Transcript Behaving the Castleoak Way

Risk in HR and how to
manage it
Anna Denton-Jones
navigating employment law
Why this topic?
• Organisations often have a less sophisticated
understanding of people risk than other risks
they face eg:- strategic, operational, financial
• HR criticised for not owning the issue/taking
responsibility
navigating employment law
What is risk?
Dictionary
Noun exposure to the chance of injury or loss; a hazard or dangerous
chance.
verb (used with object)
to expose to the chance of injury or loss; hazard or
to venture upon; take or run the chance of.
Idioms
at risk, a.in a dangerous situation or status; in jeopardy
b.under financial or legal obligation; held responsible
take / run a risk, to expose oneself to the chance of injury or loss;
put oneself in danger; hazard; venture.
navigating employment law
What is people risk?
• Discussion
navigating employment law
Bill Windle, adviser on people risk
• “counterproductive behaviour, from
inadvertent to malicious, on behalf of the
organisation or the individual”.
navigating employment law
Deloitte’s definition
• We can define people risk as “the risk that
people do not follow the organisation’s
procedures, practices and/or rules”, i.e., that
they “deviate” from expected behaviour. Such
deviation can be broken down into two
components: deliberate deviant behaviour
and non-deliberate deviant behaviour.
navigating employment law
Rick Freeman, VP at Capgemini
• Aggregation of the following:
o Personal risk – what risks can an individual
pose?
o What risks relate to what the organisation is
asking of individuals? Eg:- long hours culture,
reward systems incentivising the wrong
behaviours etc
o Environmental risks eg:- redundancies where
individuals feel threatened
navigating employment law
Dalila Dabbicco, Prudential
• Focus on lost opportunities: what are we
missing out on?
navigating employment law
Perry Timms, People &
Transformational HR
• Your definition will need constant redefining –
get used to that
navigating employment law
Your views vs views on the ground
• Discuss with your departments where they
feel the top 3 risks are when it comes to
people?
navigating employment law
What external things will be of
influence?
•
•
•
•
•
•
Environment: location, economy etc
Government support (or not)
Education systems
Immigration levels
Ageing population
Competitors
navigating employment law
HR risks
• Exercise
• What are the main sources of people risk
for HR?
– Recruitment
– Induction
– During the employment relationship
– At the end of the relationship
navigating employment law
Keys to creating the right risk
culture
• Senior level commitment
• Caring about risk not just compliance –
understanding why it is important and
matters
• Hire people for the right values – train for
the rest
• Risk of tick box exercises
• Sustaining the effort over time
navigating employment law
Risk Management Framework
Risk description
Potential
impact of
the risk
[low,
medium,
high]
Probability
of the risk
[low,
medium,
high]
Overall risk
Controls/systems to
mitigate the risk
[low,
medium,
high]
navigating employment law
Individual (s)
responsible for
mitigation of the
risk
Monitoring the effectiveness
of the controls/systems to
mitigate the risk
Risk scoring
LIKELIHOOD
C
RARE (1)
O
UNLIKEL
POSSIBL
LIKELY
ALMOST
Y (2)
E (3)
(4)
CERTAIN
N
(5)
S
E
Q
INSIGNIFICA
LOW
LOW
LOW
LOW
MODERA
NT (1)
RISK
RISK
RISK
RISK
TE RISK
(5)
U
E
MINOR (2)
N
LOW
LOW
MODERA
MODERA
MODERA
RISK
RISK
TE RISK
TE RISK
TE RISK
(10)
C
E
MODERATE
LOW
MODERA
MODERA
HIGH
HIGH
(3)
RISK
TE RISK
TE RISK
RISK (12)
RISK (15)
MAJOR (4)
LOW
MODERA
HIGH
EXTREM
EXTREM
RISK
TE RISK
RISK (12)
E RISK
E RISK
(16)
(20)
CRITICAL (5)
MODERA
MODERA
HIGH
EXTREM
EXTREM
TE RISK
TE RISK
RISK (15)
E RISK
E RISK
(20)
(25)
navigating employment law
Risk Map
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Impact
2
5
10
7
1
4
6
9
8
3
Likelihood
What are the top risks I think as a
lawyer HR departments are running?
In no particular order…………..
navigating employment law
Blockages
• Those people who ‘block’ performance in
teams not being dealt with
• The problem being moved elsewhere
navigating employment law
What are the top risks?
• Inadequate line manger training and coaching
and development
– How to do investigations
– How to conduct hearings
– How to manage absence
– Recruitment
– Performance management
– Conflict management
navigating employment law
What are the top risks?
• Short-staffing/burden on teams
– Poor performance
– Ill-health and wellbeing issues
– Dissatisfaction and disengagement
– Turnover
– Working time risks
navigating employment law
What are the top risks?
• Inter-generational issues
– One size does not fit all anymore
navigating employment law
More specific issues
•
•
•
•
•
Auto-enrolment
Bribery Act
Equalities and Diversities
Whistleblowing
Equal Pay
navigating employment law
Action planning
• Discuss with your neighbour 3 things you are
going to do after today
navigating employment law