“Skills Shortage Set To Drive Up Wages”
“Poor Outlook on Job Creation Front”
“Employers Set To Start Hiring”

No matter what the future holds the one certainty is that all employers should be doing their best to keep their best and brightest employees motivated and highly engaged. Achieving this means getting the HR balancing act just right.

1. Get the HR fundamentals right – employment contracts, remuneration plans, health and safety and other HR practices should be well written, well executed, well communicated and able to stand up to legal scrutiny

2. Get day to day HR functions right – career development plans, training plans and organisational structures need to be completed and clearly communicated to all staff

3. Get the focus right - HR needs to support the business’ strategic direction and ensure it is clearly communicated across the organisation. Structures then need to be put in place to consistently reward and recognize the behaviours and achievements which support and reinforce these objectives.

The EI Group helps employers achieve success across all three of these critical HR functions and can provide clients with the people, expertise and solutions required to get their HR platform right regardless of the uncertain employment market.

And in May 2007 Julia Gillard proclaimed; “Our new Industrial Umpire will be independent of unions, business and government… Labor will remove all perceptions of bias.”

Since then 9 of 11 full-time appointments to Fair Work Australia have a union background.

We are not saying these members were not appointed on personal merit or that the previous government didn’t make their share of appointments from the other side. What we can definitely say is that the decisions from FWA have become reliably inconsistent in the past year.

The Australian Financial Review reported on 2 September 2010 that an enterprise agreement which was mistakenly lodged twice received two very different responses. In one instance it was approved without further involvement or submissions from a union or representatives. In another instance it was subject to three separate hearings with workplace representatives in attendance. The commissioner then refused to approve the agreement until the employer provided undertakings after consultation with a union.

Our clients are regularly submitted to similar inconsistent, lengthy and sometimes costly decisions.

EI Legal mainly represents SMEs seeking to make simple, common sense deals directly with their employees. These businesses are not shirking their responsibilities under awards and are instead making the effort and investing the time and money to work within the law.

It is understandable that these small business owners are becoming increasingly frustrated and demoralized when they realize that, despite their best efforts and intentions, their chances of getting their agreements approved largely depends on which member of FWA receives their application.

One of the key tools is a One Page Strategic Plan which literally captures The EI Group’s short – long term strategy, goals and metrics on a single page. The EI Group’s One Page Plan also includes our Big Hairy Audacious Goal or BHAG® (others might call this their “Mission”).

Our BHAG for the next 10 years is to radically change the way Australian SME’s access their HR solutions. By this we mean we want to make it natural for Australia’s SMEs to outsource HR solutions instead of providing these services in-house (or maybe not provide them at all).  Most SMEs already have this attitude towards accountancy and legal services and we see no reason why this cannot be extended to include professional HR solutions.

After 20 years helping SMEs deal with Australia’s complex employment environment we think it’s time that Australian SMEs were given affordable access to the HR solutions that big business take for granted. We believe that if we can help look after the human resource issues for our clients then they can focus on growing their business, not dealing with the red tape and other concerns that are part and parcel of being an Australian employer.

The EI Group already provides the most comprehensive range of HR solutions available in Australia. Our services cover employment law, HR consulting, payroll, labour hire, recruitment time and attendance software, training, employee reward and recognition and employee benefits. Clients can access these services individually or engage a comprehensive HR solution. Our comprehensive HR solution is available at a fraction of the cost of retaining the equivalent services and expertise in-house.

Let us know your thoughts on being an employer in Australia and whether or not you think outsourcing some or all of your human resources needs is something you would consider.

Paid annual leave is supposed to give people the freedom to enjoy regular rest and respite from work without financial hassles.  This should be great for businesses because employees don’t get burnt out and great for employees because they can have a healthy work life balance.  As is often the case things do not always turn out as one might expect.

Australia’s paid annual leave system is unique in that untaken annual leave is accrued indefinitely and paid on termination or when leave is eventually taken.  Leave is always paid at the employees most recent salary (not the salary applicable at the time the leave was accrued) and it is often paid with an additional 17% annual leave loading (bonus).  As a result many employees in Australia equate their annual leave account as a savings account which they can access at some point in the future, particularly when they are changing jobs.

Australia’s preference for banking annual leave has the following unintended consequences:

1. Employees end up burnt out
2. Businesses end up with large leave liabilities in their balance sheets which is money that could be invested in growing the business or paying down other debts
3. Employees view changing jobs as a means to access their accrued leave which leads to higher employee turnover
4. Taking all four weeks annual leave per year is subtly discouraged In many workplaces
   

In other jurisdictions, like the United Kingdom, things are very different. In the UK annual leave is provided on a “use it or lose it” basis (i.e. annual leave is not accrued from year to year).  This policy relieves businesses from the balance sheet liabilities and encourages a positive attitude towards taking annual leave. People who have worked in the UK know that July / August is a quiet time of year as most employees take time out to enjoy what little summer weather is available. From personal experience working in the UK I think there is a much more healthy and positive attitude towards taking four weeks annual leave each year.

Here in Australia employers can better manage annual leave with well considered annual leave policies and procedures that work within Australia’s employment laws to promote the taking of regular annual leave and the minimisation of annual leave banking. Call us if this is something you would like to explore for your business.

It may still be weeks before a new federal government is formed and a lot longer after that before submission can be made to Fair Work Australia.  Which party wins may also have a big impact on the type of submissions that wil be made.

While this and related cases deal with the content of the Modern Awards it  is still open to employers and employees to seek to include more flexibility around minimum engagements within their enterprise agreements.

When this happens it will be interesting to see individual members of Fair Work Australia deal with such provisions particularly if both the employer and employees give evidence that such shorter shifts are of significant and real benefit to everyone.

We will keep you posted of any news.

Although this book was first published nearly a decade ago it remains accessible and relevant today and is packed full of practical tips that can easily be implemented in any business that wants to get the best from its people.

The key out takes that I got from the book were:

1. Positive reinforcement should be a daily affair promoted and engaged in actively by management.
2. Recognition (reinforcement) must be earned as a consequence of clearly defined performance
3. The recognition (reinforcement)  must have personal value for the employee who receives it
4. Delay between employee behavior and recognition and reinforcement of that behavior by managers must be minimal (therefore recognition should be immediate).
5. Recognition of employees should be preceded by personal/group celebration of their achievement.
6. Money is not the best incentive to employees.

One interesting observation made by Daniels is that Employee Of The Month programs often do not work because of the delay between the behaviour and the recognition and the small number of recipients.  Daniels’ suggests that the way to improve such programs is to broaden the base of recipients by increasing the frequency of social recognition among peers.

I am glad to report that the Power2Motivate recognition solution perfectly overlays the suggestions and findings in Bringing Out the Best In People with the very best in modern technology for the workplace.

If you interested in getting the best from your people then I highly recommend you read this book.

Simon Tufrey
Motivation Coach Power2Motivate

As an employer, it can be a daunting task dealing effectively with a bullying case, which can be further complicated by evidence suggesting that the claim may be false or exaggerated.

The first step is to take the claim seriously and investigate thoroughly, regardless of whether it is thought to be a true claim or not. As discussed in a prior article “Why can’t we all just get along” (http://www.theeigroup.com.au/?p=580), a thorough, unbiased and timely investigation needs to be conducted, regardless of the preconceptions about the validity of the claim.

For example, the importance and strength of the investigation becomes particularly apparent in a case where an employee has been the subject of performance management and then makes a claim that it was an act of bullying. Whilst it is easy to dismiss this as a retaliatory tactic by the employee who has taken offence to having their performance short-comings being addressed, it is still necessary to treat the claim seriously and investigate the claim in line with your company’s policies and procedures.

Upon reaching a conclusion, this needs to be communicated to those involved and any necessary action taken to remedy the situation. An employee found to be making a false claim of bullying may genuinely feel they have been bullied due to a miscommunication or their own skewed perception of the situation. In such cases, it is important to re-affirm the fairness of the original performance management and the investigation taken to reach the conclusion that the claim cannot be substantiated.

From an employer’s perspective, it may seem easier to either ignore and disregard claims and instances of bullying or conversely cave into an employee’s claim of bullying with the aim of avoiding a difficult workplace situation. By taking each instance seriously and investigating thoroughly, at least you put yourself in the best position to come to a correct conclusion and apply appropriate action. It is highly advisable that all employers have a Bullying Policy in place. This should be communicated and available to all staff clearly defining what bullying is and is not and that bullying in any form is not tolerated in the workplace.

HR is as important, if not fundamentally more important, to SMEs compared to big business as the effect of poor selection and performance can cause considerable disruption to a small business whilst effective performance management can contribute more positively to the success of a SME.

How can SMEs introduce effective performance management strategies to attract, retain and reward the right people? The best advice would be to start with a simple system and consistently improve and review practices to ensure this area of your business is not overlooked.

An ideal performance management system is one which satisfies 4 main objectives:-

1. To improve business and individual performance;
2. To link the key objectives and strategies of the business with individual objectives and strategies;
3. To measure the progress made towards the achievement of the strategic business objectives by evaluating performance, identifying improvements, developing new objectives and converting improved performance into rewards; and
4. To coordinate job design, recruitment and selection, training and development, career planning and reward structures.

The components of this system which may be introduced over a period of time depending on resources available include:-

• Business plan linking company values and goals with its people;
• Job Descriptions (reviewed and updated regularly);
• Individual key performance indicators (KPIs) set at various intervals, e.g. monthly, quarterly, annually, etc;
• Bonus policy and guarantee which links the performance of the business to individual remuneration – this may be a general policy or clause in individual employment contracts;
• Performance reviews;
• Professional development plans reviewed and updated annually; and
• Ongoing feedback, communication, coaching and training.

In SMEs with multiple departments and line managers it may be appropriate to create a handbook and/or provide training with guidelines on how the above components can be developed internally with timelines and templates. This will equip managers with the ability to drive effective human resource management and empower them with responsibility to ensure its ongoing success. It also ensures consistency and transparency across the business when it comes to HR management, and this is vitally important particularly when it involves the provision of a reward mechanism.

Questions SMEs need to ask themselves include whether a performance management system and effective HR practices can be developed internally or externally, and what resources are available in the business for the implementation of the system. Resources to be considered may include persons within the business, time, knowledge and skills, a budget or allocation of funds, and external expertise or assistance.

OneStopHR can provide 3 separate streams of services depending on the requirements of an SME. We have an online portal which provides internal resources with the information and templates to develop and tailor the components of effective performance management outlined above which can be accessed for an annual fee. As an alternative to this, where external assistance is deemed appropriate, there is the option of engaging a part-time HR manager on a consulting arrangement to deliver the above objectives or a more comprehensive solution such as our fully outsourced HR department which takes care of all of your employment needs, including payroll, contracts, legal compliance and ongoing HR consulting and reporting.

A recent survey of 3000 businesses conducted by The EI Group, found that over 65% feel either confused or very confused about the affect of the new laws on their business.

“Our workplace lawyers have been helping employers with workplace relations and employment law issues for 20 years and I cannot recall seeing people this confused before. I really feel that employers need more help than ever from workplace solicitors to understand these changes and find ways to stay compliant.” Ben Thompson, CEO, The EI Group

Workplace lawyers can assist businesses in the following areas:

• National Employment Standards – Workplace lawyers can ensure your business is complaint with maximum hours, requests for flexible working conditions, parental leave and annual leave, personal and carer’s leave, community service leave, work on public holidays and notice of termination and redundancy obligations.

• Enterprise Agreement making – Workplace solicitors can draft and lodge Enterprise Agreements and appear before Fair Work Australia on related matters. Enterprise Agreements give you stability by allowing you to bed down the workplace conditions and wages for your employees for up to 4 years.

• Unfair dismissal and unlawful terminations – Getting good advice from workplace lawyers before terminating or making an employee redundant can save you having to defend a costly claim for unfair dismissal or unlawful termination. Workplace lawyers can give you advice and represent you in court.

• Equal Opportunity and Anti-Discrimination – Workplace solicitors can assist with legal advice and legal representation relating to discrimination including disability discrimination, sexual harassment, age discrimination and racial discrimination.

• Industrial Relations – Workplace solicitors can liaise with Fair Work Australia, give advice on good faith bargaining and protected industrial action.

• Drafting of Employment Contracts – Workplace lawyers can ensure that your employment contracts comply with the National Employment Standards and draft new agreements or revise existing agreements.

• Under Payment of Wages Claims – Workplace lawyers can give you advice and representation on any potential wages claim.

• Legal Representation – Workplace solicitors can represent you in court for any workplace related issue.

During these volatile times in workplace relations and employment law, informing yourself up front about your businesses’ legal rights, options and obligations can save you headache down the line.