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Establishing a successful recruitment process and clear written employment contracts for new employees can have a major impact on your business.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Why home and hybrid working is best for small firms

10 August 2021

The government may be encouraging people to return to work, but new research has found that workers in small businesses are twice as likely as those in larger firms to continue working from home.

A survey conducted by Hitachi Capital Business Finance during the week that COVID restrictions ended has found that 58% of people that work for large companies were preparing for a return to the workplace; however, small businesses were twice as likely as their bigger counterparts to continue working from home (27% versus 14%) - with just 41% of small business employees returning to the workplace.

And a second Hitachi Capital survey, focusing on small business owners, has found that that those working from home or adopting hybrid working were more likely to see tangible business benefits, compared to those returning to the workplace.

Small businesses whose staff are currently working from home are most likely to cite the benefits of a better work-life balance (52%) and to say homeworking has been good for the mental health and wellbeing of their staff (33%). These enterprises also valued being able to work in a COVID-secure way (44%).

What's more, it seems that home and hybrid working are making small businesses more successful. These small firms are most likely to say they have used technology to help their enterprises to become more agile (33%) and are most likely to say their work environment has boosted their productivity levels (20%). The findings also show that:

  • 24% said hybrid working fostered a positive dynamic between team members;
  • 20% said it improved the effectiveness of their business networking;
  • 18% said the reduction in overheads has helped them to become more profitable;
  • 17% said it has been easier to hire the right people and develop a more diverse workforce.

Joanna Morris, head of insight at Hitachi Capital Business Finance, said: "Many smaller enterprises have been forced to adapt during the lockdown era and, for many, the positive outcomes will inform business planning going forward. For some, technology has helped small businesses to become agile, digitised enterprises - whilst for others, the cost savings from rents and fixed overheads has been liberating and transformed cashflow. These innovations can help some enterprises achieve tangible competitive advantage.

"In short, there will be no single response to restrictions ending and there will be no 'average' small business. The diversity between enterprises that work from an office, from home or opt for a new hybrid arrangement will become a permanent feature of the small business landscape going forward."

However, IT experts are warning that home and hybrid working are making it harder to prevent data breaches such as phishing. Egress' 2021 Insider Data Breach Survey has found that 73% of organisations have suffered data breaches caused by phishing attacks in the past year. Remote work has increased the risk, with 53% of IT leaders reporting an increase in incidents caused by phishing. The research also revealed concerns over future hybrid working, with half of IT leaders saying it will make it harder to prevent breaches caused by malicious email attacks.

Written by Rachel Miller.

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