£63.84bn a year lost through poor people management
The challenges of a large workforce
Are you struggling to handle your large workforce? A recent report, compiled by Investors in People, shows that UK businesses miss out on £84bn a year through poor people management.
The report shows that the Health and Social Care industry has the most to gain from changing how it manages its staff. There are many problems associated with dealing with large workforces such as those in the Health and Social Care sectors, as well as the Hospitality and Construction industry.
These challenges are:
1.Keeping up with Legislation Agency Workers Rights, minimum wage changes and Pension auto enrolment are just a few regulatory requirements, there is a wide range of constantly changing legislation that employers must keep abreast of. Are you fully compliant?
2.Payroll If you thought keeping up with the legislation was hard, how about implementing those changes on your payroll system. Under AWR, after your temps have worked for you for 12 weeks, they are then entitled to the same pay as your permanent staff have you accounted for this? How does overtime affect their holiday entitlement and pay?
3.Finding and keeping staff Many industries need to cope with seasonal fluctuations in demand and finding numerous staff in a short period of time can be tough. In Industrys with fluctuating demand, it can be very difficult to retain temporary staff in low season.
4.Time and money could be better spent elsewhere All the time taken to deal with managing a large workforce could be used to continue to grow your business ensuring your businesses integrity isnt compromised.
The study highlights that the businesses who plan for the future giving themselves flexibility in their practices over time, show the most improvement. Todays workforce is a changing one, with a greater mix between permanent, temporary and contract staff. To ensure your business thrives you need to adjust your practices to capture the opportunities these new labour market trends offer.
Paul Devoy, Head of Investors in People, explains:
The effect of an efficiency gap is hitting the UK economy hard and better people management within firms should be recognised as a key mechanism by which the UK economy can address low performance.
ASA concentrate on helping companies with their people management, from assisting with sourcing staff to handling your payroll. If you would like advice on how to manage you temporary staff more efficiently or if you want to look at outsourcing some of your processes to allow you to focus on your business, please do not hesitate to get in touch with ASA.
Sources: A study by Investors in People and economic research consultancy TBR
