Recruitment & Co - March 2021

March 2021

RETURN TO WORK Can an employer direct an employee to return to work?

Taking the lead in 2021 APSCo's leadership team discuss where their focus will be in 2021

The official publication of

Contents

19

22 27

4 A message from our MD Lesley Horsburgh

25

6 Talent and skill-short marketplace by Stephen Smith 8 Member news 10 Association news 11 APSCo's Representative Committee discuss their focus in 2021 19 Ask the Adviser with Entity Solutions 20 Post-COVID confidence kickstarts M&A deals by Richard Hayward 22 The great work from home debate by John McCluskey 25 Return to work in a post COVID world by George Haros 27 Palm trees are flexible for a reason by Thomas Taylor 29 Standing out from the crowd - Incentives for senior employees

by Paul Masters

Recruitment & Co is published by the Association of Professional Staffing Companies Australia (APSCo Australia).

Editorial submissions: carly@apscoau.org Advertising enquiries: carly@apscoau.org Membership enquiries: paul@apscoau.org

RECRUITMENT & CO | 3

www.apscoau.org

A MESSAGE FROM OUR MD

Welcome to Recruitment & Co Lesley Horsburgh APSCo Australia Managing Director

2021 seems to be hurtling along at a phenomenal pace. Members are reporting some of their busiest times and while the challenges of 2020 are still having some impact, the professional recruitment sector is largely buoyant.

The same can be said within APSCo, having launched a number of initiatives for 2021 including a new band of membership for recruitment start-ups called Launchpad, our first Annual Conference in May, and the continuation of committees across our Finance Network, Canberra Members, InHouse Counsel, and our Medical working group.

We have also kicked off a new partnership with Civic Group, a Government Relations Agency, with our first Member meeting held in late January to set the agenda for our lobbying voice during the coming year and I welcome all of our Members to have a say in how we should prioritise your concerns. Many of you will have seen our first submission in response to the Omnibus Bill and the media coverage in various industry mastheads and I am encouraged to see the interest such exposure gave us.

As we deepen our networks across Government and broader industry groups, it has become apparent that the need to clarify what APSCo stands for is not only key outside of Membership but first and foremost within it. Despite our expansion beyond the roots of ITCRA and the IT sector, as APSCo Australia, our focus remains the same – to represent recruitment businesses that place professional talent. Our service is deliberately targeted, enabling us to focus wholly and solely on the white-collar sectors and professional staffing market, ensuring our content and resources are relevant, focused and key to our Members’ objectives. As such, much of our content this year will echo our footprint and drive targeted outcomes for our highly valued network of Members.

I look forward to finally meeting many of you in person at our upcoming Conference in Sydney on May 19.

LESLEY HORSBURGH APSCo Australia Managing Director RECRUITMENT & CO | 4

www.apscoau.org

A MESSAGE FROM APSCO'S AUSTRALIAN CHAIR

Talent and the skill-short marketplace With 2021 being in full swing and the economy bouncing back, we leaders have a much clearer picture of this year's challenges and opportunities and are now able to turn our focus back towards the growth and development of our people business.

Although things are far from certain, I personally have met unrestricted positivity from pretty much everyone I have spoken to about the economy in the last weeks. From my real estate agent who sold my house last month to my banker who firmly put my concerns of government debt to rest (the message was: Government debt is global and Australia is not even close to the debt levels of many exporting countries whom we compete with).

Stephen Smith Chair - APSCo Australia CEO/Co-Founder - Sirius People

So what is the main challenge this year? I think it’s universal: Talent and the skill-short marketplace. Attracting top talent for our customers is becoming increasingly hard as the demand outstrips the supply by far. This is likely to increase until the opening of international borders will eventually provide some relief.

As much, but possibly even more challenging is attracting talent to join recruitment businesses. With the exodus of many recruiters from the industry, (I have heard that as much as 25% left the industry in 2020) we are left with a much smaller talent pool to source from. This talent pool is also under attack as corporates look to rehire many of their internal jobs that were made redundant last year. Agencies like ours seem to supply exactly the type of talent that is needed to fill the headcount deficit.

So what now? What should our focus be in 2021? Talent Development!

The investment into the personal development of our recruiters should be our priority for the year. Here at Sirius, training programs for new consultants are fully underway and we started to offer individually tailored training courses to our more experienced consultants to enable them to upskill. The goal is to train up a new generation of recruiters who not just has the right skill set but who also has a new understanding of recruitment to deliver into a new, slightly different economy.

In the time I have been operating in the Australian recruitment market, I haven’t seen a start into a new year as busy and demanding as this one. What makes the difference is a new (at least partially remote) workplace, the changes in legislation, a deep focus on compliance as well as navigating around an ever-changing complexity in advertising and marketing.

It has become more difficult to train a well-rounded 360 recruiter. It’s not something we necessarily have under control in the recruitment sector, but without a doubt, it's a challenge that will keep a lot of us busy this year.

STEVE SMITH CEO Sirius People, APSCo Australia Chair RECRUITMENT & CO | 6

www.apscoau.org

APSCo Australia's inaugural full-day conference for recruitment industry leaders.

Learn from leading IR specialists, independent legal advisers, in-house counsel, and business leaders around how best to navigate the complexities of looming legislative change, how D&I is closing the talent gap, as well as a frank look at the roles tech, media, and innovation play in successful talent attraction.

Click here to see our full speaker list

For more information and to register, visit www.apscoau.org

MEMBER NEWS

Talent recognised as Gallup top place to work for 3rd year running

Left: Mark Nielsen and April Marcot Talent has been named a recipient of Gallup’s global Top 40 Exceptional Workplace Awards for the third year in a row – the only Australian-based company to be recognised in the group of SHARE YOUR winners.

NEWS WITH US!

Talent was recognised by Gallup for putting its team engagement at the heart of the business strategy and creating a workplace culture to match.

As an award winner, Talent ranks among the most elite organisations around the globe. Gallup’s meta-analysis on team engagement and performance is the most comprehensive workplace study ever conducted with data on more than 2.7 million employees in 276 organisations across 54 industries and 96 countries.

Statistically, only 22% of global employees are fully engaged - defined as being committed to their work and connected to their workplace. The engagement level at Talent is 73%.

April Marcot, Talent Head of People and Culture is passionate about the sensational work culture that Talent has. “We are overjoyed to be receiving this award for the third year running. Over the past year at Talent, we have focused on authentic and empathetic leadership. Our commitment is to ensure that all teams are constantly recognised, growing, living to our values, and connected to our purpose.”

Talent Global CEO, Mark Nielsen, commended the team on their brilliant work. “What an incredible recognition from Gallup especially being the third year in a row for Talent. I am humbled and incredibly proud to lead the Talent team globally. Talent is consistently pushing boundaries, taking risks, and making sure that our teams always come first."

RECRUITMENT & CO | 8

MEMBER NEWS

New faces at 1Medical 1Medical has started 2021 with two new faces, bringing the Sydney office to 12 people.

The specialist sectors that Finite supports, particularly Technology, Digital, Business Transformation and Risk and Compliance, have continued to see high demand across a wide range of skill-sets.

The Banking and Finance, Retail, Utilities and Government sectors have all remained busy.

Finite remains focused on accelerating innovation in all its verticals, and is expanding its consultant and delivery teams.

Finite has made a number of new senior hires to increase its coverage and capability, including Nathan Delbridge as Finite’s new ACT Manager in Canberra, with exceptional background experience across Defence, National Security and the Consulting sectors.

Jessica Beebe

Beatrix Torpey

Beatrix and Jessica have both joined as the business's next generation of para-consultants with plans afoot to progress through 1Medical's development program to a career as medical recruitment consultants.

Beatrix supports the emergency medicine team and Jessica, medical specialties. The sourcing and onboarding of doctors is a high contact and labour intensive process and the role of para-consultant forms a critical part of the business.

As part of the company's growth plans in 2021, the company has moved to No.1 Castlereagh Street, joining TRC in their expansive office.

Finite posts revenue growth Against a challenging six months, Finite Recruitment, which includes its Rowben Consulting brand in Australia, has posted healthy growth for the July – December 2020 half year. This included year-on-year revenue growth of 3.1% and operating profit growth of 5.4%. Although fees from permanent recruitment were well down, a buoyant contracting market propelled the revenue increase. .Finite’s MD, Tracy Thomson, highlighted “These results are testimony to the resilience of both our workforce and our business model, with effective cost management measures delivering results without falling back on JobKeeper support”.

SHARE YOUR NEWS WITH US! Do you have a news item regarding your business? A new appointment or an exciting announcement?

Please get in touch with us here at Recruitment & Co. SEND YOUR NEWS TO CARLY@APSCOAU.ORG

RECRUITMENT & CO | 9

ASSOCIATION NEWS

APSCo turns up the heat across its networks APSCo has launched 6 new Member Working Groups.

APSCo has launched 6 new Committees, Networks, and Working Groups, giving Members an opportunity to engage virtually, collaborate, share information and network among peers.

The newly created groups for 2021 are: ACT Regional Committee Medical Recruitment Working Group Finance Director Network In-house Counsel Working Group Government Relations Working Group, and Recruitment Marketing Network APSCo has plans to encompass more States and Regions during 2021 to provide Members in those areas with the opportunity to raise and discuss issues facing their region. Find out more here

FREE Remuneration Report download for Members APSCo Australia's Members have access to a FREE download of the 2020 ANZ Remuneration Report (valued normally at $750) published by Staffing Industry Metrics and HHMC. The data in the report represents a broad cross-section of the ANZ staffing and recruitment industry and provides much-needed data on current remuneration levels and practices. Owners and managers can use this data to proactively review and plan their remuneration strategy and actions.

Hurry - this download offer expires March 31.

Get your hands on a copy here.

RECRUITMENT & CO | 10

APSCO'S REPRESENTATIVE COMMITTEE

ANTHONY WHYTE- TALENT

2021 and the year ahead 2020 was a year none of us will forget anytime soon.

To say businesses overcame hurdles would be an understatement and Talent was no exception. Now that we move into a new year, the lessons, understandings, and leadership challenges that we all faced will continue to be of significant value throughout the coming year.

One of the biggest lessons that Talent faced throughout the year and is something we will continue to focus on, is empathetic leadership and putting the wellbeing of employees at the forefront of everything we do.

Without your employees thriving, how can you say your business will be effective in what you are doing?

Talent will continue pushing this as a top agenda point with internal communication, tools being made available to all staff, and regular check ins with managers and their teams.

As workplaces look at moving back to normality

with people returning to the office, I am pleased to say that Talent will be pursuing this as well with collaboration amongst our clients, candidates, and our own teams being top of mind.

One of the biggest questions we should all be asking ourselves is how can our business grow and diversify in times of disruption?

A significant concern for Talent, and something we will be working on this year, is how we address the major disruption / cessation to our overseas and interstate supply chains given minimal

Anthony Whyte Vice-Chair - APSCo Australia General Manager - Talent International.

international travel continued border closures.

and

As the leader of the Adelaide branch, I have many goals that my team and I want to achieve.

Leading with a #oneteam mentality, we must support each other daily, inside and outside of the workplace. This loops back into our overall company objective of empathetic leadership.

Our partnerships with clients, candidates and contractors are second to none and bringing a positive outlook whilst speaking with them will support them in what they are trying to achieve.

As I have said before, you are not alone in this and 2021 will be another eventful year.

RECRUITMENT & CO | 11

APSCO'S REPRESENTATIVE COMMITTEE

MELISSA OCCHIPINTI - PAXUS

Expanding our business Over 2020, COVID brought so many challenges from maintaining good employee mental health, to new COVID safe ways of working, to delivering to changing business requirements.

It was a tough year for everyone - and 2021 will see us continue to navigate the uncertainty that surrounds a global pandemic. Melissa Occhipinti writes.

With this in mind, it may seem like an unusual time to expand our business, but we have found now more than ever, our clients are looking for alternative workforce solutions to respond to changing business needs.

Due to COVID and the lack of hiring, many internal recruitment teams were let go. As a result, when business ramps up quickly, many of our clients don’t have the capacity to manage part or all of their recruitment functions inhouse. This has meant we have seen a sharp increase

in demand this year - and along with the impacts of State based COVID shutdowns, it has been difficult to forecast where investment in resourcing support will be required. To cater for this and the growing need in the market, we have introduced a dedicated Talent Solutions team - focusing on Volume Recruitment, Project Solutions, and Recruitment Process Outsourcing (RPO).

Our Talent Solutions team will play a major role in supporting the peaks across our business, and ensuring

Melissa Occhipinti Regional Director Qld, WA and NZ - Paxus Director - APSCo Australia

consistent delivery to our clients. Our highly experienced Talent Solutions Manager, Sarah Kearns, heads up our team of workforce solutions experts, who are already busy designing and implementing innovative solutions.

As a leader, my focus for 2021 will be on supporting our business and its stakeholders to get through (what is hopefully) the tail end of COVID. The impacts of COVID are widespread, and it’s important we look after each other, our mental health, and focus on supporting our team, clients, contractors and candidates.

RECRUITMENT & CO | 12

APSCO'S REPRESENTATIVE COMMITTEE

JAMES LILEY - FRANK RECRUITMENT GROUP

Victoria's rebound accelerating Twelve months ago this week, Victoria was still in shock from the highs of a successful Women’s T20 Cricket World Cup win and a record-breaking crowd at the MCG. swiftly followed by the cancellation of the Australian Grand Prix. James Liley explains.

Twelve months ago Victorians didn’t know what to expect, no one predicted that our economy would be hit so hard and our lockdown restrictions would be more severe than every other state.

Twelve months on and we have to look at the opportunity that has come out of adversity. Businesses are returning to their offices, the trains are busier, the cafes and restaurants in the city are busier and people are genuinely kinder. We will never return to the traditional 9-5 office culture, we have proven that we can pivot, leverage technology, survive and be productive from anywhere in the world.

My Victorian colleagues are all experiencing a greater demand for talent and candidates are starting to feel confident in the market to start looking at opportunities again.

Data from the Victorian Chamber of commerce shows that Victoria’s economy grew 6.8 per cent in the final quarter of 2020, compared with 2.9 per cent for NSW and two per cent for Queensland, and household spending increased 10.4 per cent in Victoria while it increased just 4.3 per cent nationally.

The next year will see continued highs and lows as we roll out a vaccine, manage localised outbreaks, the roll-off of job keeper and the focussed injection of support for those industries struggling to rebound.

As professional recruiters we have to provide innovative solutions to a candidate-short growth market. Our clients will bring us closer as partners

James Liley Senior Vice-President - Frank Recruitment Group Director - APSCo Australia

and there is a great opportunity to develop deep and consultative relationships.

Today’s market provides the perfect opportunity for us to promote the benefits of a diverse and inclusive workforce.

Our experience has brought us closer together, globally, as a country, as a state, as an industry, as APSCo members and as a family. We value the support from our networks, the ability to share and resolve problems and the motivation to celebrate everyone’s successes – however small.

As the economy gathers pace let’s remember to keep our network strong, look out for each other, support each other and remember to check in on your peers as we did in the harshest of lockdown times.

Victoria’s rebound is accelerating; we’re stronger together.

RECRUITMENT & CO | 13

APSCO'S REPRESENTATIVE COMMITTEE

'CILLA ARNOLD - COX PURTELL

Empowering our people to grow and thrive Our goals for the year are all about growth, says 'Cilla Arnold.

Last year at Cox Purtell our focus was all about our people, their wellbeing and engagement, as well as looking after our candidates and clients; it was all about helping everyone navigate the pandemic, Working From Home, returning to the office / work.

This year, having become Reo Purtell – with the merger of our company and the Reo Group – our attention is still very much on our staff and ensuring a successful union of our two brands.

But the difference between 2020 and 2021 is huge!

'Cilla Arnold Executive Director - Cox Purtell Director - APSCo Australia

Not only are we a new entity on our industry’s landscape but we are also focused on our new mission – to empower our people to grow and thrive!

we can evolve as a business, nurture authentic employee experiences and continue to be known for our outstanding delivery, by always giving that little extra!

This means our goals for the year are all about growth.

Personally and for our Leadership team, the emphasis is on collaboration and team work.

We want to provide genuine development opportunities for our people so they have the ability to thrive as industry leaders, and we also want to add great humans to our team and expand and excel at our service offering. It is an invaluable opportunity for us to review and refresh everything we do, so that

This is an exceptional opportunity to give more to our candidates and clients.

Our consolidation means Reo Purtell can better cross sell, find efficiencies and shape a super fit, productive and positive organisation supporting new ideas and fostering excellence.

RECRUITMENT & CO | 14

APSCO'S REPRESENTATIVE COMMITTEE

STEPHEN VENESS - DAVIDSON

Working to support clients As a business that focuses across the spectrum of Recruitment & Search, Advisory, and Technology, we see the focus to be supporting our clients across the spectrum of elements that enhance workplace performance.

The ability to support them in a range of ways, depending on the challenge they are seeking to address has, and will continue to be a key focus.

2020 was still a very strong year, we saw a large demand in the major markets in which we operate; Utilities, Energy, Infrastructure, Government and Health. These sped up toward the end of 2020 and have only accelerated in 2021.

2021 is essentially a continuation of those services and markets that are key drivers of the broader economic recovery.

The market will continue to become busier, with more competition and options for both clients and candidates – as such, quality delivery will be of heightened importance.

Personally, my focus in 2021 is squarely with our clients.

The markets noted above (Infrastructure, Utilities and

Stephen Veness Director - APSCo Australia Group Manager - Projects & Operations Davidson

Energy for example) will all continue to experience significant change, growth and their own sets of unique challenges.

These markets are moving at an ever increasing pace and my focus for 2021 and beyond is maximising time with our clients in the space.

Working with our clients, developing solutions and opportunities is fundamentally where my passion lies and it is fantastic to be in a position in which the market sectors that I spend so much time in, are all experiencing growth and change.

RECRUITMENT & CO | 15

APSCO'S REPRESENTATIVE COMMITTEE

LAILA BILLBERG - IGNITE SERVICES

Meeting our clients needs Our main focus this year is to capture our share of the buoyant market we’ve seen emerge from the COVID-19 pandemic, says Ignite Services' Laila Billberg.

We’ve already noticed an increase in technology roles (e.g., data analytics, cybersecurity and digital transformation) and government roles (e.g., compliance, fraud assessment and program officers) which appear set to drive future employment growth. These adjustments in demand have prompted us to rationalise our broader service offerings and ensure we successfully adapt to the evolving talent needs of our clients.

Contracting recruitment is another area set for significant growth in 2021 as companies embrace more agile and flexible workforces.

The competition for highly skilled talent is already fierce with an increasingly

limited supply of candidates available. Consequently, we will focus on building our talent pools to ensure we continue to have access to top quality candidates with highly sought-after skillsets.

The challenges of 2020 emphasised the importance of addressing mental health and wellbeing in the workplace. Employees want transparent communication, personalised support and realistic expectations from their leaders, particularly during times of uncertainty.

Due to this, we will apply more focus on addressing the mental wellbeing of individuals to ensure they remain motivated, engaged and happy in their roles.

Laila Billberg Director - APSCo Australia General Manager - Ignite Services.

Another key learning from the pandemic is the desire for flexibility. Remote work is here to stay and managing hybrid teams will be a key challenge for leaders in 2021.

In my view, there are positives (e.g., productivity, flexibility and work-life balance) and negatives (e.g., training staff, maintaining morale and encouraging teamwork) of working from home. Therefore, finding the right balance between these two working environments to deliver the best individual, team and organisational outcomes will be a key focus for us this year.

All I can say is bring on 2021, it can only go upwards from here!

RECRUITMENT & CO | 16

APSCO'S REPRESENTATIVE COMMITTEE

JOHN MCCLUSKEY - WHIZDOM RECRUITMENT

Be prepared, not scared Well now that we have said goodbye to 2020 a year many of us would like to forget, what are we expecting 2021 to be like. Already in 2021, we have seen state border closures and terrible fires in Western Australia. Hang on a minute, this is sounding more like 2020? So, what if 2021 is a bit of a repeat of 2020 but without JobKeeper as a safety net, are we prepared?

As an industry we must learn the lessons of the past and not hold on to the notion that things will return to normal in 2021 and build strategies for resilience. It will take years for the world to get COVID immunized and many will choose not to be immunized, so maybe this is the new normal?

The recruitment industry is resilient and plays an important role in getting people back into employment and the country moving again. I tell my staff they should consider themselves essential workers.

So, what strategies we can employ to make our businesses more prepared for unforeseeable events. ·Diversity, don’t have all your eggs in one basket.

Look at diversifying into industries that need the skills the nation is dependent upon.

Don’t focus on just Perm or Labour Hire business, each provide important pillars to building a stable business.

Listen to your client’s pain points, see if there are opportunities to up sell other services.

John McCluskey Director - APSCo Australia Managing Director - Whizdom Recruitment

Broaden your horizon, don’t just have a strong business locally, expand to other regions.

One thing COVID has done, is provide options to not only ‘work remotely’ but also service clients remotely.

Look for efficiencies’ in your business with expenses, tech, automation and WFH. The big question we all need to ask is, if 2021 was a replay of 2020, would we survive or thrive without Government support. Food for thought, be “prepared” not “scared”.

RECRUITMENT & CO | 17

APSCO'S REPRESENTATIVE COMMITTEE

JAYSON EICHSTADT - MEDACS GLOBAL GROUP

A year of investment 2020 was a tough trading year with many operational challenges, and as we enter 2021 the focus of the MGG business in ANZ is to look to meet the talent demand driven out of the state and private hospital groups. By Jayson Eichstadt.

COVID certainly challenged and continues to challenge many businesses in our sector particularly related to state border restrictions and overall mobility issues.

2021 is a year of investment for MGG across our Doctors’, Nursing and Allied Health businesses in ANZ and with the hire of a large cohort of Para Consultants and Candidate Acquisition/ Care team we are excited about the year.

This new cohort will continue to support our experienced consultants deliver an outstanding services to our clients.

It is well known there is a shortage of experienced recruitment specialists within the medical recruitment industry and for 2021 and beyond, our focus remains to grow our own people by providing them industry leading training

Jayson Eichstadt Director - Specialist Staffing at Medacs Global Group Director - APSCo Australia

and support with the express objective to meet client demand.

My priority and focus as a leader within MGG this year remains the development of our people, continuous improvement of our candidate search capability, an improvement in our fill rates of job requirements, the provision of a class leading candidate care service and the achievement of our financial goals so we can look to grow further in 2022.

RECRUITMENT & CO | 18

ASK THE ADVISER - ENTITY SOLUTIONS

Over 90% of surveyed APSCo Members will be looking to increase their contractor volumes within the next 12 months. What advice can you offer to these companies?

Business insurances are essential for risk management when supplying labour, such as public liability and professional indemnity.

All compliance considerations differ by state and country, so be sure to get to grips with the local legislation of where your workforce is based.

My first piece of advice to agencies would be to get cosy with compliance because it’s going to become your best friend! Compliance may not be the “life of the party” friend, but it will protect (and potentially rescue) you from any legal pickles.

There are two main categories to get comfortable with: business compliance and engagement compliance.

Business compliance includes labour hire licensing, Payroll Tax (PRT) provisions (particularly those specific to the labour hire industry) and Super Guarantee Levy management.

Labour hire licenses are currently required in Victoria, Queensland, and South Australia and the respective authorities treat breaches very seriously.

PRT includes both employee and contractor remuneration: salary, allowances, commissions, bonuses, and pre-tax superannuation guarantee payments. PRT is state-governed and if a labour hire chain is involved, business liability rules can vary in the engagement.

When it comes to engagements, it’s important to understand the legal nuances of engagement structures and the crucial difference between contractors and employees.

The rise of the gig economy and the recent inquiries into sham contracting has muddied the waters of contract engagement.

Workers Compensation and work health and safety frameworks protect your agency, end-client, and the worker, so ensure those are air-tight when engaging contractors and employees.

Beyond compliance, efficient contractor management processes will provide a seamless experience for clients and contractors.

Speed-of-delivery and reliable customer service is imperative for brand reputation and subsequent repeat business in the future.

Taking as many processes online as possible, such as timesheets, contracts, onboarding, and payroll, will enhance your service delivery.

If your business doesn’t have the adequate financial backing, outsourced payroll financing is an effective way to make payments on time. There you have it – contractor compliance in a nutshell!

APSCo Members can depend on up to 30 free minutes of telephone or written advice from Entity Solutions as a benefit of their annual Membership.

Find out more here.

RECRUITMENT & CO | 19

Post-COVID confidence kickstarts M&A deals 2021 is off and racing for much of the recruitment industry but not all sectors and geographies are recovering equally, according to HHMC's Richard Hayward.

Richard Hayward Director - HHMC APSCo Affiliate Partner

when they might be ready.

In particular, it has been so difficult to confidently forecast revenue and expenses that valuations were weakened. The key word here is “confidently”.

After last year’s dramatic decline the past few months has seen the market recover strongly.

Some deals happened in 2020 but a lot less than normal.

Most buyers remained in the market, but the number of sellers reduced significantly. Some companies failed, and some others faded away.

Recovering markets bring both winners and losers.

While a new crop of winners emerge, some existing companies stagnate.

Based on what we saw during the recovery from the Global Financial Crisis, and after the tech crash of 2001, we expect a gradual increase in business sales over the next 12-18 months, and assuming no new external disruptions, heaven orbid, a few years of strong growth and positive deals for Australian agencies.

When people ask us how to prepare a business for sale we usually say that “a great business is always ready for sale” but this past year was so complex that we had to highlight some specific items that would determine

Business confidence and the quality of forecasts rise and fall together. To be able to enter a sale negotiation from a position of strength, you need to show healthy forecasts for the next 2 years.

To satisfy a potential buyer, today’s recruitment agency also needs to show they have strength in today’s environment.

That requires, but is not limited to, an engaged team, services that clients want and, now, the ability to handle “remote” (staff, candidates, sales and delivery).

You might not think your business model has changed all that much, but the lens through which you are viewed sure has.

Contact Richard at richard.hayward@hhmc.com.au RECRUITMENT & CO | 20

The Great Work from Home Debate The COVID pandemic has certainly drawn attention to both Employees and Employers considering options for the future of employment.

By John McCluskey, Managing Director, Whizdom Recruitment

RECRUITMENT & CO | 22

For many years, I have provided our staff flexible and remote working opportunities.

It also means they can fit work around when they are most productive such as early in the morning or when the kids are in bed.

To be up front, our company Whizdom Recruitment, has always provided our employees the flexibility to work from anywhere, and attend the office as required. They have a sexy new name for this now called, “hybrid working”, but the important point is bipartisan choice.

We are fortunate to have mature systems, processes, and policies to support remote work and meet many of the challenges of managing a remote workforce.

Time saved during commuting is a huge benefit to both employees and employers.

Employers and employees should consider Work from Home (WFH) or flexible working as a privilege earned, not given.

Why? Unfortunately, a small percentage of people will take this to the extreme and if you think they were unproductive in the office they will be less productive at home. It is not fair to other staff that need to pick up the slack and this will create resentment in the workplace between colleagues. You need to be able to measure productivity before and after (in office and at home). Most employees are great and reward employers with extra effort to prove that this is something worth holding onto, especially if it something that can be taken away.

presume home is a safe place for everyone. There has been an increase in family violence with remote workers, so for a small percentage, the office can be a place of stability so don’t fully close that door.

How much time working from home is appropriate?

Many employees can get back 1-2 hours a day by just bypassing the commute to and from work. The other benefits are savings on fuel, parking, tolls, public transport - not to mention the stress with city driving.

Just think what can be achieved with that extra time. It is something worth fighting for. You might even be able to do the odd yoga class, gym or meditation class that you never had time to do.

There is no easy answer here and each employee will be different, but there are considerations for both parties.

Employers need to ensure employees working remotely have a safe working environment and have appropriate working desks, chairs etc. It is prudent to have home workplace assessments done for staff, otherwise, this could lead to an increase in bad posture, increase in slips and trips and workers compensation claims.

Working from home can be great, but you also need to be able to switch off, put down the phone and stop checking emails when your day is done.

In regards to workers compensation, do not presume workers are covered for WFH. Check with insurers, as you may need a second policy. For instance, those workers in border towns could live in one state and the office be in another. Workers compensation is state based, so employers make sure you are across this.

Employers may get some benefit in downsizing the office space if workers have the option to work remotely, reducing costs such as rent and electricity, however, be prepared to invest some of those funds to support your WFH employees.

It is easy to fall into the trap of losing track of time, not eating properly or taking regular breaks when there are no interruptions. It is also easy to fall into the trap of being isolated and this can have adverse effects on mental health, so employers need to be vigilant with regular check-ins with remote workers and ecoffees.

An Employee Assistance Program (EAP) for employees and their families is another great benefit. Concurrently, don’t

RECRUITMENT & CO | 23

When managing a remote workforce, employers and employees have a responsibility to keep endpoints secure.

Cyber criminals are targeting remote workers as an easy entry point to access corporate networks, so don’t let your guard down and ensure you have as many protections in place as possible.

Employees - Ensure your work phone and laptop are only used for work

and don’t download anything from the web without permission. Don’t store corporate or sensitive data on home devices if secure corporate storage is provided. At a minimum, have multi-authentication (MFA) on everything, strong passwords, latest operating system and application updates, complex passwords and ideally an encrypted password management tool.

Many businesses rely on people working in the office and the cities for their trade and employment.

Consider the potential impacts on those in retail, hospitality, transport and other professions that rely on business commuters. Having everyone working from home also has adverse flow on affects and I can tell you if our local coffee shop closed, so would our productivity. It is also great to get that 10-minute break from the office and stretch the legs.

RECRUITMENT & CO | 24

Return to work in a post COVID world Can employers direct employees to return to the office? We asked our resident employment and industrial relations lawyer, George Haros for his advice.

George Haros Employment and industrial relations lawyer

Can employers accountable for catching COVID transport?

be held employees on public

This point has been discussed at length, but the reality is, it is too remote.

The causal link between the infection and the direction to attend the workplace would be too distant.

COVID Compliance Throughout Australia, employers have a duty of care to provide a safe workplace under both Work, Health and Safety legislation and the common law. If employers cannot guarantee a safe workplace, then employees should not be required to come back to work. At the very least COVID safe plans should be implemented to mitigate risks.

In Victoria, it is mandatory for every business with onsite operations to have a COVID Safe Plan.

Employers that fail to implement a COVID Safe Plan, run the risk of random spot checks that are taking place across the state to ensure compliance.

Failure to comply can result in an on-the-spot fine of between $9,913 and $20,000.

Holding an employer liable for an employee contracting COVID on public transport would be akin to an employee falling off a tram on the way to work and breaking their leg attempting to sue their employer. It is simply too remote.

Perhaps members of the public could sue the relevant public transport provider for contracting COVID whilst using their service (if they were negligent in their cleaning of a tram or train or the like), but not the employer.

RECRUITMENT & CO | 25

How can an employer direct an employee to return to work?

With the roll out of vaccines and the pandemic coming under control, at least within Australia, employers are looking to have their employees return to the workplace. Coincidentally, the end of the JobKeeper subsidy at the end of March, will also end an employer's ability to issue JobKeeper enabling directions to its employees in order to direct them to attend the workplace.

Fortunately, most employees will have a written contract that states that the employee's location of work is the business' address.

In those circumstances an employer may issue a lawful and reasonable direction to its employees to attend the workplace.

That is on the proviso that the workplace is safe and being run in accordance with the relevant health advice (including any enforceable government directions).

With all of this in mind, it is important that employers follow due process and consult with their employees in the process of making changes to their business. Employers should seek legal advice if an employee refuses to follow the lawful and reasonable direction to attend the workplace as issued by the employer.

2021 and Beyond The issue of getting employees back to work is a sensitive one, which is likely to cause tensions from both cultural and legal perspectives.

We are already seeing employers starting to get frustrated but towing the party line in order to maintain a positive culture.

This is heading for a collision course and the Fair Work Commission will likely have a full book in 2021 and beyond.

This article is general in nature and is not, and should not be, relied upon as legal advice and is not intended as such.

Individual circumstances will vary and individuals are encouraged to obtain independent legal advice about anything contained in this article. Liability limited under a scheme approved under Professional Standards Legislation.

RECRUITMENT & CO | 26

Palm trees are flexible for a reason In 2020, the companies with great leadership easily outperformed the rest because of all the turbulence. Of course, “turbulent times” is a total understatement. Some good companies didn’t make it through and lots of oldfashioned ones bit the dust. It took some big companies weeks just to get people set up at home. Palm trees are flexible for a good reason, writes Thomas Taylor of Middle Office.

Thomas Taylor Director - Middle Office APSCo Affiliate Partner

is going to “move the dial”, on the core functions that make your business strong and unique, on the functions that give you a competitive advantage.

For most recruitment agencies, the focus is business development, delivery of recruitment services and (so good they named it twice) business development.

No matter what your website says about the organisation’s values, you, the boss, set the values for the organisation by your actions. Your people see what you do.

If you want your organisation to be sales and delivery led, then spend your time on sales and delivery.

If you spend your time on administration, that is what your staff will value.

Walk the talk, set goals, tease out and define the shared values of the organisation and then live those values.

Leaders concentrate on what is important, on what

The machinery of time, payroll and billing has become too complex for most organisations to set up and manage inhouse.

These days it’s best left to the specialists, not spreadsheets.

I first twigged to this when recruiters I met often talked a lot about technology, and there is indeed a lot to talk about, but I think it can mask the underlying problems.

The technology on its own won’t save you.

RECRUITMENT & CO | 27

Your business machine places contractors for a margin. Contractor payroll and billing is not back-office bookkeeping, payroll and billing is right next to your front office, impacting your clients and contractors.

Non-core, but critical, parts of your machine operate the most efficiently, and reliably, with expert assistance.

Specialists who are right there as part of your crew, with their own dedicated tools.

You can better focus on winning and delivering recruitment services. Your people can do the same.

Right now, swirling around the payroll function is the uncertainty of the employment status of casual and contract staff, and what contracts are valid and where responsibilities rest.

To be able to adapt to change, to stay in the game, you need to do three things: maintain a constant focus

on performance, wage war on complexity and ensure vigorous compliance.

By doing what you value, others will value what you do.

There are so many clichés about this stuff: “stick to your knitting”, “core values”, “client facing” - they are all true.

Get in touch with Thomas Taylor at thomas@middleoffice.com.au

RECRUITMENT & CO | 28

Standing out from the crowd Incentives for senior employees All recruitment agency owners find it challenging to attract and retain a quality executive team. The war for talent has never been fiercer, writes Sovereign Private's, Paul Masters.

Paul Masters Director - Sovereign Private APSCo Affiliate Partner

Based on my experience approximately 50% will be excited; 30% will be semiexcited; and 20% will be sceptical and perceive it as trickery designed to handcuff them to the business.

Unfortunately, the 20% that are sceptical will always be difficult to excite but, although you can probably guess which team members fall into this category, never make the mistake of excluding them as a participant.

When it comes to long term incentive (“LTI”) plans, not every agency has a plan but be warned!

More agencies than ever now do, and rec-to-recs are using this to target senior team members.

Creating an LTI that motivate employees can sometimes be considered an art rather than a science as what looks attractive to

one may not be attractive to another.

Over the last ten years I have conducted dozens of briefing sessions with senior employees that have been offered an LTI in the form of shares, options, or phantom schemes.

The assumption that all recipients will be ecstatic is a myth.

Although, they will be sceptical of the plan, excluding them from something offered to other team members can send the wrong message.

When an agency owner makes the decision to offer an LTI, they are effectively deciding to give away part of the proceeds received on an ultimate sale of the business.

As such, there needs to be clear parameters.

RECRUITMENT & CO | 29

What percentage agencies offer?

do

This varies depending on the participant’s attributes, including: specialised expertise (e.g., IT professional services). deep client relationships. proven ability to attract talent. past proven performance. seniority; and, maturity and performance of the existing business.

Generally, percentages offered are between 0.5% and 5%, however there are exceptions.

Where an individual has been recruited to manage a team to drive business in a new geography or new service line, a new company may be established (or equivalent equity instrument for the new geography or service line) and the individual may be offered a significantly higher stake. This could vary from 10% to 49%.

What type of equity is offered?

The owner needs to decide whether they would like to provide the employee with the opportunity to participate in a plan that provides: (a) a percentage of future growth (i.e., the employee does not receive any benefit from the business value built to date). (b) a percentage of the existing business (i.e., the employee receives the benefit of the business value built to date plus future growth).

The owner also needs to determine whether the participant will: (a) receive dividends (i.e., no dividends; dividends paid pari pasu to ordinary shares; or dividends linked to a business line’s performance); and, (b) voting rights (i.e., no voting rights or voting rights).

Once these questions are clarified the LTI can be designed.

How is the owner protected?

The employee must also be aware that: (a) if they leave (or are terminated) before a liquidity event, generally they will forfeit the shares; and, (b) they will not be able to transfer the shares without the permission of the owner.

If you would like further advice on how to effectively structure these arrangements, talk to your Sovereign Private adviser.

This publication contains general information only, and Sovereign Private is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.

Sovereign Private shall not be responsible for any loss whatsoever sustained by any person who relies on this publication. © Copyright, 2021

RECRUITMENT & CO | 30

Photograph by Francis Watson