In a new series, we explore the legal implications of growth. This follows the launch earlier this year of our in-depth report, Ambition 2025 [link], which looked at the drivers for growth of North West businesses – their strategic objectives for the year, the challenges that lie ahead and the opportunities that exist in their quest for success. The report dived into a number of core areas that feature prominently in the growth ambitions of regional businesses. This includes finance, people, innovation and sustainability.

In the second of four blogs, we focus on the key topic of people, speaking to partner, Michael McNally, about their importance and what businesses need to consider from a legal perspective when scaling up.

The importance of people

Best-selling author and motivational speaker, Zig Ziglar, once said: “you don’t build a business, you build people, then people build the business.”

There’s no doubt that they are a critical asset and essential in driving value and reaching strategic objectives. In fact, a highly motivated and happy workforce can directly contribute to economic growth, competitiveness and overall business success. According to statistics from US communication software company Firstup, engaged and more productive employees result in a 21% increase in profits.

“Unless you’re a completely automated business, it’s very difficult to achieve anything without the buy-in of your people,” explains Michael. “On the flip side, it’s easy to get things wrong if your people aren’t fully engaged and suitably trained.”

When it comes to scaling a business, there are various stages on the growth journey when the people agenda stands out.

“The first stage is focusing on the basics and making sure that you are legally compliant when it comes to employing people,” Michael explains. “As you grow, other things become more important, whether that’s introducing more in-depth HR policies, empowering senior leaders when it comes to managing people, as well as focusing on cultural performance.

“Creating the right culture and instilling the right behaviours is vital in a growing business.”

Key legal considerations

From a people perspective, there are several key legal factors to consider when building a robust workforce and vying for growth. These include:

• Ensuring you have the right terms and conditions in place to meet your legal obligations as an employer. It’s also important to make sure these are well documented and communicated with employees.
• Set and manage expectations. Do your people know what to do and what is expected of them? Clear, transparent and well managed policies will help to cover this aspect of your people proposition.
• ‘People buy people’. It’s important to have the right people in place to manage teams, and manage them correctly and proactively. This should all be done in line with the company’s policies, culture and obligations.
• When you employ people, it’s vital to have the most appropriate insurance in place and, if possible, a suitable retainer set up with a professional advisor, to offer advice should an employment matter arise.

Support and guidance

Google ‘people management’ and there’s a plethora of support and guidance at the click of a button – advice that Michael believes should be ‘approached with caution’. While resources such as ACAS, the Equality and Human Rights Commission and the CIPD have a wealth of resources – some basic, some practical and some more complex in nature – businesses also see value from within their own sector.

“A lot of clients that we speak to really appreciate the advice and guidance from their own trade bodies – organisations that can provide support and peer networks,” says Michael. “They understand the nuances of the sector and the specific challenges facing businesses, so bring a unique perspective that wider HR organisations sometimes cannot.”

Regardless of the support that exists online, through professional networks or from advisors, Michael insists that in order to achieve true success it’s essential to get buy-in from all managers, across all business functions, when it comes to HR processes.

“It’s important to recognise that when it comes to HR, it’s not something that’s just there when you have an issue or complaint,” says Michael. “If used properly, it can lead to a good culture, high performance, and a strong team. All of which ensure that you’re growing and successful as a business.”

If you would like to speak to Michael in more detail about the role people play in your growth strategy, contact him on michael.mcnally@pannonecorporate.com or call 07736617394