HR IN A CRISIS

There’s no time like the present to put the spotlight on the importance of expert HR advice for franchisees.

How your franchisor can help.

Human Resource management is vital in challenging times such as these, even for a small franchise outlet. Each franchisee is a business-owner who may have employer obligations, while still being part of a larger group. As a business owner, every franchisee must comply with government rules and regulations which can at times be complex.

This is where membership of a franchise network can really prove invaluable though. There are definite advantages to having the support and experience of a franchisor’s HR department to help you grapple with the issues and find a workable solution.

HOW COVID-19 PUT HR IN THE SPOTLIGHT

If you look at the current crisis there have been several short-term solutions for employers suffering an unexpected drop in revenue due to COVID-19: Job Keeper, reducing hours worked, standing down employees or making them redundant.

Each business will make its own decisions but franchisees would need to consider the longer term human resource implications.

And now we are discussing reducing government-imposed restrictions in Australia, so what would this mean to franchisors, franchisees and their employees?

HR ASSISTANCE — WHY IS IT IMPORTANT?

Let’s continue with the COVID-19 situation... to illustrate how important HR help is, imagine yourself already a franchisee running your own business.

It is important as a business owner to work closely with your accountant or business advisor to undertake a business projection modelling process for various timeframes, in the short-term to help determine the hours and employees needed to keep the business operational.

However, while it is important to consider all the human resource initiatives to keep the business operating, you would need to keep in mind what this means as we transition out of the situation.

Continued communication with staff would be critical to let them know what the business situation is and talk to them about your circumstances and how it may impact on them as you would receive valuable input

from employees.

Continued communication with staff would be critical to let them know what the business situation is and talk to them about your circumstances and how it may impact on them as you would receive valuable input from employees.

You would need to be mindful of their HR obligations under the Fair Work Act and the various Awards and Employment agreements in relation to employee consultation and amendments to conditions of employment such as change of roles and duties.

This is where the HR professional is vital, to ensure the proper processes are undertaken. The franchisee, and the franchisor, must comply with the Fair Work Act, any relevant awards, or the employment agreement in the Fair Work Commission.

THE FUTURE- WHAT DOES IT HOLD?

Currently business survival is top priority, but shrewd business owners will bear the future in mind too, considering wellbeing strategies for impacted employees and a transition from the current business model to the new business as usual model.

Each franchisee, and on a larger scale the franchisor, should take HR advice to ensure compliance with all necessary regulations while changing the business model.

Good HR practices strengthen the business model and help prevent workplace errors. As a franchisee with staff, take your lead from the franchisor, and tap into the professional advice on offer.

Contact us at www.hrdept.com.au for more information or to get in touch.