Employment practices generate criticism
The employment practices of the retailer and leisure business, Sports Direct, have been the subject of ever increasing scrutiny over recent years. The rules and policies that operate within the business, in particular at the company’s headquarters in Derbyshire, have generated considerable criticism across a wide spectrum of opinion, from trade unions to Parliamentary committees alike.
Share prices started to slide
Until very recently, or at least until the company’s share price started to slide in the wrong direction the noises coming out of the Sports Direct boardroom were consistently to reject the need for any kind of explanation or rethink on the issue of employment practices. Indeed, the company’s own mission statement sets out an admirable employment philosophy…
“Our team is comprised of c.29,000 people who make Sports Direct the successful company that it is today. The Board is committed to ensuring that all of our people have the opportunity to be inspired, stimulated, motivated, and empowered. We believe that it takes every single team member to make a difference and drive performance, and we are committed to developing and rewarding our people to enable the Group to achieve its future growth plans.”
Supervision of workers – unpleasant reading
Unfortunately for the directors who aspired to reproduce these principles in practice, the facts that have emerged, particularly in relation to the methods of supervision of workers at the headquarters warehouse make unpleasant reading. The daily life of warehouse employees is reported to include:
- Having to walk up to 20 miles each day inside the warehouse picking products off the shelves.
- Potentially being harangued by name via a public address system for not moving quickly enough
- Being dismissed if six “strikes” are recorded against their name in a six month period.
Some of the offences that apparently attracted this sanction include any kind of picking error, excessive toilet breaks, perceived time wasting, excessive chatting, horseplay, wearing branded goods and using a mobile phone in the warehouse.
What changes to employment practices are being implemented?
The public pressure that has gradually built up, alongside the opposition to these measures that emerged at the Company’s AGM recently, have finally led to a change of direction to employment practices by senior executives over the use of these managerial tools. In addition, decisions have been made to replace the zero hours contracts that were so widespread in the 440 or so UK stores with an alternative guaranteed hours arrangement for staff.
Well organised supervisory approach required
However, it has to be acknowledged that the day to day management of a 5,000 strong workforce at a single work base does require a well organised supervisory approach and the implementation of effective processes to ensure the smooth running of such a large operation. It is also reasonable for any employer to have unambiguous rules and procedures to address all of the headings that were classed as “strikes” by Sports Direct. This is particularly important if the issues are having a detrimental effect on the efficiency of the business and/or the morale of those employees who do not break the rules.
Management skills impact on individuals
This operational efficiency does not however have to be achieved with the use of such a blunt instrument. Above all, an organisation's effectiveness relies on the quality of management and administrative procedures it has in place. The employees’ first point of contact on how the organisation wishes them to operate comes from their immediate supervisor. The management skills that are demonstrated at this level impact directly on the effectiveness of the individual, the team and overall business performance.
What do managers need to do?
The first line role often includes a level of responsibility for budgets, work rotas, quality and operational performance and customer care alongside the people management requirements. Regardless of the size of the organisation, first line managers need to be consistent, fair and flexible about the way they treat the staff under their supervision in areas such as:
- Discipline and attendance
- Ensuring company policies and procedures are followed
- Organising staff rotas
- Presenting and leading team meetings
- Supporting staff recruitment practices
- Conducting staff appraisals and writing reports
- Providing the communication link between senior management and employees under their supervision.
An understanding of how supervisory approaches can fall foul of UK employment law is central to any organisation’s decision making on this important subject. Qdos HR outsourcing can prepare a bespoke programme for your business to help improve the effectiveness of your employment practices and your first line managers. We offer a wide range of training interventions for all management levels, aimed at enhancing overall business performance and employee loyalty.
Contact us now for further information.
