period of employment.

Although the principle is straightforward, determining the entitlement can sometimes be challenging due to complex calculations.

What information do I need to calculate holiday entitlement for casual workers?

To calculate a casual or zero-hour worker’s holiday entitlement, you’ll need these three things:

  • Their employment start date
  • Their employment end date
  • Their annual holiday entitlement, if they were to work full time

To calculate the number of days a worker has worked, simply refer to their employment start and end dates. It’s important to note that this only reflects the length of their contract and not the actual number of days or weeks worked. If the worker has not worked a full holiday year based on your business’s dates, their employment start date should be used as the beginning of their leave year.

The amount of annual vacation time an employee receives is based on the number of days they would take off if they worked full-time, including any bank holidays. Any part-time hours should be adjusted to their equivalent in full-time hours.

Employers typically provide casual workers with the legal minimum of 28 days of paid leave (including bank holidays taken as annual leave), but they may offer more, in accordance with the benefits given to full-time employees. This information should be detailed in the worker’s contract.

To convert days into weeks, all you need to do is divide the number of days by 5.

How do you calculate a zero-hour worker’s holiday entitlement?

The whole calculation for calculating a zero-hour worker’s holiday entitlement – as described on the government website – is*:

Full-time annual leave entitlement in days / (No. of days in employment / number of days in a year) = weeks of holiday entitlement.

Kindly take note that the number of days utilized in the calculation of a year may either be 365 or 366, depending on whether or not it is a leap year.

As an employer, it is your responsibility to convert the leave entitlement into days or hours as required. However, there is no specific legislation on the method to be used for this conversion. Hence, HR experts should exercise their discretion and choose the fairest approach when making this calculation. Please keep in mind that pro-rating the holiday entitlement may be necessary if the worker has worked less than five days a week during their employment with you.

*Please seek specialist advice for further information if you’re unsure.

Why is it often more practical to calculate a casual contract worker’s annual leave by hours worked?

As per the law, every employee and worker is guaranteed a minimum of 5.6 weeks of paid annual leave, which includes bank holidays. This translates to 28 days for those who work from Monday to Friday. Nonetheless, an employer can opt to provide a higher entitlement through contractual agreements. For instance, they can offer an additional week of leave, making a total of 6.6 weeks (equivalent to 33 days) per year, along with paid bank holidays.

Casual contract workers are entitled to accrue annual leave from their first day of employment, similar to full-time employees. However, for practicality, it is often better to calculate their entitlement based on the number of hours worked, even though the entitlement technically accrues in the same manner.

How do I calculate the holiday payment for a casual worker?

Casual work is often ad hoc, making it unlikely for workers to take any holidays during their short-term assignments. Therefore, their holiday pay is typically paid out at the end of their assignment.

Next steps

You can read up on how to calculate holiday entitlement for part-time workers here.

We hope this explanation has provided clarity on this complex and often misinterpreted topic. We advise that Natural HR customers who would like specific advice on casual contracts should get in touch with sales, or your account manager to learn more about the MP HR Advice Line service. Alternatively, you can contact the Moorepay Advice Line directly on 0345 073 0240.

Disclaimer

Kindly be advised that this calculator is created based on the latest guidelines from gov.uk, as of June 2023, to assist employers. It is presented as a general illustration and should not be considered a replacement for legal counsel on any particular situation. Employers are recommended to obtain their own legal advice. Please note that Natural HR cannot be held accountable for its usage, and employers are solely responsible for any risks involved.

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An A – Z of HR Jargon https://www.naturalhr.com/2023/07/14/an-a-z-hr-jargon-preview/ Fri, 14 Jul 2023 09:51:47 +0000 https://www.naturalhr.com/?p=20613 The post An A – Z of HR Jargon appeared first on Natural HR.

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HR terms and phrases you need to know in 2023

An accessible and inclusive guide of all things HR straight from the experts.

In today’s ever-changing business landscape, the importance of Human Resources (HR) professionals cannot be overstated. After all, they are responsible for shaping organisational culture, attracting and retaining top talent, and driving employee engagement and productivity. But, it doesn’t stop there.

HR covers an endless number of people-related functions, from protecting employees’ data and managing compensation and benefits to prioritising inclusion & diversity and eliminating unconscious bias.

Therefore, in this A – Z guide, we will explore and highlight the multifaceted aspects of the HR industry and shed light on how HR technology has become an indispensable tool in achieving organisational objectives.

With each letter, we will delve into how HR technology has transformed traditional HR processes into streamlined, data-driven, and employee-centric practices.

Whether you’re an HR professional seeking to optimise your practices or a business leader looking to create a high-performing and engaged workforce, this guide will provide valuable insights to navigate the dynamic landscape of the HR industry in 2023.

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Enhance Your Absence Management with the Power of HR Software https://www.naturalhr.com/2023/06/30/enhance-your-absence-management-with-hr-software/ Fri, 30 Jun 2023 10:46:25 +0000 https://www.naturalhr.com/?p=18500 At the heart of every HR professional’s approach to absence management is a desire to tackle employee absenteeism before it develops into a more serious issue. Every business will have its own absence policies and procedures, but in order for these to work to the best of their ability, these need to be effectively communicated to employees and managers alike, with HR and management proactively and appropriately applying them. Absenteeism could suggest a lack of engagement from employees, or they could feel overworked. It might be an issue within a certain department or line manager, or a chronic illness that...

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At the heart of every HR professional’s approach to absence management is a desire to tackle employee absenteeism before it develops into a more serious issue.

Every business will have its own absence policies and procedures, but in order for these to work to the best of their ability, these need to be effectively communicated to employees and managers alike, with HR and management proactively and appropriately applying them.

Absenteeism could suggest a lack of engagement from employees, or they could feel overworked. It might be an issue within a certain department or line manager, or a chronic illness that hasn’t yet been flagged. Whatever the cause, business leaders need to have the capability to deal with absences empathetically and efficiently.

The UK is dealing with rising inflation and crippling energy prices, meaning the pressure people are under in their everyday lives hasn’t necessarily eased in the wake of the pandemic. Employers are waking to the fact that mental health can have just as much of an impact on employees’ ability to carry out their work effectively and efficiently as physical health does. Mental health issues are naturally much more difficult to identify than physical ones, so it’s never been more important for HR to have the ability to spot trends and identify potential issues as early as possible.

absence management software

The financial impact of employee absences

Monitoring absence rates gives managers an overview of employee performance, engagement, and overall wellbeing. The cost of absences, however, is often overlooked. Research by the CIPD indicates the average cost per employee is £522 and with absence rates at their highest level in a decade, effective absence management is imperative going forward.

Direct costs of absences include paying the salary of the absent employee, combined with any overtime incurred by colleagues for covering their duties or working extra hours, and loss of business output. There are indirect costs to consider too, such as recruiting temporary staff, training and support time of other employees, the added pressure brought on the rest of the team due to the extra workload, as well as the time it takes for replacements to get up-to-speed and become sufficiently productive.

All of this adds up, so spotting a trend of higher-than-usual absenteeism and getting to the root cause before it becomes a wider-reaching, and ultimately more expensive issue is paramount.

The value of HR software for absence management

HR software, like Natural HR, not only makes it easier to record absences, but also allows for absence data to be measured and compared internally and externally, helping to understand and address their causes and identify underlying trends.

HR tech can ensure managers are following best practices, with the help of integrated tools – such as the Bradford Factor – to help leaders keep track of absence rates throughout the team, as well as compare their organisation’s absence levels against external benchmarks. Reports can then highlight when employees have reached a trigger threshold, indicating when further conversations need to be held to identify whether additional support is required and how absence levels can be improved. Predetermined workflows can guide appropriate personnel through the next steps to ensure they are completing the right task at the right time.

HR software also supports the ability to manage absences when it comes to strategic staffing and forward planning. This data helps managers account for when they are likely to have more absences so they can ensure they are adequately resourced with the right skill sets to avoid additional costs to the company and mitigate against potentially reduced business output.

If you’d like to learn more about the basics of HR Software, download our free guide.

If you’d like to find out more about how HR software can support your absence management, as well as discover the multitude of other ways it can streamline your HR processes, you can register for a free demo here.

Passionate about your employees performance

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5 key benefits of an integrated HR system https://www.naturalhr.com/2023/06/08/5-key-benefits-of-an-integrated-hr-system/ Thu, 08 Jun 2023 08:30:34 +0000 https://www.naturalhr.com/?p=3490 Typically, when you’re evaluating HR software, you have to choose between a ‘best-of-breed’ strategy with point solutions for different HR capabilities – recruitment, payroll, learning and development etc. – or an integrated system that caters for everything through one comprehensive package. The rationale for best-of-breed is that the specialised functionality and more advanced features of these solutions provide advantages that an integrated system can’t meet. An example of this is a specialised recruitment tool that provides the entire range of features you might ever need, such as multiposting, applicant tracking, candidate management and so on. Yet on the flip side,...

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Typically, when you’re evaluating HR software, you have to choose between a ‘best-of-breed’ strategy with point solutions for different HR capabilities – recruitment, payroll, learning and development etc. – or an integrated system that caters for everything through one comprehensive package.

The rationale for best-of-breed is that the specialised functionality and more advanced features of these solutions provide advantages that an integrated system can’t meet. An example of this is a specialised recruitment tool that provides the entire range of features you might ever need, such as multiposting, applicant tracking, candidate management and so on.

Yet on the flip side, with this approach, you are potentially going to need to develop bespoke integrations between these systems or operate them in isolation, leading to multiple data sets.

For most people, neither of these scenarios are attractive. So it really boils down to whether your needs are so complex that you must have a specialised system or whether you can compromise to enjoy the significant benefits of integration.

It’s also important to bear in mind that integrated HR systems have improved in all major functional areas over the last couple of years, so you might not be making as many compromises as it would first appear.

Working with a single system can make life in your HR department much easier, so before deciding on your strategy, you should carefully evaluate all the pros and cons. That means considering the impact of your decision on the whole department and wider business, not just one area – no matter how unique or complex.

To help, this post outlines five of the most significant benefits that come with choosing an integrated option:

1. Integrated HR software saves you time

Having different systems for different services can be confusing and difficult for your employees. In turn, this can lead to HR having to field an increased volume of questions from employees about issues with these various systems – which can waste valuable time for everyone and slow down productivity.

With an integrated system, you bring everything together – so employees only have to log in to one system to view key information (current training status, payroll data, leave dates etc.), saving everyone a lot of time and hassle.

Also, with a single system, there is a much greater scope for automation and workflow – minimising the number of manual interventions needed to complete a process. This functionality is built into the HR system, so there is no need to create complex and costly interfaces between two or more disparate systems. Additionally, a virtual mailbox service can further streamline your company’s operations. With this type of service, you can receive and manage all your mail online, which can save time and reduce the need for physical mail handling. This can be integrated into your HR system, eliminating the need for manual interventions and creating a more efficient workflow.

2. HR system integration provides you with a single set of data

With various systems in place, you are likely to replicate data leading to manual workarounds and unnecessary duplication. An integrated system, by contrast, provides you with a single set of up-to-date data, which enables information to flow through your system more freely – any changes or updates need to be made once and are then consistent for all areas. Again, there is no need for additional integrations to sync data as changes occur across different systems.

To give you a simple example, if an employee’s contract is terminated, the necessary details are entered once, and every relevant area this applies to is automatically updated, rather than the task needing to be replicated across multiple systems.

3. Integrated HR software increases accuracy

The fact that data only has to be entered into your system once has the added benefit of improving your data accuracy. With multiple systems, more people are required to input more data, which multiplies the possibility of human error – and all the problems that come with it.

An integrated system, while not completely removing the possibility of human error completely, does vastly reduce it through a simplified and much smaller data input requirement – giving you much greater confidence in the accuracy of your employee records.

4. Integrated HR solutions dramatically improve reporting & analytics

One of the most common challenges faced by HR teams is the amount of effort required to pull together seemingly simple reports. The root cause is the quality of the data. With disparate systems, the collection, cleansing and aggregation of data is typically a manual process. It can take days to pull together reports using unwieldy spreadsheets and complicated formulas.

Most integrated systems have reporting and analytics tools built in, along with a single set of accurate data to work with. Reports can, therefore, be generated with just a few clicks, so HR teams can spend more time analysing data, identifying trends and taking action – rather than wasting countless hours messing around with spreadsheets.

hr analytics software

5. An HR system makes compliance much easier

Regulatory demands on HR professionals are increasing, with the introduction of the General Data Protection Regulation (GDPR), the most obvious example. There are many new things to be done, which just add to an already busy plate.

Integrated HR systems help HR teams fulfil many of these new obligations by minimising both the amount of effort required and the risk of error. They will automate aspects of compliance processes and provide an audit trail of compliance activities. For example, this could include features to ensure consent is properly tracked, to manage subject access requests quickly and deletion functionality to comply with the right to erasure.

The best-of-breed software will almost certainly provide many of these features too, but imagine having to duplicate this process across multiple systems along with the number of additional checks and balances required to ensure compliance? An integrated system saves a lot of time and hassle and protects you from potentially crippling fines if the regulators were to audit your systems.

Summary of benefits of HR software

In most cases, integrated systems offer the best overall solution for HR teams. While you may need to compromise a little in terms of the rich functionality provided by a best-of-breed solution, overall, one system just makes life a lot easier.

Of course, there may be exceptions where a certain HR function is very specialised and needs a very complex piece of software. Generally, though, small to medium-sized enterprises are not complicated enough to warrant such a high level of specialised functionality.

The fact is that many organisations have placed undue importance on the advanced features provided by best-of-breed solutions, even though the complexity of their operations simply doesn’t justify it. Often, this complexity is exactly what makes it a less functional and useful tool. This has led to a significant investment in point solutions that haven’t been repaid by any consequent competitive advantage. In fact, it has often increased HR’s workload, which has meant the system is rarely even used.

Overall, integration helps accuracy, enables greater automation, eliminates repetition and ensures all systems are managed consistently. This improves productivity and enables HR teams to provide more value through more accurate and consistent reporting.

If you want to know more about how our integrated HR software can benefit your business, get in touch with us today or call us at +44 (0)121 663 1500.

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Are higher salaries the saving grace for recruitment & retention issues? https://www.naturalhr.com/2023/05/20/higher-salaries-saving-grace-recruitment-retention/ Sat, 20 May 2023 16:23:37 +0000 https://www.naturalhr.com/?p=18573 Could higher paying jobs tackle recruitment & retention issues? Another year, another set of challenges in the workplace. Talent shortages, the cost of living crisis and increased demands from staff have given way to a highly volatile job market, which is now run by employees. This is being felt by HR professionals up and down the country as they try to recruit and retain talent as best they can in the current economic climate. But with more jobs than candidates and inflation running riot, the question is, is cash still king? Our HR in 2023 and beyond report revealed that...

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Could higher paying jobs tackle recruitment & retention issues?

Another year, another set of challenges in the workplace. Talent shortages, the cost of living crisis and increased demands from staff have given way to a highly volatile job market, which is now run by employees. This is being felt by HR professionals up and down the country as they try to recruit and retain talent as best they can in the current economic climate.

But with more jobs than candidates and inflation running riot, the question is, is cash still king? Our HR in 2023 and beyond report revealed that whilst some industries have gifted employees with blanket pay rises in line with rising costs, money is simply not enough to keep employees happy.

Money used to talk

Although 38% of respondents said that they have given their staff a blanket pay rise in reaction to the cost of living crisis, staff turnover is still the biggest problem facing HR teams this year.

In the traditional 9-5 era, there weren’t many negotiable factors in the way people worked. They came to the office within the standard hours and were compensated appropriately, depending on role, seniority and responsibilities. Therefore, “money talked” and the salary was key to recruiting and retaining employees.

Now, there are different variables and flexibility, meaning money isn’t everything – especially not for modern-day workers who experienced the pandemic-induced shift in the workplace.

Is monetary employee compensation/higher paying jobs still the top factor in recruitment?

Of course, salary is still a significant consideration for many looking for new opportunities, but it’s clear there have been big changes in employee expectations and needs when it comes to work.

The pandemic was a landmark turning point where a healthier work/life balance and better job satisfaction were held as high as monthly income. PwC’s workforce survey evidenced this, with over two-thirds of people now looking for more fulfilling roles, over those offering higher salaries.

Our report shows that HR professionals are importantly aware of this and therefore consider salary, flexible hours and hybrid working as the top factors for attracting talent going forward.

What else can organisations do to attract and retain talent?

Although there has recently been some pushback on flexible working arrangements from larger businesses publicised in the media who want employees back in the office, it’s clear that this isn’t going anywhere. In fact, 75% of HR professionals said they will adopt a hybrid approach.

And rightly so, as Gartner found that over half (52%) of employees said that flexible working policies would affect their decision to stay at their organisation.

At the same time, an increased focus on mental health and employee wellbeing at work also means that it’s time to get creative with benefit offerings, and internal initiatives that boost engagement and overall job satisfaction.

Ultimately, people want to enjoy their work. Gone are the days of turning up with tunnel vision on the pay packet at the end of the month. They want more, and those who don’t get it will happily find it elsewhere.

Discover more in HR in 2023 and beyond

Our latest annual report features key data on people challenges, priorities and initiatives that HR professionals from across the UK are focusing on this year. As the candidate-driven market continues to grow, it’s time to let your company’s culture shine with a people-first approach.

Current and future employees know exactly what they want from work, so it’s important to have a finger on the pulse of your workforce and make positive changes to improve employee engagement and satisfaction before it’s too late.

Download our free guide today.

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How can we drive more efficient HR in 2023? https://www.naturalhr.com/2023/05/20/drive-more-efficient-hr-2023/ Sat, 20 May 2023 10:50:12 +0000 https://www.naturalhr.com/?p=19446 HR is a notoriously admin and document-heavy sector. From payroll details and contact information to performance reviews and engagement surveys, the abundance of personal data is a lot for any HR team to manage – particularly when it’s mostly paper-based. But now, in the digital age, technology drives departments. File cabinets have been transformed into cloud storage and physical manpower has been exchanged for automation. However whilst other departments have transitioned, HR has struggled to overhaul its system and processes due to its intrinsic link to the paper world. Even now that the HR technology market is booming and more...

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HR is a notoriously admin and document-heavy sector. From payroll details and contact information to performance reviews and engagement surveys, the abundance of personal data is a lot for any HR team to manage – particularly when it’s mostly paper-based.

But now, in the digital age, technology drives departments. File cabinets have been transformed into cloud storage and physical manpower has been exchanged for automation. However whilst other departments have transitioned, HR has struggled to overhaul its system and processes due to its intrinsic link to the paper world.

Even now that the HR technology market is booming and more organisations are realising its benefits, teams are still facing massive inefficiencies. Our annual report, HR in 2023 and beyond, revealed that this is still a widespread problem in 2023 with 35% citing it as a main challenge this year. We explore why this is and how this can be mitigated with an HR solution.

The new normal

Uploading information to HR systems and creating workflows whilst adhering to strict data protection legislation is no small feat. But in 2020, the pandemic and lockdown procedures introduced a new set of administrative and people-focused challenges.

The overnight shift to remote working was a logistical nightmare for businesses that were not familiar with employees working from home. They were forced to implement technology quickly to manage staff access and communication needs. This resulted in much tech but little reward or value for many.

But whilst all of this was happening on the surface, HR was also dealing with confused and burnt-out employees who were looking to their people team for clarity and help – all in the midst of managing widespread redundancies.

HR teams had to work out how to store and manage employee data remotely, how to onboard and offboard staff, roll out learning and development programmes and boost employee engagement from home. This took a lot of work for HR professionals who were used to paper documents and physical contact time in the office.

While some found quick answers in using multiple tools and applications, the disparate and siloed nature of this way of working wasn’t sustainable in the long run. Especially since we now know that hybrid working is here to stay.

One single source of truth

Therefore, many have turned to HR technology. Organisations can utilise people–focused solutions to create a centralised system which securely holds employee data and can help remote teams manage HR-related communications across the entire business.

We found that 79% of HR professionals are using some sort of HR system in 2023. But although many have experienced benefits – including reduced admin, going paperless and better reporting functionality — it’s clear that HR continues to struggle with administrative and procedural issues due to hybrid work.

They are still trying to find ways to manage different working schedules and hours and ensure employees stay engaged and empowered to do their jobs proficiently from wherever they are.
But with the right technology in place, companies can mitigate these problems and ensure they can that the HR department is as efficient and engaging as possible.

The management, accessibility and security of employee information are of the utmost importance for companies in 2023. And HR tech – when set up and used correctly – can seriously improve day-to-day operations for HR teams, whilst enabling them to be agile in the future.

Read more in Natural HR’s free guide

Our new research report reveals the challenges, priorities and initiatives that businesses need to address and focus on in 2023 to create a better working environment for their staff.

With hybrid working going strong and HR departments still finding their feet after the seismic shift in operations, we discover how HR technology can empower teams to streamline workflows so they can focus on value-add strategies.

You can discover more about the future of HR by downloading the report today.

Download our free guide now

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