Expert comment: The Beecroft Report – controversial recommendations for the reform of UK employment law

Professor Katie Truss, Professor of Management and Director of Studies of the Postgraduate Certificate in Employee Engagement at Kent Business School, University of Kent, comments on the following news item:

www.bbc.co.uk/news/uk-politics-18142544

“The Government-commissioned Beecroft Report published this week includes a set of controversial recommendations for the reform of UK employment law. In particular, the report calls for a shorter period of consultation over compulsory redundancies, reform of the TUPE system, scrapping employers’ liability for third party harassment, and the abandoning of some flexible working rights.  Intended to address what the Government perceives as excessive red-tape stifling the growth of the country’s SMEs and exacerbating high unemployment levels, some of  the recommendations have drawn criticism from Liberal Democrat Business Secretary Vince Cable.

Perhaps the most hotly debated recommendation in the report is what Beecroft terms Compensated No Fault Dismissal. Under the terms of this, employers would have the right to dismiss a worker who was felt to be under-performing following a ‘brief’ period of consultation and with no obligation on the part of the employer to accept any proposals arising from the consultation, whilst also doing away with the option for employees to claim constructive dismissal.  Beecroft argues that this move would place the onus fully on the employee to ensure they were performing well enough to avoid such circumstances arising. ‘Such a change would’, he argues, ‘produce an instant improvement in performance in a significant part of the national workforce’.

Mr Beecroft clearly didn’t read up on motivation theory before writing his report.  In our HRM modules at Kent, we spend a lot of time discussing what motivates employees to higher levels of performance, and ‘fear of instant dismissal’ has never featured on the list.  Such an approach might well buy short-term compliance, but it won’t build commitment or lay the foundation for the kind of sustainable, long-term growth and innovation we need to climb out of the double-dip recession we currently find ourselves in.  Far greater inspiration can be found in the work of the ‘Engage for Success’ movement led by David MacLeod and Nita Clarke aimed at bolstering the levels of employee engagement in UK plc.  Employee engagement is about ensuring your business has an enthused and motivated workforce who are investing their energies in doing a job they find rewarding and challenging.  It’s about listening to your employees, acting with authenticity and integrity, and creating a positive and enabling environment where people want to give of their best.  In the battle of carrot vs stick, the carrot wins every time.”

Click here for further information about the Postgraduate Certificate in Employee Engagement.

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