FEATURE INSIGHT
Could benchmarking improve employment relations and reduce tribunal claims?
Jade Linton, senior employment lawassociate for Thursfields, explores whether and howbenchmarking could reduce the risk of successful claims and improve employee relations
F orm ET1 is the document no employer wants to see, as it Even in circumstances where the employer is above reproach, the process of defending claims in an employment tribunal can cause a great deal of inconvenience, unwanted publicity and financial loss. Could benchmarking be the answer? What is benchmarking? A benchmark is a standard against which something can be measured. Through benchmarking, an employer can find the best performing businesses in their industry and compare processes such as key performance indicators. Benchmarking enables employers to monitor the performance of businesses in industries similar to theirs and, if necessary, adopt their processes to achieve better results. Benchmarking can work to expose weaknesses and celebrate strengths, and supporters hail it as a pivotal tool for continuous improvement and market resilience. Tribunal claims Benchmarking can highlight areas of concern which could trigger employment particularises a worker’s complaint.
tribunal claims. By being aware of this information an employer can take action to resolve the issues exposed. ... monitor the performance of businesses in industries similar to theirs and, if necessary, adopt their processes For example, long-term sickness absence of employees can make an employer particularly exposed to claims of disability discrimination, constructive unfair dismissal and disputes over pay. By understanding that in comparison to their competitors there is an issue in a particular area such as sickness absence means an employer can focus on best practice including contact management, reasonable adjustments and absence trends. Of course, this success is dependant on those areas of risks once identified being corrected quickly. That said, not all claims are foreseeable and often claims are based on unique
circumstances unavoidable by any scrutiny of trends amongst peer groups. Benchmarking is certainly not a cure for all but when used properly can provide data driven insight revealing peaks, trends and areas of weakness which if ignored could expose a business to claims. Employee relations Benchmarking can also help with employee relations in a number of ways: ● Ensuring alignment with best practice – An employer that advertises commitment to ensuring staff benefits are the ‘best in the industry’ would be expected to take a regular or at least annual review of what their industry peers are doing with benefits. In an age where staff can compare potential employers against matters such as salary, staff satisfaction and benefits, benchmarking can help employers ensure they are in line with best practice and that they attract and retain impressive talent pools. Though achieving best practice may not be possible for a business in financial difficulty an idea of what its peers are doing may assist it in making small, inexpensive changes to ensure staff are being given a fair deal across the market. ● Tracking relevant data to ensure
| Professional in Payroll, Pensions and Reward | July/August 2019 | Issue 52 44
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