Employment Challenges

From a governance perspective, assessing progress, performance and raising awareness amongst your board of the types of issues that might arise over time, is worthwile background reading. Here, we list some of the key challenges that might arise from employing staff to give a sense of the risks associated with becoming an employer and also to try to raise awareness so that if things do go wrong, it doesn't come as too much of a suprise and everyone is caught unawares.

Note: This section is not intended to be exhaustive and should not be used as a substitute for professional advice. Instead, it aims to signpost to resources which can help support the governance of your organisation. 

Individual Staff Performance

Your organisation should have a clear handbook and policies which relate to the performance of staff, management and Board members. For staff (including management) you should also have a clear Support and Supervision policy, through which you will be able to identify challenges and act to support staff early. A strong Support and Supervision policy will be coupled with an Appraisal policy which allows regular competency-based discussions to support the development of your workforce.

SCVO helpfully provide a template handbook and policies which will provide further information.   

Redundancy

In the event that you require to make staff redundant, there are very clear legally enforceable procedures that you need to follow. first reading of the ACAS provides clear guidance in this area is worthwhile.

Recruitment

The process of recruitment often takes much longer than anticipated and should be guided by clear policy and procedures [# - Policy and Procedures] alongside support from your board/management committee.

Your policies may include practices or procedures which suit your organisation. These should centralise fairness and equality for potential candidates, proper documentation and recording of all personal data and clear recording of decision-making.

Recruitment is an area which is governed by both Employment Law [link to existing] and the Equalities Act [link to existing].

There are some misconceptions in relation to recruitment which suggest, for example, that sticking rigidly to agreed questioning is essential. In terms of the best outcome for both your organisation and candidates, this is often not practical and you will want to be able to create an environment in which your candidates can achieve their best performance. This might require adjustments prior to interview – particularly for those who identify as being from a protected group.

Keeping Up To Date With Regulations

As an employer, you are responsible to stay informed about the latest changes and updates to regulations and best practice. This includes ensuring that your organisational policies and practices reflect changes to registration conditions for any professional bodies that you might subscribe to and/or the requirements of funding through both grants and contracts.

Some changes will be regular, probably annualised, and will include for example changes to the amount of the Living Wage, taxation, pension rates. While others will be less frequent, for example, changes to regulations about the Employment Law entitlement periods or Health and Safety Regulations.

While not essential, gaining a first good grounding in the areas which need your attention is often best achieved with a Human Resources professional or a firm which supports HR practices. They would be able to come into your organisation to identify areas for improvement and provide you with a clear baseline for both your board/management committee and management.

Changes that you make as a result of any changes should be reflected in your Staff Handbook, policies and procedures. Administrative updates to Staff Handbooks, policies and procedures should be informed to the staff in advance of the change. If you wish to go further than administrative changes – into changes that materially affect staff terms and conditions – you are required to consult with staff. This might include for example decisions about pay scales, annual leave or flexible working arrangements.

Networks and Forums

Collaboration with colleagues through networks and forums provides an informal way to share the responsibility for keeping up with regulation. For example, a Day Care Services Forum or Older People’s Forum at your local TSI will discuss incoming legislation and changes to regulation and offer peer support tools to build your skills, knoweldge and keep them current.

Alongside discussion about the nature of the changes, the peer relationships you can build at networks and forums can provide a level of mentoring and practical solutions to any challenges you might encounter – including practical solutions to changes in legislation or policy.

Monitor Government/Professional Organisation Websites

Changes to legislation and regulation are published in advance for consultation. You will find information on the UK [# - external Gov.uk] and Scottish Government [# - external Gov.Scot] websites. Larger thematic/structural organisations carry out policy work which aims to both influence the delivery of policy and disseminate information about any changes. Each will provide opportunities to subscribe to newsletters and updates.

For policy changes more locally, information will be provided on the websites of NHS territorial and national Board websites, Health and Social Care Partnerships, Children’s Partnerships, Community Planning Partnerships etc. Your local TSI will be able to signpost you to this kind of information.

Professional organisations e.g., Charity Leadership Scotland, CCPS or SSSC also provide updates and newsletters to keep you informed. For the sector, more broadly SCVO regularly flag relevant upcoming changes.

Review Employee Handbooks and Contracts Regularly

Your Staff Handbook may form part of the contract of employment with your employees and should be kept up to date.

Competitive Pay

Pay is a complex area in the third sector.

Traditionally, organisations aligned their salary scales against the Scottish Joint Council (SJC) salary scales which are agreed by COSLA and public sector workers through unions on an annualised or multi-year basis.

In recent years, particularly in the context of high inflationary uplifts in the statutory sector and cuts to funding both grantfunding and contractual settlements, many organisations have decoupled from the SJC and have created their own salary scales. Decisions related to decoupling will require to made in consultation with staff as this would be a change to the terms and conditions of service.

Organisations set up since c.2000 probably have never related their pay to SJC scales or other public sector pay scales, instead conducting exercises with peer orgnisations to see what the 'going rate' for various job roles is across the sector.

Remaining competitive is difficult; it can be helpful to ensure that when you approach any funder, that you fully understand what may or may not be included in your costs.

Complaints, Tribunals and Legal Issues

The main topics in this section aim to help your organisation has a stronger working relationship with employees. In the event that things go serious wrong, you might require to manage complaints, other legal issues or participate in Employment Tribunals.

This section will provide signposting to advice in relation to these issues but should not substitute for formal, professional advice – particularly in the case of legal issues including Employment Tribunals.

Complaints

Your Staff Handbook should detail a clear complaints procedure and in the event that a complaint is brought, you should follow this procedure in detail to avoid any further legality.

Complaints might be brought from any number of individuals or groups:

• Internally this might include your employees, Board/Management Committee members, volunteers.
• Externally this might include service users, family members and others within a support network.
• You may also receive complaints through third parties such as Elected Members, Members of Parliament, public bodies, advocacy organisations.

The ACAS website provides advice and resources to inform your decision-making in terms of dispute-resolution and Scottish Mediation through their third sector support project may be able to support you to work though any challenges.

If a complaint relates to an area of the law – e.g., discrimination, then you should seek the services of a professional HR advisor and lawyer.

Complaints relating to service delivery or your organisation more broadly shold be dealt with through a robust complaints procedure.

Information Governance

The governance of data within third sector organisations is a critical aspect that ensures the integrity, security, and effective use of data. As your organisation operates primarily to serve the public, the manner in which you handle and protect data is of paramount importance.

Data governance encompasses a collection of practices and processes which help to manage data assets effectively, ensuring that the data's accuracy, availability, and security are maintained. These practices and processes are defined in the Data Protection Act (2018) Data Protection Act (2018) overview with additional regulation provided through the General Data Protection Regulation (GDPR) and regulated by The Information Commissioner’s Office (ICO).

This Wiki has a section Information Governance here

Further resources and links

The Chartered Institute for Personnel and Development (CIPD) - online training and advice for employers.

Glasgow Council for the Voluntary Sector (GCVS) - an HR service which is tailored to working with the third sector

The Scottish Council for Voluntary Organisations (SCVO) - an HR service which is tailored to working with the third sector.

ACAS - a wealth of support to both employers and employees in relation to workplace rights and responsibilities.