Business Contingency - High on Agenda? 
Added : 8th July 2008
Contact our HR Consulting team on 0800 0665 894 or alternatively email Clare Johnson on clarej@cooperparry.com.
The high levels of rain during the summer of 2007 proved to be a wash out for businesses up and down the UK but for some businesses the floods threatened their very existence. The recent report into the floods undertaken by Sir Michael Pitt has highlighted the need for businesses to be prepared in the event of crisis.
The report also criticised the Government’s response to the crisis and called for better business contingency planning, or as it is also sometimes known, disaster recovery. The Chartered Management Institute found in their 2008 business contingency survey that less than half of organisations across the UK have a business contingency plan and those that do still tend to focus on fire, terrorism and loss of IT systems.
Business contingency plans should cover a wide range of potential business risks including environmental problems, public health epidemics, internal or external sabotage, such as computer hacking or fraud, and also public transport emergencies such as extended train strikes.
Human resource and health and safety teams should play proactive roles in both business contingency planning and dealing with an actual real life emergency situation. Robust recruitment processes such as undertaking pre-employment CRB checks and taking references from previous employers can limit the likelihood of employing a person that could in turn defraud or sabotage the organisation. Other measures which HR departments should utilise include keeping up to date personal records of employees and having emergency contact details for them. They can also have identity controls in place, such as checking original passports before employment (a necessity under the Asylum and Immigration Act 2006) and limit access to employees’ sensitive information.
A further area where HR plays a critical role in business contingency planning is in the training of employees and in the dissemination of information relating to the business contingency plan. It is crucial that employees are aware of, and understand, the procedures to follow in the event of an emergency and it is also important that they are able to respond in a productive manner. Furthermore, HR should be involved in testing the plan on a regular basis to identify if improvements need to be made to it and to ensure that all employees are aware of their individual roles and responsibilities in an emergency situation.
When an emergency or crisis does occur then the role of HR changes and the HR Department can expect to be responsible for accounting for personnel, keeping employees’ families and off duty employees aware of the situation and also activating support services. Following an emergency or crisis the HR department will often be responsible for ensuring the continuity of employees’ salaries and wages, arranging and supporting flexible working arrangements and also holding post incident briefings with employees.
Whilst HR should play an important role in business contingency planning it is also paramount that in the formulation of the plan, other areas of the business such as the Management Team, Health and Safety, Facilities and IT must be involved..
The HR Consulting team can help you to develop a business contingency plan.
If you wish to set up a contingency plan for your business then please contact a member of our HR Consulting team on 0800 0665 894 or alternatively you can email Clare Johnson on clarej@cooperparry.com.
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