Why should HR leaders care about redundancy pay?

By following redundancy pay regulations and incorporating strategic redundancy practices, HR leaders can maintain a well-functioning organization. Moreover, management that demonstrates ethical employee treatment and compliance with governing laws can positively impact employee morale, engagement, retention, and company brand.

How can proper implementation of redundancy pay improve company culture?

Redundancy can be an emotionally, financially, and mentally challenging process for both employers and employees. However, a strategically planned redundancy pay program that aligns with a comprehensive workforce strategy can ultimately support the development of a dedicated workforce and robust company culture.

HR Glossary: Every term you need to know | Page 10 of 13

What is redundancy pay?

Redundancy pay is the financial compensation that employers offer employees when removing their positions from the organizational structure. Ideally, organizations will always need all their employees-- recruiting, hiring, and training new people is a significant investment, after all. However, external circumstances, such as company restructuring, job obsoletion, merging or transferring company ownership, relocation, or a downturn in business, can cause role redundancy. While the United States Department of labor leaves redundancy pay up to the employee-employer agreement, UK law includes basic redundancy regulations for employers to adhere to, in addition…

What is maternity leave?

Maternity leave is time-off that an employer provides an employee upon giving birth to a child. Maternity leave can start before or after birth, enabling the mother to take time off for prenatal and post-natal care. Mothers need time to recuperate, adjust to the monumental life change, and bond with their new child. Why should HR leaders care about maternity leave? A supportive maternity leave policy can contribute to retention, engagement, productivity, and loyalty, reflecting company compassion and consideration for employee wellbeing. If companies offered a more accommodating maternity leave,…

What is a change management model?

A change management model is a system that strategically assists companies in navigating through periods of transformation and transition. Change management models help organizations successfully undergo transitions that lead to positive outcomes. Kurt Lewin's model, for example, involves a three-step process of change that: Encourages employees to "unfreeze" and release their connection to the status quo Supports acceptance of new practices Assists employees in remolding, "refreezing," and reinforcing the new ways Why should HR leaders care about change management models? Employees must demonstrate resilience and a readiness to adapt to…

What is cost per hire?

Cost per hire (CPH) is a recruitment metric that companies use to determine the expense of each stage of the hiring process. The American National standards institute developed this formula to calculate cost per hire: (External recruiting cost + internal recruiting cost)/ (Total number of hires during the period) Organizations can benefit from CPH when using it with other essential metrics such as turnover rate, first-year attrition, retention rate, quality of hire, and time to hire. Why should HR leaders care about cost per hire? Planning, creating job descriptions, promoting…

What is a new hire probationary period?

A new hire probationary period is the first stage of employment, during which an employee receives on-the-job training and professional guidance. Usually spanning three to six months and starting on the employee’s first day, the probationary period is an opportunity for the employee and employer to make sure they are a good fit. Why should HR leaders care about the new hire probationary period? The new hire probationary period increases the probability of hiring and keeping high-quality, appropriate candidates. This trial period can be likened to dating, allowing the employer…

What is statutory sick pay?

Statutory sick pay (SSP) is a U.K.-government mandated compensation that employers pay to employees who are too ill to work. SSP regulations require employers to pay a minimum of £95.85 per week for a maximum of 28 weeks. According to U.K. labor laws, to qualify for SSP, an employee must: Have an employment contract Earn on average £120 per week Show signs of illness for at least four consecutive non-working days Be in coronavirus self-isolation or shielding due to high-risk health factors The U.K. instituted statutory sick pay in 1982…

What is mindfulness in the workplace?

Mindfulness in the workplace is an awareness of thoughts, emotions, and actions that enables an objective, collected approach to accomplishing tasks. People tend to distractedly multi-task to cope with their numerous obligations. Mindfulness offers employees a way to prioritize tasks, concentrate on performing them well, and maintain calm through it all. Why should HR leaders care about mindfulness in the workplace? Mindfulness is a free tool that every employee can utilize, helping to: Reduce stressMinimize distractionBuild positive work relationships Boost happiness, wellbeing, and purposeIncrease productivity and innovation Mindfulness empowers employees to…

What is employee motivation?

Employee motivation is a staff member's enthusiasm and eagerness to contribute quality work to their company. Genuine employee motivation involves a balance of extrinsic and intrinsic motivation. Extrinsic motivation includes external rewards, such as a bonus, positive feedback, or a promotion. Intrinsic motivation refers to the employee's inherent desire to succeed or grow, regardless of external factors. A combination of extrinsic and intrinsic motivation can fuel consistent, high-quality work. Why should HR care about employee motivation? Employee motivation is a prerequisite for employee engagement, retention, productivity, and high-performance. Moreover, a…

What is an employee wellness program?

An employee wellness program is a benefits system designed to help personnel maintain physical, emotional, and mental health. A wellness program should aim to provide an array of creative options that enable employees to nurture their well-being inside or outside the office. Why should HR leaders care about employee wellness programs? Encouraging staff to address stress and anxiety, maintain a harmonious work-life balance, manage chronic illness, and practice self-care can boost work performance, productivity, engagement, morale, presenteeism, and retention. Moreover, facilitating an effective wellness program can potentially reduce health care…

What is Payroll software?

Payroll software is a computer program that automates the payment process for greater efficiency and reliability. The software removes the time-consuming work from HR personnel’s teeming to-do list, reduces error, and guarantees that employees receive correct compensation on-time. Most payroll software offers features such as: Calculating tax withholdings and payment deductions Keeping track of hours worked Printing paper checks Processing digital payments and deposits Providing employee self-services Payroll software enables businesses to comply with complicated government tax regulations, pay employees and independent contractors appropriately, provide efficient, customized payment methods, and…