Advertisment

Advertisment

Home » Knowledge Hub » » Risky business – HR’s role in reputation management

Risky business – HR’s role in reputation management

19 April 2022

Reputation

The disruption to normal working life over the last few years has reinforced the critical role HR plays in managing a business’ reputation – and, as recent media stories aptly demonstrate, it is the “people” news which can often attract widespread public attention.

The impact on existing staff and workplace culture, recruitment and wider business relationships with customers, suppliers and other third-party contractors should not be underestimated.

There is also an increasing focus on ESG meaning investors are paying more attention to the social (“S”) aspects of a business and how employees are treated (akin to a ‘cultural’ due diligence) that may uncover people related reputational issues.

The starting point will be for HR (and in-house legal teams) to recognise where the risks to reputation lie – whether it be decisions by the employer or conduct from an employee.

Decisions by employers

Employers have had to make some tough decisions during the pandemic – many have weathered the storm well in handling difficult staffing issues – managing furlough, cutting pay and, in some instances, unfortunately making redundancies.

However, as the Chancellor’s recent spring statement made clear, we remain in challenging times with increasing business costs and the rise in the cost of living.

Given this backdrop, HR should remain alert to the fact that sympathy for businesses looking to cut their costs, for example, through changing terms and conditions of employment or reducing numbers of permanent staff, may well be low and we are in an environment where unions and staff may be more minded to challenge unpopular proposals.

Replacing permanent staff with agency workers to cut costs in specialised roles not only has the potential to damage wider employee relations but risks breaching statutory obligations, such as those relating to health and safety or any performance terms under third party contracts.

The use of “fire and re-hire” (commonly referred to as termination and re-engagement) to change staff terms and conditions has also faced scrutiny.

While the government previously indicated that it would simply look to Acas to provide guidance on this practice, rather than any legislative reform, it has recently announced a new statutory code of practice, in an attempt to ensure businesses consult fairly with staff and are not solely driven by their balance sheet.

Concerns raised by employees

The pandemic has also seen a plethora of new everyday issues for HR to manage.

From concerns over the adequacy of health and safety measures put in place to manage Covid-19 transmission, to those who are reluctant to return to their place or work or who now wish to permanently change their working patterns.

Movements such as #metoo and Black Lives Matter have also shone a spotlight on unacceptable behaviour in the workplace over recent years, with many employees now feeling more able to call these out publically.

The potential for an employee or former employee who is upset or feels that their concerns are not being treated seriously to damage employer reputation is an increasing risk with employees of all ages now using powerful social media tools to share stories in an instant across networks and the wider media.

Ultimately, any disputes may end up in the Employment Tribunal, with journalists attending and decisions available publicly on the government website, as well as potentially attracting media attention.

Recent years have also given rise to the phenomenon termed the “Great Resignation” with employees feeling more empowered to move between organisations, driven by factors including a shortage of top talent and new hybrid working practices.

Managing any departures will be critical in retaining the status quo internally, as well as reputation in the market to attract staff and protect a business’ goodwill (such as confidential information and intellectual property).

Actions for HR

The actions HR should take to proactively manage reputational risk (instead of reactively dealing with a crisis) will obviously depend on the nature of the issue in play.

While inevitably some risks will be easier to pre-empt than others, practical steps to consider upfront include:

  • Give careful consideration as to what any business decision really means for individual staff and the wider brand in the current market. Manage any consequences proactively and sensitively – it can be all too easy to lose sight of the bigger picture when seeking to manage a specific set of circumstances.
  • Put in place a “crisis management” process where any potential issues are identified or come to light. Who in the organisation needs to know? What immediate steps need to be taken? Take legal advice on the immediate risks and implications and any repercussions for ongoing negotiations/litigation. Should an external PR agent be appointed to manage the company’s response?
  • Understand and remain alert to the changing influences driving your employees; while financial motivations will inevitably play a role, many employees now also want to understand the business’ commitments and values in respect of broader issues such as climate change, diversity, health and wellbeing etc. Take on board individual opinions and deal with them sensitively and with consideration. Does your organisation provide forums where individuals (particularly from unrepresented groups with protected characteristics) can make their voice heard on these matters?
  • Ensure managers and employees are aware of and know how to use the employer’s grievance and/or whistleblowing policy to manage any complaints and/or grievances appropriately. Remind managers of the need to take care in all communications given obligations regarding disclosure should a matter end up in the Employment Tribunal or where a data subject access request is made.
  • Keep social media and other information technology policies up to date. These should reflect how technology is used in everyday work and personal life and set out clear guidelines for employees on appropriate use, particularly where lines may have become blurred with hybrid working. Consider reinforcing the messages in policies through training so they are well understood.
  • Review contracts of employment to ensure they provide adequate protection on confidentiality and an employee’s conduct during and after employment. Use regular catch-ups as appropriate during employment and exit interviews on termination to highlight expectations and manage any potential risks. The government has previously indicated that it will legislate on “gagging” provisions in employment documentation, including settlement agreements which are often entered into where an issue is to be resolved on termination. While such provisions are not prohibited, careful drafting will be needed to protect business interests while not preventing an individual from raising legitimate concerns and keeping in line with the position of regulators (which includes lawyers advising on the inclusion of such clauses) in this respect.

As the last few years have demonstrated, HR has a pivotal role to play in navigating employers through unexpected and difficult times.

Keeping abreast of the wider picture is key in understanding how business decisions will be received and knowing the issues which really matter to employees.

It remains critical that policies and procedures and other employment terms are kept up to date to reflect how today’s employees work, as well as any legislative and related changes, to ensure the company is adequately protected.

Watch the role of HR in reputational management on-demand HR webinar

Topics

Share

Advertisment

Latest Events

Mar 2024 – Leveraging Digital Learning Tools: Empowering HR Teams for Success

In today's fast-paced business landscape, the role of HR teams is evolving rapidly. To stay competitive and foster organisational growth, companies must leverage effective learning programs strategically.

Mar 2024 – The Efficiency Programme: How HR can maximise technology benefits

There are huge promises and potential for the use of AI and technology in HR and in this session we discuss the best way ahead for HR for technology and AI use.

Effective Resourcing Models & How We Guarantee the Integrity of Inclusive Recruitment Regardless of Approach

A opportunity to debate how can we adopt a cohesive inclusive approach that enhances the candidate experience without creating barriers between us and the talent essential to your organisational success.

Feb 2024 – It’s All HR’s Fault

Despite being a trusted voice in the C-suite, HR is still viewed with distrust and outright disdain by many employees – the very people HR is there to support.
Its all HRs Fault On demand Webinar

Jan 2024 – Health and Wellbeing: Making it Personal

If you’re investing in a health and wellbeing strategy, you want to make sure it meets the needs of your workforce.

Dec 2023 – Year in Review 2023

In this webinar we brought back some of our previous 2023 webinar speakers who gave their view on the past 12 months.

Nov 2023 – Reward and Recognition for the International Workforce

In this webinar we explored the dispersed workplace and asked what it means to support employees all over the world.
Reward and Recognition for the International Workforce

Streamlining Year-End HR Operations

Providing seasonal support, ideas and inspiration, this webinar covered the challenges and opportunities presented to HR professionals at this time of year.
Streamlining year-end HR operations

Compensation Planning – The key to a motivated and satisfied workforce

Compensation and reward strategies have changed radically over the past few years with the impact of the pandemic and the trends that followed.
Compensation Planning - The key to a motivated and satisfied workforce

Oct 2023 – Talent Acquisition: Why your Employee Value Proposition (EVP) is more important than ever

This webinar addressing talent acquisition majored on the Employee Value Proposition (EVP).
Talent Acquisition – Why your Employee Value Proposition (EVP) is more important than ever

Resourcing Models, Insource, Outsource or Hybrid what are the best solutions?

Discussions on the evening were led by two invited experts Jim Richardson, with spells at Santander and Royal Bank of Scotland as Global Head of Talent, Jim now advises corporate businesses on their TA models, and, Ross Crook, Managing Director at Sanderson Solutions.
Resourcing models round table

Sep 2023 – Retention: Holding on to The Talent You Need

The post-pandemic workforce now presents more of a challenge in terms of feeling satisfied and content in the workplace. This webinar on retention also provided a masterclass on employee engagement.
Retention holding on to the talent you need

Aug 2023 – Professional Development: Making the Step Up

What does it take to be an HR Director, or to take a position at Board level? This webinar looked at professional development for HR leaders.
What does it take to be an HR Director?

Jul 2023 – Employee Benefits: Then, now and next

The importance and value of giving employees choice on rewards and recognition.
Employee benefits, then now and next.

Jun 2023 – HR Data: The Key To Delivering Real Value

This webinar on HR Data brought home the importance of understanding the value of people data not just to HR but to the business as a whole.
HR on demand event - HR data: the key to delivering real value

RPO Market – Insource, Outsource or Hybrid: What are the best solutions?

The HR World and Sanderson Managed Services Ltd held an exclusive Round Table dinner to explore and debate the current RPO arena.

AI as part of the hiring, on-boarding and retention processes

The HR World and Sanderson Managed Services Ltd held an exclusive Round Table dinner to further the discussion of AI among Senior HR Leaders.

May 2023 – AI in HR: The Perfect Balance

AI is hitting the headlines right now as experts forecast a future that’s powered by tech. But what will this mean for HR?
On demand hr webinar - Ai in HR

Apr 2023 – HR Tech: Ensuring your technology delivers for all your people

Technology continues to throw challenges at the HR function as the speed of change increases and new technology (anyone noticed something called AI?) enters the arena.
HR tech on demand webinar with Sympa

Mar 2023 – Equality, diversity, and inclusion: Reshaping thinking for action

In this webinar we explored how ED&I can have a real impact for businesses. At the centre of the discussion was the idea of changing thinking in order to make things happen.
Equality, diversity, and inclusion: Reshaping thinking for action

Feb 2023 – Leading With Agility: How to give your business the behaviours and mindsets it needs for volatile times

This webinar took as its focus agility and how businesses can develop and maintain these skills among its workforce.
This webinar took as its focus agility and how businesses can develop and maintain these skills among its workforce.

Jan 2023 – How can you create a culture of health and wellbeing in the workplace?

This webinar tackled the important and timely issue of creating a health and wellbeing culture in the workplace.
How can you create a culture of health and wellbeing in the workplace?

Hiring Gen Z – what can employers learn about emerging talent in 2023?

Join us at this cross-learning, in-person event as part of The HR World Culture Clash series at RSA House in London on 20 Oct 2022.
Hiring Gen Z: Culture Clash Panellists

Bridging the gap: what can employers learn about emerging talent to drive better hiring strategies?

Join us at this cross-learning, in-person event as part of The HR World Culture Clash series, bringing HRDs, founders and emerging talent together to build a better workforce for the future.
Bridging the gap: what can employers learn about emerging talent to drive better hiring strategies?
HRW Membership@2x@2x

Are you a senior HR professional?

Join our membership to shape the future of work, get exclusive access to events, white papers and research content, profile your work, gain access to support from HR experts and celebrate your successes.

Become a Partner

Please get in touch to talk about how we can help your business make an impact in the world of work through our content marketing, partnership plans and advertising.