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Welsh Recruitment



Employment Central



HR and the science of risk management



Before considering the rudiments of HR policy and procedure all those concerned in the drafting of such should address the science of Risk Management, argues John Andrews, Director of Operations with South Wales based New Directions Holdings Limited.



Policies and procedures are so designed to protect employees and employers from ‘attack’. Reference is made here to the threat of litigation, financial loss and loss of reputation.



For regulated employers, such as those within sections of industry and the professions, insurers will demand observance of risk management systems designed to withstand the threat of wronged members of staff who attack reputation and threaten stability. Insurance companies carry the financial risk of having to put right their customers’ procedural errors and policy breakdowns.



The insurance industry has carefully developed risk management as a prerequisite to the acceptance of insurance and the cost of the premiums. Organisations are charged with the responsibility, therefore, of calculating risk and implementing systems to ameliorate the dangers. Such an approach must include the development of sound HR policy.



Strong HR policies help to ensure that both staff and owners are suitably protected from distractions encountered during the working day. Regularly used, HR systems help to ensure that all employees know the ‘rules’, do not unnecessarily divert from them and remain fixed to task accordingly.



Any policy and procedure which deals with people should ideally cover the weaknesses and potential threats from an employers’ perspective.



Turning towards the positives, robust HR policy can also enhance performance, improve the bottom line and increase stability at all levels.



Examples of this include recruitment and induction procedures, training and development, grievance and disciplinary procedures and so on. There is nothing as reassuring as an independent person or department to turn to during times of unrest, particularly when serious complaints are made in respect of an employee’s line manager or senior manager.



Similarly, HR units provide invaluable support to senior management within organisations employing more than, say, 50 staff or where there is more than one office or department. This is because different units require differing managerial approaches whilst retaining the consistency in respect of HR policy and procedure required to provide adherence to employment law and regulation.



Neither should the sales qualities of good, efficient HR policy be ignored. Whether through recruitment or sales management, those responsible for selling the organisation to others enjoy the added value that robust HR systems bring.



Those firms which tender for contracts need to convince their potential clients that they provide a more professional approach than their competitors.



Moreover, attracting the highest standard of personnel is key to growth and performance. An organisation’s reputation will stand or fall on their ability to retain staff and tempt others to join through word-of-mouth reputation.



(Picture: Photo of John Andrews, Operations Director at New Directions Holdings)



John Andrews is Operations Director at New Directions Holdings a £12m-a-year annual turnover recruitment and training company based in South Wales. Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32