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Crisis anagement

At the risk of bolting the stable door after the horse has gone, the recent floods in Gloucestershire and Warwickshire have given us plenty of pause for thought over the extent to which our clients and other businesses were prepared for the crisis. There are lessons to be learned, for sure, and with the Business Continuity Management Survey reporting that 60% of SME and 70% of small businesses have no plans to cope with emergencies it seems worthwhile trying to capture some experience and see if we can’t be better equipped next time.

Of course, we may not get flooded every summer, but the weather can play plenty of other tricks and man-made events can be just as devastating – whilst your own business may be relatively safe from terrorism there is no guarantee that the effects of terrorist activity won’t have a serious effect on your ability to keep your business open.

What should we be thinking about, then?

The key issue in the current crisis has been premises. If they aren’t available, is there somewhere else to go? Can people work from home? What relationships do you have with service providers to keep the offices open – e.g. portable toilets and water. If you hold stock, what arrangements do you have to make sure that it is safe? What plans are there for data? How you can access staff records and client records if the office is underwater? In people terms, how quickly can you get hold of them? are your mobile and home ‘phone records for all of your staff up to date? if they can’t do their normal duties, can you give them something else to do, and does your contract allow this? relying on good will is all very well, but how do you manage those that don’t show the required flexibility and have you properly communicated what the required flexibility is? perhaps most of all, what are you going to do about pay? If they can’t get to work or if you can’t give them work if they do manage to get in, what are you going to do about paying them?

What to do

• Get a team together, discuss all of these issues and make sure that there is a plan, preferably written and preferably updated regularly. Now is a good time, with the experience still fresh in everyone’s minds.
• At any time of crisis, communications are the key and a contact ‘pyramid’ to pass messages quickly through all employees is worth documenting.
• Make sure that off-site backup for all systems and records exists and is used.
• Consider reciprocal arrangements with other offices or friendly businesses elsewhere – can they help?
• Make sure that there is a database of emergency providers, including your insurers, that you can rely on and build relationships where that may help.
• Involve your contractors in your plans – if security or catering is critical and outsourced for you, ask them what their plans are and make sure that your commercial agreements support you in times of crisis.
• Consider a lay-off clause in your contract of employment. Sheffield teaching hospital made the news following their floods by taking a firm line – employees not able to work would have to make up the time or take it as annual leave – this is only supportable if the contract allows it.

Questions and answers

What are the health and safety issues?
Minimum standards still apply, so:

• Temperature
• Lighting
• Cleanliness
• Sanitary facilities
• Washing facilities
• Drinking water

All need to be reasonable and if they aren’t you may have to cease trading. If you can continue to trade, make sure that risk assessments are undertaken during the crisis and consider especially any special risks imposed by unusual equipment that you’ve brought in to manage the crisis.

If we are forced to close, do we still have to pay staff?
Only if there is a lay off clause in the contract or you have a collective agreement with a trades Union. In the absence of such a clause, you cannot force them to take the leave unpaid or from their annual holiday entitlement.

If they can’t get to work, do we still have to pay them?
The responsibility for employees to get to work is theirs, not yours, so if they can’t get in, you don’t have to pay them.

Best practice over the last few months has seen a huge amount of creativity and good will from employers and employees – finding others ways to get in, finding ways to work from home, findings ways to work different hours. If they really can’t get in and you really can’t find alternatives, you can advise them to take the time unpaid, to take the time as holiday, or give them the choice as to which they prefer. The only important thing here is to be consistent with the way that you deal with all staff.

Remember also that parental leave situation remains unchanged. If staff have to be at home because the schools are unexpectedly closed and they have to care for their children, this situation will take precedent over their challenges in getting into work themselves.