Handling disciplinary cases can be one of the most sensitive and complex parts of being an employer. It is broadly recognised that they can be quite tricky, what is not often considered is the disruption – how much time they can take up and what this looks like in financial terms.
At organic hr we think about this kind of thing a lot – it’s important that HR earns its keep and considering the potential financial impact of employee issues is a key part of our work. In March 2011, research from the CIPD showed that the average disciplinary case entails:
- 7.8 days of management time
- 10.2 days of HR staff time
- 2.2 days of Legal staff time
That’s around 20 days for a disciplinary. At first glance this may seem a little high but complex cases, with the associated investigations, hearings, appeals and potentially employment tribunals, can in fact require far more input.
Let’s think about costs and value.
- If everyone involved (managers, HR staff and legal staff) were paid at the minimum wage (which they probably aren’t!!) on an 8 hour day then: A disciplinary would cost around £950 in wages
- If everyone involved were paid at the national median rate (about £500 a week in 2010 according the ONS) then the cost would be around £2000 in wages – in real life, if senior personnel were involved, this figure would be far higher
- This is without factoring in the opportunity cost of managers being tied up handling employment issues
Managed efficiently and by experts, the disruption – the negative time and financial impact – can be reduced significantly. Better yet, the preparation can be undertaken to help avoid disciplinary issues in the first place! Either way, the ROI (Return On Investment) is clear and it is measurable.
At organic hr, we have a strong track record in all areas of employment relations and HR. We have delivered strong HR ROI for all sorts of organisations across Calderdale, Huddersfield, Bradford, Wakefield, Yorkshire and beyond.