HR Leader April 2011 by LexisNexis Media

HR Career opportunities ... what do you wish for?

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LEADING PEOPLE AND ORGANISATIONS

APRIL 2011 $5.95

THE TOP JOB As the Commonwealth Bank and Telstra start the hunt for new HR heads, we find out what it takes to fill the directorâ&#x20AC;&#x2122;s chair EXECUTIVE DECISION EMBAs taking HR to the next level

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RECRUITING SOCIAL MEDIA Is it goodbye to the job board?

NOMINATIONS OPEN! SEE PAGE 26 FOR DETAILS

in this issue april 2011 FeatuRes

FaIR WORK uPDates HR Leader looks at three significant Fair Work decisions that will be impacting HR this month.

COveR stORy

leaDeRs IN WaItINg As Commonwealth Bank and Telstra commence their global searches for new heads of human resources, sarah O'Carroll talks to toplevel professionals and recruitment specialists about what it takes to reach the coveted director’s position.

RegulaRs

ReCRuItINg sOCIal MeDIa

06 IN REVIEW

Senior HR practitioners who are looking to take their skills – and career – to the next level would do well to consider an Executive MBA. Benjamin Nice looks at the options available and how HR practitioners can benefit from executive education.

Every four minutes, one more Australian joins LinkedIn. While both businesses and individuals continue to explore the seemingly endless possibilities of social media, Benjamin Nice looks at whether the recruitment sector will follow suit.

09 EMPLOYMENT LAW

leaRNINg tO leaD

04 EDITORIAL NOTE

26 HR AWARDS 28 MY BRILL CAREER 29 BOOK REVIEWS 30 INHUMAN RESOURCES

INHuMaN ResOuRCes Page 30

“I personally think I’ve been a better head of HR for the Commonwealth Bank because I’ve run the retail part of a large bank in New Zealand”

exeCutIve MBas Page 18

Barbara Chapman

gettINg tO tHe tOP jOB Page 12 april 2011 hR|LeADeR 3

EDITORIAL NOTE Editor Sarah O’Carroll Journalist Ben Nice Designers Ken McLaren Anthony Vandenberg Production Editor Vanessa Fazzino Senior production co-ordinator Mei Chew Production manager Kirsten Wissel Senior account manager Paul Desmond

Sarah O’Carroll Editor

The big HR search

Subscriptions www.hrleader.net.au Advertising Paul Desmond: (02) 9422 2886 paul.desmond@lexisnexis.com.au Editorial Sarah O’Carroll: (02) 9422 2207 sarah.o’carroll@lexisnexis.com.au HR Leader is published by LexisNexis, a division of Reed International Books Australia P/L, ABN 70 001 002 357 Level 1 Tower 2, 475 Victoria Ave, Chatswood NSW 2067 tel (02) 9422 2229 fax (02) 9422 2946 www.hrleader.net.au Copyright is reserved throughout. No part of this publication may be reproduced without the express written permission of the publisher. Contributions are invited, but copies of all work should be kept as HR Leader can accept no responsibility for loss. HR Leader and LexisNexis are divisions of Reed International Books Australia Pty Limited, ACN 001 002 357 Level 1 Tower 2, 475 Victoria Ave, Chatswood, NSW 2067 tel (02) 9422 2203 fax (02) 9422 2946 ISSN 1833-5209 Important Privacy Notice You have both a right of access to the personal information we hold about you and to ask us to correct if it is inaccurate or out of date. Please direct any queries to: The Privacy Officer, LexisNexis Australia or email to privacy@lexisnexis.com. au. © 2010 Reed International Books Australia Pty Ltd (ABN 70 001 002 357) trading as LexisNexis. LexisNexis and the Knowledge Burst logo are registered trademarks of Reed Elsevier Properties Inc., and used under license.

When the news came in last week that the HR director of Commonwealth Bank, Barbara Chapman, and Telstra’s HR director Andrea Grant were both moving on, two huge opportunities opened up on the Australian HR industry landscape. While the question on everyone’s lips might be who will replace them, rumour already has it that Commonwealth will take their search overseas. Clearly, both Telstra and CBA are companies of huge scale and complexity, which means finding the right candidate for the vacancies is no simple process. The kneejerk reaction of looking abroad is almost inevitable, but is it unavoidable? Granted, if the CEOs want to recruit a local HR executive who is currently heading up a company of a similar size, then they only have a limited number of companies to headhunt from. But a HR director who has grown up through the Australian system, has local knowledge of ‘how things work’ and hasn’t been lured here by a fat salary surely has as much, if not more to offer. Not only that, but recruiting from another ASX company has the inevitable domino effect – causing a HR director’s chair-shuffle in the local industry. That creates opportunity and, in turn, experience for local professionals. And that might mean, next time round, corporations have more than a healthy crop of individuals to choose from for the top jobs. In this month’s cover story, we ask Chapman and Grant what they believe it takes to succeed in HR in a massive corporation. We also speak to leading recruiters about some of the trends in the market for HR executives looking to change role, and how HR professionals can manage their careers to put them on the right path to the boardroom. Speaking of excellence in the HR field, the nominations for the 2011 HR Leader Awards are now open. Now in its eleventh year, the Awards, will once again recognise those HR departments that have demonstrated real leadership and innovation. If you know of an HR professional or practice that has changed an organisation or the industry for the better during the past year, don’t let those achievements go unrewarded. Enter now.

HR Leader 2010/2011 Editorial Board

Allen Wiseman

Roger Collins

Tracey McDonald

Joydeep Hor

Teresa Grove

Sally Kincaid

Josephine

Richard Atkinson

General Manager

Professor Emeritus,

Director Human

Managing Principal,

Director of

Former Executive

Simeone

Human Resources

HR, Kimberly-Clark,

University of New

Resources,

People & Culture

Workplace Relations

Director People &

Pacific HR Director,

Director, eBay

South Asia

South Wales

Middletons

Strategies

and HR Compliance,

Performance, ING

LexisNexis

Australia &

GE Capital

4 www.hrleader.net.au

New Zealand

in review For more information, go to www.hrleader.net.au

skills shortage

75%

of australians are willing to move for the right job with many prepared to relocate to another country or continent to secure their preferred position, according to the latest survey from Kelly Services.The most mobile workers are among gen Y (aged 18-29) who are more footloose than their gen X (aged 30-47) and baby boomer (aged 4865) counterparts.

Employers push for more migrants “Smaller businesses may struggle to compete for workers with the larger employers” Matthew Field, national director of PFk Chartered accountants & Business advisers

Most viewed on the web 1 Top five reasons why employees quit 2 Coles pregnancy discrimination 3 Bad leadership blamed on poor HR strategies 4 Telstra head of HR Andrea Grant resigns 5 Bosses told to ignore weak link employees 6 Gen Y health epidemic ‘is inevitable’ 7 Strict social media policies slammed 8 Top employment issues for 2011 9 KPMG’s “mental health first aid” 10 Australian employees among most disengaged 6 www.hrleader.net.au

The Business Council of Australia has urged the Federal Government to increase migration levels over concerns of a future skills shortage. Figures released last week from the Australian Bureau of Statistics showed that migration levels for late 2010 were at their lowest for four years, standing at just 1.6 per cent. Although the government migration program saw an intake of 168,700 immigrants last year, the Business Council of Australia is pushing for this figure to be increased to 180,000 by 2012. With the population growth slowing at a time of major concern about a lack of skilled workers coming to Australia, Matthew Field, national director of PFK Chartered Accountants & Business Advisers, said that the shortage of incoming workers would pose serious threats to Australian businesses. “The likely implication is that workers will become

harder to find, putting pressure on wages, inflation and eventually interest rates, and smaller businesses may struggle to compete for workers with the larger employers,” he said. Discussing findings from the PFK Third annual Business & Population Monitor, which looks at the impact of Australian demographic changes on businesses, Field predicted further shortages due to the retirement of many from the “baby boomer” generation. “The combination of official cutbacks to immigration, the slowing down of natural population growth, as well as the coming retirement of baby boomers means that just as the demand for workers is rising rapidly, the potential new supply for them is decelerating fast,” Field said. “That mix will pose most challenges for small and medium enterprises (SMEs), particularly those SMEs in the resource-rich states, where worker demand is strongest.”

ohs

kPMg’s “mental health first aid” reduces workplace stress There has been a reduction in absenteeism and stress-related workers’ compensation claims at KPMG as a result of a proactive psychological injury management strategy, according to Danni Hocking, occupational therapist and manager of safety and wellbeing in the firm’s people, performance and culture team. As part of the strategy, KPMG has a network of trained “mental health first aid” practitioners within the HR and leadership group, whose role is to assist managers and the business in early identification of mental health problems before they become a performance issue for employees. In addition, Hocking said the firm runs “building resilience” educational workshops (linked to its EAP provider), in which all participants are offered one-on-one resil-

ience coaching to maximise lessons learnt in the workshops and assist in building appropriate skills. All of this is linked to KPMG’s overall wellness strategy, which is actively supported by the firm’s leadership, according to Hocking, who spoke ahead of the upcoming Safety in Action Conference in Melbourne. Business leaders in different divisions promote the above programs, which are also offered as part of a “developing the self and others” stream in KPMG’s internal business school. Programs are also communicated during the on-boarding process for new employees. Hocking said the firm took a number of steps to ensure successful culture change in making psychological injury management a reality. “We use a number of case studies

within the mental health first aid program, to demonstrate that it is not uncommon and that we are not immune,” she said. “We have also partnered with beyondblue and linked mental health goals into our people strategy for all of our employees.” Measurements taken during resilience workshops and coaching sessions have demonstrated a significant improvement in the resilience and optimism levels of participants, she added. “We have also embedded preventative strategies in relation to psychological injury into our injury management and early intervention portfolio, and have aligned ourselves with a range of providers who are accessible and provide confidential services to our employees and their families. For full story, see www.hrleader.net.au

in|REviEw

health & wellbeing

talent management

gen Y health epidemic is “inevitable”

bosses told to ignore “weak link” employees

Employers must find new ways to keep their staff fit and active or else face a plague of health-related problems at work, an industry expert has warned. Addressing HR professionals at the Richard Lloyd From Mediocrity to Magnificent discussion, Dr Denis Cauvier said that companies needed to implement strong and engaging strategies to keep employees physically active, or risk large numbers of staff health problems such as diabetes and high blood pressure. “This is the first group that it’s projected will not live as long as the previous generation,” he told the audience. “A higher percentage of health problems, illness and disease are going to be key workplace issues in the next 10 to 20 years.” Cauvier, author of Hired 2.0: Recruiting Exceptional Talent at the Speed of Light, explained that any retention strategy should aim to target employee health, which in turn would boost the bottom line and increase staff wellbeing and happiness. “If you’re thinking about productivity, then find ways to help your people become more physically fit and active,” he said. “Not only will they be less accident prone and be more productive, but it will really enhance your retention strategies.” Cauvier labelled those born between 1965 and 1983, also know as generation X, the first “true multitaskers” and said that shifts in society and the explosion of technology had played a massive part in how these people viewed work and life in general. “This is the first time in history that the formal institutions were changing. I wouldn’t necessarily say that society failed

Employers should not waste their time or money on “weak link” workers, an HR expert has warned. Speaking at the Richard Lloyd From Mediocrity to Magnificent discussion, author and industry expert Dr Denis Cauvier said it was “dangerous” for companies to treat all employees equally, and insisted that poorer performers should be given minimal time and support. Quoting General Rick Hillier’s “95 per cent rule”, Cauvier said that an individualised approach was needed, and that treating all workers in the same way was risky and unproductive. “Never spend more than five per cent of your time with your poorest performers, and instead save 95 per cent of your time for people that really deserve it,” he said. “You obviously need to have systems in place to support the weakest link and resolve any issues, but you certainly don’t want to put in a disproportionate amount of time rewarding your poorest performers.” Cauvier also stressed the importance of valuing the right people, and said that an equal approach to all staff would lead to discontent among high-performing individuals within organisations. “What happens is that if your top performers – for example, those that could develop quickly or those who are emerging – feel they are not getting the support they need, they’ll start to want to leave and go somewhere else.”

the young people, but marriage, religion, moral values and all of these things fell by the wayside,” he said. “There were more divorces, more single-parent situations, more women entering the workforce, mass movements against formalised religion, and all of these cornerstone institutions that were there for the previous generations were no longer there for this generation.” With higher life expectancy and longer working lives, Cauvier said that it was becoming increasingly common to find all four major generational groups within a company at the same time.To help boost productivity and forge better working relationships, he explained, veterans, baby boomers, generations X and Y all need to understand what is important to the other generational groups, as well as paying attention to individual traits. “It makes sense to try to get the bigger picture and understand the demographic shifts in the key four groups, but then go beyond that and realise that we are all individual people,” he said. Hosting the discussion was recruitment company Richard Lloyd, and director David Landau agreed that a good work/life balance and company culture were high on the list of generation Y’s priorities, while generation X were more concerned with achievement and stability. “Another noticeable differentiator is that a number of gen Yers typically seem to want tomorrow today, whereas gen Xers seem to recognise that often you need to ‘do your time’ prior to moving up the ranks,” said Landau. For full story, see www.hrleader.net.au

retention

Revealed: top five reasons why employees quit Negative relationships with managers, no room for career advancement and a gap between expectations and reality are among the main reasons dissatisfied employees leave their jobs, a new report has revealed. The findings form part of the Kelly Global Workforce Index, which canvassed the views of around 134,000 people in 29 countries, including more than 20,000 employees in Australia. According to the research, more than 60 per cent of individuals in today’s workforce will change careers and reinvent themselves at least once during their working life.

“The shift we have seen over recent years in regard to employee attitudes towards career progression [has] been significant,” said Penny O’Reilly, general manager of Kelly Services Australia. “During the downturn, people were only interested in having a job. Today we are seeing a return to the post-downturn trend where candidates want to better understand the progression opportunities that exist within an organisation before they consider joining.” According to O’Reilly, employees are demanding considera-

tion, coaching, understanding and clear advancement opportunities from their employers. “If these demands are not met, employees are showing a willingness to terminate the relationship,” she said. Along with negative relationships with direct managers, a feeling that there is little hope for career advancement, and situations where the reality of a role does not match what was promised, employees report that being overworked and stressed out, and having a lack of coaching or mentoring, are also factors behind career dissatisfaction. April 2011 HR|LEADER 7

in review For more information, go to www.hrleader.net.au

talent management

Employers lack confidence in talent management strategies Employers are not confident in their abilities to use quantitative analytics when it comes to measuring talent management decisions and investments, according to a new survey by Mercer. According to the Future of Talent Management Survey, there is a substantial need to improve the implementation of talent management policies, with only 53 per cent of organisations expressing their confidence in being able to align such strategies with business goals. Marianne Roux, talent segment leader for Mercer’s human capital business in Australia, believes that employers should focus on the people that impact the organisation’s capacity to perform. “Ensuring an adequate pipeline of future leaders and tying talent management decisions to desired business results are two areas in which some organisations in Australia lack confidence in their abilities,” said Roux. “Leading organisations have shown they are more effective at tailoring talent management practices to fit their own business models when taking a more quantitative, fact-based measurement approach. And we have found this approach steadily drives improvements year after year.”

The survey of almost 500 HR professionals also revealed that organisations expect a strong increase in competition for key talent in the coming few years. While only a small minority of companies have stated that they are still suffering from the downturn, most organisations are looking forward to substantial growth, and in turn 84 per cent of those questioned believe that talent management will become a high priority in the next three to five years, with leadership training cited as the main priority. “It’s no surprise that leadership tops the list of priorities. The impact leaders have on business success and organisational effectiveness is huge, and right now organisations are not sure that they have the quantity and quality of leaders they will need to succeed for the future,” said Roux. “The priority for employers should also be to focus on the people that impact the organisation’s ability to perform. Many talent pipelines reflect only the leadership potential of the organisation and do not include the core, critical and technical pipelines that deliver operational excellence. These are the functions where loss of talent can make the organisation extremely vulnerable.”

leadership

Bad leadership blamed on poor HR strategies A staggering 49 per cent of Australian workers believe that their boss is not up to scratch, an industry survey has revealed. Questioning 170,000 employees from Australia and New Zealand about the effectiveness of their leaders, the Aon Hewitt report found that only 51 per cent of workers said that they “agreed” or “strongly agreed” that their boss was an effective leader. Tim Powell, CEO at Human Capital Consulting for Southeast Asia and the Pacific, said the results were concerning, and blamed companies who promoted people because of past achievements or technical know-how rather than managerial panache. “The results across the board are concerning, even within the highest-ranking industries. Hopefully this is the wake-up call companies need to assess and, more importantly, improve their leadership strategy,” he said. While the results are surprising for some, Genos CEO Ben Palmer said disengagement with leaders at work was a problem that was all too common in the Australian workforce. “In our surveys, we find there is a lot of dissatisfaction with management at the moment and I think 8 www.hrleader.net.au

“There isn’t a particular style of leadership that works best; instead you need to employ a much more individualised approach” Ben palmer, CeO, genos

that what leaders don’t realise is that it’s this dissatisfaction that causes people to just come to work and clock on and clock off, and not feel motivated to put in the extra effort for their organisation,” he said. In order to boost productivity Palmer believes that employees need to be engaged and motivated, and to achieve this, bosses must employ a few core elements in their leadership strategies. “There are a certain amount of underlying skills for all leaders, no matter what their style, which are dependant on emotional intelligence – things like self-awareness, empathy, the ability to positively influence others and manage one’s own emotions,” he said. The Aon Hewitt report revealed the resource sector to be the worst, with only 41 per cent of workers

happy with their bosses. The financial services sector topped the poll at 54 per cent. However, Palmer insists that bad management is not limited to individual sectors, and that leaders across all industries need to assess the way in which they can best lead their team by honing in on the specifics of their own skills and working environment. “There isn’t a particular style of leadership that works best; instead you need to employ a much more individualised approach,” he said. “For example, if you get 10 people to tell you what makes a good boss, undoubtedly you’ll get 10 different responses, so what’s really important for leadership is the ability to identify what style works best at an individual level and to adapt accordingly.” Looking to the future, Palmer believes that the most important factor for companies must be a focus on staff motivation through good leadership and, in turn, boosting employee productivity. “This disengagement with work is costing the Australian the economy $33 billion in lost productivity – there’s a massive opportunity for Australia as a country to lift our productivity by improving leadership, but in particular our leadership strategy to motivate staff,” he said.

EMPLOYMENT|LAW

Surveillance in the workplace

JOE MURPHY DIRECTOR AUSTRALIAN BUSINESS LAWYERS & ADVISORS

Technology in the workplace is rapidly changing and becoming increasingly mobile. As a result, the law has been forced to evolve to ensure it keeps up with developments in this field. A number of recent employmentrelated cases have highlighted the need for employers to ensure they have a comprehensive policy in place. The policy needs to address the issues of technology use at work, in connection with employment (which may extend to out-ofhours use), and the surveillance of those activities by an employer. It is easy to understand why employers tend to view the use of their technology as a licence to monitor and dictate what their employees do with that technology. However, in order to avoid breaches in privacy or workplace surveillance laws, it is important for employers to have a

policy that is compliant with privacy and surveillance laws. Here are 10 tips to help you formulate a policy:

TOP TIPS 1. Ensure your business has a workplace surveillance/information technology policy that accommodates your video surveillance, global positioning systems (GPS) technology, and computer/data surveillance (including access and storage processes). 2. Ensure employees know about the existence of the policy, understand the policy and acknowledge their understanding of it. 3. Ensure the policy covers all forms of surveillance (computer, GPS and video/camera). 4. Understand your legal obligations regarding all forms of surveillance (laws vary between states and territories).

5. Ensure the policy clearly states that all use (including personal) of company equipment is monitored and that employees should not expect privacy. 6. If the policy allows for personal use, include the restrictions and obligations that apply to that use; e.g. outline expectations about the quantity of personal use allowed. 7. The policy should notify employees of the types of company property that are monitored. 8. When emails are blocked, employees should be notified that an email addressed to them has been blocked and from whom it was sent. 9. Ensure employee passwords and login details are kept confidential. 10. Make sure you also comply with your policy. Schedule annual policy reviews and update the policy in response to changes in legislation.

April 2011 HR|LEADER 9

in review For more information, go to www.hrleader.net.au

Fair Work wrap-up

Three significant Fair Work decisions impacting HR this month

1 FaiR WoRk WRap-up

Court finds Woolworths contractor restraints “unenforceable” The Federal Court has issued a strong warning to labour hire firms, after ruling that a Preferred Supplier Agreement (PSA) between a labour hire firm and Woolworths was invalid and “unenforceable”. Under the PSA, the labour hire firm supplied IT contractors to Woolworths and the restrictions stated that the contractor should not “directly engage” with the client for a minimum of 12 months from the end of the contract with the labour hire firm. However, in the case of Informax International Pty Ltd v Clarius Group Ltd [2011] FCA 183, one of the labour hire firm’s IT contractors engaged directly with the client (Woolworths) shortly after finishing work with the labour hire firm. Following pressure from the labour hire firm, which accused Woolworths of breaching PSA restrictions, the supermarket giant terminated the contractor’s contract. The contractor thus sought $400,000 for loss of earnings, claiming that both the Contractor Restraint and the PSA Restraint were invalid and unenforceable restraints of trade. The Contractor Restraint was a separate contract between the labour hire firm and the contractor that contained a more limited restraint clause and prevented the contractor working for Woolworths for a period of six months after ceasing work with the labour hire firm. The contractor also claimed that the labour hire firm did not reveal the existence of the PSA restrictions. The Court acknowledged that the labour hire firm had legitimate interests to protect by restraint clauses, but said “the labour hire firm had not demonstrated on the evidence that there was sufficient customer connection or risk of the middleman being cut out to constitute a legitimate protectable interest”. 10 www.hrleader.net.au

Andrew C. Wood, barrister, Derwent & Tamar Chambers, and lawyer for the Recruitment and Consulting Services Association (RCSA) said that it was a “fascinating case” and would cause a stir throughout the employment services industry in Australia. “The court recognised the ‘legitimacy’ of both interests in principle, but found the actual restraint to have been excessive and therefore not to be enforced,” he said. In the Federal Court, Perram J identified two main interests that might legitimately support the restraint imposed on the contractor, which followed similar cases seen in the US. Wood said: “those [two interests] were a ‘customer connexion’ interest – ie ‘an employer’s interest in maintaining its connexion with its own customers against misappropriation by its employees’ and, following United States jurisprudence, an interest in preventing ‘opportunistic disintermediation’ – ie the risk of being cut out of the ‘middleman’ or ‘labour broker’ position by permitting direct engagement between the worker and the client.” Summarising the case, law firm Middletons stated that it was relatively common in the labour hire and outsource provider context to see firms seeking to achieve a form of double restraint by imposing non-solicitation obligations not only on their workers but also on their clients. “This recent decision shows that whilst it is legitimate for firms to seek to protect these interests separately, such a strategy can backfire if not implemented carefully,” they said in a statement. “The decision expands the categories of legitimate protectable interests recognised in Australia in relation to labour hire firms and contains lessons for such firms in implementing effective restraints.”

HR tips Steps for firms to minimise the risk of such restraints being found unenforceable include: 1. Making sure the firm can justify the interest it seeks to protect by the restraint 2. Informing employees/contractors at the outset if a separate restraint has been negotiated with the client 3. Ensuring the scope of any separate restraint clause with a client is consistent with the terms of the restraint between the firm and its employee/contractor 4. Ensuring that any agreement between the firm and its employee/ contractor does not state that it ‘constitutes the entire agreement for the supply of services’ if in fact a relevant clause has been negotiated with the client in a separate agreement Source: Middletons

IN|REVIEW

2 FAIR WORK WRAP-UP

3 FAIR WORK WRAP-UP

Employers warned to stop the sham

Coles story a lesson in pregnancy discrimination

A Brisbane call centre has been ordered to pay a total of $214,500 after being found guilty of underpaying its staff by using sham contracts. Contracting Plus Pty Ltd was found guilty of breaching workplace laws after trying to swindle staff out of a total of $46,000 by paying its workers less than the minimum hourly rate. The former Brisbane CBD call centre attempted to classify the workers as “independent contractors” rather than employees, and therefore dodged mandatory requirements relating to salary and benefits. “Sham contracting is a serious matter because if workers are incorrectly classified as independent contractors, they can miss out on fundamental entitlements such as minimum pay rates, penalty rates and annual leave,” said Federal Magistrate Michael Burnett. In a warning shot to other potential sham contractors, Fair Work Ombudsman executive director Michael Campbell praised the decision, saying that it sent out a very clear message to other would-be employers trying to shirk their way out of lawful obligations. Federal Magistrate Burnett ordered that the fines should go towards reimbursing the employees of

Contracting Plus Pty Ltd, noting that a large number of workers were under the age of 21. “To purposely deny vulnerable and low-skilled workers these important employment entitlements by disguising them as contractors is particularly reprehensible,” he said. “As such, it is important that my agency mark its disapproval of such behaviour and deter others from doing the same.” The trend of so-called sham contracting appears to have filtered into several sectors, with a recent investigation led by the Construction, Forestry, Mining and Energy Union (CFMEU) halting hundreds of illegal contracts at construction sites throughout Australia. Those companies being questioned by the CFMEU include well-known multinationals such as Bovis Lend Lease and Multiplex Construction, while nationwide audits look set to continue. Voicing anger against the growing practice of sham contracting, construction workers across Australia have teamed up with the union to create the “Stop the Sham” campaign, and are calling for co-ordinated Federal Government action. For full story, see www.hrleader.net.au

Companies must check their workplace agreements to avoid breaching workplace laws on pregnancy discrimination, the Fair Work Ombudsman has warned. The statement follows the recent discovery that Coles was inadvertently breaking the law by demoting pregnant employees to lower-paid “safe jobs” within the company. The Fair Work Act states that if a pregnant employee has been at the company for at least 12 months, there should be no change to their pay or conditions, regardless of whether they are moved to a “safe job”. While the supermarket has worked hard to rectify the problem and conduct an internal audit, Fair Work Ombudsman executive director Michael Campbell has urged other employers to ensure that they do not discriminate against pregnant workers. “The Coles experience should serve as a reminder to other employers to check their own compliance,” he said. “While the subclause may be lawfully relied on where the employee has less than 12 months’ service, the NES entitlement exists for those workers who have been employed for more than a year.”

Australian Business Lawyers & Advisors

April 2011 HR|LEADER 11

cover|story

Leaders in waiTing

As Commonwealth Bank and Telstra commence their global searches for new heads of human resources, Sarah O’Carroll talks to top-level professionals and recruitment specialists about what it takes to reach the coveted director’s position

12 www.hrleader.net.au

The importance of knowing the business Human resources professionals have heard it a thousand times before: to be a really effective HR practitioner, you must know the business well. You must be able to speak the language of the CEO, understand finance and align the people strategy to the business strategy. But despite the constant reporting on the subject, many HR professionals still struggle with the fact that if they want to make it to the top, they must get a handle on the commercial side of the business. There’s substantial evidence around it. When recruiting for an HR director, it’s been shown that CEOs prefer someone with some line management experience to demonstrate their commerciality, who can speak from the point of view of having run a business unit, been responsible for P&L and delivered the numbers on a daily basis instead of just advising people. Strangely enough, HR professionals still don’t respond well to the notion of moving into a line management role. In a recent survey by recruitment company The Next Step of almost 2000 HR professionals, only 6.6 per cent said they were attracted to moving to a line management role in the future. In terms of professional development, 33 per cent of respondents said that organisational development was the most important factor for them to develop, but only 7.3 per cent said commerce/finance was the most important skill to develop. The survey also revealed that 40 per cent of HR professionals believe HR study would impact their career the most, while only five per cent said that experience in a line management role would impact their career the most. However, these statistics do not reflect the views of those at the top level – Telstra’s Andrea Grant, CBA’s Barbara Chapman and ING’s former head of HR Sally Kincaid, all of whom have recently left their positions as HR chiefs. “Until you’ve done it yourself, you can have a somewhat professional or academic view of it, but once you’ve been in a line role yourself you can have that clear sense of what’s important and what’s not important,” says Barbara Chapman. “I personally think I’ve been a better head of HR for the Commonwealth Bank because I’ve run the retail part of a large bank in New Zealand.”

COVER|STORY

TOP VACANT HR POSITIONS

UGL LIMITED

COCA-COLA AMATIL MONWEALTH C COM BANK Commonwealth Bank is recruiting for the position of group executive human resources. CBA CEO Ralph Norris announced 15 March that former HR head, Barbara Chapman, has been appointed chief executive and managing director of the Group’s New Zealand subsidiary, ASB Bank. A global search is currently underway to find a successor to Chapman.

TELSTRA Telstra’s Andrea Grant, group managing director, human resources, left Telstra 18 March after six years with the company. Grant joined Telstra in 2005 from GM Holden where she was executive director, human resources; a position she held since 2001. She also served as GM Holden’s first female board member. The search is currently underway to find Grant’s replacement.

However, many HR people continue to show reluctance to move into these line roles. “My observation about HR people is that they’re really passionate about HR. So the thought of not working in HR might be difficult because they truly believe in the people component of the business, which is fantastic. But stepping out and doing something else for a few years will make them better HR people – I’m convinced of that,” says Chapman. Sally Kincaid agrees: “The really big top-end HR jobs are few and far between and they don’t come up that often,” she says. “Each HR person has to make some fundamental career choices. Do you decide to stay a purist HR person or do you decide to step out of HR and try to get some operational experience for a while? I think having that stint outside the function is just invaluable.” Kincaid says that this is ideally done earlier on in your career and it will definitely add value to your resumé. She also believes that the second choice HR professionals should consider when looking to change role is whether to

HR director (Aust) Grant Kerswell, is set to leave Coca-Cola Amatil at the end of April with the search underway to appoint a new head of HR. CCA is one of the largest bottlers of nonalcoholic ready-to-drink beverages in the Asia-Pacific region and one of the world’s top five Coca-Cola bottlers. CCA employs more than 6,000 in Australia and 15,000 people across the group which includes Australia, New Zealand, Indonesia, Papua New Guinea and Fiji.

change sector, be it from financial to FMCG, professional services or resources. “If you get the chance to move sectors it will also add a different quality to your CV than if you’d been fairly mono-line,” she says. “Headhunters also have quite an important role to play. You do want them to be open-minded to your skills being transferable across sectors, but if you can get that diversity in your career I think it can really help.” Andrea Grant is an example of an HR director with a diverse background. She joined Telstra as the group managing director of human resources in 2005, during a period of significant change for the company. Previously, she held the role of executive director of HR at GM Holden, where she also served as first female board member. Prior to joining GM Holden, Grant was the human resources director of Merck Sharp & Dohme (New Zealand) and throughout her career has worked in senior HR roles across the finance, pharmaceutical, automotive and telecommunication industries.

UGL's group executive people, Helen Lea has left. The search is on to find Lea's replacement. UGL is a diversified services company operating in maintenance, facilities management, engineering and construction to blue-chip companies, governments and institutions throughout Australia, New Zealand, Asia, North America and the Middle East. Listed on the Australian Stock Exchange under the code UGL, the company has a market capitalisation of over $3.3 billion and annual revenue approaching $4 billion.

Life as a HR Director Grant announced she was leaving Telstra last month. She says that over her six years with the company, taking it through large-scale organisational and cultural change, she learned some valuable lessons. But now it’s time for a break. “The decision to leave is about my life in many ways,” she says. “I’ve worked since the age of 22, which was punctuated by three babies, and I think it’s time to have a break and think about the next stage of my career. “In big HR roles, there is a big responsibility and big accountability and I need a break from that,” she says. “I have to make a decision whether I want to go back into another big role, or whether I want to go back down the portfolio where I’ll do two or three things that I love and will give me flexibility. It’s taking time out and having breathing space in my life, because the senior HR roles that I’ve had have just been so full-on.” Grant says that Telstra has been a great company to work for and the opportunity to help drive the transformation of that business April 2011 HR|LEADER 13

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“I personally think I’ve been a better head of HR for the Commonwealth Bank because I’ve run the retail part of a large bank in New Zealand” Barbara Chapman

“A disappointing trend for the overall profession has been that some of these toplevel roles have gone to line management professionals over the past five years or so” Craig Mason

has been really exciting and challenging. “I think it’s a wonderful job for my successor,” she says. “What I’d really encourage them to do is to continue to drive the cultural change, in terms of transforming the business into a highly customer-oriented organisation. But I’d also encourage them to really focus on making sure that employees of Telstra have a good experience when they come to work. We’ve started the journey and I’d like to see that continue.” One piece of advice Grant would give to any aspiring HR director is to be resilient, consistent and remain optimistic. “It’s also important to always remember that even in the most senior parts of the business where decisions are made, those decisions have an impact on people and their lives. Never lose sight of that,” she says. Kincaid, who finished up her role as executive director of people and performance with ING earlier this year, is currently working as a HR consultant before embarking on her next role. She provides a couple of tips for HR directors stepping into the top job. First, build relationships. Kincaid believes it’s important to establish your credibility early on, as people are generally ready to make a fast judgment. She also emphasises the importance of managing those key stakeholder relationships. Another piece of advice is to strike a balance between getting some early quick wins and taking the time to sit back and listen and learn about the business and set some long-term goals. 14 www.hrleader.net.au

Lessons from the HR leaders Barbara Chapman is also taking on the next challenge in her career as the chief executive and managing director of ASB Bank in New Zealand. Chapman, who has been head of HR at Commonwealth Bank since 2005, says that one of the biggest lessons she learned during her time with CBA was that large-scale transformation is possible. “When you think about an organisation the size of the Commonwealth Bank, with 45,000 employees, the idea of making culture change is difficult,” she says. “Coming into the role five years ago, I was thinking: this is a huge business and transformation is going to be extremely difficult – if not impossible. But, in fact, it hasn’t been. We had a very clear and simple goal of improving in customer satisfaction and getting to No. 1 and we aligned all our people to it.” Chapman says setting a very clear goal was key, followed by having all communications and KPIs focused on that one goal was extremely important. “Then we shared those results and put some energy around it,” she says. “Clarity and simplicity was important.” According to Chapman, knowing the business inside out is really only the starting point when applying for senior HR roles, but she also believes that is almost a given at a senior level. “You need to understand the fundamentals of the business and what drives your business. That’s just the price of entry,” she says. According to Chapman, a successful HR professional will understand the type of culture they want inside their organisation and then work out how to achieve it – building an organisation that people want to work for is critical. “To be really successful in HR, you have to have those really deep insights into an organisation’s culture,” she says. Choosing the right candidate David Owens, managing director of HR Partners, says that one of the key selection criteria is based on culture fit. “There’s a lot to be said for having a HR director who understands the business, can work well with the senior team and join with them on the journey to deliver results,” says Owens. “The person who gets selected for the top HR jobs these days demonstrates a combination of cultural fit, along with competencies such

COVER|STORY

“It’s taking time out and having breathing space in my life, because the senior HR roles that I’ve had have just been so full-on” Andrea Grant

“Each HR person has to make some fundamental career choices. Do you decide to stay a purist HR person or do you decide to step out of HR and try to get some operational experience for a while? I think having that stint outside the function is just invaluable” Sally Kincaid

as values, communication or commerciality. And then, of course, being able to demonstrate other competencies such as discretionary effort, and being able to develop the people around you.”. Being able to prove your past performance through metrics will also benefit the candidate. “A HR professional must think about the metrics around how to prove they have a track record of success, and I think it’s a signal difference now that you can demonstrate success using some hard factual evidence,” says Owens. “Past performance is the best indicator of future success.” According to Craig Mason, the managing director of The Next Step, only a small number of people are able to perform in a position with the scale and complexity of the CBA and Telstra roles. “A disappointing trend for the overall profession has been that some of these toplevel roles have gone to line management professionals over the past five years or so,” says Mason. “On one level it can be looked at to be disappointing in the sense that there hasn’t been the confidence in the senior HR community that there should be in those roles.” Mason also points out that HR professionals who have managed their career well also stand a better chance of getting to the top spot. “By managing their careers, looking ahead and working with role models and career coaches, they can build up a substantial career journey,” he says. “People will then look at that background and see that they’re equipped to take on that role.” However, he also believes luck is involved. “At the end of the day, there’s always an element of luck and you can find yourself being sponsored by a line manager. When they move through the organisation, you end up going with them, so it’s a combination of good luck and good management.”

April 2011 HR|LEADER 15

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hr on the move

SuSan Ferrier has been appointed to the role of head of people, performance & culture at KPMG. Prior to KPMG Ferrier was director of people and development with law firm Allens Arthur Robinson. She replaces Heather-Maree Thompson.

Jane LewiS replaces Susan Ferrier as director of people & development at Allens Arthur Robinson. Lewis was formerly head of people & development, legal client services, at Allens for more than two years. Before joining Allens, Lewis was national human resources director at law firm Sparke Helmore.

rhonda Brighton-haLL has been appointed to the role of HR Leader for the Retail Bank of the Commonwealth Bank of Australia. Prior to joining CBA, Brighton-Hall was senior vice president of HR and Communication, Asia Pacific and Africa with eyewear company Luxottica.

Sharon ShuLtz has replaced Brighton-Hall as the head of HR for Luxottica. Prior to joining Luxottica, Shultz was executive director at ING Direct.

Kate rimer has been appointed to the role of general manager human resources, wealth management with Commonwealth Bank. Prior to joining CBA, Rimer was executive director people and development with law firm Mallesons Stephen Jaques. She has been replaced by Cathi Bawden.

16 www.hrleader.net.au

opportunities and challenges There has been a lot of movement in terms of senior roles in HR recently. Commonwealth Bank recently appointed Rhonda Brighton, former head of HR of Luxottica to the position of HR leader for the retail operations of CBA. The bank also snared former executive director of people and development at law firm Mallesons Stephen Jaques, Kate Rimer to head up HR for its wealth management division. “When we were recruiting for Rhonda and Kate, we were quite privileged with the number and the calibre of people who wanted to come and work in this business, and I think it’s because of the story of the transformation of the business and the role HR played in that,” says Chapman. “It is quite exciting for people. HR as a discipline is quite well understood in corporate Australia, so I think there are good opportunities for HR professionals.” With the HR market lifting this year, there are also a number of challenges facing HR professionals in the job market. “Any role in the senior market has myriad complexities,” says Mason. For senior positions, managing directors must have the right mix – the right background, the right style – and this can lead to top positions being vacant for long periods of time. “It’s one of those really frustrating things for senior candidates. Often companies have a very narrow view of what they’re looking for in terms of the overall mix and it means that if a senior person is right for the role, they’ll be among a very small group who are,” he says. According to Matthew Chapman of The Chapman Consulting Group in Singapore, the top end of the HR market has been buoyant recently across the Asia-Pacific region. So another challenge for HR directors search-

ing for a position at the moment is finding a company that is stable. “Many companies have been going through change and transformation, and the No. 1 skill set that I look for in HR leaders is adaptability and flexibility with change,” he says. “They need to be aware of things not being as they seem. Secondly, there is a lot of salary pressure out there, because there are a lot of senior people on the market, so it’s prudent to move for reasons other than money.” Moving to Singapore, Hong Kong, Japan or China might be an option for HR directors, as the market is regionalising and many executives are viewing their career in the context of the entire region. But this path presents its own difficulties. “The challenge for Australian talent transitioning into regional roles is just the fact that most of Australia’s HR talent only has domestic experience,” says Chapman. “But I will say Australia’s talent is very well regarded. They’re seen as flexible and well educated in HR practices, because the profession is mature in the area.” Chapman’s advice to HR professionals seeking to step up their career is: “Try to get a business leader you connect with, a good functional head of HR, and that will lead to success. If you have one without the other, there will be a problem with success.” Additionally, if you’re joining a company undergoing transformation, Chapman says HR directors should consider whether they have the support, the headcount and the budget to see that transformation through. “Think about what you want in your career in the future – if you’re someone who wants a future with the company, make sure you join a company with an appropriate runway,” he says.

EXECUTIVE EDUCATION

Learning to lead Senior HR practitioners who are looking to take their skills – and career – to the next level would do well to consider an Executive MBA. Benjamin Nice looks at the study options available and the benefits of executive education

or many HR practitioners and business people in general, a standard MBA offers an opportunity to work alongside peers, and develop a general knowledge of business to help switch careers or boost internal opportunities. However, for employees that have already gained substantial business experience, a standard MBA – which includes an emphasis on aspects such as statistics and finance – might not be all that relevant. An Executive MBA, on the other hand, tends to be less concerned with the nitty-gritty of everyday areas of business and is designed to focus on leadership management and strategy – areas that are more relevant to future leaders, directors or C-level professionals. Targeting those with extensive experience in management roles, an EMBA is a high-end, elite degree and – at around $100,000 – does not come particularly cheap. With that in mind, prospective students need to be certain that an Executive MBA is going to be more relevant than a standard MBA, and also consider the “where, how and why” of choosing a course. MBA vs EMBA: what’s the difference? With more than 40 Australian business schools offering standard MBA courses, choices are plentiful. Often designed for younger graduates with roughly three to 10 years of 18 www.hrleader.net.au

work experience, the course is usually an outlet for those looking to improve their business credibility and get a general grounding in other areas of business. Executive MBA options are a completely different kettle of fish, explains Mark Crosby, associate dean and former EMBA director at Melbourne Business School (MBS): “The EMBA is aimed at the senior people in business, and at MBS we probably attract more senior people than most EMBA courses around the world,” he says. “Our intake is typically those looking to develop their senior leadership capabilities, rather than a career change.” Crosby says that in terms of traditional academic disciplines, the course covers a similar syllabus to that of a regular MBA but is more concerned with areas such as change management and strategy, and tends to focus on the skills that are more likely to be needed at a senior level. As the only Australian EMBA course to be featured in the prestigious top 100 EMBA courses, compiled by the UK-based Financial Times, Melbourne Business School is among the elite in executive education. Assessing criteria such as starting salary, international faculty percentage, and career progress rank, the FT 100 sets a worldrecognised, benchmark standard for courses on an international scale. Although MBS has a strong presence in the rankings, Crosby says that meeting the FT

EXECUTIVE EDUCATION

criteria is not the “be-all and end-all” when looking at how to develop the course. “We are mindful of the rankings, but to some extent you have an idea of what program you want to run, and arrange the course around that first and foremost. However, you are also mindful of what is going to happen with the rankings,” he says. EMBA study for HR professionals While many HR professionals decide to undertake some form of MBA study, the question on most people’s lips will be: is the EMBA right for me and, if so, what will I get out of it?’ Jo Mithen, the CEO of Monash College and former CEO of the Australian Human Resources Institute, graduated from the EMBA course at Melbourne Business School and believes that the course is a wise investment for senior HR practitioners. “The thing I think HR people need to understand and improve their capacity in is their ability to link what they do as HR professionals back to the business,” says Mithen. “I feel that people in HR often need reminding that HR is a business function. It’s not a social science, it’s a business, and it is about connecting the people to the organisational objectives. An EMBA can really help get an understanding of that.” According to Mithen, the compulsory nature of the different areas of the course means that top-level HR professionals would be placed outside of their comfort zone and exposed to every different part of the business. “There’s no way that an HR professional can come to an Executive MBA in particular and pick the easy subjects, or select the subjects that they feel more comfortable with,” explains Mithen. “The most powerful learning sense was about the strategy – linking finance, HR, IT and economics all back to the strategy of the organisation and using that as a centre point for all your planning and analysis,” she says.

“This is something that HR people are not always good at, but the value of linking everything back to the business is very powerful.” Professor Murali Chandrashekaran, the academic director of MBA programs at the University of NSW’s Australian School of Business (ASB), says a high number of applicants in the MBA (Executive) program come from the HR profession, and believes that the course helps to broaden students’ knowledge of business. “We continue to have a strong change management theme that runs through our MBA Executive program, which is certainly a big draw for us in terms of dedicated HR professionals,” says Chandrashekaran. “We have classes that round out HR issues, so this is definitely a program that would suit somebody who has a HR focus and wants to know about general management and other functions and areas of the business.” Choosing an EMBA Although executive study options are relatively few and far between in comparison with the more popular MBA course, there are still many factors to consider when choosing what type of study and course is right. While, technically, the MBA (Executive) offering at the ASB is not an EMBA in the traditional sense, it instead offers a program that allows a part-time mode of study, and combines coursework alongside some “residential study”, which is more typical of a standard EMBA course. Costing $63,000 and attracting roughly 1000 students from a range of professions around Australia, the MBA (Executive) course, explains Chandrashekaran, is for people who don’t want to take time off work but are keen

April 2011 HR|LEADER 19

executive education

“HR is a business function. It’s not a social science … it is about connecting the people to the organisational objectives” Jo Mithen, CEO, Monash College (alumnus EMBA, Melbourne Business School)

“The EMBA is aimed at the senior people in business. Our intake is typically those looking to develop their senior leadership capabilities, rather than a career change” Mark Crosby, associate dean, Melbourne Business School

to develop their management knowledge and technical skills. When looking at where to study, Chandrashekaran says the important things to consider are the reputation of the institution, the quality of the program and the ranking of the course. “You should also look for whether the school is connected to the business community, and if there is a vibrant community network in place. “You have to ask: what are the opportunities that are created by … the MBA brand? After all, eventually it is about harnessing skills, developing strengths, but also leveraging that into subsequent career development work.” The EMBA offered at Melbourne Business School is more in line with international EMBA courses, and runs for a total of 16 weeks over a 15-month period. “Students do four weeks in October, March, July and November, and in between they can go back to work. So the students are really concentrating hard on doing the EMBA study for 16 weeks, and the other 14 or 15 months they can work,” says Crosby. Priced at $104,000, the program consists of three months’ in-house study in Melbourne, 20 www.hrleader.net.au

with a further month of study abroad. “For the three months residentially in Melbourne, they live and get fed at the school here, with the idea being that we take them away from home and work. They work in the classroom during the day and in the evening they do group work together, so they are very focused on the MBA for the whole four-week period,” he says. Max Piper, the CEO of Central Innovation Group, which runs companies such as Intercad, completed the EMBA at Melbourne Business School and feels that the four-week blocks were essential to help him focus on the work. “With the one-month modules, it was a much easier methodology for me and easier to just take the time out,” says Piper. “Given I hadn’t been to school for over 20 years, I needed to take time out and focus on the studies, and build up into the rhythm.” “I got out of the course everything that I wanted to. I wanted the peer group and to mix with others. Because you spend a month together you form very firm friendships, so that network continues to exist for me.” Chandrashekaran highlights the importance of looking not only for strong links to the

business world and good teachers, but also a diverse mix in terms of the course intake. “If all the students that study the course are very similar, then the chances of you learning from others will be stunted. You want to learn from quality instructors but also quality peers who have a wealth of experience of their own and who belong to a very special set of people,” he says. “A 360-degree approach to excellence and quality is what a student should be looking for.” A global approach Most EMBA courses include some kind of focus on international business, often with stints or optional electives that involve time abroad where students can learn from foreign counterparts and high-level businesspeople around the globe. With both the ASB and the MBS courses offering international study options, there seems to be a substantial emphasis on learning about how developing areas such as China, India and Eastern Europe are going about their business practices. “The international part of the program was really useful,” says MBS graduate Piper. “We

ExEcutivE EDucAtion

spent time in the old East Germany where, culturally, it’s very different. In terms of the newly emerged Eastern Europe, we learnt that there were fundamental differences in the ways that businesses think, especially in terms of how regulation works. “Our time in Asia also allowed us to understand about the opportunity and growth in countries such as China. Even for people like me who had worked in India, among other countries, it was enormously valuable and I learnt different aspects and angles that I didn’t even realise were there,” says Piper. No place like home Although there are numerous international EMBA courses to choose from – particularly in the United States and Europe – Crosby says that, along with a strong focus on international issues, Australian courses offer a network of alumni that other courses cannot compete with. “One of the selling points of our program is that in Australia you get a strong network of local participants,” he says. “There are certainly some very good programs internationally, and I wouldn’t discourage people from going to study in Seattle or Harvard, but you will get a network of people you won’t see very often, whereas our alumni will get together on a regular basis, which I feel is very important.” With the current Melbourne Business School intake at 32, classes are relatively small. Crosby says that this helps to create a tight-knit circle of peers, which often leads to lifelong friendships and a trustworthy alumni network. Jo Mithen, one of Crosby’s students, certainly agrees. “The alumni that is created is extraordinary. Some of my good friends have come from the EMBA and we get together every month for dinner,” she says. “These people are going on to do amazing things, and to have that group of people who you trust and can talk to – people pay a lot of money for networks like that. I think that the network is just as important as the degree, which, if you’re smart about how you use it, is brilliant. If I have a problem, these guys are the first people I turn to.”

“A 360-degree approach to excellence and quality is what a student should be looking for.” Murali Chandrashekaran, academic director of MBA programs, Australian School of Business, UNSW

“Given I hadn’t been to school for over 20 years, I needed to take time out to focus on the studies, and build up into the rhythm.” Max Piper, CEO, Central Innovation (alumnus EMBA, Melbourne Business School)

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*Financial Times (UK) Global MBA Rankings. No.1 refers to number 1 ranking out of Australian MBA programs only.

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April 2011 HR|LEADER 21

social media

Recruiting social media Every four minutes, one more Australian joins LinkedIn. While both businesses and individuals continue to explore the seemingly endless possibilities of social media, Benjamin Nice looks at whether the recruitment sector will follow suit.

ne-hundred million members worldwide is no mean feat. But by reaching the astonishing milestone in March 2011, LinkedIn has confirmed what people have been predicting for months â&#x20AC;&#x201C; perhaps years. Even the most dogged sceptic cannot deny that the future of recruitment, and HR in a broader sense, will be increasingly shaped, influenced and controlled by digital and social media. But is it really that simple? According to a recent Adecco Group survey on temporary employment in Australia, only two per cent of organisations cited social media as the best way to source staff, while a miniscule 0.2 per cent of job-hunters said they would use social media as the main way of finding work. For such an increasingly significant area in both our professional and personal lives, social and digital media has 22 www.hrleader.net.au

sociAL mEDiA

become one of the main ways we communicate, socialise and gather information. But with such dismal figures, it seems that either the recruitment sector is operating in a time warp or Australia is severely lagging behind the rest of the world. For example, in the same survey, Adecco found that 15 per cent of employers in North America saw social media as the main source of recruiting talent to their organisations – seven times more than in Australia. Furthermore, the CareerXroads Source of Hire survey found that social media was cited as the primary means of directly sourcing passive candidates in the US, with some 45.7 per cent of respondents confirming that finding and examining profiles on social media sites such as Facebook and LinkedIn was a “significant” part of their recruitment program. And it’s not just the US market. In the UK, management consultancy Accenture announced plans last year to recruit 50,000 people, with projections of a hefty 40 per cent sourced through social media and websites such as Twitter and LinkedIn. Despite the alarming difference in figures, Rick Khinda, director of marketing and communications at Adecco Group Australia, expected Australian employers to gradually follow international trends. “Social media in Australia is still very much a social and professional networking tool but, based on the success of our overseas colleagues, we expect this to grow in strength as a recruiting forum,” he says. “Social media as a recruitment tool is still in its infancy both globally and in Australia but, as businesses become more comfortable with social media, we expect that recruitment through social networking will grow.” While Twitter, Facebook, LinkedIn, Viadeo and search engine optimisation techniques have a firm grasp in areas such as company branding, marketing and advertising, figures suggest that the recruitment industry is biding its time – a sensible approach, according to Kelly O’Shaughnessy, social media strategist at Blake Dawson. “In an environment where your brand reputation is on the line in ways it has never

been before, it’s a considered and clever decision to sit back and watch what’s happening in the space. Listen to what your candidates want to see and hear, and learn the language of social media so that you can interact with people in the most appropriate ways,” she says.

people putting up smoke and mirrors, organisations are not getting the best advice to utilise these channels in an effective way,” she says. “I dislike the hype, as it takes away from the business logic and business strategy that digital channels offer businesses beyond a marketing campaign on Facebook.”

Social media hype? While for some, social and digital media creates an exciting, endless wave of new ways to communicate and do business, others are still sceptical about “jumping on the band wagon”. One reason for the misconceptions and mistrust around new technology, and social media in particular, could be the overwhelming amount of exposure and attention it receives in our everyday lives – from conversations with colleagues and friends to media reports and coverage. Fi Bendall, managing director of digital strategy company Bendalls Group, believes the “overhyped” nature of social media is problematic and could potentially confuse and shift people’s perceptions of how it can help drive their business forward. “The hype around social media is a problem, because it has created a lot of myths about the digital channel as a whole,” says Bendall. She suggests businesses ignore the hype and rumours and instead focus on fully understanding the medium in order to make the most of its potential advantages. “With

An integrated approach While Bendall acknowledges that some companies are starting to dabble with implementing social media in their recruit ment strategies, she says most businesses could be doing much more. Google is a “great candidatequalifying and search tool in itself”, she says, highlighting the financial benefits of such options. “The costs of using social media verses traditional recruitment channels are incredibly low, and while that doesn’t help recruitment company commissions, it can have a big impact on the bottomline profitability of larger organisations,” she explains. “That said, I know some recruitment companies that are offering social media as part of their services package, but it still tends to be Twitteroriented as opposed to wider engagement through online vertical communities, or using some of the paidfor tools from LinkedIn.” Despite the fact that traditional methods of recruitment still play a major role in sourcing talent in Australia, surveys and industry

April 2011 HR|LEADER 23

social media

Search and recruit Fi Bendall suggests the following ways that employers can better utilise social media to source staff: 1 Utilise LinkedIn groups, job boards and data products 2 Join community platforms in specific industry sectors and wider. Whirlpool, for example, is a great forum for identifying talent. 3 Develop a sound engagement-content strategy. Employers using platforms such as Twitter or Facebook need to ask: what content will I be creating, is it of value, when will it be published and where? In terms of recruitment: why will people join the organisation and how can the organisation reach out to them to achieve followers and fans that will engage, not just join? 4 Create interesting content extensions. With paper.li, for instance, you can produce an online publication based on your followers’ Twitter content, iTunes podcasts, YouTube vidcasts and specialist blogs, then link all these sites to drive traffic to specific job landing pages.

“Social media is not right for every industry sector. It is not a silver bullet and it is not a one-size-fits-all channel” Fi Bendall, managing director of digital strategy company Bendalls Group

experts maintain that people are becoming more aware of the benefits that social media can offer businesses. With LinkedIn reaching out to 100 million people worldwide, and around 1.5 million in Australia, this trend can only continue. For many companies, the prospect of sweeping changes in standard business practices may seem daunting or disruptive. However, rather than seeing social media as a threat, Adecco’s Rick Khinda believes recruitment companies must embrace new technology and learn to use it alongside their traditional recruitment methods. “It gives us another effective way to reach out into potential talent pools. We use a variety of search and selection methods, so an increased use of social media will support what we are doing currently rather than take away from it,” he says. The future of social media and recruitment Last month, HR Leader reported that Australia’s skills shortage was at a three-year high, following surges in online job advertisements. The Advantage Job Index in February revealed a six per cent rise in job ads – the largest monthly increase since December 2007. If these figures are anything to go by, the hunt for skilled professionals will only become more competitive, particularly as market conditions improve in the aftermath of the global financial crisis. In this environment, recruiters and organisations that maximise their opportunities to engage with prospective employees through digital and social media will undoubtedly gain an advantage. 24 www.hrleader.net.au

However, Bendall says no amount of social networking initiatives can make up for poor planning, and it is still important to include other media in the recruitment mix. “Social media is not right for every industry sector. It is not a silver bullet and it is not a one-size-fits-all channel,” she says. According to Khinda, social and digital media will have a significant influence on the HR industry, but he doesn’t believe it will become the key recruitment method in the future, emphasising that there is no replacement for face-to-face interaction. “While our personal and professional interactions are becoming increasingly ‘virtual’, we don’t think it will become the main source. It will certainly have a much greater influence on recruiting, and we have implemented a social media strategy to lead this growth, but our clients will still want the level of personalised service that we provide,” he says. Blake Dawson’s O’Shaughnessy agrees that it is hard to position social media as a singular talent source that will compete with other mediums. Instead, she suggests that organisations implement elements of social media along with traditional recruitment outlets. “Social media is a way of communicating and can be integrated into many recruitment channels,” she says. “Maybe you have an internal social network and your employees refer candidates through that platform. Or the ad you posted on a job board was ‘liked’ by someone on Facebook. Or you ask graduates to check in on Foursquare [a location-based social networking site] at their careers fair.” As for the future of recruitment, O’Shaughnessy says: “Social media can be involved in so many ways, it’s hard to say whether it will or won’t be the most popular channel... But involved it will be.”

“Social media can be involved in so many ways, it’s hard to say whether it will or won’t be the most popular channel... but involved it will be” Kelly O’Shaughnessy, social media strategist at Blake Dawson.