July 2011: In this Edition

Manufacturing in Australia is slowing - In a recent survey conducted by Westpac, manufacturing trends fell sharply in June from what was a good March quarter, and it seems this trend will continue for the September quarter as well. Further reports suggest that as the Asian economy grows, Australia will benefit...

The Flexible Office - Moving on from the traditional office surrounded by four walls and water coolers, savvy business operators have found a new environment from which to conduct their business.

Just A Thought - Perhaps if people stay engaged in the workplace and are stimulated by their job..maybe you might find they're more likely to stay and improve their workplace productivty.

In the News - with the coming of the new financial year there are a few changes regarding compliance that you should be prepared for: as of 1 July, all businesses are responsible for adminstering the paid parental leave scheme; annual leave loading accrued on annual leave is to be paid out when employment ends, even if a Modern Award does not require leave loading to be paid on termination; a workplace audit of your employment relations compliance will help minimise business risks when Fair Work on-site inspections occur; as of 1 July 2011, the director penalty regime will be extended to include the superannuation guarantee.

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March 2011: In this edition

Staff Retention (minimising turnover) - Staff turnover becomes an expensive exercise for organisations (recent reports suggest associated costs can range from $15k up to an entire annual salary). So why do staff keep leaving? And how can organisations improve retention?

Emotional Intelligence - Emotional intelligence increases with age and there is an old-fashioned word for this phenomenon: maturity.

Just A Thought - Whilst we can train people to perform their tasks, it's not as easy to teach them the wisdom needed to appropriately respond to unusual situations!

In the News - Australia's unemployment rate unchanged; Fair Work Ombudsman fines NSW employers and unions in excess of $600,000 this financial year for breaches of workplace law; Australia's employee satisfaction level well below global average; Modern Awards transitions continue to roll out

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May 2010: In this edition Award Modernisation… the Industrial Relations system continues to evolve, has your business kept up to date with these changes? Social Networking in the Workplace… whilst we all agree communication is key at work, how beneficial is this form of communication and can Companies use this to greater effect? Just a Thought –‘Henry Tax Review’ – this review was given to the Federal Government but only a few announcements have been made. What impact will the entire review have on small business? Before we get started, the following is an update of news from the last couple of weeks… Australia’s Unemployment Rate was a seasonally adjusted 5.3% in March, which has remained stable since the February period, with the participation rate at 65.1%; WorkCover NSW has launched its latest advertising campaign entitled ‘Homecomings.’ This campaign is designed to remind companies and workers that the most important reason for workplace safety is not the actual work. The campaign states that each year thousands of workers are injured (and some never recover), and yes those injuries represent lost talent, experience, productivity and income. More importantly though, the campaign highlights that such injuries extend beyond the physical effects as these injuries also impact on the family; It appears that job prospects for this quarter and for the remainder of this year are strong as evidenced by the Australian Chamber of Commerce and Industry’s latest report. This report suggests a level of confidence is the highest its been since March 2008, and suggests that employee numbers will increase;   Award Modernisation... The Award Modernisation process involved reviewing and rationalising the awards in the national workplace relations system so as to create a series of ‘modern awards.’   This process began in March 2008, and by the end of 2009, some 1500 awards had been reviewed and in their place 122 industry and occupational awards were created.   These [modern] awards commenced on the 1st January 2010 however most will include transitional provisions to allow a ‘phasing in’ of changes in wages, loadings and penalties…over a five (5) year period.     These 122 modern awards together with ten (10) minimum National Employment Standards (NES), and the national minimum wage order, make up the ‘safety net’ for employees under this new system.   Modern awards must not contain terms and conditions that are less favourable than the national employment standards (effective from 1 January 2010).   It is important to note that employers and employees in the national system have the same workplace rights and obligation, regardless of the state they work in.   Features of the national industrial relations system include:- -          the National Employment Standards (as referred to above); -          [modern] awards that apply nationally for specific industries and occupations; -          a national wage order (where it applies); -          enterprise bargaining, and -          protection from unfair dismissal.   These modern awards cover employees in a particular industry or occupation, for example, employees of constitutional corporations covered by the national workplace relations system, including:- -          in Victoria, the Australian Capital Territory and the Northern Territory – all other employment; -          in New South Wales, Queensland and South Australia – all other private sector employment (form 1 January 2010), and -          in Tasmania – all other private sector and local Government employment (from 1 January 2010).   The following are generally not covered:- -          in Western Australia – state public sector and local Government employment and employment by non-constitutional corporations in the private sector; -          in News South Wales, Queensland and South Australia – state public sector and local Government employment, and -          in Tasmania – state public sector employment.   Note that employers and employees that are not covered by the national industrial relations system will remain covered by the applicable state industrial relations system, with the inclusion of provisions for national entitlementsfor unpaid parental leave and notice of termination (or the payment of lieu thereof) as well as protection from the unlawful termination of employment.   Given these changes (i.e. the award modernisation process), the award previously used may well cease to exist, and as such it is imperative that employers and employees understand the modern award that covers their particular industry and/or occupation. However, some employees are covered by an agreement and not an award.   An agreement is a legally binding document negotiated between the employer and the employee and contains employment terms and conditions that are often more generous than those contained in awards. Download our whitepaper on Award Modernisation   Social Networking in the Workplace... Social Networks focus on developing and enhancing social relationships between people, who share a common interest. These social networks [platforms] can display personal information etc… (i.e. Facebook & Twitter) and/or professional particulars (i.e. LinkedIn). The early social networking philosophies were to bring individuals together as a part of a community group with which they can share personal information and/or ideas (i.e. chat rooms). These, as we can see, have become very successful methods of communicating. With this success come some concerns with regards to users making too much personal information available for all to see! This has led to privacy issues where; not only do users disclose too much, [hosting] sites don’t take adequate steps to protect user privacy and third parties are actively seeking out user information. I am aware of one particular organization that thought using such social network sites as a recruitment tool. Their idea was to look at a candidates profile to see what kind of person they appear to be, and use this to help determine the candidates’ suitability to the role and the culture of the company. Interestingly the perception of using social network to help you find a job may be good in theory; however a recent survey conducted by Hays Recruitment found that 45% of job seekers didn’t see this as a viable option to help find work. Notwithstanding some within the recruitment industry believe that this is an important medium to help promote an individual. It is important that people know about you, to get a feel for the sort of person you are. So the opportunity to connect via (say) LinkedIn is a good way to consider who the person is. It is believed that LinkedIn is a particularly helpful way for making business connections. A Deloitte’s study has found that 23% of Companies already use social networking as a recruitment tool. This of course all suggests that the process is ‘out in the open’ and potential candidates are maybe aware of who is viewing their profile! Interestingly, I read of a European business that uses Facebook as a virtual ‘open house’ where candidates and Companies can meet on line and network… So we see that social networking is in the workplace and is having an impact on the way we work. It appears that a majority of employers (worldwide) do not have a formal policy in place regarding the use of such sites at work, and therefore adopting a ‘wait and see’ approach before they do. But for those who support such mediums, the need for waiting can’t be understood. The results of surveys of social networking appear to identify the following benefits; brand building 20%; fostering collaboration and communication 19%; new talent recruitment 15%; candidate assessment 13% and professional development of employees 13%;   I was reading a recent article in the paper that suggests the Federal Government’s initial response to the Henry Tax Review may have delivered some benefit to Small Business owners because it seems there are very few nasty surprises.    Yes we did see that in its announcement, the Government wants to increase the Superannuation Guarantee levy up to 12% by 2020.   This will start with an increase of .25% (on the current rate of 9%) for the 2014 tax year – thus giving business time to prepare and consider this in future wage negotiations. Then on an annual basis, the rate continues to rise till 12% is achieved. If that was a negative, one of the benefits identified relates to the way small business claims a tax deduction for new assets; this ostensibly will help with cash flow! An example of this is new assets costing up to $5k can be claimed in the full year (they are purchased). All other assets (except buildings) will be deprecated by 30% per year.   This is dependant upon this passing both houses of Parliament. Of course advice from a qualified accountant on this matter is advisable. The only other change announced (at this time) was a reduction in the company tax rate for small business, from 30% to 28% effective from 1 July 2012. It is important to note that this report produced 1000 pages and over 130 recommendations, with only a small amount being delivered now… so the obvious question is, what reforms are waiting for after the election?   If you would like any further information regarding the information contained within this Newsletter and/or any other HR Matter, please don’t hesitate in contacting us at contact@hrmconsulting.com.au or you can call John Cachia direct on 0419 738 735. Remember at HRM Consulting, we help grow your business through smart solutions for your most valuable resource: your people!   HRM Consulting Notice: If this communication has been sent to you by mistake, please delete and notify us. If it has been sent to you by mistake, legal privilege is not waived or lost and you are not entitled to use it in any way. HRM Consulting reserves the right to monitor e-mail communication through its networks. © HRM Consulting All Rights Reserved

 

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4^th edition

HRM Consulting – Newsletter September 2009,

Welcome to the September 2009 HRM Consulting Services Newsletter. In this month’s edition we look at the following issues:-

-         Award Modernisation,

-         National Occupational Health & Safety Legislation,

-         Just a Thought – The Key to Selling is Listening, and

-         Postscript,

Before we get started, I thought it prudent to look at some news of the last couple of weeks…

-         Days lost due to Industrial unrest rose dramatically prior the introduction of the new ‘Fair Work’ legislation;

-         Absenteeism costs are $26m per year with an average of 8.6 days per person being taken (across all sectors). This means approx 3.7 staff are away on any given day;

-         Talented professionals are on the move. A recent poll of [global] corporations shows that 20% of their best and brightest have changed their companies. This is double those being made redundant;

Award Modernisation… as a part of the Federal Governments ‘Fair Work’ legislation/reforms, work is well underway in developing modern awards which become operational from 1 January 2010.

The purpose of the modern awards is to replace the myriad of differing awards and industrial agreements currently operating throughout Australia.   Under a formal Government request, the Australian Industrial Relations Commission (AIRC) is required to complete the award modernisation process by 31 December 2009.   This means approximately 130 modern industry and occupational awards will be made in readiness for 1 January.

It is important to note that some specific award provisions will not become fully operational until after the first full pay period (on or after) 1 July 2010.   These provisions relate to either increases or reductions to the following matters:-

-         Minimum wages, piecework rates, and applicable industry allowances;

-         Casual and Part Time loadings,

-         Saturday, Sunday, Public Holiday, evening and other penalties;

-         Shift allowances and/or penalties;

…note it is only these provisions that are subject for review, therefore all other award conditions apply from 1 January.

Modern awards will build upon the ‘National Employment Standards’ and may include ten (10) additional minimum conditions of employment, relevant to the needs of the industry/occupation, these conditions include:-

-         Wages,

-         Types of employment,

-         Arrangements for when work is performed,

-         Overtime and penalty rates,

-         Annualized wages and salary,

-         Allowances,

-         Leave related matters,

-         Superannuation, and

-         Employee representation and dispute settlement,

The message from the [Federal] Government is that neither the making of the modern award nor the operation of transitional arrangements is intended to result in a reduction of the take-home pay of employees covered by the award.   Instances where this occurs will be referred to Fair Work Australia.

Further to this, it is also intended that no organization should realise additional costs (to wages, allowances, penalties etc…) following the introduction of modern awards.

However, the AIRC has indicated some employers would face higher costs, and some employees would be disadvantaged by the reforms, even after measures to delay the start of some conditions by six (6) months (and these can be spread over a five (5) year period).

National Health and Safety Legislation… in April of last year the Minister for Employment and Workplace Relations, the Hon Julia Gillard MP, announced a national review into model Occupational Health and Safety (OHS) Laws.

The reasons behind the review stem from the concerns held by all levels of Government who hold the belief that all workers have a right to safe and healthy workplaces.   Suffice to say, all [Governments] have taken a broadly similar approach to regulating safer workplaces.

This approach involves a principle OHS Act identifying common law duty of care, supported by detailed regulations and codes of practice, and a system of education, inspection, advice, compliance activities and, where appropriate, prosecution.

The importance of harmonised OHS laws has been recognised by the Council of Australian Governments (CoAG), the Productivity Commission and the States and Territories.

The legislation will consist of a principal Act supported by regulations and codes of practice that can be easily adopted in each jurisdiction.   By harmonising OHS laws in this way the perceived benefits will be, a reduction in red tape, a boost to business efficiency which will ultimately provide greater certainty and protections for all at work.

The Federal Government has since appointed an advisory panel who is charged with conducting a national review of the current OHS legislation (across all jurisdictions) and recommend the optimal structure and content of the new legislation.   In this review the panel will:-

-         examine the principal OH&S legislation for each state and territory, identifying areas of best practice, common practice and inconsistency;

-         Consider work already undertaken by the Australian Safety and Compensation Council as well as recent reviews commissioned by the Government;

-         Take into account the changing nature or work and employment arrangements;

-         Consult with business, governments, unions and other interested parties on matters relating to the review; and

-         Make recommendations on the optimal structure and content of legislation;

A National OH&S strategy was developed, and it provides the framework to improve the country’s OHS performance.   It sets out the national targets to reduce the incidence of work related fatalities by at least 20% and to reduce workplace injury (including musculoskeletal disorders) by at least 40% by June 2012.

On September 17^th the senate passed the Safe Work Australia Bill which will allow Safe Work Australia to be established and operate as an independent statutory agency that is responsible to improve occupational health & safety and workers compensation arrangements across Australia.

Despite the intention of the National Occupational Health & Safety legislation, resistance is growing amongst state and territory ministers as well as [some] trade Unions.   In one particular case the Trade Unions are urging the Government to include an injured workers right to prosecute employers over OHS breaches.   This is currently available in NSW and the ACT.

So where to from here? At present model legislation regulations and recommendations (from the national review) is available for public comment.  

It is intended the legislation be submitted to the Workplace Relations Ministers’ Council (WRMC) for agreement in November/December this year.   At the same time associated draft regulations will be developed and submitted to the WRMC for decision.

Progressively from late 2009, the model regulations reviews will be conducted on the model regulations with regards to existing national OHS standards.   This review will lead to the development of Codes of Practice which is scheduled for late 2010.  

It is envisaged the legislation and regulations will be implemented by all states and territories by December 2011.

Just a Thought… The Key to Selling is Listening, Today we are all in the business of Sales… yes all of us, even those of us who are behind the scenes and don’t physically see a ‘customer’ face to face.   We no longer have the luxury of hiding at our desks we must realise we all impact on sales.

Given the state of the economy, we cannot ignore the facts, business is too competitive and times are tough, and so we can’t afford to ignore the customer.   Maybe some of us will have difficulty in seeing ourselves as a salesperson, but now, it’s become a life skill.  

Consider this, if you’re normally turned off by the concept of selling, think about all those times/situations where you’ve had to persuade… that is just selling by another name; and more and more these are skills we need to have.

In the work sense, having good sales people is fundamental to its success…for example, it’s amazing that organisations don’t realise the first face shown to the world is the Receptionist.   It’s the Receptionist who lets you know you are welcome and that the company values you as a customer.   The Receptionist may not be seeling a product, but they are selling [promoting] the Company.

For those of us who then sell… and when we say sell, we’re not talking about being manipulative, fast talking, highly scripted and formulaic and only being concerned about the product! No, we’re talking about the human aspect of the concept.

We should think about selling as a partnership.   So if we can stop showing, telling, demonstrating, talking and explaining and do more asking, listening, questioning, observing and discussing, we’d be far better off.

Research shows that 80% of sales calls are taken up with the salesperson talking about themselves/their product, and so, only 20% are listening to the customer.   This means instead of the individual buying the product, they are actually sold on it!

The sales process should really be seen as a process by which you enable the individual to buy their goods/service.  

Consider the last time you went to buy clothes, was the sales person the type who said things like; “you right there?” or “What size are you?” then points to the rack that has what you’re looking for…or did you encounter a person who asked you what you were looking for and for what purpose etc… which person [realistically] will be the one to get your custom?

The sales process should be seen as enabling the buying process by simply applying [your] natural charm and showing interest in the customer.   You should have the knack of making the customer feel as though they are the most important person in the room.

Organisations need to start thinking that at employee induction, this concept of sales must be promoted…it should become a corporate culture and something all employees relate to.   We must remember that we all touch a customer and we need to be conscious of this in our daily tasks.

 “Post Script” to the July Newsletter – Courtesy in the Workplace… Research into the cost of ‘Bad Manners’ has identified that stress to employees affected by this issue, could cost up to as much as $US300 billion ($AU363 billion) in lost productivity. Apparently this type of behaviour includes – texting in meetings; spreading rumours; taking credit for others work; ignoring emails and not saying please or thank you.

If you would like any further information regarding the information contained within this Newsletter and/or any other HR Matter, please don’t hesitate in contacting us at contact@hrmconsulting.com.au or you can call John Cachia direct on 0419 738 735.

 

Remember at HRM Consulting, we help grow your business through smart solutions for your most valuable resource: your people!