Strategic Human Resource Management (SHRM) and Human Resource Management (HRM)?
SHRM may be regarded as an approach to the management of human resources that provides a strategic framework to support long-term business goals and outcomes. The approach is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need.
On the other hand HRM is often seen as the day to day management of people within an organisation, including pay, training, performance, holidays, pensions, benefits, recruitment. HRM is often concerned with typical aspects that arise reactively, whereas SHRM is strategic and aligned to other corporate aspects such as strategic marketing, financial planning and resources, IT strategy and Product development.
The typical modules of a level 5 intermediate CIPD qualification would include:
• Business issues and the context of Human Resources
• Resourcing and Talent Planning
• Reward management
• Improving employee engagement
• Developing, coaching and mentoring
• Organisational development
• Managing and coordinating the human resource
• Employee engagement, and
• Organisational improvement
There is only one optional module covering Employment Law which, if selected, only contributes to 15% of the qualification.
Employment law is a well-defined and vast area of law ranging from employment contracts to dismissal and everything in between. Many businesses find it worthwhile to use an employment lawyer or employment law service to help ensure that they stay within the law. Whereas SHRM and HRM are viewed as important strategic mechanism it is largely untouched by legislation. Employment law provides legal protection and remedies against unfair and wrongful treatment and discrimination.
It is fair to say that complying with employment law keeps your workforce happier and more productive, and saves you the cost and stress of employment tribunal claims.
Employment contracts and statutory requirements
Every employee has a contract, whether it is in writing or not. As an employer, you are legally obliged to provide a written statement of the main terms and conditions. Changing the terms of the contract without the employee’s agreement can be a breach of contract.
Regardless of the contract, you must comply with minimum statutory requirements in terms of pay, hours of work and annual leave. These include the minimum wage, the working time regulations covering maximum working hours, and annual paid holiday entitlements. Other entitlements include statutory sick pay for qualifying employees.
Employers must respect a wide range of employee rights. These include providing employees with a healthy and safe working environment, allowing them to belong to a trade union and providing pay statements.
Pregnant women and new mothers have significant rights to time off both before and after giving birth. If they have been employed long enough, they also qualify for statutory maternity pay. Similar rights apply to adoptive parents and new fathers.
Crucially, employees are protected against discrimination on the basis of race, colour, nationality or ethnic origin, age, disability and religion or philosophical beliefs. It is also illegal to discriminate against anyone on grounds of their sex (including gender re-assignment) or marital status (including civil partnerships), or on the grounds of their actual or perceived sexual orientation. Employers can also be held liable for any discrimination or victimisation by their employees or visitors to their premises. Disgruntled employees may well try to claim illegal discrimination; an employment tribunal can award unlimited damages.
Larger businesses must inform and consult employees or their representatives before making major changes or redundancies. Even if you’re not covered by this requirement, it’s good practice to keep employees informed and involved in major decisions.
You need to have written disciplinary and grievance procedures that operate in a fair and transparent way. Employees should be made aware of the procedures and managers trained in how to handle discipline and grievance issues.
If you need to dismiss employees or make them redundant, you must treat them fairly and reasonably. Unfair or wrongful dismissal can lead to an employment tribunal and an order to reinstate the employee or pay compensation
A typical employment law master’s degree would include:
• Employment status and rights
• Discrimination law
• Employment contract and common law
• Termination of employment and individual dispute resolution
• Transfer of employment
• Trade union rights and law
• Restrictive covenants
• Information and consultation
• The European Union and employment law
Although there is some cross over between SHRM and HRM with Employment Law it is rarely the case that a HR Director, Manager or Advisor would deal with contentious employment law issues without the advice of a specialist consultant or solicitor.
Employment Law V SHRM and HRM
|UK and English Law||Recruitment and retention|
|EU Law||Pay and reward|
|Case law||Strategic performance management|
|Approve Codes of Practice||Information and consultation|
|Directives||Coaching and mentoring|
|Tribunals, Central Arbitration Committee and County Court||Employee engagement and participation|
For help with any employment law issues give us a call on 03456 122 144.