HR myths busted: “Cost of living support – all staff, must be treated the same”

HR myths busted: “Cost of living support – all staff, must be treated the same”

What is the difference between treating people equally and treating people fairly?

HR myths busted: “Cost of living support – all staff, must be treated the same”

What is the difference between treating people equally and treating people fairly?

Doing the same for everyone means you are treating people equally. But your people are not all in the same position. Treating people fairly means that you do the right thing for that person, so you are meeting their individual needs. Giving everyone the same may feel fair, but it isn’t.

The cost of living crisis will not impact all your people equally. Higher earners will be better insulated to survive. How do you, as a CEO, implement support that helps the people that need it, without ostracising the people that don’t? 

What is the difference between treating people equally and treating people fairly?

Doing the same for everyone means you are treating people equally. But your people are not all in the same position. Treating people fairly means that you do the right thing for that person, so you are meeting their individual needs. Giving everyone the same may feel fair, but it isn’t.

Equal treatment (i.e. the same) doesn't always produce an equitable outcome

One off payments may benefit higher paid staff more than lower paid colleagues

  • There’s been a lot of publicity about one-off ‘cost of living payments’. Barclays, Co-operative Bank, Sky, Nationwide, Virgin Money, NatWest and HSBC are amongst many big brands that have decided to pursue this path.
  • We urge you to think carefully before paying staff bonuses or making ‘cost of living’ payments.
  • When you calculate a % of salary, or a cash lump sum remember that some formulas benefit higher-paid staff more than lower-paid staff. This defeats the object of financial support. Same goes for staff who earn commission and are on a relatively low-base pay, will you look at total earnings?

One off payments may increase your gender pay gap

If you’ve got a gender pay gap (and you probably have) and/or an ethnicity pay gap (which you also probably have and may not even measure) take care not to increase inequality through your actions.

Don’t assume low use of an existing benefit means it’s not valuable

You may inadvertently create a wider gender and ethnicity pay gap

If you’ve got a gender pay gap (and you probably have) and/or an ethnicity pay gap (which you also probably have and may not even measure) take care not to increase inequality through your actions

Not every benefit needs to have majority use to be valuable. Removing a low-use benefit might have a significant impact on some team members.

For example, a health cash plan, which gives cash back for dental, optical, and other routine health appointments, might be disproportionately beneficial to working families or those with long term health needs.

Be sure to check the impact of your decisions with a formal Equality Impact Assessment and by listening to your team before you act.

Don't know where to start when it comes to supporting your team through the Cost of Living Crisis?

We are passionate about finding ways to help bosses do the best they can to look after their people.

Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same.

If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.

HR myths busted: “You only see HR when someone’s about to be hired or fired”

HR myths busted: “You only see HR when someone’s about to be hired or fired”

If you only think of HR as the department of hiring and firing, you’re missing out on a whole load of business-wide benefits

“Want to experience real power? Walk along the shop floor with a file and clipboard. It’s the signal that a termination is about to happen.”

So then, what else does HR do?

  • Much of what HR teams do is invisible to the majority of people within a company. We take for granted that when we apply to join an organisation, there will be a careers portal and online application process. Similarly, when we are offered a job, we expect to be sent a contract and a set of instructions for our first day. It’s usually someone in HR who makes those things happen.
  • We also take for granted that our workplace will be safe and not contribute negatively to our health, wellbeing and performance. Again, someone in HR had a hand in how the workplace was designed and how wellbeing is supported at work.
  • Many employees only see HR when there’s bad news to be delivered, or when a challenging conversation needs to take place. The truth is that HR teams work constantly to help everyone be at their best.

When you’re being considered for a role

  • HR is the custodian of fairness, equality and inclusion in any business. This means that they’ll put systems and processes in place to make sure that you’re not discriminated against. You may not see them at any point during the selection process, but if you’re treated with dignity and respect, we’ve done our job right.

When you’re on a course or training session at work

  • HR includes Learning & Development, a team of professionals whose sole purpose is to improve your knowledge, skills, qualifications and understanding, so that you can take your career where you want it to go.

When you’ve been given a bonus, incentive or reward

  • HR might not be there when you get the news, but reward and recognition are a key part of any positive organisational culture. It’s HR’s job to make that happen.

When you’re being promoted or moved into a new role

  • HR makes sure that this process is fair and equitable. They’ll update the legal documents and contracts so that you’ve got what you need, they’ll instruct payroll to increase your pay (if that’s part of the job change), and they’ll support your manager to provide any additional training or resources you need in your new role.
 

How can managers and leaders get more from their HR teams?

  • Firstly, don’t see your HR team as a blocker to getting things done at work. They’re not there to tell you what you can’t do; rather, HR teams are chomping at the bit to help you do what you want to do.
  • Proactive HR teams want to partner with you, understand your business and enable your people to give their best. Of course, there are times when we need to tell managers why something can’t be done for either a legal or regulatory reason, but this isn’t a negative thing: it’s preventing you from wasting your time and effort on activities that don’t stack up.
  • Secondly, keep a regular and open dialogue with your HR Team – it’s a two-way street. HR practitioners have access to lots of tools, information and ideas that can really help you and your business to fly.
  • Work with your HR Team on your strategic plan. We can help you with better (and often streamlined) ways to set up your teams, set performance expectations, reward and recognise good performance, deal with challenging issues and help build a positive culture at work.

In short, by treating your HR team as a business partner and not a barrier, you’ll get a ton of value back in return.

Don’t know where to start when it comes to supporting your team through the Cost of Living Crisis?

We are passionate about finding ways to help bosses do the best they can to look after their people.

Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same.

If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.