I’m
not saying employment law is not important. It clearly is important to have the
basics in place to protect your business and to know your main responsibilities.
However it is about perspective and in
many respects straight forward risk
management. The problem is the media and ambulance chasing lawyers have gone
some way to creating a false perception about the true risk of employment law.
I
recently worked with a small company who had those typical HR concerns and were
worried about getting things wrong. They were a smallish, expanding and successful
multi-site company employing around 20 people with a strong brand and customer
base. It quickly became apparent that whilst they were indeed lacking in some basic
HR compliance areas, their real challenges did not lie there. As it stood they did many things very well - they
engaged people in their work (without knowing engagement is something multi
nationals spend huge amounts of money on!). They had grown through a strong
sense of purpose, strong enabling leadership and a committed workforce. Their
challenge going forward, particularly as they grew, would be maintaining these
things.
The
problem is these positive organisational factors often grow quite organically and
more easily when the organisation is smaller and flatter. Once the organisation
starts to expand (first beyond 10 people then beyond 20 and 30), developing and
continuing this simply becomes more difficult. As people move further away from
company leadership, it is harder for them both to express their ideas and be
listened to. The tried and tested route for an organisation to respond to these
challenges is to try and impose some structure and control through greater
hierarchy. However the tension here, particularly for an entrepreneurial
company, is that the flexibility and autonomy people enjoyed starts to become
harder to maintain. Creativity and
innovation become harder to nurture, the company starts to become diffused and
in short the organisation starts to turn into just another company.
These
were the challenges I highlighted to my client. Moving forward with them
firstly required education in that their people challenges were less about HR
and much more about organisational development and internal communication. Yes
HR was part of the equation, but if anything it was the easy part of the challenge.
So what to do about these problems? We’ll discuss that in the next blog…