15 January 2007
Running a twenty four hour operation is now common in many industry sectors including transport, manufacturing and health and it can be an occupational hazard for certain professions such as IT technicians. What are the human resource implications of meeting this business need?
A key concern for HR professionals will be that they can attract and retain the necessary staff to provide the cover required. Working unsocial hours, or expecting staff to be ready and fit for work at a moments notice, demands a premium in the labour market.
If you are expecting staff to work on a shift basis, the price you can expect to pay will depend on the time and duration of the shifts and the pattern over which these are worked. Common arrangements are to have three eight-hour shifts with staff either working a permanent shift, alternating between two shifts or rotating between all three.
Another arrangement is to operate two twelve-hour shifts. This can be more attractive to employees as it results in less frequent attendance at work, saving travel time and costs, and longer periods of time off between each shift. Employers can also prefer it as it increases efficiency by reducing the number of shift changeovers when productivity normally declines.
Most employers will pay an extra premium as a shift allowance in addition to basic salary which can be as high as 35% depending on the degree of unsociability and disruption. An alternative to paying a flat premium is to pay enhanced hourly rates for any hours worked at specified times or on certain days. For example, some employers will pay time plus ⅓ for hours worked between 7 pm and 7 am and as much as double time on weekends.
The premium paid to employees who are required to be on standby and come into work if called out is normally compensated by two separate arrangements. The first factor is to cover the inconvenience of being ready and fit to work outside working hours, which normally involves the employee remaining with in a reasonable distance of the workplace. The second factor is to compensate the employee for actual time worked in the event of a call out. Compensation is given as a total package which is weighted on one factor or the other depending on the likelihood of a call out. A typical arrangement is to pay a standby allowance based on a flat weekly rate worked over a rota, i.e. one week in three, and then to pay enhanced rates for actual hours worked. Often a set minimum number of hours per call out can be claimed.
Another consideration for the 24 hour operation is that the working arrangements comply with the Working Time Regulations (WTR). Shift workers, although likely to be treated as "special cases" under the WTR as being engaged in activities requiring continuity of production or service, should still be subjected to the same limits on working time as for 9-5 employees or afforded compensatory rest.
This means that rotas need to be arranged to ensure that:
- The working week does not exceed an average of 48 hours, calculated over a 26 week period for shift workers, unless the worker has chosen to opt out
- A rest break of at least 20 minutes is given during a shift lasting more than 6 hours
- Where possible the shift worker is given a daily rest period of 11 hours between the end of one shift and the start of their next one and a weekly rest period of at least 24 hours in each 7 day period or 48 hours in each 14 day period unless this is not possible when compensatory rest must be given
Employers not covered by an exception under the WTR will need to rely on the "opt out" if employees are expected to work hours which exceed 48 hours a week. The opt out is still currently permissible, although the EU Parliament has voted to abolish its use within three years of a new directive being implemented. However, ministers have since failed on four occasions to reach a consensus on the new provisions. At the latest failed attempt, in November 2006, the UK was prepared to accept a proposal which allowed the opt-out to remain in place but with a maximum ceiling imposed for all workers of 65 hours a week. This was rejected by other member states on the basis that it did not set a date for an end to the opt-out.
The health and safety of shift workers, particularly those working nights, is another concern. Shift work affects the quality and quantity of sleep and is known to increase the risk of:
- Tiredness, resulting in more mistakes and accidents
- Mental stress
- Cardio-vascular diseases
- Gastro-instestinal disorders
- Menstrual disorders
Employers must undertake risk assessments to protect staff and under the WTR are required to provide a free health assessment to any worker who commences night work and at regular intervals thereafter. A night worker is someone who mostly works shifts which involve spending at least three hours of their working time between 11pm and 6am. Furthermore the shift of a night worker should, if possible, be restricted to an average of 8 hours in every 24 hours.
The HR impact is not just limited to the above. It is also important to ensure that all policies and practices can accommodate employees working on any shift pattern. Matters such as providing restaurant facilities and opportunities for training will be as important as how you motivate, engage and reward shift workers if you want the operation to run like clockwork.