HR consultancy will be put in employees’ hands
AHUMAN resources consultancy is set to transfer to employee ownership as part of succession plans announced by its founder.
The HR Dept franchise, whose head office is in Emersons Green, South Gloucestershire, was established in 2002 by Sue Tumelty to supply outsourced human resources services to local employers.
The business has grown to more than 100 branches across the UK, Ireland and Australia, serving more than 6,500 small businesses.
The company has now revealed that from November 1 it will be owned by its workers, with Ms Tumelty set to continue as a director for the next five years.
A newly established Employee Ownership Trust (EOT) will include all HR Dept Group businesses, comprising the company’s central franchise operation and its health and safety division.
Ms Tumelty said she had considered many options for a succession plan but protecting the company’s culture and values had been a “vital” factor in her decision.
Adopting an employee ownership model would help protect jobs and incentivise staff to continue to grow the business.
Ms Tumelty said: “Handing the business over to people I trust is really important to me. Over the years I’ve received advice from left, right and centre on how to transition out of direct ownership, but none of it has come from people I think had the best interests of the business at heart. So I’m excited that I’ve found a solution which works for everyone and I thank everyone involved in making it happen.”
Ms Tumelty will sit on the EOT’s board with its incoming chief executive and chair Keith Sadler, who is currently a non-executive director for the group of companies.
Mr Sadler will present information on financial performance and goal achievement to elected employee representatives every six months.
Managing director Felicity Kenny, finance director Lian McQuade and directors Helen Thomas and Stacey Mead will also be on the senior leadership team.
Mr Sadler said: “We’ve always felt unique as an organisation and that’s been largely set by Sue in terms of the culture she’s created here.
“We’ll look forward to continuing her great work, not only in establishing The HR Dept as the leading franchise for outsourced human resources provision for smaller businesses but by building our health and safety operation too.”