HR Health Check Glossary
Detailed explanations for each question in the 7-stage Employee Lifecycle audit. Understand why each area matters, what good looks like, and the risks of getting it wrong.
Build
Build the Basics
Everyone has the correct, signed contract (employee, contractor, or volunteer).
Why This Matters
Having the correct signed contracts for employees, contractors, and volunteers is fundamental to protecting both your business and the individuals. The wrong contract type can lead to tax penalties, tribunal claims for employment status misclassification, or issues with insurance coverage.
What Good Looks Like
Employee contracts should include job title, salary, hours, notice periods, and key terms. Contractor agreements must clearly establish self-employed status and avoid implying employment rights. Volunteer agreements should outline expectations without creating an employment relationship.
Risks of Getting It Wrong
Using the wrong contract type can result in HMRC fines, backdated tax bills, tribunal claims for employment rights (£28,000 average cost), and invalidated insurance policies. IR35 investigations can be particularly costly for businesses misclassifying contractors.
Core policies are in place and up to date — discipline, sickness, holidays, equality, data, and flexible working.
Why This Matters
Core HR policies set clear expectations for staff and managers, demonstrate legal compliance, and provide a framework for fair, consistent decision-making. They're essential evidence in tribunal defences and show professional governance to clients and investors.
What Good Looks Like
Essential policies include disciplinary and grievance procedures (Acas Code compliant), sickness absence management, annual leave booking, equality and diversity, data protection (GDPR), and flexible working requests. These should be reviewed annually and updated when legislation changes.
Risks of Getting It Wrong
Missing or outdated policies can lead to unfair dismissal claims (£28,000 average), discrimination claims (unlimited compensation), GDPR fines (up to €20 million or 4% of turnover), and reputational damage. Tribunal panels specifically look for up-to-date policies.
Payroll, pensions, and HR systems talk to each other without last-minute scrambles.
CRITICAL QUESTIONWhy This Matters
Payroll, pension, and HR systems need to communicate seamlessly to ensure employees are paid correctly and on time, pension contributions are accurate, and data remains consistent. System failures create compliance risks, employee dissatisfaction, and wasted admin time fixing errors.
What Good Looks Like
Your HR system should automatically update payroll with starters, leavers, salary changes, and pension opt-ins/outs. Pensions should auto-enrol eligible employees, calculate contributions correctly, and submit data to pension providers on time. Integration eliminates manual data entry errors.
Risks of Getting It Wrong
System disconnects cause incorrect pay (leading to staff turnover), missed pension contributions (Pensions Regulator fines up to £10,000), HMRC penalties for late RTI submissions, data breaches from duplicate records, and significant time wasted on manual reconciliation.
GDPR basics are covered — you know what data you keep, where, and for how long.
Why This Matters
GDPR compliance isn't optional - it's the law. You must know what personal data you hold, where it's stored, who can access it, how long you keep it, and how you'll delete it. This protects individuals' privacy rights and your business from substantial fines and reputational damage.
What Good Looks Like
Maintain a data inventory (Record of Processing Activities) listing all personal data collected, storage locations, access permissions, retention periods, and deletion processes. Implement data minimisation (only collect what you need), secure storage (encryption, access controls), and clear data subject rights procedures.
Risks of Getting It Wrong
GDPR breaches can result in fines up to €20 million or 4% of global turnover (whichever is higher), plus compensation claims from affected individuals. Even small breaches create reputational damage, loss of client trust, and significant investigation costs.
Pay is fair, legal, and meets National Minimum/Living Wage standards.
CRITICAL QUESTIONWhy This Matters
Paying employees below National Minimum Wage (NMW) or National Living Wage (NLW) is illegal and can happen accidentally through incorrect calculations, unpaid working time, or salary sacrifice schemes that reduce pay below thresholds. This is a strict liability offence - intention doesn't matter.
What Good Looks Like
Calculate total pay including all hours worked (including training, travel, and overtime), deduct only permitted items (not uniforms or tools), and ensure the hourly rate meets age-specific NMW/NLW thresholds. Review calculations when rates change (usually April) and for salary sacrifice schemes.
Risks of Getting It Wrong
NMW underpayment leads to HMRC arrears enforcement (must repay workers), financial penalties (up to 200% of underpayment, max £20,000 per worker), public naming and shaming on the BEIS list, reputational damage, and potential prosecution in serious cases.
Attract
Attract the Best
Job adverts are clear, inclusive, and show salary ranges.
Why This Matters
Inclusive job adverts that clearly state salary ranges attract a wider, more diverse talent pool and build trust with candidates. Salary transparency reduces wasted time for both parties and demonstrates fair pay practices. Unclear or exclusive language limits your candidate pool and risks discrimination claims.
What Good Looks Like
Use gender-neutral language, avoid jargon or unnecessary requirements that exclude candidates, state salary ranges (not 'competitive'), be clear about working arrangements (remote/hybrid/office), and ensure language is accessible. Tools like Textio or Gender Decoder can help identify bias.
Risks of Getting It Wrong
Non-inclusive adverts lead to discrimination claims (unlimited compensation), reduced diversity (impacting innovation and performance), difficulty attracting talent (longer time-to-hire, higher costs), and reputational damage as employer of choice.
Candidates know what to expect — timeline, contact, and process.
Why This Matters
Candidates who understand your hiring process, timeline, and communication expectations have a better experience, are more likely to accept offers, and speak positively about your employer brand - even if they're unsuccessful. Poor communication leads to candidate drop-off and negative reviews.
What Good Looks Like
Provide a clear overview of interview stages, approximate timelines, who they'll meet, and when they'll hear back. Send confirmation emails, update candidates if timelines change, and provide a single point of contact. Set realistic expectations about notice periods and start dates.
Risks of Getting It Wrong
Poor candidate communication damages employer brand (negative Glassdoor reviews), causes candidates to drop out mid-process, reduces offer acceptance rates, and creates a poor first impression that impacts retention if they do join.
Your careers page and basic employer brand assets feel authentic.
Why This Matters
Your careers page and employer brand materials are often the first impression candidates have of your company. Authentic, genuine content that reflects your real culture attracts candidates who'll thrive in your environment and demonstrates professional governance to potential hires.
What Good Looks Like
Careers pages should include employee testimonials, clear values, benefits overview, typical career paths, and application process. Authenticity matters more than polish - real photos, honest descriptions of challenges, and genuine employee voices build trust.
Risks of Getting It Wrong
Inauthentic employer branding attracts candidates who don't fit your culture, leading to poor retention (average cost of replacing an employee is £30,000), wasted recruitment time, and damaged reputation if reality doesn't match promise.
Referral schemes and agency agreements are set up and documented.
Why This Matters
Clear, documented referral schemes and agency agreements protect your business from fee disputes, clarify expectations, and ensure consistency. Informal arrangements can lead to costly conflicts, unclear ownership of candidates, and potential discrimination in hiring practices.
What Good Looks Like
Referral schemes should document rewards (typically £500-£2,000), eligibility criteria, payment timing, and tax treatment. Agency agreements should cover fees (typically 15-25% of salary), guarantee periods, payment terms, exclusivity clauses, and GDPR responsibilities.
Risks of Getting It Wrong
Undocumented agreements lead to fee disputes (£10,000+ in agency fees disputes), discrimination claims (if referrals favour certain groups), loss of control over candidate experience, and unexpected tax liabilities on referral payments.
You track what's working — how people find you and how long hiring takes.
Why This Matters
Tracking recruitment metrics (source of hire, time-to-hire, cost-per-hire, quality-of-hire) helps you invest budget wisely, identify bottlenecks, and improve processes. Without data, you're guessing which channels work and wasting money on ineffective advertising.
What Good Looks Like
Track where candidates come from (job boards, LinkedIn, referrals), how long each stage takes, drop-off points, offer acceptance rates, and first-year retention by source. Applicant Tracking Systems (ATS) like Pinpoint, Greenhouse, or Workable automate this tracking.
Risks of Getting It Wrong
Without tracking, you waste recruitment budget on ineffective channels, can't identify process bottlenecks, miss patterns in candidate drop-off, struggle to justify recruitment costs, and can't demonstrate ROI on recruitment investments.
Select
Hire with Confidence
Interviews are structured, scored, and consistent for every candidate.
Why This Matters
Structured interviews with consistent questions and scoring criteria ensure fairness, reduce unconscious bias, and create defensible hiring decisions. Unstructured interviews are unreliable predictors of performance and increase discrimination risk as different candidates are assessed differently.
What Good Looks Like
Develop interview scorecards with 5-7 key competencies, specific questions for each, and a clear scoring rubric (1-5 scale with behavioural anchors). All interviewers ask the same questions, score independently, then compare. Document scores and rationale for audit trail.
Risks of Getting It Wrong
Unstructured interviews lead to discrimination claims (unlimited compensation), poor hiring decisions (30% of new hires fail within 90 days), inability to defend hiring decisions in tribunals, and inconsistent candidate experience.
You record and meet reasonable adjustments under the Equality Act.
Why This Matters
The Equality Act requires employers to make reasonable adjustments for disabled candidates throughout the recruitment process. Failing to ask about and accommodate reasonable adjustments is direct discrimination, even if the candidate isn't ultimately hired.
What Good Looks Like
Ask all candidates if they need adjustments (in application form and interview invite), respond promptly to requests, document adjustments made, and ensure interview panels understand the adjustments. Common adjustments include extra time, different formats, accessible venues, or breaks.
Risks of Getting It Wrong
Failure to make reasonable adjustments leads to discrimination claims (average £15,000-£30,000 compensation), reputational damage, loss of talented candidates, and potential Equality and Human Rights Commission investigation.
Pre-employment checks (Right to Work, references, DBS if relevant) happen accurately and on time.
CRITICAL QUESTIONWhy This Matters
Right to Work checks are a legal requirement before employment starts. Incorrect or missing checks can result in civil penalties up to £20,000 per illegal worker and potential criminal prosecution. DBS checks are legally required for regulated activities involving children or vulnerable adults.
What Good Looks Like
Right to Work checks must verify original documents (passport, visa, share code), take copies, record check dates, and repeat checks before visa expiry. DBS checks must be applied for before work with vulnerable groups begins. References should verify employment dates, role, and reason for leaving.
Risks of Getting It Wrong
Missing Right to Work checks result in £20,000 fines per illegal worker, criminal prosecution (up to 5 years imprisonment), and closure of your business. Failing to conduct required DBS checks can lead to prosecution, safeguarding incidents, and permanent reputational damage.
Offers, contracts, and start dates are clear and well coordinated.
Why This Matters
Clear, coordinated offer management prevents candidates accepting other offers due to delays, ensures all parties understand start dates and terms, and avoids contract disputes. Poor coordination causes last-minute drop-outs, wasted notice periods, and payroll setup issues.
What Good Looks Like
Offers should be in writing (email acceptable), include salary, start date, notice period, and conditions (Right to Work, references, medical). Track offer expiry dates, coordinate with candidates' notice periods, and ensure offer letter terms match final contracts.
Risks of Getting It Wrong
Unclear offers lead to contract disputes (£5,000-£25,000 in tribunal claims), candidate drop-out before starting (wasted recruitment costs), mismatched expectations causing early exits, and payroll setup errors.
Managers are trained to interview well and keep data secure.
Why This Matters
Managers conducting interviews need training on asking legal questions, avoiding bias, assessing candidates fairly, and handling data securely (GDPR). Untrained interviewers ask illegal questions, make biased decisions, and create liability for your business.
What Good Looks Like
Interview training should cover discrimination law (protected characteristics), structured interview techniques, unconscious bias awareness, note-taking and documentation, GDPR (secure storage, data retention), and candidate experience best practices.
Risks of Getting It Wrong
Untrained interviewers cause discrimination claims (unlimited compensation), GDPR breaches (fines up to 4% of turnover), poor hiring decisions (average bad hire costs £30,000), and damage to employer brand through poor candidate experience.
Start
Bring People Onboard
Offers and contracts are signed digitally and stored properly.
Why This Matters
Digital contract signing and proper storage create an audit trail, speed up onboarding, reduce lost paperwork, ensure GDPR compliance, and provide quick access when needed (e.g., tribunal defence). Paper contracts get lost, delayed, or never returned, creating liability gaps.
What Good Looks Like
Use digital signature tools (DocuSign, PandaDoc, Adobe Sign), store signed contracts in secure HR systems with access controls, maintain version control, and ensure backups. Document retention policies should specify how long to keep contracts (minimum 6 years after employment ends).
Risks of Getting It Wrong
Lost or unsigned contracts create problems in tribunal defence (unable to prove terms), GDPR breaches (unsecured storage), contractual ambiguity (£10,000+ in settlement costs), and difficulty enforcing terms like restrictive covenants.
Day-one induction covers essentials — health and safety, policies, data protection, and introductions.
Why This Matters
Day-one induction ensures legal compliance (health and safety, data protection), sets expectations, introduces company culture, and improves retention. Missing essential induction elements creates liability risks and poor employee experience leading to early exits (33% leave within 90 days without good onboarding).
What Good Looks Like
Induction should cover health and safety requirements, fire evacuation procedures, data protection and GDPR responsibilities, key policies, IT setup, team introductions, and role-specific training. Use checklists to ensure consistency and document completion.
Risks of Getting It Wrong
Poor induction causes health and safety incidents (£5,000+ per breach), GDPR breaches (fines up to 4% of turnover), early-stage exits (average cost £30,000 to replace), and poor performance due to lack of clarity.
Payroll and pensions are set up correctly before the first payday.
Why This Matters
Payroll and pension setup errors on first payday destroy trust, breach contract, and can cause serious financial hardship for new starters. Auto-enrolment failures result in Pensions Regulator fines. Getting this right is fundamental to employee experience and legal compliance.
What Good Looks Like
New starter forms must be completed 2+ weeks before first payday, including bank details, tax code, student loan status, pension opt-in/out, and emergency contacts. Verify bank details independently (call back on official number) to prevent fraud. Test run payroll before submission.
Risks of Getting It Wrong
Payroll errors cause contract breach claims (£5,000+ settlements), immediate resignation of new starters, auto-enrolment fines (£400 per breach), and reputational damage. Bank detail fraud can result in losses of £5,000-£50,000 per incident.
30/60/90-day goals and probation reviews are booked and tracked.
Why This Matters
Structured probation management with clear 30/60/90-day goals and reviews improves retention, identifies issues early, and provides evidence for fair dismissal if needed. Without structure, probation periods pass without assessment, missing the opportunity to address performance issues.
What Good Looks Like
Set SMART goals for 30, 60, and 90 days, book review meetings in advance, use structured templates to assess performance, document progress and concerns, and extend or end probation based on evidence. Fair probation failures require warnings and support.
Risks of Getting It Wrong
Unmanaged probations lead to unfair dismissal claims (£12,000-£28,000), keeping poor performers past probation (expensive to exit later), lack of evidence to defend decisions, and missed opportunities for early intervention.
New starters have a buddy, regular check-ins, and feedback loops that work.
Why This Matters
Buddy systems, regular check-ins, and feedback loops dramatically improve retention (40% improvement in first-year retention with good onboarding). New starters who feel supported, have someone to ask questions, and receive regular feedback are more engaged and productive.
What Good Looks Like
Assign a peer buddy (not line manager) for informal questions, schedule weekly check-ins for first 90 days with line manager, create feedback opportunities (both directions), and use pulse surveys at 30/60/90 days to identify issues early.
Risks of Getting It Wrong
Poor onboarding support causes early exits (33% leave within 90 days), low engagement, slower time-to-productivity, poor culture integration, and negative employer reviews. Average cost of replacing a leaver within first year is £30,000.
Manage
Manage Performance
Absence and flexible working requests are handled fairly and on time.
Why This Matters
Absence and flexible working requests are legally regulated processes with strict timelines and fairness requirements. Poor handling leads to discrimination claims, relationship breakdown, and employees feeling unsupported. Many tribunal cases arise from badly managed absence or rejected flexible working requests.
What Good Looks Like
Track absence patterns (Bradford Factor), follow fair return-to-work processes, consider reasonable adjustments for disability-related absence, and respond to flexible working requests within 3 months with business reasons if refusing. Document everything.
Risks of Getting It Wrong
Poor absence management leads to discrimination claims (£15,000-£40,000), unauthorised absence escalation, productivity loss, and low morale. Badly handled flexible working requests result in tribunal claims (£12,000-£25,000) and resignations.
Regular one-to-ones happen and focus on progress, not paperwork.
Why This Matters
Regular one-to-ones build trust, surface issues early, align on priorities, and support development. They shouldn't be bureaucratic form-filling but meaningful conversations. Teams with regular one-to-ones have 24% higher engagement and retention.
What Good Looks Like
One-to-ones should happen at least monthly (weekly for new starters), follow a consistent structure (progress, challenges, priorities, development), focus on conversation not paperwork, and result in clear actions. Managers should listen 70%, talk 30%.
Risks of Getting It Wrong
Missing one-to-ones leads to disengagement (14% higher turnover), festering issues that explode later, misaligned priorities, lack of support evidence in performance cases, and tribunal claims of inadequate management support.
HR software and payroll are accurate and up to date every month.
Why This Matters
HR and payroll data accuracy is fundamental to legal compliance, correct pay, absence tracking, and reporting. Errors cause overpayments (hard to recover), underpayments (breach of contract), incorrect tax submissions (HMRC penalties), and inability to defend tribunal claims with reliable data.
What Good Looks Like
Monthly data reconciliation should check starters/leavers processed, salary changes updated, absence recorded, tax codes applied, pension contributions calculated, and pay elements correct. Spot-check 10% of payslips monthly for accuracy.
Risks of Getting It Wrong
Data errors cause payroll mistakes (£5,000-£20,000 overpayment recovery issues), HMRC penalties (up to £3,000 per incorrect RTI), auto-enrolment fines (£400+ per breach), inability to defend tribunal claims, and wasted time fixing errors.
Conduct or capability issues are handled through clear, fair processes.
Why This Matters
Conduct and capability issues must be handled through fair, documented processes following the Acas Code. Informal management often works, but when it doesn't, you need evidence of fair process to defend dismissals. 70% of unfair dismissal claims arise from poor process, not the decision itself.
What Good Looks Like
Follow Acas Code: investigate fully, invite to formal meeting with right to accompany, present evidence, allow response, adjourn to consider, communicate decision in writing with appeal right. Document every step. Consider reasonable adjustments for capability linked to disability.
Risks of Getting It Wrong
Unfair dismissal claims (£12,000-£28,000) arise from poor process, even if dismissal was justified. Tribunals add 25% uplift for Acas Code failures. Badly handled cases damage morale, create legal costs (£15,000+ for defence), and risk discrimination claims (unlimited compensation).
Wellbeing and safety measures are visible and used — not just written down.
Why This Matters
Wellbeing and safety measures protect physical and mental health, demonstrate duty of care, reduce absence, and improve retention. Grey fleet (employees using own vehicles for work) creates specific risks requiring risk assessments, insurance checks, and licence verification.
What Good Looks Like
Risk assessments for work activities, Mental Health First Aiders, wellbeing initiatives (EAP, flexible working, wellbeing days), health and safety training, and for grey fleet: driving licence checks (6-monthly), business insurance verification, and vehicle safety checks.
Risks of Getting It Wrong
Health and safety breaches can lead to prosecution (unlimited fines, imprisonment for directors), compensation claims (£5,000-£50,000+ for injuries), HSE enforcement notices, reputational damage, and increased insurance premiums. Grey fleet accidents can result in corporate manslaughter charges.
Grow
Grow and Engage
Pay structures and equal-pay checks are documented and reviewed.
Why This Matters
Gender pay gap reporting is legally required for organisations with 250+ employees, but equal pay reviews are good practice for all sizes. Unexplained pay gaps create discrimination risk, damage employer brand, and indicate systemic bias in pay decisions.
What Good Looks Like
Document pay structures (salary bands, progression criteria), conduct annual equal pay reviews comparing like roles, analyse pay gaps by gender/ethnicity, investigate unexplained differences, and create action plans. For 250+, publish annual gender pay gap data.
Risks of Getting It Wrong
Equal pay claims can be brought up to 6 years back, with damages of up to 6 years' pay difference (£50,000-£300,000+), plus injury to feelings (£10,000-£50,000). Failure to publish gender pay gap data results in Equality and Human Rights Commission enforcement action.
Performance reviews are useful and actually completed.
Why This Matters
Performance reviews provide formal feedback, document performance, support pay/promotion decisions, identify development needs, and create audit trails. When done well, they improve performance (25% improvement in productivity) and engagement. When done badly, they damage morale and add no value.
What Good Looks Like
Annual reviews should assess performance against objectives, provide 360 feedback, set SMART goals for next year, discuss development, and inform pay/promotion decisions. Use a simple rating scale (e.g., Exceeds/Meets/Below Expectations), document clearly, and train managers.
Risks of Getting It Wrong
Missing or poor reviews lead to inability to defend performance dismissals (£12,000-£28,000 claims), lack of evidence for pay decisions (discrimination claims), poor performance continuing unchallenged, and low engagement (42% say poor performance management impacts motivation).
Career paths and learning plans are clear and realistic.
Why This Matters
Clear career paths and development plans improve retention (38% more likely to stay), increase internal mobility (reducing recruitment costs), and support succession planning. Employees who can't see progression opportunities leave for companies where they can grow.
What Good Looks Like
Document typical career paths in your organisation, define competencies for each level, create Individual Development Plans (IDPs) with stretch goals and learning opportunities, and provide access to training (formal courses, mentoring, stretch projects).
Risks of Getting It Wrong
Lack of development causes high turnover (especially high performers), difficulty attracting ambitious talent, skills gaps as business grows, costly external recruitment for senior roles (£30,000-£80,000 per hire), and low engagement (44% cite lack of development as reason for leaving).
Pay and benefits updates, bonuses, or incentives are handled cleanly and communicated well.
Why This Matters
Pay changes, bonuses, and benefits updates must be handled accurately and communicated clearly to maintain trust, ensure tax compliance, and avoid contractual disputes. Poor communication causes resentment, pay errors create tax liabilities, and unclear criteria create discrimination risk.
What Good Looks Like
Pay reviews should follow documented criteria (performance ratings, market benchmarking), communicate decisions in writing with effective dates, update payroll and systems promptly, explain bonus/incentive criteria clearly upfront, and deduct correct tax. Communicate total reward (salary, pension, benefits value).
Risks of Getting It Wrong
Pay errors cause contract breach claims (£5,000-£20,000), tax penalties (HMRC interest and fines), discrimination claims if criteria are unclear or applied inconsistently (unlimited compensation), and low morale if communication is poor (24% cite pay communication issues as cause of low trust).
Engagement surveys or quick check-ins happen — and lead to visible action.
Why This Matters
Engagement surveys and check-ins provide early warning of issues, show employees you care about their views, and drive improvement. The key is taking visible action on feedback - surveys without action damage engagement more than no survey at all.
What Good Looks Like
Annual engagement surveys (10-15 questions, anonymous, cover key drivers: leadership, development, wellbeing, inclusion) plus pulse surveys (2-3 questions monthly). Share results openly, create action plans with teams, and communicate progress regularly (what changed, what couldn't change and why).
Risks of Getting It Wrong
Low engagement costs 18% of salary in lost productivity, increases turnover (disengaged employees are 2.6x more likely to leave), reduces customer satisfaction, and indicates underlying cultural or leadership issues. Not acting on feedback damages trust and makes things worse.
Change
Move on Well
Leavers' handovers, equipment, and access are wrapped up cleanly.
Why This Matters
Clean leaver processes protect your IP, data, systems, and equipment, ensure smooth knowledge transfer, and reduce security risks. Poor handovers disrupt service, lost equipment costs money, and unreturned access creates data breach risks.
What Good Looks Like
Leaver checklists should cover handover documentation, equipment return (laptop, phone, passes, keys), system access revocation (email, apps, building access), knowledge transfer meetings, and file cleanup. IT should be notified immediately on resignation to prepare for exit day.
Risks of Getting It Wrong
Poor leaver processes cause data breaches (£5,000-£4 million GDPR fines), lost equipment (£1,000-£3,000 per laptop), continued access to systems (security risk, potential sabotage), service disruption (knowledge loss), and IP theft (trade secrets shared with competitors).
Final pay, benefits, and documentation are handled accurately and on time.
Why This Matters
Final pay, benefits, and documentation must be accurate and timely to comply with contract, maintain good relations, and avoid claims. Errors damage your reputation (bad Glassdoor reviews), create unnecessary conflict, and can result in tribunal claims.
What Good Looks Like
Final pay should include salary to leaving date, accrued holiday pay, any bonus/commission due, and correct tax deductions. Return company benefits (phone, car, shares), provide P45 within legal timeline, explain pension options, and send final payslip.
Risks of Getting It Wrong
Final pay errors lead to unlawful deduction of wages claims (up to £25,000), delay P45 causes HMRC penalties (£400-£3,000), incorrect holiday pay calculations result in tribunal claims (average £3,000-£8,000), and poor leaver experience damages employer brand.
Exits, restructures, or redundancies are planned and consulted properly.
Why This Matters
Redundancies and restructures have strict legal requirements including fair selection, consultation periods, alternative employment searches, and severance pay. Get it wrong and you face unfair dismissal claims, protective award claims (up to 90 days' pay per employee), and reputation damage.
What Good Looks Like
Redundancy process must include business rationale, fair selection criteria (scored objectively), 30-day consultation for 20-99 redundancies or 45 days for 100+, consideration of alternatives (redeployment, reduced hours), and statutory redundancy pay calculations.
Risks of Getting It Wrong
Unfair redundancy claims cost £12,000-£28,000 each, protective awards for failing to consult cost 90 days' pay per affected employee (£50,000+ for 10 staff), discrimination claims if selection criteria are biased (unlimited compensation), and reputational damage affecting ability to attract talent.
Exit interviews happen and their insights feed back into improvement.
Why This Matters
Exit interviews provide valuable insights into why people leave, identify patterns in turnover, highlight management or cultural issues, and demonstrate you care about improvement. The insights often reveal fixable problems (poor line managers, lack of development, pay issues).
What Good Looks Like
Exit interviews should be conducted by HR (not line manager), use consistent questions, guarantee anonymity in reports, ask about reasons for leaving, what could have prevented it, experience of management, and suggestions for improvement. Analyse trends quarterly and share findings with leadership.
Risks of Getting It Wrong
Missing exit interviews means losing valuable insight into turnover drivers (costing 30-150% of salary to replace each leaver), missing patterns of poor management, inability to address systemic issues, and higher turnover continuing unchecked (average turnover costs £30,000 per leaver).
You keep in touch with good leavers and maintain an open door for returners.
Why This Matters
Keeping in touch with good leavers maintains relationships, creates a potential rehire pool (boomerang employees who return with new skills), supports alumni networks, and demonstrates confidence in your employer brand. For visa sponsors, you may need to rehire within the licence compliance rules.
What Good Looks Like
Alumni networks (LinkedIn groups, annual reunions), sending company updates, first refusal on relevant vacancies, boomerang hiring policies (return terms, pay positioning), and for visa sponsors: maintaining sponsor licence compliance records and understanding rehiring implications under immigration rules.
Risks of Getting It Wrong
Not maintaining relationships means losing access to proven talent (rehiring former employees has 40% faster time-to-productivity), damaging employer brand (former employees are vocal advocates or critics), and for visa sponsors: potential compliance issues if not tracking leavers properly.
Ready to Audit Your HR Health?
Take our free 5-7 minute Health Check to see where you stand across all 7 stages of the Employee Lifecycle.
Start Your Health Check