Your monthly at-a-glance answers to frequently asked questions. This month we look at smoking in the workplace, bullying and employee retention.
Q: What will the forthcoming smoking ban mean for my business?
A: Regulations have yet to be finalised, but from mid-2007 businesses in England will have to ensure that all indoor areas are smoke-free. Certain workplaces will be exempt, such as those that are also someone’s home (including residential care homes, for example, or offshore oil platforms).
However, if a workplace is affected by the regulations, then it covers the entire premises, so setting aside a designated smoking area will no longer be an option. Many small-business premises are already smoke-free inside, but when the new regulations come into force the issue of setting rules for employees “popping outside” for a cigarette break is likely to increase in profile.
Q: How can I stamp out bullying in my workplace?
A: Your first step should be to ensure all employees are aware that bullying won’t be tolerated and will be considered a significant disciplinary matter. You need to take all reports of bullying seriously, and deal with them under your discipline and grievance procedures. But you also need to be proactive in looking for signs of bullying. A recent survey highlighted that bullying takes many shapes and forms. Almost half of respondents highlighted blocked promotions and threats to job security as instances of bullying.
Q: What are the keys to encouraging employee loyalty?
A: A small business’s employees are almost always its key resource, so you should work hard to hang on to good people. It’s not easy. Recent research shows that while eight out of ten workers expect to be in the same job in 12 months’ time, half will have signed up with a recruitment agency over the past year to keep an eye out for better jobs. To avoid losing your best workers, pay attention to factors employees reported as being of highest value to them, such as regular pay rises, a friendly working environment and challenging work.
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Most small companies have benefited for many years from a scheme that allows them to produce less detailed accounts and directors’ reports each year, and that removes the requirement for them to have their accounts audited.
Changes to the rules, which took effect on November 8, have widened the pool of companies eligible for this less-stringent system. Previously, a wide range of businesses in the financial services sector were excluded, but this exclusion has now been lifted for certain categories of business.
The specific categories of financial services companies that can now take advantage of the small-business requirements include: investment management companies; personal investment companies; securities and futures companies; and mortgage lenders and intermediaries.
For a full list of business categories covered by the new regulations, and for more information about reporting and accounting rules that apply to small companies, visit the Small Business Accounting and Audit page of the DTI website.
A new survey has revealed a startling level of complacency among small businesses about the need to draw up contingency plans to keep things running smoothly in the event of a fire, flood or explosion. While most owner-managers acknowledge that such a disaster would risk the survival of their business, 50 per cent have no formal procedures in place setting out what needs to be done if a disaster occurs.
More worryingly, 48 per cent of these unprepared businesses said that putting this kind of business-continuity plan in place had never even crossed their mind, on the basis that the chance of a disaster affecting them was too remote.
Disaster isn’t nearly as remote a risk as it might seem. Almost one in five businesses is affected by major disruption every year, so business continuity should be an integral part of the management of your business.
It doesn’t need to be a big commitment. There are small steps you can take that would make a big difference in the event of a disaster, such as backing up your computers to an offsite location, or setting up a mutual agreement with another business to share facilities if either of you is badly disrupted.
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The Department of Trade and Industry (DTI) has produced a booklet for employers and employees which summarises employment legislation in plain, understandable English. It includes sections on contracts, pay and parental laws, as well as other employment rights.
Click here to view the DTI Employers and Employees Guide