Brexit Briefing

We live in strange times... The amount of news over the last 6 weeks is what you would normally find over a 6-month period, and at the centre of much of this news has been Brexit, the implications of which are still spreading uncertainty across the political, economic, business and social landscape.

Some 35 IHRF members got together to enjoy (I think that is the right word!) a Brexit Breakfast Briefing, with a spot of lunch thrown in at the end as well.

The event was not so much one to debate the merits of otherwise of holding a referendum over EU membership or indeed the outcome of that referendum, although it would be fair to say that some views did emerge as the morning progressed! 

The purpose of the session was actually to cover off:

1. The Brexit timeline.

2. The potential implications of Brexit on the employment law scene.

3. What we as HR professionals need to do to ensure continuity during uncertain times.

So, what were the key takeaways?

THERE IS STILL A LONG WAY, AND TIME, TO GO. SO KEEP CALM AND CARRY ON.

Leaving the EU is conditional upon the UK parliament repealing the European Communities Act 1972, and the UK government invoking Article 50, and from that point on it's a 2-year process. 

Mr. Juncker, despite his fervent desire to do so, is not in a position to invoke Article 50 on behalf of the EU. Only the member state (the UK, in this instance) can trigger the process.

Along the way there are a shed-load of unknowns to work through, including (but not limited to):

- The shape and effectiveness of the new government.

- The prospect of a snap general election.

- Whether MPs (most of who are Remainers) will repeal the European Communities Act.

- What shape any trade deals will take. The Norwegian model? Or how about the Swiss one? Oh, and don't leave Canada out of the equation either...

- Have we actually seen the last of Nigel Farage??

Given all the unknowns, the "Dad's Army Law" (DON'T PANIC!) applies. Until things become more concrete, it's business as usual... Until we are formally out of the EU, the UK will remain subject to EU law and the decisions of the ECJ.

IMPACT DURING THE BREXIT NEGOTIATION PERIOD

Key points:

- No change to employment law.

- Where HQ changes, relocations, job losses etc. are on the cards, then the usual rules and protections apply. Be aware of the potential for nationality discrimination in selecting non-UK workers for redundancy, or not selecting UK workers for overseas opportunities...

WHILST THE POST-BREXIT LANDSCAPE IS A BIT FUZZY, WE CAN ANTICIPATE SOME THINGS RE EMPLOYMENT LAW...

Whilst the future shape of EU-derived UK employment law will ultimately depend on the deal struck with the EU, there are unlikely to be major changes given so much EU employment law is incorporated in to UK law and social policy.

Examples covered off:

- Immigration: see below.

- Working time: largely unchanged, although there may be increased flexibility on working hours, and changes to holiday pay entitlements.

- TUPE: unlikely to disappear, but there could be a relaxation in the information and consultation requirements, increased scope to change Ts and Cs, and a reduction in the protective award.

- Redundancy consultation: will remain, but possible changes could include an increased threshold to trigger collective consultation and reduced sanctions.

- Worker status: more flexibility around definition and rights.

- Agency Worker regs: given the unpopularity of this, it may get repealed.

- Discrimination legislation: possible changes with qualifying periods to bring a claim, and introducing a cap on compensation.

- Financial services regulations: a removal of the restrictions on remuneration?

- Pensions: no immediate impact (apart from market volatility impacting funds!).

Immigration is an obvious area of concern given most employers rely on varying degrees on migrant labour. Main points:

- No immediate changes. EU nationals continue to have the right to freedom of movement.

- Future immigration policy is dependent on the deal struck with the EU. Options include having EU citizens treated the same as other migrants from outside the EU, or adopting an Australian-style points based system, or no change as part of a Norwegian-style free trade agreement with the EU.

- The other consideration is whether there may be an "amnesty" on EU employees working in the UK at the point of Brexit.

All the above has got to be seen in the context of other issues relating to the UK extracting itself from the EU being of a higher priority - e.g. trade deals. Employment law is probably quite low down the pecking order.

PRACTICALLY SPEAKING, WHAT CAN WE DO?

Good question, given not a lot is crystal clear yet.

Think about the following:

- Your engagement strategy with your workforce during these uncertain times. See below.

- Auditing your workforce. Specifically the EU nationals you have, and what roles they are doing. Anticipate whether they will be wanting to stay or leave, and work through any contingency plans from an org perspective.

- Review employees you have on secondment, and any visa implications which may arise in the event of any changes.

- Remember, EU citizens with over 5 years in the UK will have indefinite leave to remain.

- Show leadership, and keep things in perspective.

ITS GOOD TO TALK...

There was a discussion about how employers maintain engagement and motivation during a prolonged period of uncertainty. The key themes to emerge were:

- Good communication starts from the top.

- Be clear on the objective of any communications. Show leadership, address concerns, re-connect people, reinforce "business as usual", etc.

- Equip line managers to deal with queries.

- Make any messaging apolitical (i.e. don't take "Remain" or "Leave" sides).

- Make any comms inclusive of both UK and international workforces.

- Provide a platform for open dialog. 

- Be watchful for any harassment and discrimination, and remind employees of the ned for dignity at work.  

Perspective is key. Nothing has happened yet, and there is a long way to go. The UK is a major economy and a huge market, so there are trade deals to be had. And in terms of companies moving staff to Frankfurt, Paris, etc. then it is worth remembering the UK employment law scene is more benign than in most other EU countries. 

AND FINALLY...

Why does Britain like tea so much? Because tea leaves...

A huge thanks to Adam Hartley from DLA Piper for stumping up the venue and making the sandwiches. Oh, and for presenting most of the content.

And a huge thanks to all of you who braved the sweltering conditions (it's not often you can say that!!) to participate in the event.

"This one has got legs", so as things do become a bit clearer over the coming months I am sure a follow-up will be arranged. Watch this space.

Adieu, as they say over the Channel. See EU later.

Annual Do 2016

Another year, another Annual Do! Golly…where does the time go?

This Do was a bit special, as some of the older hands amongst us worked out at last year’s event that this one would coincide with the 10^th anniversary of the IHRF being founded!

I mentioned this in my opening preamble, which prompted an interruption from Andy Gillham to present me with a gift to mark the event. So it’s a large thanks from me for all who had a hand in this lovely surprise, to Andy for his kind words, and of course to all the members who over the years have made the IHRF what it is.

First up for our now-traditional guest CEO slot was David Shaw, he of Energis and Cable & Wireless fame. He took us through a few “life stories” to highlight the following top tips:

- Make sure people are front and centre of the narrative.

- Know your business. Intimately. From top to bottom.

- The least accurate predictor of future performance is prior experience.

- Don’t let systems and processes get in the way of doing the right thing with people.

- HR should be a business enabler, not a policeman. Make people, and businesses, brilliant.

- HR need to lead business transformations which impact people.

- The business case for HR-led transformation is stratospheric returns.

- One third are already there. One third will never get there, so move on. Focus on the “swing third”.

- Be the best that you can be. Make the world a better place than it was yesterday.

Engagement surveys are a “hot topic”, and Andy Brown, CEO of the appropriately named Engage, took us through the latest trends and developments:

- A shift from “off-the-shelf” to tailored/bespoke approaches.

- A move from annual surveys to “continuous listening”.

- Looking at integrated analytics rather than isolated data to deliver richer insights.

- More care around benchmarking, given it doesn’t make you any better, it just tells you where you are…

- Key drivers for engagement are connection with strategy (future growth), connection with customers, and connection with the employer.

- It’s all about how we manage people, empower people, deliver outstanding customer experience, communicate, develop and recognise performance, and lead the business.

- The use of technology (apps) to obtain and deliver feedback is proliferating.

Taking time out to look at our own skills-set has always been one of the aims of these events, and looking at how we develop impactful comms that resonate and grab people’s attention was the theme of our next guest, Ann Booth-Clibborn. Her seven top tips were:

- Be aware of the main character or group. Just who is the audience.

- Create a different world that people will be inspired to enter.

- Keep things personal and personable.

- “Jeopardy”… What’s at risk? Why is it important? Why should we care?

- What’s the inciting incident? What kicked the story off? Where’s it heading?

- The structure… Start, meat ‘n’ potatoes, conclude.

- The story question. What will keep the audience engaged?

After lunch and Adam Hartley’s first irreverent legal update, Danny Kalman took time to outline the business case for diversity. Based on a new book he has co-authored with Steve Frost (please contact Danny for an exclusive IHRF discount!!), diversity done well enables businesses to:

- Attract the best.

- Drive engagement through building cultures in which employees feel valued.

- Increase creativity, openness to change, and understanding of new markets.

Succession planning was up next, and Chris Seabourne from the Succession Planning Company (we seemed to have attracted companies with “does what it says on the tin” names this year!) joined us to outline how to create an integrated approach in this critical area.

- Recognize that times have changed… Command and Control has moved through several iterations to the Dawn of the Millenials.

- Succession planning is more vital than ever given globalisation, competition, etc – only employees can deliver competitive advantage.

- There are a range of considerations at play e.g. role requirements, role criticality, employee experiences and capabilities, employee ability and capability to progress, cultural issues, etc.

- Typically the process is inward-looking and a snapshot in time.

- Need to move to “active succession planning” that considers external as well as internal factors and is based on an ongoing conversation.

Day One was rounded off in energetic style by Roger Philby, founder and CEO of the Chemistry Group. Using the pioneering work they have been doing with Reading FC, Roger made the following points:

- Companies may have the right talent, but not harnessed in the right way then there will be a lack of achievement.

- There is no “silver bullet” that can predict the future success of talent.

- Talent is traditionally looked at through the wrong lens – degree, work experience, etc – that have little correlation with future performance and potential.

We then adjourned to the 11^th floor, to partake in some beverages whilst taking in some pretty stunning views of good ol’ London Town.

Mark Bowden from Deloittes kicked off Day Two with a summary of the findings from their annual report on trends in global human capital management. Key findings:

- HR transitioning from a “service provider” to valued talent, design and employee experience consultants. Mark outlined Deloitte’s new “High Impact Operating Model”.

- There is a “perfect storm” of changing workforce demograghics, the proliferation of digitial technology, the increased pace of change, and a new “social contract” between employers and employees that organisations need to respond to.

- New models of talent management, performance reviews, 360 feedback and succession are emerging.  

- The design of HR policies, processes and systems need to have employee experience at the heart of them.

“Coopervision – The Sequel”. Sounds like a dodgy movie but was in fact Martin Percival feeding back how the integration of Sauflon had progressed since the acquisition last year.

- Key challenges included the pause whilst the competition authorities reviewed the deal, the duplication of skills in the same countries, proliferation of job titles, different cultures and communication styles, etc.

- The approach was to retain the best, to take a pan-European approach, to consolidate job titles, to have clear plans for each country, and to consult and engage.

- Some things went well e.g. people changes, the performance of the HR team, the OD work, collaboration between the various G&A functions, outplacement, manager support, individual and collective consultations, etc.

- There were learnings e.g. get a grip on multiple sources of data sooner, being clearer to managers on ARD issues, clarity of senior leadership communications, more effective onboarding of transferees, stronger engagement and retention planning, and issues within the supply chain.

Gillian Murray then joined us to highlight the work Pilotlight do in harnessing the skills of business leaders giving voluntary time to help coach key people in a variety of charitable organisations. Anyone interested in promoting this service should contact Gillian directly, as per the mail I sent out to the IHRF on 19 May.

Confused by all this talk about Baby Boomers, Gen Y, Gen X, Gen Z, and (most recently) Gen K? Yep, me too. Fortunately we had Stehanie Lunn and Chris Wood on hand to navigate the choppy waters. They:

- Outlined the various generations that constitute the current workforce.

- Provided some stats and stories around millennials.

- Outlined strategies that businesses could adopt to engage and motivate millennials in the workforce.

- Key themes were the blurring of work/life, loyalty to self development rather than their employer, hunger for information, continuous connectivity, respect for knowledge rather than hierarchy, a desire for flexing working arrangements, a preference to specialize in what they are good at rather than go in to management, etc.

Adam Hartley brought the lunch break to an end with an overview of developments in European employment law, and managed to do this without being too disparaging about France!

Annemie Ress (Purple Beach) then took us through the concept of exponential organisations – companies which enjoy disproportionate success relative to their peers. Check out what work Singularity University is doing in this area. Exponential organisations are characterised by:

- Autonomy and technology, “Massive Transformational Purpose”, experimentation, innovation and open leadership.     

- The “6 Ds” – digitisation, deception, disruption, de-monetisation, de-materialisation.

Up next was the Alice Breedon (Google) / Jeff Wellstead (Digital Works Consulting) double-act to take us through the increasing use of data and analytics in the world of HR. Key themes:

- It is possible to have predictive algorithms for certain walks of HR life but people should still make people decisions.

- Google’s “8 Qualities of a Great Manager”: good coach, empower rather than micro-manage, take a personal interest in team members, results orientation, good communicator, facilitate development, clarity of vision and strategy, appropriate technical skills.

- Research trumps best practice…

- There are plenty of neat tools out there that can quickly link HR metrics to business strategy and help inform programs, complex decisions, etc.

- Explore data to predict outcomes and inform decisions, then share results in easy-to-consume ways.

And it had all been going so well… Our first major technical hitches of the Annual Do saved themselves up for the last session, but a lack of video didn’t stop Gordon Barker from Great{With}Talent leading an interactive session on how to lead transformational change. Built on the themes from the book/film “Into the Void”, we explored the following:

- Performance is not a predictor of how people will cope with future change.

- People tend to focus on the negatives associated with change, whereas the reality is change generates energy which is easier to move than inertia.

- There needs to be a compelling reason behind any change.

- Change is a constant. It is about transformation, a journey.

- Leaders need to work with ambiguity, ensure that the DNA of performance is in place, and involve all people in any change.

- Stages of change: denial, resistance, acceptance, exploration, commitment.

And that brought down the heavy but impressively swish velvet curtain on our fourth Annual Do. As ever, a big shout-out for Adam and his team at DLA Piper for providing the venue, food, beers and nibbles. Likewise, thanks to all the contributors for volunteering their time to share knowledge and inspire others. And finally, a big thanks to all the members who took time out of their busy lives to come along, learn, network, contribute and have a spot of fun along the way.

Our next Annual Do will be our 5^th. Little did I know when we first kicked this off that what was an experiment would turn out to be such a tour de force in the IHRF calendar. Planning will start in a few months but if anyone out there would like to take part then just let me know…

And so it’s goodbye from me, and it’s goodbye from me.