In order to be effective, employee involvement must have the full support of the company's management team. Ideally, it should be part of a wider strategy for improving the performance of the business.
When a company is planning its employee involvement strategy it will need to decide whether its aim is merely to communicate information to employees about certain company matters or whether it intends to go further and consult with the workforce on some issues. If the company is to consult meaningfully on a proposal, it must be prepared to:
- enter into the consultation process with an open mind on whether its proposal might need to be revised;
- provide clear information to employees on what is being proposed and why;
- give employees adequate time to consider that information and to prepare their response;
- give proper consideration to employees' responses, and take them into account in finalising the proposal.
Consultation is therefore a two-way process, involving a considered exchange of views between employer and workforce, rather than a one-way process of informing the workforce of what is going to happen.
The most effective form of employee involvement will depend on the circumstances of the particular company. It could include, for example, production of company newsletters or videos, team briefings, quality circles or project improvement teams. A company may also wish to consider establishing a works council or staff committee, either on a permanent basis to discuss general company matters or on a temporary basis to discuss a particular issue facing the company.
Many workplaces have some form of permanent company or works council or consultative committee. As these bodies are primarily concerned with consultation rather than negotiation, the range of issues discussed is usually broader than in traditional collective bargaining. Discussion topics could include, amongst others: company performance and business results, operational changes and future strategy. Where a copmany has in place consultative arrangements which are:
- in writing
- cover all the employees in the undertaking:
- have been approved by the employees; and
- set out how the employer is to give information to the employees or their representatives and to seek their views on the information
it is relatively difficult for employees or their representatives to remove the voluntary arrangement and replace it with the statutory system. Employers considering putting in place such arrangements should contact their Association.
Many company councils work in non-union contexts and individuals are commonly elected as employee representatives answerable to a particular department, shift, or workplace area. The number of representatives must be large enough to allow genuine representation of all areas of the workforce but not so large as to impede the effectiveness of the committee or council. Typically the number of representatives will be between 10 and 20 but can be more or less, depending on the size of the organisation. It is usual for managerial representatives to be appointed to the council or committee, but it is normally appropriate for there to be more elected representatives than appointed ones.
It is worth noting that the statutory obligations to consult on large-scale redundancies and business transfers can be met through consultation with representatives who were elected or appointed for some other purpose, provided the method and purpose of their election or appointment gives them the authority to be consulted (mechanism to meet obligations ). Therefore a company may be able to consult with an established works council or staff committee rather than have to organise an election of employee representatives, should redundancies or a business transfer be proposed.
These schemes have been developed to encourage employee participation and commitment and to aid retention, particularly in times of low unemployment, skills shortages and fast-developing technologies. With a tangible stake in the success of the business, employees may have a greater level of commitment to its continuing growth and development.
HM Revenue & Customs regulates these schemes and can provide further guidance on them.
Other forms of employee involvement include employee suggestion schemes, attitude surveys (whether by structured questionnaire, interview or focus group), performance appraisal and quality initiatives such as total quality management, kaizen and lean manufacturing.