Dealing with difficult areas of
employment is not something an owner anticipates when starting up a
business. The question of how to handle those difficult
conversations is one of the most frequent Mentor receives. Managing
employee performance, often not the most pleasant of tasks, can be
one of the most important issues you will face. According to Karen
Evans, Employment Law Consultant at Mentor, one of the biggest
mistakes business owners make is waiting until there’s a crisis.
She explains: “You should provide continuous feedback about
performance, both good and bad. Don’t leave it until once a year at
the appraisal.”
Any problems should be addressed as
soon as possible and the employee given the opportunity, and help,
to improve. Dismissal should be a last resort.
Another mistake business owners make
is ignoring issues. Many small businesses start out by employing
family members or friends. But as the business grows, owners
recruit from a wider pool. You must lay out clear expectations for
job performance. If a member of the team isn’t pulling their
weight, it is always better to get the problem out into the open –
even if it is a good friend. “It’s hard to be tough,” says Karen,
“they might be good friends but they are also your employees and
represent your business – there is always a fine line, so tread
carefully. Other employees will be looking for confirmation that
everyone is treated equally.”
In addition, business owners are often
too scared to act: “Sometimes there’s a vague threat that something
bad will happen,” explains Karen. “There’s a lot of employment law
and employers are terrified of having a normal conversation with
their staff in case they’re accused of something.”
Many business owners worry about the
legal implications. Two people not getting on at Neston Park Farm
Shop led owner Lady Venetia Fuller to seek Mentor’s advice when the
situation ended up with a claim and counterclaim. In the past year,
she has dealt with some interesting and diverse issues with her
employees – most of which have been dealt with very amicably.
In a young business employing lots of
people, disagreements, conflict at work and disciplinary issues are
likely to arise. Providing advice on the best way to tackle and
resolve a given situation is a fundamental part of the Mentor
service.
Lady Venetia opened her farm and coffee shop at Neston Park
Farm, near Bath, in 2006. She began by selling organic meat boxes
from the estate and opened the shop to meet demand for the farm’s
Black and Tan beef. Neston Park Farm Shop has gone from strength to
strength and now employs 20 staff. It produces much of the food
that it sells and has its own in-house butchery, cafe and deli,
offering the very best locally and ethically produced food.
“I set up this fantastic business not
appreciating fully the employment issues that might arise. Mentor
has been instrumental in advising me on all aspects of the law that
every employer should know about,” Lady Venetia says. “Mentor is
currently advising on our maternity leave policy. Since we last had
a pregnant employee, the legislation has changed so having someone
who’s up-to-date is important for us and such a great help.
Like many businesses, Neston Park has
been through a period of depending on Mentor’s professional advice.
A year ago, in order to keep one aspect of the business running,
Karen helped handle negotiations to reduce an employee’s hours. She
also advised in the production of contracts of employment
appropriate to the size and nature of a seasonal business like
Neston Park Farm Shop.
Lady Venetia explains: “We started off
with an artisan baker as we wanted to do everything ourselves. A
couple of years later, we realised that unless we were able to
diversify into wholesale bakery, it just wouldn’t be viable. The
costs were just too high – a baker’s salary, an enormous
electricity bill and the ingredients on top, all for selling 10
loaves of bread a day. Clearly it wasn’t a good business model.
“Sometimes it is very hard to make the
business decisions as opposed to those that you truly believe in,”
she adds.
As a result, Lady Venetia had to adapt
to make the right decision, based on facts rather than emotion.
Addressing the problem early and talking through the issues with
those involved helped avoid a redundancy. The Neston Park baker
found work with a local bakery and continues to work two-and-a-half
days a week for the shop, making a wide selection of homemade
cakes, pasties and sausage rolls for the cafe and shop. When the
business needed to restructure due to consumer preferences, another
employee unfortunately had to go and Karen was on hand at all times
to guide Lady Venetia through the redundancy process
“One thing I have learnt is not to
feel silly for asking questions,” Lady Venetia says. “I much prefer
to be completely honest so when something happens you can say: ‘I
could do with a bit of help’.”
Neston Park Farm Shop, with its shop,
commercial kitchen, working farm, cafe and outside play area,
represents a microcosm of the key risk areas that may affect any
business. As the business has grown, Lady Venetia has used Mentor’s
Employment Law & HR, Health & Safety and Environmental
services to help achieve and maintain compliance and guide the
business through upcoming challenges.
Neston Park Farm Shop is continuously
working hard at providing a facility for learning as well as
leisure. “We are always aiming to provide children and families
with fun and formative events at the shop,” Lady Venetia explains.
“For example, we recently held an interactive bee weekend
Neston Park Farm Shop represents a microcosm of the key risk
areas that may affect any business.” to give a little
information on how flowers and crops were pollenated and why bees
are important for the countryside.
“We always have Health & Safety at
the forefront of our minds. Our ‘Quiet Bonfire and Fireworks’ night
is not only perfect for little ears, but it ensures we focus on any
potential risks.
“The worst thing would be if something
happened and we hadn’t done a risk assessment,” Lady Venetia adds.
“We know we have the right procedures and documentation in place if
someone hurts themselves by accident.”
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