HR Bite Size: Job Retention Scheme & Furloughing (2)

How can you support employees when using the Job Retention Scheme?

Operationalising the Job Retention Scheme is one thing, but as a good employer you need to consider the impact that this has on your employees, their engagement and wellbeing in both the short and longer term, regardless of whether they are being furloughed or not. Getting this wrong now could have a long term reputational impact on you as an employer and the future success of your business. To support you with this, here are some practical things to think about:-

Communicate & engage with employees

Communicate proactively, clearly, and openly with employees about the impact of the coronavirus crisis on your business and the need to furlough some, or all, employees. This should include details of the other options your business considered prior to deciding to use furloughing and why these were rejected. For example, using furloughing to protect your business from a significant and potentially damaging drop in revenue caused by the crisis is very different to furloughing to protect non-essential employees to reduce their risk of catching, or spreading the virus.

Understand the different views, feelings, situations and experiences of your employees

Employees will be affected by the crisis in many different ways (e.g. knowing somebody who has the virus, wanting to protect others, worries about elder relatives, having to look after children, their partner being furloughed or made redundant etc).

While some of these people might welcome being furloughed, others might be concerned about it in terms of things like social isolation, a lack of purpose or even the fear about the long term future of their job and how they will cope. Employees continuing to work will have different concerns such as the risk of catching the virus, being worried for their relatives and friends by not being there for them, a significant increase in their workload and even the fear of being furloughed, or made redundant themselves, in the future. Communication to, engagement with, and support employees need to consider and respond to these different views, feelings, situations and experiences.

Topping up the Government payment to normal salary levels

Are you planning to pay the difference between the 80% of salary being funded by the Government for furloughed employees and their normal salary? Doing so could send a very positive and supportive message to employees. It will also provide financial support to the lowest paid. It could significantly help with managing financially on a day to day basis, especially if other working members of their family have been affected.

Topping up could also provide a longer term benefit in terms of employee engagement, performance and loyalty. Think about the lost opportunities, as well as the risks, of not paying the difference.

Employee consent is important

Aim to obtain consent from your employees before placing them on furlough and, if you are only furloughing employees in some parts of your business, or some employees doing the same job within a team, clearly communicate the reasons for this and the process used to select people. You could face an adverse knock-on effect of furloughing non consenting employees.

Furloughing selection process is important

When making decisions about the process, including deciding who to furlough, equality and discrimination laws will apply in the usual way. You need to ensure that your process is applied fairly and consistently and make any changes to employment contracts by agreement.

Once the selection process has been completed, you should inform employees in writing, reinforcing the reasons for taking this decision. Employees have to agree in written consent although this could be as a text, WhatsApp or email. A non-response does not equal consent and employees not replying to the email, therefore, should not be interpreted as giving consent. This protects you as an employer, especially where you are not topping up the 80% of salary being funded by the Government.

Direct support for employees during furloughing

Furloughed employees are still very much current employees who you hope will continue to be employees at the end of the current coronavirus crisis. The only difference from current working employees is that they are being paid by the Government not to work for you.

You need to consider them as still being a very important part of your workforce and have a plan for having regular contact and communication with them, keeping their skills and knowledge updated and supporting them with their physical, psychological, mental, emotional and financial wellbeing. Line managers and technology have a critical role to play in ensuring these employees still feel included and engaged and are not having to play catch up when they return to work.

Review your health and wellbeing programme and support

If you have a health and wellbeing programme in place, is it fit for purpose in responding to the short term challenges thrown up by the coronavirus crisis. The chances are it isn't because a global pandemic was not on your radar when you designed it. This means you are probably going to have to find a short term plan which is a mix of reinforcing communication around the benefits and support already available and new things that you can mobilise quickly and easily. For example, this is an excellent time to highly publicise your Employee Assistance Programme (EAP) to reinforce the support and benefits it provides and any other occupational health and early intervention services.

Your plan should also include provision for existing vulnerable employees and those identified as becoming vulnerable during the period of furloughing.

Use peer support networks to bring people together and have regular conversations. You can also signpost external support resources such as MIND, which has free online training for small and larger businesses.

Financial wellbeing support

Even though they are being paid for not working, furloughed employees may still be concerned about their ability to cope financially during this period, especially where they are only receiving 80% of their normal salary, not being able to earn more through overtime, are the only wage earner in their house, or have significant debt which now becomes harder to service.

This is a good time to suggest to employees and support them to undertake a "spring clean" of their finances. The period of furloughing could give employees the time and head space to do this. Ideas could include:-

• Ensuring they understand the full range and value of the benefits package you provide them and how they can maximise their use of it. Use examples and stories to bring this to life
• Families in the UK are missing out on more than ￡21bn of state benefits they are entitled to such as Marriage Allowance, Tax Free Childcare, Child Benefit and Tax Relief on Pension Contributions? Could any of your employees be among these? Signpost where they can find out more, or go for help and check their eligibility
• Where employees are servicing significant debt, you can signpost where they can get the right advice about it such as the Money Advice Service, Step Change and the National Debtline
• Signposting the use of an online budget planner such as the one provided by the Money Advice Service.
• Highlighting that now is a really good time for them to review whether they are getting the best value for money and services from their utilities, broadband, mobile, TV, mortgage, banking, savings etc and signpost employees towards appropriate comparison sites such as Citizen’s Advice.

Volunteering

From a wellbeing perspective, furloughing creates a great opportunity for your employees to volunteer in their local community. This gives them a wider sense of purpose, allows them to use skills they don't normally use in their work, provide value to community groups who would welcome it at this time and probably help raise the profile of your business as well. Is there any support that you can provide in helping them to identify suitable opportunities.

There are other things that you may be doing and in which case it would be great if you can share them.