Human Resources Director 12.12

2014 YEAR IN REVIEW

HUMAN RESOURCES DIRECTOR

SILOED OR CUSTOMER-CENTRIC? WHY HR NEEDS TO UP ITS GAME

HCAMAG.COM ISSUE 12.12

GOOD MIGRATIONS ANATOMY OF A RELOCATION EMERGING RISK GLOBAL INDUSTRIAL ACTION

ON WITH

THE SHOW

How HR fuels Cirque du Soleil’s global success

HRD12.12_Cover+spine_SUBBED.indd 2

20/11/2014 2:55:00 PM

IFC.indd 1

19/11/2014 9:38:12 AM

EDITOR’S LETTER / HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW

DON’T FORGET YOUR PRIORITIES Critics of HR are quick to point to the ‘soft’ options favoured by some professionals in terms of where and how they use their time. I’m not talking the traditional ‘soft and cuddly’ side of HR (the muchmaligned team bonding and so forth). It’s initiatives like diversity & inclusion, or bolstering psychological wellbeing in the workplace, that seem to be tarred with the same brush. It seems that, if it doesn’t involve delicate industrial relations negotiations, or touch on M&A fallouts, it’s not considered important; worse still, it’s considered ‘soft’. IR and M&A activities are, without question, critical areas in which HR can add value to a business – but they’re not the be all and end all.

I recently attended the ninth annual Tristan Jepson Memorial Foundation lecture. The Foundation is an independent charitable organisation, named in memory of a young lawyer who took his own life. Its objective is to decrease work-related psychological ill-health in the legal community and promote workplace psychological health and safety. The Foundation had just announced the launch of its psychological wellbeing guidelines for the legal profession.

These are a non-directive road map for addressing this difficult issue. While its efforts are primarily concentrated on the legal profession, where Tristan worked, and where anxiety, depression and stress are sadly too prevalent, the Foundation’s message and raison d’être could easily cross into other professions.

It reminded me of the powerful position senior HR professionals hold. Of all senior executives, you are the ones who can potentially put in place initiatives to change, modify or rectify a corporate culture. You can raise awareness like no one else. And you can demonstrate the right mix of business nous, empathy and people skills to pull it off. There were several HRDs in the audience, listening to the still-raw emotion of Tristan’s mother and father.

I hope those people take the lead so that others may follow.

On behalf of the entire HR Director team, I’d like to take this opportunity to wish you all a happy, restful and safe Christmas and new year. Thanks for your ongoing support. See you all again in 2015!

Iain Hopkins, editor, HRD

HCAMAG.COM

01_Editorial_SUBBED.indd 1

HUMAN RESOURCES DIRECTOR

SILOED OR CUSTOMER-CENTRIC? WHY HR NEEDS TO UP ITS GAME

HCAMAG.COM ISSUE 12.12

GOOD MIGRATIONS ANATOMY OF A RELOCATION EMERGING RISK GLOBAL INDUSTRIAL ACTION

ON WITH

THE SHOW

How HR fuels Cirque du Soleil’s global success

COPY & FEATURES EDITOR Iain Hopkins JOURNALISTS Chloe Taylor, Jill Gregorie PRODUCTION EDITORS Roslyn Meredith, Moira Daniels, Clare Alexander

ART & PRODUCTION DESIGNER Marla Morelos DESIGN MANAGER Daniel Williams TRAFFIC MANAGER Abby Cayanan

SALES & MARKETING MARKETING EXECUTIVE Alex Carr COMMUNICATIONS EXECUTIVE Lisa Narroway BUSINESS DEVELOPMENT MANAGERS James Francis, Steven McDonald, Gareth Scott

CORPORATE CHIEF EXECUTIVE OFFICER Mike Shipley CHIEF OPERATING OFFICER George Walmsley MANAGING DIRECTOR Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan HUMAN RESOURCES MANAGER Julia Bookallil Editorial enquiries Iain Hopkins tel: +61 2 8437 4703 iain.hopkins@keymedia.com.au Advertising enquiries James Francis tel: +61 2 8437 4766 james.francis@keymedia.com.au Steven McDonald tel: +61 2 8437 4757 steven.mcdonald@keymedia.com.au Gareth Scott tel: +61 2 8437 4745 gareth.scott@keymedia.com.au Subscriptions tel: +61 2 8011 4992 • fax: +61 2 8437 4753 subscriptions@keymedia.com.au Key Media keymedia.com.au Key Media Pty Ltd, regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 Offices in Auckland, Toronto, Denver, Manila hcamag.com

HRD wants to hear from you.

Email us: editor@hcamag.com

Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept as HRD can accept no responsibility for loss.

EXPRESS YOURSELF! Got a burning issue to get off your chest? Check out the readers’ forums at hcamag.com

DECEMBER 2014 | 1

20/11/2014 1:52:59 PM

CONTENTS / HUMAN RESOURCES DIRECTOR

Year in review HRD looks back at the trends that have shaped HR in 2014, including key events and developments in workplace law, reward & recognition, technology, diversity, and recruitment

10

15

COVER STORY

HR goes to the circus There is perhaps no display of the human spirit more stunning than the performances put on by Cirque du Soleil. Jill Gregorie uncovers the secrets to obtaining the rarest and most exceptional talent this world has to offer – and the culture that makes them stay

40

Good migrations: protecting the relocation investment Australia’s critical skills shortage is threatening to slow growth in many sectors, leading to an increased number of companies looking overseas to fill the gap. Sharon Swift explores the issues companies should consider when relocating overseas talent

2 | DECEMBER 2014

02-03_Contents_SUBBED.indd 2

44 On the move: Conquering China An estimated 40% of expatriated workers return home prematurely, costing employers millions of dollars every year. Chinese broadcasting giant CCTV provides valuable insights on how small considerations can yield huge savings

50

Service matters Peter Szilagyi explores how HR can transform its customer service delivery model, and dispels the myth that internal departments, such as HR , do not need to offer high-quality service to customers

REGULARS 04 | In brief: News 06 | News analysis: Global industrial action 56| Last word: Work-life balance

CHECK OUT THE HRD ARCHIVES ONLINE: hcamag.com

HCAMAG.COM

20/11/2014 1:58:41 PM

02-03_Contents_SUBBED.indd 3

20/11/2014 1:58:42 PM

DRUG AND ALCOHOL TESTING: DECEMBER 2014 / THINGS YOU SHOULD KNOW

ANATOMY OF A CEO

6

THE AVERAGE AGE OF AUSTRALIAN CEOS

54

95%

OF CEO POSITIONS ARE HELD

BY MEN IN THE ASX200

39

THE YOUNGEST CEO IN THE ASX200

96%

OF CEOS ATTENDED UNIVERSITY, WITH MORE THAN HALF (52%) ATTENDING AN AUSTRALIAN UNIVERSITY

53%

OF AUSTRALIA’S CURRENT CEOS WERE BORN OVERSEAS, WITH THE HIGHEST PROPORTION ORIGINATING FROM THE UK

NUMBER OF YEARS FEMALES STAY IN THEIR HIGHER MANAGEMENT POSITIONS (5 YEARS FOR MEN)

80%

OF CEOS CURRENTLY RESIDE IN AUSTRALIA; THE REMAINING 20% HAVE A GLOBAL REMIT AND ARE BASED OVERSEAS

Sourced from an analysis of ASX200 CEOs via Qlik Sense app, ‘Where Do CEOs Come From’

PEOPLE MANAGEMENT

ASX ANNUAL REPORTS: WHERE ARE THE PEOPLE? New research has found that just 50% of Australia’s largest companies declare any peoplerelated risk in the key business risks section of their latest annual reports. Broadly, this section is intended to describe all the critical risks that investors need to consider when choosing whether to invest money into the company or not.

In working through the ASX100 annual reports, Cognology classified employee and people risk into five common categories (see graph).

The risk of employee injury was the most commonly cited people risk; other key areas were cited less frequently: Just one in five Australian companies make the connection between talent and share price.

29%

% of ASX declaring risk

Employee injury or safety risks Individual non-compliance with regulation or unethical business practices Retention and attraction of key personnel Inability to execute strategy or innovate Industrial relations risks

4 | DECEMBER 2014

04-05_News_subbed.indd 4

28% 20%

14% 12%

HCAMAG.COM

20/11/2014 2:00:40 PM

TING: HUMAN RESOURCES DIRECTOR

RECRUITMENT

SUPERANNUATION

‘JOB LAG’ IN FOCUS

GET YOUR SUPER IN ORDER

New research from Job Futures, Australia’s largest not-for-profit government employment services provider, has led to the creation of a new cost model to calculate the total costs of staff turnover. The new model is called ‘Job Lag’.

The Job Lag cost to the Australian economy is over six billion dollars per year.

The average cost of replacing an employee in Australia is over $38,000 and can be up to 51% of their annual salary (previously this figure was thought to be estimated at one third of an employee’s wage and had never had an Australian context).

The research found that those from a disadvantaged background, young people and graduates were the most costly to employ because of Job Lag and that more had to be done to reduce the costs to business if youth unemployment and benefit recipiency numbers were to come down.

The ATO has warned that all employers with 20 or more employees need to prepare to ensure they’re ready to transition to SuperStream by no later than 30 June 2015. The ATO is helping prepare employers for changes in the way super contributions are made between employers and super funds. SuperStream introduces a standardised electronic method for making data and payments to super funds as a way of providing cost and time savings benefits to employers while increasing the efficiency of the super system overall.

To calculate Job Lag: The period of time from notice of termination to actual termination + the time it takes to replace the terminated employee + the origins of the replacement employee + the time it takes for the new employee to reach optimal productivity = Job Lag. WORKFORCE INSIGHTS

DEMOGRAPHIC SNAPSHOT: GEN Y AND LEADERSHIP Gen Y Australia & leadership

50%

Gen Y Australia’s ideal boss

4

MOST IMPORTANT QUALITIES IN A WORKPLACE LEADER

SUPPORTIVE

43%

HCAMAG.COM

04-05_News_subbed.indd 5

COACH/ MENTOR

40%

LEADER

23%

FRIEND

4

MOST IMPORTANT GEN Y AUSTRALIA QUALITIES IN A WANT A KNOWLEDGEABLE BOSS WHO IS BOTH SUPPORTIVE AND MOTIVATIONAL WORKPLACE LEADER

KNOWLEDGEABLE/ EXPERT

42%

ABLE TO MOTIVATE OTHERS

39%

FAIR

38% Source: Hays

DECEMBER 2014 | 5

20/11/2014 2:00:46 PM

NEWS ANALYSIS / GLOBAL IR

Global union action: STRENGTH IN NUMBERS? Global union federations – whose role used to be essentially symbolic – now have real power through their ability to negotiate global agreements with major employers. It’s a trend that’s likely to gain momentum as the world becomes ever more interconnected. What does it mean for employer/employee relations?

6 | DECEMBER 2014

06-09_News Analysis-SUBBED_v2.indd 6

“For far too long, Rio Tinto has systematically put profits before people, sometimes with fatal consequences like the recent deaths at the Grasberg mine in Papua New Guinea. Workers are saying enough is enough.”

While such a quote might come from the mouth of any union representative anywhere around the world, it holds extra weight in this instance because it comes from IndustriALL Global Union assistant general secretary Kemal Özkan.

The IndustriALL Global Union represents 50 million workers in 140 countries in the mining, energy and manufacturing sectors, and brands itself as “a force in global solidarity, taking up the fight for better working conditions and trade union rights around the world.”

HCAMAG.COM

20/11/2014 2:01:17 PM

HUMAN RESOURCES DIRECTOR

THE KEY PLAYERS Global Union Federations Global Union Federations bring together individual trade unions from around the world (with some overlap between them). They are funded by subscriptions from member unions.

The words were followed by action. The union organised a global day of protests on 7 October as part of IndustriALL’s campaign to demand a new era at Rio Tinto. In a coordinated day of defiance, workers from Rio Tinto sites in Africa, Asia, Australasia, Europe and North America demanded safer workplaces, secure jobs and respect for workers’ rights. Events included rallies, stop work meetings and other worksite actions.

The 7 October action against Rio Tinto also coincided with the World Day for Decent Work, when unions mobilised against precarious work – contracted jobs that are temporary, casual and often low-wage, low-benefit, unsafe and insecure.

GLOBAL IR ACTION: CURRENT STATE OF PLAY Rio Tinto, who declined the opportunity to comment to HR Director, has been the target of action in this instance, yet it could just have easily been any number of employers with global operations. They might be wise to take note: Although union membership has declined in many Western countries, including Australia, they are still a force to be reckoned with in emerging countries such as Indonesia and Brazil.

“They are still, even in Australia, the largest voluntary organisations,” says Professor Paul J. Gollan, associate dean of research at the Faculty of Business and Economics at Macquarie University.

“Even though union membership in Western nations has declined, they still have enormous influence.”

Gollan suggests that this latest example of global industrial action, while still relatively rare, is a sign that unions are perhaps redefining their position in society. “It’s not just bread-and-butter issues anymore; it’s more the social issues. There are examples globally of where unions have changed societies, changed governments.”

NOT SO FAST...

And yet, the international trade union movement

HCAMAG.COM

06-09_News Analysis-SUBBED_v2.indd 7

Global Union Alliances Global Union Alliances bring together trade unions active within a company around the world, through a formal signed agreement. A common objective might be to sign an international framework agreement with the company.

Trade union density in OECD countries* 25.4

Australia

17 28 27.2

Canada

38.7

Ireland Japan Mexico New Zealand OECD countries

29.6 22.2 17.8 15.6 13.6 21.7 19.4 20.8 16.7 80.6

Sweden

67.7 30.1 25.4

UK US

13.4 10.8

1999 2013

Source: stats.oecd.org *Trade union density corresponds to the ratio of wage and salary earners that are trade union members, divided by the total number of wage and salary earners.

is problematic in terms of organising for action, especially over traditional IR issues like wages and conditions.

These issues literally need to cross borders and be quite visible between nations. Health & safety (as in the Rio case) is incredibly important for unions in all nations, so it translates well. But when it comes down to issues like basic pay and conditions, it becomes more problematic, simply because these issues are more complex.

“The clearer the message – and the message of people dying in a mine is as clear as it gets – the easier it is to rally people behind a cause,” Gollan says. “Other examples might be climate change or the issue around democracy in some European nations several years ago.”

An example of location-based complexity, on the other hand, is what constitutes decent hours.

Did you know?

The International Trade Union Confederation (ITUC) is the world’s largest trade union federation. It was formed on 1 November, 2006, and represents 176 million workers through its 325 affiliated organisations within 161 countries and territories. Australian Sharon Burrow is the current general secretary.

DECEMBER 2014 | 7

20/11/2014 2:01:23 PM

NEWS ANALYSIS / GLOBAL IR

“It’s not just bread-andbutter issues anymore; it’s more the social issues.

There are examples globally of where unions have changed societies, changed governments” Paul Gollan Australia has a notion of what decent hours are, built up over a long period of time. That would be quite different for other countries going through different stages of industrialisation.

There is also the underlying issue of competition between nations, not just in terms of wages, but also other touch points like unemployment.

“Maybe a low-wage country is a low-wage country because it’s trying to compete with high-wage countries, and vice versa. It becomes much more complex when dealing with wages and shift work patterns and all sorts of other areas,” Gollan says.

Bradon Ellem, professor of employment relations at Sydney University and author of a report titled Rio Tinto and Direct Engagement – a damning view of Rio Tinto’s exclusion of unions from playing a meaningful role in its workplaces – suggests that

the extent to which MNCs shape or are shaped by local practice needs further investigation. “My view is people too often concentrate on just the MNC – obviously the strength of local unions and the nature of the state are vital variables,” he says.

Regardless, it’s hard to ignore an entity that employs some 66,000 people worldwide. Indeed, Ellem notes that Rio has significant sway over other companies, and often over government labour relations policies.

THE POWER OF VALUES To address this current industrial unrest, Gollan suggests it’s critical that Rio Tinto be clear on what the fundamental issue is. “It’s almost like ‘profits’ is a dirty word, but if there weren’t profits, we wouldn’t have companies developing resources and coming up with innovations. The issue here isn’t profits coming before basic wages and conditions – and in this case, safety – but rather, it’s about what’s the prime motivation of the company?”

Underlying all operations, regardless of location, are values. “Organisations must have a clear set of values that can be well articulated no matter what regime or jurisdiction you are in,” Gollan says. “Where companies are falling down is they haven’t articulated those values particularly well.”

He adds that while Rio would likely have “very good workplace policies” in many of these countries, the issue is about implementation in remote areas.

In this instance, Gollan suggests Rio Tinto should be emphasising that safety is their top priority, because they value their workers and

GLOBAL POWER

Two recent wins achieved by global industrial action Unilever Unions alleged that Unilever used temporary and casual labour to keep wages low, deny employment protections and prevent unionisation at factories in Pakistan and India. Unilever agreed to rehire workers on permanent contracts and to recognise trade unions affiliated with the global union federation International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF).

British American Tobacco Malaysian trade unions complained that this UK-based company failed to consult them before regrading posts, thus drastically reducing union membership at the company. UK authorities ruled that, although not required to by national law, the company should have set up a “permanent and regular process to consult and inform its employees” before key decisions were taken. As a result, the company agreed: »» to formalise its communications policy in guidelines »» to hold face-to-face meetings with employees or trade unions »» to respond within 14 days to any concern raised

8 | DECEMBER 2014

06-09_News Analysis-SUBBED_v2.indd 8

HCAMAG.COM

20/11/2014 4:19:12 PM

HUMAN RESOURCES DIRECTOR

recognise they are their most important asset. With a clear statement from the top, there’s at least some indication that all the strategies, processes and procedures fall under that clear vision.

It’s also critical that organisational leaders have a clear understanding and empathy for what’s happening on the ground. Gollan cites the BP oil disaster in the US as a good example of the disconnect that can occur between leaders and employees – and again, leaders’ actions need to be backed by values and some measure of truth.

“You can’t have a marketing campaign saying ‘we’re green,’ but all the processes and procedures on an oil rig point to the opposite,” Gollan says.

“That can be catastrophic – not just for the workplace, but a whole geographic region. Those inconsistencies are problematic. All the marketing in the world will not rectify matters.”

NEUTRALISING THE UNREST Rio Tinto senior leaders also might consider bringing in examples of best practice that have been applied successfully in their various operations throughout the world.

Secondly, they could bring together an international group of experts, preferably associated with some sort of international organisation. In this case, it could be the UN-affiliated International Labour Organization. They would then conduct a thorough audit of the operations within the company, and be totally transparent with the results.

“That would be a way to neutralise the union campaign,” suggests Gollan. “It’s not so much that these things happen – we all know accidents happen and people don’t always do the right thing – but it’s the perception that a large company is covering up these issues.”

And while it’s largely reactive rather than proactive, it’s important that affected companies do take steps to mitigate the negative fallout. When Qantas faced massive social media backlash after planes were grounded over industrial action in 2011, and then a spate of negative stories relating to everything from safety to late running planes, Gollan says their comms team was “extremely active” in putting out fires and responding about the situation.

“These global companies might have real problems out there in the application of their policies, so they must be very visible and honest about where things haven’t worked. But they should also be demonstrating where something has worked and the benefits their actions have brought about.”

HCAMAG.COM

06-09_News Analysis-SUBBED_v2.indd 9

FUTURE FORECAST Gollan, for one, would not be surprised if global industrial action increases in coming years.

With the rise of global federations and alliances, a shift has taken place in where and how unions campaign. At root, unions are still after the same rights and protection for their members, but now they coordinate action across national borders.

In addition, there have been strong links between union movements around the world, including the ACTU in Australia and the TUC in the UK. To this point, however, there has been limited willingness to band together in concerted industrial efforts.

Ellem is less certain about whether global industrial action will escalate. Despite globalisation, he notes that work still takes place in particular locations, “and we should not assume that unions are best placed to fight the global at the global scale.”

He does concede that, in certain sectors, it seems inevitable that global union actions will increase in the future. “Old-fashioned mobilisation in public events, coupled with new forms of social media, do allow workers and unions the potential to damage a brand,” he says.

MITIGATING THE RISK: KEY ACTION

It is important to understand the level of risk your organisation faces. Here’s what you can do to prepare.

99 Conduct an audit – what is your risk and mitigation?

99 Tell your board members about the changes. They must be informed about any threats and have a confident strategy to deal with them. How will they handle an approach from a Global Union Federation? Who will deal with it? Do they have a response prepared?

99 Find out which GUFs the unions inside your company belong to. What have they said about your company in the past? Appoint someone to keep tabs on global trade union activity directed at your company and to monitor the media for company mentions of labour, corporate social responsibility or human rights issues.

99 Set up an early warning system of labour issues across all countries. Make sure local managers know what to look out for and what they need to do. Are local unions ‘talking global’? Aim for a ‘no surprises’ culture.

99 Make sure you’re up to date with union developments in your supply chain. Are your major business-to-business customers or suppliers unionised? Do they belong to the same alliance?

99 Decide on your internal and external communications. If there is a campaign against the company, what will you say to: yy employees yy shareholders yy customers yy the media Source: ‘Trade unions have gone global: A definitive guide for multinational employers and private equity houses’ by Marshall-James Global Solutions and Freshfields Bruckhaus Deringer

DECEMBER 2014 | 9

20/11/2014 2:01:32 PM

PROFILE / CIRQUE DU SOLEIL

HR GOES TO THE

CIRCUS There is perhaps no display of the human spirit more stunning than the performances put on by Cirque du Soleil.

Marie-Josée Guilbault and Line Giasson share the secrets to obtaining the rarest and most exceptional talent this world has to offer – and the culture that makes them stay

10 | DECEMBER 2014

10-13_Profile_subbed_v2.indd 10

HCAMAG.COM

20/11/2014 2:02:22 PM

HUMAN RESOURCES DIRECTOR

Line Giasson is overseeing an audition for one of the most celebrated athletic events in the world. In her company are former Olympians, prize-winning national champions, and gymnasts who have been competing in the sport since they were infants.

Although these contestants are among the most rigorously trained athletes in the world, she is ordering them to dance goofily around an empty ballroom, pretend to be mimes, and do improvisational acting exercises before a panel of expert judges.

This unusual tryout is for a circus, and not just any elephant and clown affair: a Cirque du Soleil production is more of a fantasy-inspired spectacle that’s equal parts imagination, elegance, athleticism, and childlike wonder.

Meanwhile, at the organisation’s headquarters in Montreal, Marie-Josée Guilbault is tasked with managing Cirque’s global employee base. In the hallway, she passes fellow workers and executives whose attire ranges from full-arm tattoo sleeves to brightly dyed blue hair. She smiles and greets them all with respect and admiration.

After all, a production doesn’t make it to the top of show business without a little spunk.

SEARCHING FOR ARTISTS In order to be fully prepared to supply performers to its various productions worldwide, Cirque has a vast databank of artists, performers, singers and other skilled entertainers that it regularly draws from as required. Just making it onto this roster is considered

HCAMAG.COM

10-13_Profile_subbed_v2.indd 11

an honour, and can happen in many ways.

First, performers can submit a video to Cirque du Soleil demonstrating their athletic aptitude and showmanship. Because of the world-renowned reputation that Cirque boasts, the entertainment producer has no problem attracting tens of thousands of résumés every year. As a result, in addition to open auditions, the company invites contestants based on what they’ve seen in person or online.

“This ensures that we always have a certain skill standard of people coming to our auditions,” says Giasson, Cirque’s director of international casting.

Unlike the “two-minute auditions you see on reality TV shows”, auditions can last a full day, and specialists are forced to perform outside of their comfort zone. Synchronised swimmers may be asked to sing, acrobats to dance, and tumblers to deliver a comedy routine.

This is all done to assess whether athletes have the versatility, charisma and bravery needed for the theatrical nature of the French-Canadian circus.

“We often choose for personality. One candidate may be lower on the technical side, but we know that person will bring something special to the stage,” says Giasson. “Soft skills are just as important as technical skills.”

In fact, in her 21 years with Cirque, Giasson and her team have always placed the most emphasis for selection on one criterion: whether or not the candidate can entertain the audience in a way that touches the heart.

DECEMBER 2014 | 11

20/11/2014 2:02:29 PM

PROFILE / CIRQUE DU SOLEIL

“We often choose for personality. One candidate may be lower on the technical side, but we know that person will bring something special to the stage”

FINDING THE JE NE SAIS QUOI

Line Giasson PARTNERING FOR SUCCESS While many vie for a chance to work at Cirque, this doesn’t make the casting job easy. Oftentimes the process begins two years before a show is fully developed, and directors can request a performer with rare attributes at any moment’s notice, even for productions currently up and running. Thus it is imperative that Giasson’s team continually scouts for fresh acts and rousing personalities.

To do so, the team has had to become creative.

When a set designer came up with the idea of having a childlike figure fly a hot-air balloon, the challenge became finding a little

12 | DECEMBER 2014

10-13_Profile_subbed_v2.indd 12

person over the age of 18 with acrobatic skills. After some searching, the casting department found a circus in Israel featuring acrobatic three-foot-tall Russian little people.

“We dig,” says Giasson. “And often we find talent in conventions, other circuses, and places where similar performers tend to congregate.”

Casting also has partnerships with associations such as the International Gymnastics Federation, dance studios, and coaches of various national teams.

While Cirque is constantly recruiting to fill spots in existing shows, it also looks to other regions of the world to find inspiration for new acts and creative content. And at times Giasson’s team works with directors and show developers to share ideas for new acts and performances based on exceptional people it has come across during the casting process.

“We present to directors of creation what we’ve discovered either by travelling or from résumés, and sometimes they get inspired and include those in the show,” Giasson says.

There was one man who showed up to a singing audition, only to whistle. Even though Cirque had never featured whistling in a show, this man’s prowess blew the judges away. They put his name in the databank and showed footage of his recruiting tape to a creative director, who was equally enamoured. They created a character just for him.

Of course, challenges arise when traits are so special and unique that they become difficult to replace in the event of injury or retirement. “As soon as we find somebody really unique, we are proud and very excited for a possible new creation. But we are playing against ourselves, because there’s only one,” Giasson says.

As a result, the casting team sometimes has to scour the world for highly skilled performers yet again. They look to dance companies, schools, artist conventions, and even overseas social media to see whether there is an entertainer with similar skills that can be transferred to the open position.

The team can almost always find someone capable of adapting to the role, but there are occasions when doing so just isn’t possible. This is a risk inherent in Cirque’s innovative performance model, and is considered a necessary evil for the show’s creativity and artistry.

HCAMAG.COM

20/11/2014 4:23:32 PM

HUMAN RESOURCES DIRECTOR

BEHIND THE SCENES Even though Cirque du Soleil shows radiate wonder and merriment, each production requires an incredible amount of labour to produce. It is HR’s job to communicate to employees just how trying the workload can be.

“Cirque is a great company, but it’s also a very demanding company,” says Guilbault, Cirque’s vice president of organisation and culture. “There’s a perception that we’re always having fun, fun, fun, but the reality is we also work very hard.”

This high-performance mentality can make it difficult for new workers to integrate with Cirque culture. As a result, Guilbault’s team has developed strategies that allow new workers to assimilate into the Cirque workforce with as little cultural shock and resistance as possible.

First, she instructs hiring managers to inform new employees that it may take six months to understand and appreciate how the company functions. To help them get there, Guilbault’s department takes strides to incorporate workers in as many operations as possible, allowing them to experience the production from all angles.

“We take them backstage, include them in Cirque events. The more they do that, the easier it is to understand the way we work.”

They also try to recruit administrative and technical staff with previous experience in show production, who can understand the “structured flexibility” needed for a stable but constantly evolving creative field. In reciprocation, Cirque prides itself on remaining accessible and adaptable as an employer.

“We can’t be hierarchical or corporate; it won’t work for the type of business that we are. We’re very careful to be natural,” says Guilbault. “We’re very big, so we can’t be fully organic, but we know we need to be flexible.”

HOLDING ON TO TOP TALENT In addition to the high work standards involved in resident shows, touring often presents its own set of obstacles: long periods away from home, lack of alone time, and the inability to carry out a “normal life”.

As a result, Guilbault’s department goes to great lengths to provide an enjoyable work environment for travelling staff, providing such services as physical therapy, chefs who prepare every meal, and fun parties where employees can let loose and socialise.

HCAMAG.COM

10-13_Profile_subbed_v2.indd 13

“If you want to be excellent, if you want to go further, hire people who have some kind of passion, and then just put a bit of magic in it. It works“ Marie-Josée Guilbault In addition, Cirque offers several developmental opportunities that allow workers to learn, grow, and resist becoming stagnant from working in one position too long. These include a program called ‘Tapis Vert’, in which young leaders can work side by side with senior managers for a two-day period, as well as have the option to work on new shows, which are developed every two years.

Finally, there is an overarching acceptance of unconventional clothing and appearance, such as tattoos, piercings and casual attire, even in Cirque’s corporate headquarters.

“It’s not the way you dress that’s important, it’s what you do. If somebody has blue hair, that’s fine; we won’t put any judgments past them,” says Guilbault. “Some companies could gain to be a bit looser, because at the end of the day it’s the results that matter. It’s not what someone looks like.”

THE SECRET INGREDIENT Whether it’s a trapeze artist who flies 50 feet in the air or an executive who plans business strategy in the Montreal office, Guilbault says one factor sets Cirque employees apart from the rest: passion.

“Today, unfortunately, companies sometimes hire people solely for job skills, and that doesn’t make it,” says Guilbault. “If you want to be excellent, if you want to go further, hire people who have some kind of passion, and then just put a bit of magic in it.

It works.”

She points out that this strategy is effective, as a company facing obstacles or experiencing a rough patch needs passionate employees to rally through the tough times.

And of course, she adds, “a bit of craziness doesn’t hurt”.

THE PEOPLE BEHIND THE MAGIC yyCirque du Soleil started with 73 employees in 1984.

It now has over 4,000 workers worldwide, including more than 1,300 artists yy1,500 people work at Cirque du Soleil’s headquarters in Montreal, many of whom were recruited locally yyThe Cirque du Soleil employee base comprises over 100 different professions yyEmployees and artists originate from over 50 countries and speak 25 different languages yyNearly 150 million spectators have seen a Cirque du Soleil show since 1984, and almost 15 million will see one in 2014 Source: www.cirquedusoleil.com

Photo credit: Laurence Labat © 2012 Cirque du Soleil

DECEMBER 2014 | 13

20/11/2014 4:23:36 PM

14-17_CoverStory-Intro-SUBBED_v2.indd 14

20/11/2014 2:29:18 PM

2014 YEAR IN REVIEW

Your guide to the key trends, developments, challenges and opportunities presented in 2014. Over the following pages, read about...  Reward & recognition  Employment law  Technology  Recruitment  Diversity  Leadership development

14-17_CoverStory-Intro-SUBBED_v2.indd 15

21/11/2014 9:25:19 AM

2014 YEAR IN REVIEW

2014 YEAR IN REVIEW

2014:

TRENDS, STATE OF PLAY AND PREDICTIONS

One global survey has revealed that the HR function is “on the cusp of change.” Here’s an overview of some of the key trends that shaped the function in 2014

THE CURRENT STATE OF HR

Earlier in 2014, Hay Group interviewed 30 HR leaders and surveyed HR professionals at 86 organisations in all sectors. These professionals were asked to rate the following HR practices in their organisation – providing an interesting snapshot of self-reflection on what’s being done well and not so well.

Talent management

Employee relations, communications and engagement

Managing change

Managing employee data

19%

35%

14%

21%

29%

62%

56%

56%

56%

59%

50%

Attraction, recruitment and retention

Resourcing & workforce planning

Performance management and reward

L&D

Basic

7%

22%

21%

Progressing

63%

62%

Advanced

30%

15%

15%

23%

7%

29%

19%

20%

Cutting edge

0%

0%

2%

2%

0%

1%

1%

1%

Don’t know

0%

1%

0%

0%

2%

0%

0%

0%

The majority of HR professionals felt practices within their organisation were ‘progressing’ and felt more focus or investment is required across almost all functional areas. Here’s what they identified as priority areas:  Alignment with business strategy: Notwithstanding organisational size or sector, alignment with business strategy is critical if the HR function is to maximise its contribution to business performance  Views of HR vary widely across organisations: Where HR is working well, it is credited with being more commercial, professional and delivering more value than ever before.

Elsewhere, however, the function is still seen as the ‘can’t do department,’ too hard to influence and not brave enough  Juggling multiple roles: HR is being asked to perform a number of functional roles, including delivering transactional services, engaging employees, developing leaders and building organisational capability, as well as providing a level of pastoral care reminiscent of a more traditional ‘personnel’ function

16 | DECEMBER 2014

14-17_CoverStory-Intro-SUBBED_v2.indd 16

 Internal focus: There is a sense that many HR teams are somewhat internally focused on the current activity, at the expense of determining the potential implications and commercial impact of changes in the external business environment and responding accordingly  Progressing or progressive? Respondents rated their organisations as ‘progressing’ in most areas, with fewer examples of ‘advanced’ practices. Interviewees commented on a general lack of innovation within the function, and a slight majority of survey respondents felt more focus and/or investment is required  Integration: Hay Group found little integration across HR practices, resulting in the absence of either a cogent roadmap to enable capability development within the business or a compelling value proposition for employees  The HR function is on the cusp of change: Many share the view that previous generations of HR transformation haven’t delivered as promised, ending up too big or too expensive.

Perhaps as a result, many HR professionals believe that the HR function is on the cusp of change.

HCAMAG.COM

20/11/2014 2:29:27 PM

HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW US TRENDS

Architects are fond of saying that ‘form follows function.’ In HR, it’s simpler: Australia follows the US At the end of another year, it’s worth looking toward our US counterparts to see what’s brewing in this constantly evolving landscape.

Gareth Flynn, director of TQSolutions, recently spent time in the US He notes that the ‘hot topics’ over there sound very familiar to HR practitioners in Australia: EVP and employment branding, proactive sourcing and talent pipelining, efficiency and productivity, doing more with less, mobile technology, strategic workforce planning, referrals, and employee engagement and retention.

However, he also detected three under-the-radar trends: “Job boards are seriously out of vogue, and a lot of recruiters are trying not to use them; they prefer to leverage social and professional networks. LinkedIn has a stranglehold in the US, too! You have to question the business model

for Monster or SEEK – if those sites do not evolve, they will really struggle moving forward, especially as corporates seek to reduce the quantity of unqualified applicants and their general spend on job boards.”

“Sites like Glassdoor have real cut-through in America, and they provide access to REM data, opinion and branding commentary, as well as direct jobs. Amusingly, if a company has not subscribed to Glassdoor, you can advertise your organisation’s jobs on a competitor’s page – cheeky but effective!”

“Diversity and inclusion is not just gender diversity, as it tends to be in Australia. There is a real focus on cultural, gender, religious and ethnic diversity, which is important for such a diverse population as the US Having seen some of the American D&I initiatives, it makes me think Australia provides lip service to some of these issues. I think it’s about time we ‘walk the talk’ in relation to diversity and inclusion.”

JOB TRENDS

Looking ahead to 2015, global executive search firm CTPartners has released its ‘hot jobs forecast’ of new and emerging executive roles. Positions next year will be bolstered by the evolving demands of the four ‘Ds’: DATA: Big data and digital innovation are major influencers in driving new roles at the executive level » Hottest jobs: analytics practice leader, head of personalisation, digital risk officer DIGITAL: There is an increased but healthy tension between the role of the chief digital officer and the CMO » Hottest jobs: chief marketing officer, digital marketing/chief creative officer, chief digital officer DISRUPTION: With a host of new IPOs disrupting the marketplace, new executive leadership roles are strongly driven by a focus on growth and strong financial management » Hottest jobs: private equity CFO, chief growth officer DIVERSITY: With the ongoing pace of globalisation, new roles will need to better represent more diverse customer and employee bases at the C-suite level » Hottest jobs:  Chief human resources officer: CEOs are looking for much more out of their HR leader, and from a global perspective. The CHRO of today and tomorrow will act as a true consigliere, counselor and reliable sounding board to the CEO.  Head of people analytics: With the richness of data and analytic tools at hand for CEOs, they want deeper and more meaningful information about human capital, their most valuable asset.

Over the following pages, HRD takes a look back at the year in other key areas within HR’s mandate.

HCAMAG.COM

14-17_CoverStory-Intro-SUBBED_v2.indd 17

DECEMBER 2014 | 17

20/11/2014 2:29:31 PM

2014 YEAR IN REVIEW / REWARD & RECOGNITION

2014 YEAR IN REVIEW

THE RISE AND RISE

OF RECOGNITION Brought to you by

If one word can define reward and recognition in the year 2014, it would be uncertainty. Ongoing economic caution is having an impact on how employers handle R&R. However, as new trends emerge, it’s not all doom and gloom...

All engagement practices have felt the impact of belt tightening in 2014, but budgets have shrunk, especially in the reward space. In fact, there has been a marked shift away from spending on rewards and instead investing in robust recognition programs. Recognition, of course, can be carried out effectively with minimal outlay. Recognition is worth its weight in gold; formal and informal types of recognition don’t have to cost a lot, but the power of it is immense. “Research indicates that recognition on its own is more powerful than reward on its own,” says Alan Heyward, executive manager of Accumulate. “Together they’re even more powerful – but you give someone a reward, and it can be easily forgotten about, whereas recognition tends to be more long-lasting.”

GETTING CREATIVE A second trend seen throughout the year, and tied to the first, is employers becoming more creative in how they complement their existing R&R programs.

Popular items include senior mentoring programs.

Bonus leave programs have grown in popularity – even simple touches like encouraging employees to

18 | DECEMBER 2014

18-19_CoverStory-R&R-SUBBED_v2.indd 18

take their full 20 days of annual leave a year and rewarding them with three or five bonus days.

Health and wellbeing initiatives have seen an uptick – but these are typically not funded by the employer.

Instead, the company will use economies of scale and the ability to leverage value from service providers to subsidise costs to employees.

Traditional employee benefits programs also have been refreshed, as employers look to tie benefits programs to their R&R programs and to complement their wellness programs. “Engaging people in 2014 is a multi-faceted strategy. With less money to spend, companies want to spread it around and ensure they have something to offer to everyone,” notes Heyward.

Benefits trends include access to special offers, discounts and preferential rates on everyday spend categories: petrol, groceries, wellbeing and sporting goods. The reason, Heyward says, is obvious: “A 20% discount on a Gucci handbag is great, but how many Gucci handbags are you going to buy? Five per cent off groceries, on the other hand, can save an employee plenty over a sustained period of time. And you’re receiving that discount because of your employer.”

HCAMAG.COM

20/11/2014 2:31:53 PM

HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW

THE AWARD GOES TO...

The award for the most controversial workplace perk in 2014 goes to Apple and Facebook. Their offer to freeze their female employees’ eggs caused a sensation, yet both companies maintain the perk has been introduced to attract and retain a higher number of women into the male-dominated tech industry.

Both companies are willing to pay more than $23,000 to freeze their employees’ eggs, plus more than $550 per year for their storage. While applauded by some – including Professor James Hayron from the University of Warwick Business School – for at least presenting another option for female workers, others were damning. In a New York Post opinion article, Mackenzie Dawson slammed the companies’ offering, calling it “a devil’s deal in the guise of a gender-equity perk.”

DATA RULES Data is playing a bigger role in understanding whether R&R programs are influencing the way people behave, their productivity levels and other key performance indicators. As employers realise the importance of correlating all data sets against the data being captured through the R&R programs, the demand for service providers to offer this insight will increase – a potential problem for those with access to only small segmented bits of employee-driven data. Heyward suggests “there is opportunity” for diversification in the R&R industry to invest in research-based services to understand how people are really feeling and to capture qualitative and quantitative data, drawing that together with the R&R program, and then assessing the impact on employee performance.

TECHNOLOGY

ALL ABOUT ME

Technology has naturally played a role in increasing the sophistication of R&R programs. Social recognition (recognition ‘walls,’ the ability to comment and give peers badges and ‘like’ peer posts, etc.) has been around for some time, feeding off the general population’s narcissistic desire to ‘show off’ to friends. An emerging trend is taking a leaf from how consumers are buying products and services online: They do their research; they read and write reviews and use interactive forums.

“That’s where I think R&R goes to next,” says Heyward. “It’s heading beyond just sharing ‘I’ve been recognised for good work’ with peers and colleagues; it’s much more interactive and involves wider dialogue about how people are feeling about engagement in their organisation. It’s social chatter as opposed to event-driven social recognition.”

This will require different tools and potentially hinges on whether recognition breaks through organisational confines and is able to ‘float’ outside and into the internet. “All of a sudden, me being recognised in my company goes onto my Facebook profile for the world to see,” says Heyward. “That has natural repercussions for the employer brand.

Technology didn’t exist 10 years ago to enable us to do 90% of what we’re doing in R&R programs today, so I wouldn’t be surprised if this integration with other social platforms is where it goes to next.”

Hay Group identified ‘individualism’ as a ‘megatrend’ for 2014 – that is, the expectation that corporate offerings will be tailored to suit age, socioeconomic status and so forth. Heyward notes that creating “real individualism” is significant challenge in the R&R space, and one that is only partly being addressed today. “The investment required to create true individualism is not insignificant,” he says. Nonetheless, progress has been made: R&R programs are now device agnostic, meaning they can be accessed from any technological device, and it’s possible to determine who someone is, where they work and what their preferences are, meaning relevant content can be sent to them.

However, with the ongoing tight budgets, compromises will be required. “How much do you invest in it when demands are being made to reduce spend?” says Heyward. “I think we’re in a pretty good space now – I’m not saying we’re there, but we’re in a good space to provide an individual experience when weighed up against investments being made.”

HCAMAG.COM

18-19_CoverStory-R&R-SUBBED_v2.indd 19

accumulate are employee loyalty and engagement specialists, delivering employee benefits, recognition and incentive programs that improve bottom line performance by helping clients more effectively retain, engage and motivate their people. accumulate.com.au

DECEMBER 2014 | 19

20/11/2014 2:31:58 PM

A

2014 YEAR IN REVIEW / CASE STUDY

2014 YEAR IN REVIEW

H

W

CASE STUDY: SCHWEPPES AUSTRALIA Schweppes Australia picked up the ‘best reward & recognition program’ accolade at the Australian HR Awards. HRD chats to Srini Srinivasan, head of HR services, to find out what the beverage giant has in place for its 2,100 employees

HR Director: Can you outline the road to your win at the Australian HR Awards 2014? Where was the company placed in terms of its R&R offering?

Srini Srinivasan: It’s been a year since we implemented the program, and prior to that it was a two-year journey. Previously we didn’t have anything in place other than long service awards.

There was nothing else in terms of what you’d call recognition, acknowledging and thanking people for their work. To change the situation it took dedication. Constant follow-ups at every meeting, saying, “We need to do something about this – a lot of people don’t come here just to work for money; there’s a whole range of reward and recognition we could put in place.” To my good fortune, we undertook an engagement survey 18 months ago, and as part of that it clearly emerged that the company was not doing recognition well. So that became the charger for me, a rallying point.

HRD: What did you put in place?

SS: We introduced a three-tier approach after parntering with R&R experts Solterbeck. First and foremost,weneededtointroduceacknowledgements.

If someone has done a good job, say thank you. Or happy birthday. Small things – you don’t need to give money. This should be part of the norm of what we do.

This prompted the introduction of e-cards. It’s been hugely successful. Just in the 12 months we’ve been in operation, close to 8,500 cards have been sent out by the business. It’s a phenomenal change.

The second tier says OK, there are times when someone does a great job – they’ve made a saving, they’ve contributed to a profit, or they’ve come up with a process improvement that has saved the company money. What’s to stop you nominating someone and saying, “Srini has done a great job”?

Once that is approved by the next managerial level up – there has to be some sort of screening process – I receive points.

Sometimes the initiative is so successful it pushes the nominated person and their initiative into a quarterly pool, and then an annual pool.

20 | DECEMBER 2014

20-21_CoverStory-CaseStudy-SUBBED_v2.indd 20

It’s open to anyone to nominate. It’s like a fly-buy program: You earn points, and then we have a suite of 4,000-odd products for people to pick and choose what they like. Or you can donate to charity or do whatever you like. There’s no expiry date; you keep accruing points.

Finally, we wanted to change the way we recognise service. In this day and age, you don’t need to work 25 years to get service recognition. Every day is important. Again, as part of this journey we said, what’s stopping people from saying, “You’ve worked here for 12 months – congratulations”? And points are accrued. Every year there’s instant recognition from a manager – acknowledgement that this person has provided loyal service.

W

E

HRD: Do you acknowledge the power of recognition being magnified when it’s tied to reward?

SS: This is why I’ve been very conscious of our structure. As soon as you say reward, the dollar sign pops up in people’s minds. That’s the reason why I tiered it. It’s not about money. Money will come when the time is right, but this is not about the money.

That’s why we put in steps and balances into the second and third tier. The money won’t come easily.

But let’s get people recognising great work firstly.

HRD: Has it been onerous for you and your team to implement?

SS: It’s been onerous in the sense of getting the concept up and running and to change mindsets.

We also have some people who don’t have access to computers. We’re moving toward apps now that everyone has smartphones.

W r e p a

HRD: Would you like to integrate your R&R offering more easily with social technology?

SS: Absolutely – this is the future state we want to get to. We want to be able to tie in through the likes of Jam, which is similar to Yammer. We want to connect it to LinkedIn so we can really market the brand and the product. But first things first – we need to get everyone onboard with it!

W i

HCAMAG.COM

20/11/2014 3:05:45 PM

Are you ready for 2015?

WORKPLACE LAW Dynamic. Agile. Adaptive.

Here is your Workplace Law Checklist:

Workplace Policies and Procedures Are Performance Management and Disciplinary Policy and Procedures clear and well documented?

Is training in appropriate Performance Management and Discipline Procedures in place for Managers and Supervisors?

Is the Grievance Procedure appropriate for managing complaints of bullying?

Should a Code of Conduct be implemented to set a standard of behaviour?

Are Policies and Procedures in plain language?

Are Policies and Procedures legally compliant?

Work Health and Safety Forms, Policies and Procedures Is a Workplace Accident and Injury Response Procedure in place and are key people trained?

Is training for Board and relevant Managers in relation to their WHS responsibilities in place?

Employment Contracts Do the documents refer to Modern Award coverage and classification?

Are the documents compliant with superannuation changes?

Are the employee’s duties to the employer clearly stated?

Are classifications and rates of pay for apprentices, juniors, employees on s.457 visas correct?

Are allowances, penalties and loadings correct?

Workplace Law can help you get ready for 2015.

Call us on 02 9256 7500 to speak to a Director or log on to our website www.workplacelaw.com.au and register for our FREE e-newsletter for regular updates on workplace issues

@workplacelaw

Workplace Law is a leading boutique law firm providing legal representation and strategic advice to a broad range of employers including national and multi-national corporations, publicly listed companies, not-for-profit organisations, government authorities and family businesses.

We represent employers in a wide variety of industries in the private and public sectors.

WORK HEALTH SAFETY DISCRIMINATION INDUSTRIAL DISPUTES EMPLOYMENT LAW SPORTS LAW WORKPLACE INSURANCE RISK MANAGEMENT INTERNATIONAL LAW

Your partner in Workplace Relations

20-21_CoverStory-CaseStudy-SUBBED_v2.indd 21

WORKPLACE INVESTIGATIONS

20/11/2014 3:05:56 PM

2014 YEAR IN REVIEW / EMPLOYMENT LAW

2014 YEAR IN REVIEW

BULLYING: THE YEAR OF ACTION Brought to you by www.workplacelaw.com.au

Bullying dominated the headlines, but there were plenty of other landmarks in employment law in 2014 www.workplacelaw.com.au

2014 EMPLOYMENT LAW TIMELINE 1 January

The former Labor Government’s amendments to the Fair Work Act 2009 (Cth) commenced operation, enabling workers to seek orders from the FWC to stop workplace bullying.

22 January

Some details emerge of Federal Government’s proposed Paid Parental Leave (PPL) scheme,

22 | DECEMBER 2014

22-25_EmploymentLaw_subbed_.indd 22

which will provide mothers with 26 weeks’ pay at their actual pay (capped at $150,000 pa) following the birth of a child. This would replace the current PPL scheme, under which mothers receive 18 weeks’ pay at the national minimum wage, from 1 July 2015. However, following countless delays, the scheme is unlikely to be put to Parliament in 2014.

27 February

The Federal Government introduced the Fair Work Amendment Bill 2014 into Parliament. The Bill includes: simpler processes for the making of “greenfields” agreements for genuine new businesses, projects or undertakings; providing employers with easier access to

individual flexibility arrangements (IFAs) which can be used to vary (on an individual basis) award or agreement conditions relating to hours of work, overtime, penalty rates, allowances and leave loading; and new restrictions on union “rights of entry” onto employers’ premises. The Bill is yet to pass the Senate.

HCAMAG.COM

20/11/2014 2:34:47 PM

HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW

2014 was “the year of bullying”, states Athena Koelmeyer, managing director of Workplace Law. The new Work Health and Safety Anti-Bullying Laws, in place since January 2014, are intended to decrease bullying in the workplace, at present costing the Australian workforce up to an astounding $36bn per year in litigation and lost productivity.

One of the key aspects of the new laws is that the onus of proof has shifted – meaning employers now have to prove that alleged bullying has not occurred. Employees are also able to make a complaint directly to the Fair Work Commission – bypassing their employer, and greatly empowering the employee.

“The figures from the Fair Work Commission’s annual report [see box p24] are described as a trickle and I agree, but you can certainly see that, once you have a jurisdiction operating for six months or more and people can see how it’s going to operate, in the coming year the jurisdiction will be utilised more and more,” Koelmeyer says.

The major deterrent thus far has likely been due to there being no capacity to make a pecuniary order in the jurisdiction, so there’s no money involved. “I think that’s what initially turned people off, but now people are using it as a first resort and then almost using it to underpin a workers’ comp claim or a subsequent adverse action claim,” Koelmeyer says.

What makes the anti-bulling laws unique is the interventionist nature of the Commission’s jurisdictions.

“We’re normally dealing with things like unfair dismissal – that’s litigation happening

6 March

In its first three months of operation (to end of March 2014), only 151 claims were lodged with the FWC under Part 6-4B of the Fair Work Act 2009 (Cth), which enables workers to seek orders from the FWC to stop workplace bullying. The Commission had been expecting almost 900 claims per quarter.

HCAMAG.COM

22-25_EmploymentLaw_subbed_.indd 23

12 March

“The full Federal Court went out of its way to demonstrate that the rules have changed in terms of damages in that jurisdiction” Athena Koelmeyer

after employment has been terminated. In this situation the parties are still in the employment relationship and the Commission is intervening to make sure everyone is playing nicely together.”

While Koelmeyer says it’s “sad” that this type of intervention is required, she also feels it was long overdue; people were putting in workers’ compensation claims in relation to bullying but they were getting to the point then where they had actually suffered an injury before getting any assistance.

Of the few decisions that have been made with anti-bullying orders, some have imposed a fairly onerous burden on the employers involved. For example, one decision ruled that certain people couldn’t start work before 8.15am; in another, an employee could not undertake exercise on the balcony outside a certain employee’s desk. “Every effort should be made to ensure you’re avoiding those situations where you’re getting those orders made against you in the first instance,” says Koelmeyer.

New Australian Privacy Principles (APPs) took effect. Australian employers are now required to observe strict requirements for handling of employee-related information. The risks for not being compliant range from penalties of up to $1.7m for the company and $340,000 for individuals.

14 April

In Ms Kathleen McInnes [2014] FWCFB 1440, The Fair Work Commission confirmed that bullying which occurred before the new laws took effect on 1 January 2014 can be taken into account by the FWC in determining whether to make an anti-bullying order.

9 May

In Walsh v Greater Metropolitan Cemeteries Trust (No 2) [2014] FCA 456,

the Federal Court found that an employee had not been dismissed in breach of Part 3-1 of the Fair Work Act 2009 (Cth) which prohibits termination or other adverse treatment in employment on the basis of an employee’s exercise of various “workplace rights”. In this instance, the employee had made complaints regarding probity issues in the employer’s awarding of certain contracts to third parties. The Court

DECEMBER 2014 | 23

20/11/2014 2:34:51 PM

2014 YEAR IN REVIEW / EMPLOYMENT LAW

2014 YEAR IN REVIEW

BULLYING BY NUMBERS The Fair Work Commission’s annual report for 2013-2014 revealed the following: yy The anti-bullying jurisdiction received more than 100,000 website inquiries, and more than 3,500 telephone inquiries, which resulted in 343 applications being received. yy The report showed that the 60 applications received per month were much lower than the predicted 70 applications per week. yy Of the 197 applications which were finalised in the period, 93 were withdrawn prior to hearing, 63 were resolved during mediation or conference, 20 were withdrawn after mediation or conference and 21 were finalised by a FWC decision. yy Of the latter, 3 were dismissed due to jurisdictional objections, 4 were dismissed because bullying was not found or there was no risk of bullying continuing, and 13 were dismissed as the matter was not pursued (or properly pursued). yy Only 1 application resulted in the FWC making an order to stop bullying.

THE BARKER CASE The Barker vs Commonwealth Bank case in September was recognised as a landmark, primarily because it was clarification from the High Court that there is no implied term of trusted confidence in Australian employment contracts.

The ruling is a reminder that if an employer has a policy or procedure in place, which is published and made available to employees, it’s critical to comply with those policies and procedures. “As employers you set a standard by publishing a

found that the decision to dismiss the employee was based on legitimate concerns relating to her performance.

1 July

Changes took effect to the national minimum wage, Superannuation Guarantee contributions, transitional arrangements and penalty rates under the Restaurant Industry Award. The Restart Wage Subsidy also commenced on this date. The minimum wage

24 | DECEMBER 2014

22-25_EmploymentLaw_subbed_.indd 24

increased by 3% as a result of the Fair Work Commission’s annual wage review decision on 4 June 2014.

24 July

In Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82, the Full Court of the Federal Court mirrored community expectations about the sum of compensation to be awarded for the pain and suffering caused to victims of workplace sexual harassment. In its

policy that clearly expresses an intention that those are the standards you expect yourself to comply with as an employer,” says Koelmeyer.

“When you fail to do so, whether or not you end up in the High Court arguing about employment contractual terms or you’re talking about breach of contract and whether the policy was a part of the contract, somebody is going to call you on it.”

PERFECT STORM FOR ADVERSE ACTION CLAIMS Another key 2014 trend was adverse action claims becoming the employees’ alternative to claiming unfair dismissal. Adverse action, similar to the anti-bullying legislation, has been something of a ‘slow-burn’. Yet the Commission’s annual report states there has been 18.5% increase over the past 12 months in the number of general protection applications involving dismissal. Koelmeyer suggests there are a number of reasons why people have cottoned on that adverse action jurisdiction is a lot broader and sometimes more helpful than unfair dismissal.

“It’s not capped at 26 weeks in terms of the compensation you can obtain in the jurisdiction,” she says. “You can get compensation for hurt, humiliation and distress in this jurisdiction, and it’s also broad enough to cover things like ‘I was bullied’ or ‘I was harassed’ or ‘I was discriminated against in some other form’, as well as ‘my employment was terminated unfairly’. It’s a remedy for all seasons and you can incorporate everything into it. I think that’s why there’s been a significant upturn in the numbers.”

decision the Court significantly increased the damages awarded (from $18,000 to $100,000) to an ex-employee of Oracle who was subjected to unlawful sexual harassment in the workplace.

10 September

The HCA handed down its muchanticipated decision in Commonwealth Bank of Australia v Barker. The outcome represented a major landmark in

employment relations, with the HCA confirming that employment contracts in Australia do not impose a general duty of “trust and confidence” upon employers. The decision effectively overruled numerous findings in lower courts and tribunals, many of which asserted that the mutual duty of trust and confidence did apply in Australia and could be breached if an employer failed to follow or abide by its own policies and procedures.

HCAMAG.COM

20/11/2014 2:34:55 PM

HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW

Regrettably, there’s not a lot employers can do to mitigate the risk, barring being on top of all employee/employer interactions, including notoriously grey areas like performance management.

“If you’re engaging in performance management you need to be aware that if there is any exercise of workplace rights, like making a complaint about the terms and conditions of employment, or if the person that you’re performance managing has protected characteristics such as they’re pregnant, you need to ensure you are absolutely approaching with caution,” says Koelmeyer.

She recommends employers have everything documented and to “be prepared to get into the witness box as an employer and give your reasons and be persuasive that your decisions were not made for discriminatory or other reasons – they were made purely for performance management”.

This is easier said than done, particularly when performance management issues need to be separated from allegations of bullying.

OTHER KEY CONSIDERATIONS There were two further landmarks in 2014. Firstly, a significant sexual harassment case, Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82. The Federal Court awarded $100,000 for damages in relation to sexual harassment.

Previously, damages in that jurisdiction had been much lower ($12,000–20,000). “The full Federal Court went out of its way to demonstrate that the rules have changed in terms of damages in that jurisdiction. Whereas in the past employers might

14 October

The Australian Federal Police was victorious when a previous employee’s accusations of unfair dismissal and workplace bullying were rejected by the FWC. The AFP’s win followed the employee’s decision to appeal the verdict of the commissioner who had dubbed his attitude towards his employer as “incomprehensible”. In July 2013, the employee was sacked on grounds of failure to show up for work

HCAMAG.COM

22-25_EmploymentLaw_subbed_.indd 25

“What makes the anti-bulling laws unique is the interventionist nature of the Commission’s jurisdictions” Athena Koelmeyer have thought, ‘ok that’s a sexual harassment complaint, I know I can resolve this for something quite reasonable’, that’s not going to be the way moving forward.”

Also, under the radar, has been the modern award review process. When the Fair Work Act came in, it was deemed that every four years there would be a review of the modern awards. “What it’s intended to do is to ensure awards remain fresh and relevant for the time,” says Koelmeyer.

“Hence the ACTU has made various applications to the FWC, one of which is to allow employees to apply for domestic violence leave.”

Employers should take the opportunity to keep an eye on what’s happening with their modern award, or if they want to make submissions, it’s not too late. “Employers should get involved because we all know that little things like what’s the minimum number of hours you can roster a casual for, or whether leave loading has to be paid on termination of employment – all add up in terms of cost for employers.”

Workplace Law is a specialist boutique law firm advising employers is all aspects of employment law, industrial relations and WHS.

when directed and not acting in good faith, although the AFP claimed to have made significant efforts to be flexible with working hours; the FWC agreed with the AFP and the former employee lost his bid to challenge his unfair dismissal case.

16 October

The HCA upheld BHP’s sacking of an employee for waving a sign accusing other employees of being ‘scabs’. The

decision reinforced the 2012 ruling in Barclay v Bendigo TAFE that an employee can be disciplined for conduct closely associated with industrial activity, so long as the activity is not itself a reason for discipline.

The ruling makes it clear the Fair Work Act protects union members and delegates against discrimination; it does not give them a cloak of immunity for conduct undertaken in their union capacity.

On the radar in 2015 yy Cyberbullying yy The Federal Government’s new paid parental leave scheme

DECEMBER 2014 | 25

20/11/2014 2:34:59 PM

2014 YEAR IN REVIEW / TECHNOLOGY

2014 YEAR IN REVIEW

THE CONSUMER REALLY IS KING As the consumerisation of technology continues, the tools used in the workplace are also rapidly changing. HRD looks at what’s happened in 2014

26 | DECEMBER 2014

26-29_Technology-SUBBED_v2.indd 26

HCAMAG.COM

20/11/2014 2:37:57 PM

HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW

The links between corporate wellbeing and the latest technology may seem, at first glance, tenuous.

Most organisations have taken an ad-hoc approach to corporate wellbeing, and the technology component to support this function has been even more haphazardly handled, if it has existed at all.

Yet corporate health and wellbeing serves as a fascinating microcosm of the broader corporate world and how it has been impacted by technology.

This is especially the case if traditional notions of wellbeing are turned on their head.

Instead of being a viewed as a ‘nice to have,’ positioning corporate wellness at the core of business operations suddenly means it deserves much greater attention than it traditionally has received. After all, while companies spend more and more on initiatives to drive productivity and improve leadership capability, that investment achieves nothing if employees are unhealthy.

“When you’ve got healthy people, you can focus on how to get the most out of them,” says Georgie Drury, founder and CEO of HR technology provider Springday. “They will be more engaged and more productive. It’s therefore imperative that this is a key HR focus point.”

THE CONSUMERISATION OF WORKPLACE TECHNOLOGY So how can technology help employees firstly become healthier and secondly more productive?

Look no further than the consumer technology market. In 2008, trend forecasters The Future Lab predicted a phenomenon where technology would allow us to seamlessly blend business and leisure.

Dubbed (somewhat awkwardly) as ‘bleisure,’ the idea seemed like something from the brain of a scifi writer, especially as we were only just at the beginning of the mass-market smartphone and tablet revolution at that time. The practice of using smart mobile devices to do everything related to our work, personal and social lives was still far from a mainstream reality.

In 2014, so much has changed. Seventy-six per cent of Australians now use a smartphone, and 45% use a tablet. There are more mobile services in operation in Australia – 31.09 million – than people.

HCAMAG.COM

26-29_Technology-SUBBED_v2.indd 27

TECH SNAPSHOT 39% of Australians use both a smartphone and a tablet 30% use three devices – smartphone, tablet and a laptop 25% are doing organisational tasks on their devices while they’re out socialising with friends after work 58% believe that technology empowers them to do what they want, when they want

The significance of ‘bleisure’ is growing. It began with habits such as checking work emails at home or home emails at work, but now these kinds of behaviours are permeating how we work, where we work and what we think of as work. Microsoft’s Life on Demand white paper states: “We’re starting to see cultural norms around presenteeism – being highly visible at work to signify that you are contributing – fading in the bleisure era.

Bleisure and flexible, collegiate ways of working are eroding the parent-child-style relationships between managers and team members that have been commonplace in the workplace until now. As a result, we’ll see greater levels of trust, autonomy and accountability at work, as exemplified by the flexible patterns.”

Drury gets frustrated when some corporate clients claim to her that no one in their organisation uses technology. “They may not be using it at work, probably because they haven’t been given the tools or platforms, but I can 100% guarantee they’re using it at home; you’re underestimating your workforce if you think they aren’t,” she says.

“This is where we need to understand the huge leaps and bounds that have been made from gaming consoles and social media platforms.”

It’s telling that Springday’s own technology started out as a consumer platform. The company now

DECEMBER 2014 | 27

20/11/2014 2:38:01 PM

2014 YEAR IN REVIEW / TECHNOLOGY

2014 YEAR IN REVIEW

utilises all technology tools in its arsenal to engage with client employees in the corporate health space.

“Wellbeing is a personal issue – you want to be thinking about it on your commute to work; you want to be looking at your rewards and how you’re tracking. You want to be syncing your wearable tech devices, and you want to take advantage of all this third-party assistance that is out there and be able to say, ‘My employer is empowering me to do this.’”

GAMIFICATION AND WEARABLE TECHNOLOGY Research firm Gartner has called the trend toward gaming at work “highly significant,” predicting that by this year, more than 70% of organisations will have at least one gamified application.

“The great thing about games is you actually do stuff intrinsically, almost without thinking about it, so you don’t need to reward people or force them to take part,” says Drury. “People are happy to get to bronze level, and they obtain status for achieving that. Look at Angry Birds – you don’t get anything there except recognition and visibility.”

In the corporate wellbeing space, gamification can be used to reward positive actions and behaviours. Springday, for example, will consult with clients on relevant strategies for the year, and then points are assigned to employees upon completion of a task. “We want employees to go to the dentist. We aren’t going to pay for it, but we’ll encourage people to take control and empower them to do it,” Drury says. “Blood donation is another area. They’ll get points for doing it, and it can be linked to a reward and recognition program.

Ideally we want to stop looking at sickies and look at how many ‘healthies’ employees have. Let’s reward employees for being healthy.”

Tied closely to gamification – especially when it comes to intra-company team competitions and the like – is the ever-expanding range of wearable technology finding its way into the workplace. Everything from Google Glass to activity trackers are being used to monitor and enhance employee productivity and engagement.

There are many opportunities for applying wearables to improve safety and efficiency by providing quicker and safer access to data.

“Forty per cent of Australians will have some sort of wearable device by the end of this year,”

28 | DECEMBER 2014

26-29_Technology-SUBBED_v2.indd 28

WHAT IS A WEARABLE? says The following are examples of ‘wearable devices’ yyBadges that capture voice and location information yyBrain activity sensors yyEarbuds whose functions include monitoring heart rates yyGlasses whose functions include assisting employees with correct posture yyGloves yyMovement monitors yyRings that can act as a virtual keyboard or touchpad yySmartwatches What HR issues do they raise? yySurveillance yyPrivacy and collection of personal versus work-related information yyErgonomics, in some cases yyEqual opportunity, in some cases

Fitness & sleep monitors as high fashion: Misfit Shine

says Drury. “How is this relevant to HR? The employees have purchased the hardware, so how can we take that hardware and make it relevant to your organisation?”

Providing the ‘bridge’ are software companies like Springday. They provide a ‘one-stop shop’ platform to companies to ensure employees have visibility to all existing wellbeing strategies and programs. The Wellbeing Hub does not replace the company intranet, but instead transforms the intranet into the gateway to all the company has to offer (EAPs, health checks, flu vaccinations).

From there, a suite of options can be implemented that cover the ‘five pillars’ of wellbeing (physical, mental, social, financial and career wellbeing) – all of which are accessible from anywhere at any time, syncing wearable devices to the employees’ smartphone and their work PC.

HCAMAG.COM

20/11/2014 2:38:05 PM

HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW

Imagine being able to link ‘L&D’ through to ‘career,’ via ‘wellbeing,’ all the while gaining points toward completing your development goals through the year. Such integration is now possible.

“Technology is an enabler; it’s not the solution,” says Drury. “I’ve spent time in management consulting, and you learn that the learning process and communication process is just as important as the technology itself. You can’t build it and then think they will come. You’ve got to build it and then say, ‘OK, what’s our engagement strategy around enabling people to use this technology?’”

What else do Australians believe lies ahead in the next 10 years?

32% We won’t have to go to the office anymore to work

54% Home appliances will be remotely accessible by the internet

40% We will use embedded wearables to monitor our health and wellbeing

58% Cash and credit cards will be a thing of the past

HR BENEFITS GO MOBILE Where else is technology helping HR? In 2014, it’s all about apps. HR executives spend nearly 25% of their time on paperwork and recordkeeping. HRD has identified three apps that can eliminate the stress, headaches and hours that typically go into benefits oversight and administration.

BAMBOOHR (AUS AVAILABLE) Cost: Subscriptions start at US$69/month Famous Users: Disqus, Pinterest and Klout Features: Integrates with benefit providers to allow for online enrollment, and information is synced to other business functions to reduce data errors and eliminate the need for multiple entries. Also provides an alert system to notify managers of upcoming benefit renewal dates.

Pros: User-friendly, intuitive design Cons: Limited functionality Rating: 5 stars, GetApp ADP MOBILE SOLUTIONS (AUS AVAILABLE) Cost: Free with ADP subscription Famous Users: 80% of Fortune 500 companies use at least one ADP product

HCAMAG.COM

26-29_Technology-SUBBED_v2.indd 29

Features : Provides access to benefits information, which can be filtered by category, plan type, or coverage level. The information is detailed to include the date that policies go into effect, benefit reminders and employer contributions.

Pros: Easy to use, fast Cons: Frequently crashes, functionality issues Rating: 2.5 stars, App Store TRIBEHR (AUS AVAILABLE) Cost: Starts at US$5 per employee per month Famous Users: Expensify, Cyberduck, Miovision Technologies Features: State-of-the-art monitoring of employees’ time off allowances. Managers can easily respond to requests, and each acceptance, denial or revision is stored in the worker’s history. Employees also can keep track of how much time off they’ve earned, and how many of those hours they’ve expended to date.

Pros: Owned by NetSuite. Transparent, facilitates communication between supervisor and worker Cons: No widespread utilisation yet Rating: 4.8 stars, GetApp

PRODUCTIVITY APPS HRD has rounded up three apps that will help your staff stay engaged and productive in the workplace.

1. MY MINUTES My Minutes is a free app available for both iOS and Android that focuses on goal setting. Your employees can use it to set a particular amount of time they want to spend on a task, and the app will nudge them when they’re out of time (or virtually pat them if they hit their goal).

2. RESCUETIME RescueTime is a personal analytics service available for a range of different operating systems, including Mac, PC, Android and Linux. It helps workers analyse how they spend their time and includes tips to boost productivity.

3. WORKFLOWY WorkFlowy is a tool to help staff get organised. It creates to-do lists and helps people collaborate on team projects, take notes and plan events, among other features. The app allows people to collaborate online, cutting down the need for some face-to-face meetings.

DECEMBER 2014 | 29

20/11/2014 2:38:10 PM

2014 ANNUAL REVIEW / RECRUITMENT

2014 YEAR IN REVIEW

Recruitment finally comes of age Despite the best of intentions, a diligent interview process and thorough onboarding, organisations still make ill-advised hiring decisions. HRD outlines how two game changers have reimagined their approach to recruiting in 2014 As a prevailing force in the global travel industry, G Adventures has about 2,000 employees stationed in countries ranging from Canada and the US to India and China.

While workers’ ages and demographics vary substantially, all G Adventures employees have one thing in common: they passed an interview consisting of quirky questions such as ‘‘How would you describe your two years in the adult film industry?” and “If stuck on a deserted island, who would you not want among your company?”

While these queries may not seem like a reliable indicator of future job performance, G Adventures has found that it’s actually the conventional methods of recruiting that fail to yield employees well suited to its risk-taking business ethos.

At the other end of the spectrum, renowned investment research specialist Morningstar, Inc. has also revamped its hiring policies in order to attract employees who are ideal for the firm in practice, not just on paper.

What these disparate companies have discovered is simple: oftentimes, in order to attract exceptional

30 | DECEMBER 2014

30-31_Recruitment_subbed.indd 30

and unconventional thinkers, employers need exceptional and unconventional talent acquisition strategies.

A GOOD FIRST IMPRESSION As a market leader overseeing US$169bn in assets throughout 27 countries worldwide, Morningstar has little room to hire any candidates who will not meet or exceed expectations if granted employment with the firm.

“We don’t believe that sometimes you just need to get somebody in the door, and thus it’s OK to have a D player,” says Bevin Desmond, head of global markets and HR. In order to select the most qualified from among the countless résumés it receives every year, the firm has developed a system that allows each applicant, regardless of the job in question, to meet with a senior executive at some point during the interview process.

“By including senior managers in the process, it emphasises to everybody involved how important this is to us,” says Desmond. “It’s also a great recruiting tool. We always hear from people who

HCAMAG.COM

20/11/2014 2:39:14 PM

HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW interviewed with five or six companies that we stood out, because the chance to meet the CEO of a company like Morningstar, especially for those who interviewed right out of school, was amazing.”

In addition to the managerial component of its hiring process, Morningstar also conducts crossfunctional team interviews wherein candidates meet with representatives from every department linked with their potential role.

“For example, if it’s a technical position, we will have the applicant meet with product managers, designers and support people. Anybody who interfaces with that job will be part of the interview process,” says Desmond.

“We don’t believe that sometimes you just need to get somebody in the door, and thus it’s OK to have a D player” Bevin Desmond

ATTITUDE OVER APTITUDE

DEBUNKING MYTHS

It probably isn’t surprising that an organisation founded by a 22-year-old entrepreneur maxing out his credit cards would value such traits as audacity, open-mindedness, altruism, and the ability to “embrace the bizarre” among its prospective employees.

But for G Adventures, these are not just core values but prerequisites for employment.

In its efforts to weed out “brilliant jerks”, the company has developed an innovative way to assess whether a candidate is an optimal cultural fit for the organisation.

“What we came up with at our headquarters in Toronto, also known as base camp, is the wheel. It’s a roulette wheel with a flapper that lands on preloaded questions. We call it the G Factor wheel,” says VP of global talent and culture Amanda Chew.

Typically, candidates are asked to spin the G Factor wheel after successfully completing a skill and behaviour-based interview either in person or via Skype. Once applicants’ qualifications are verified, they are invited to participate in this test, which is led by three voluntary participants from any team outside of the hiring committee.

“This is not an interview or an assessment about the ability to do the job; it’s simply about cultural fit,” says Chew. “It’s not coloured by any thought, because the questions are random and the wheel determines which are asked.”

Scoring is based on a red, yellow and green light evaluation structure, and if a candidate receives just one red light, it’s an automatic fail.

“Even our owner and founder had to go through this. It’s just the way it is: it doesn’t matter the position; if a person can’t pass the G Factor test, we have to say goodbye to that candidate,” says Chew.

One of Morningstar’s greatest recruitment success secrets lies within the organisation itself. The company abolished its paid referrals program after realising that these initiatives “don’t get better candidates, just more candidates.”

The firm’s HR team believes that Morningstar’s exemplary flex policies – no start and finish hours, no set vacation policies, and a culture of trust – result in employees organically recommending open positions to talented associates in their networks.

In addition, although Morningstar is a financial services firm specialising in sophisticated analysis and research, the majority of its entry-level graduates are actually liberal arts majors.

“The interesting thing that distinguishes us is that we’re more concerned with the way people think over the training they may have received in the past,” says Desmond.

A major advantage of hiring candidates for cognitive malleability over prior experience, as HR has discovered, is that quick redeployment is possible whenever an open role needs to be filled right away.

In fact, Morningstar Canada’s CEO started out in tech, moved on to products, then data, and “practically every other job until eventually becoming CEO”.

HCAMAG.COM

30-31_Recruitment_subbed.indd 31

A SMART APPROACH = SMART RECRUITS Although the services they offer are vastly different, Morningstar and G Adventures have both succeeded as a result of their common ability to creatively target and acquire innovative, adaptable and cooperative talent.

“Smart people who have a great attitude can do all sorts of wonderful things for an organisation,” says Chew.

DECEMBER 2014 | 31

20/11/2014 2:39:18 PM

2014 YEAR IN REVIEW / DIVERSITY & INCLUSION

2014 YEAR IN REVIEW

TRAIL BLAZER Diversity initiatives need constant reevaluation and reassessment to keep them fresh and relevant. HRD talks to Alec Bashinsky, national partner of people and performance at Deloitte, about how his company has blazed a trail in 2014

HRD: Deloitte won Best Workplace Diversity and Inclusion Strategy at the 2014 Australian HR Awards. Why do you think you won?

Bashinsky: We’re being really clear around the elements of Alec Bashinsky that strategy. Diversity can include indigenous, disability, a whole range of factors, but we focus our D&I strategy around three key criteria: one is our inspiring women, two is our inspiring culture and third is our LGBTI focus, branded as Globe.

HRD: What sparked the D&I focus?

AB: We started our journey about a decade ago based around AB women. Like many organisations today, we had very little representation in the senior ranks. We had nothing at board level, nothing at the executive level, and even the number of talented women coming through the business were absolutely in the minority.

I was a national judge of the National Telstra Businesswomen awards, and I decided we should profile our talented women internally, so I set up a program called Deloitte Business Woman of the Year. Margaret Dreyer was our inspiring woman’s champion. Really it was about recognising female talent.

HRD: What are you doing specifically in the gender D&I space?

AB: My CEO [Giam Swiegers] is one of the 20-odd male champions of change, a program that sees men in high positions

32 | DECEMBER 2014

32-33_Diversity-SUBBED_v2.indd 32

HCAMAG.COM

20/11/2014 2:42:15 PM

HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW

act as mentors in gender diversity. For us, we had a significant attraction, retention and development issue when it came to women, but we’ve made progress. We now have three talented female partners on our board, and we finally have one out of 10 roles at the executive level filled by a woman.

Quite significant, however, is the progress we’re making at the next level of leadership. We have something like 60 business leaders, and 32 of them are women. We’ve really developed that sort of strategy, and the results are showing. We’re looking to drive real change, and in the next five years, I believe our progress will be even greater.

HRD: What’s next in the D&I space? Another focus area perhaps?

AB: The next piece we see, through our recruitment programs and through graduate level and universities, is a greater proportion of people coming through from culturally diverse backgrounds. When we looked at our internal workforce and leadership, we realised we had no role models who were culturally diverse as such, particularly people from Asian cultures.

About three years ago, we created a strategy to focus on cultural diversity, and we were pushing for that strategy to drive diversity of thought.

We set up a Diversity Council, which our CEO is the chair of, and the aim is to try and understand the culture element of our business. Part of innovation is different viewpoints, different experiences and different ideas. We decided we needed to better understand our culturally diverse talent in order to build innovation.

Next, we extended that into our to our LGBTI strategy. We do have a strong reconciliation action plan and disability focus as well, but those three areas are our key strategies.

HRD: What’s been involved in creating your LGBTI program?

AB: We’ve done a fair bit of work with Pride In Diversity. With our LGBTI focus, we’re about 12 to 18 months into the strategy. We’ve tried to understand our workforce and how we can become more inclusive. We’ve done things like running our own inclusive/unconscious bias workshops, and that showed us that we really needed to do some work in this area.

We’ve built these three key focuses into our

HCAMAG.COM

32-33_Diversity-SUBBED_v2.indd 33

“We cannot – nor can any organisation – invest in women and then not see them fulfil their potential by progressing” Alec Bashinsky people strategy. Diversity is such a big platform, and if you try to focus on five or six different areas at once, you can wind up doing an average job across all of them. We decided to tackle the three most important issues for us first, and that would be my suggestion to other organisations: Pick two areas that are having an impact on your business, then build a strategy and drive that as an action.

HRD: Are you an advocate of targets or quotas for diversity issues?

AB: We do set ourselves targets. Within our organisation, every business leader in Australia is not only measured on their business objectives, but also on their turnover, promotions and recruitment outcomes, all assessed by gender, to make sure their focus is clearly consistent with our overall strategy.

As with many corporations, this is a journey. If we could solve these issues quickly, then we wouldn’t be talking about it. It’s important to role model diversity and inclusion; otherwise it just becomes a strategy like anything else.

There’s a smart business reason for driving agenda strategy: If you hire roughly 50/50 male to female, then why would you not have more talented women in leadership roles?

Just as importantly, we cannot – nor can any organisation – invest in women and then not see them fulfil their potential by progressing.

IN NUMBERS yyDeloitte has gone from four female partners in 1998 to 125 in 2014 yyOf the 54 new partners promoted in 2013, 31% were women yyIn 2014, women represent 22% of the partnership yyWomen now represent 27% of the Deloitte board

DECEMBER 2014 | 33

20/11/2014 2:42:18 PM

2014 ANNUAL REVIEW / LEADERSHIP DEVELOPMENT

2014 YEAR IN REVIEW

Power of the mind How can the leadership challenges witnessed in 2014 be resolved by a fresh approach to professional development?

34 | DECEMBER 2014

34-37_Leadership_SUBBED.indd 34

It’s usually dangerous to generalise in terms of trends, but one recurring, unmistakable theme for leaders seen in 2014 has been their struggle to face up to changed expectations. Yes, it’s doing more with less – that’s a given. But more than that, it’s about job redesign while the business continues to find efficiencies. The end result is there’s simply more work to do. It takes resilience to get through.

Secondly, there’s been a renewed focus on creativity, on new approaches to old problems. The prime example is customer experience. Apple’s concierge desk in any of its stores is being held up as a beacon of creative thinking about how to re-engage with ‘bricks and mortar’ shoppers. More often than not, it’s the leaders who are being asked to brainstorm and generate these bright ideas. This requires the ability to prioritise and come back to old problems with a fresh mindset.

HCAMAG.COM

20/11/2014 2:44:56 PM

HUMAN RESOURCES DIRECTOR

2014 YEAR IN REVIEW

“All those pressures are on everybody, but in many instances it’s highlighted for executives simply because of your title, and maybe the business says, ‘We’re paying you more, so you can take more pressure’. Not only that but their expectations of you are generally higher,” says Terry Reynolds, regional managing director, Asia Pacific, rogenSi. It’s a perfect storm for executive stress and underperformance. But it need not be. There are steps leaders can take to gain more control over their stress-coping mechanisms. The key is mindset.

“The brain is in some ways very simple. If you ask it a negative question, it will find you a negative answer” Terry Reynolds

MIND OVER MATTER Mindset is related to but not intertwined with neuroscience. Neuroscience, with its concentration on how the brain works, can lose people when explanations start sounding like a science class.

“Australian audiences are quite sceptical about what that really means, because they can’t touch and feel it,” says Reynolds. “They understand Daniel Goleman’s emotional intelligence stuff. That was the beginning of this journey, but it has now gone to the next stage.”

The big difference between mindset and neuroscience is that the latter comes from a strong theoretical background. It looks at brain chemistry, serotonin, testosterone, and so on. “We would never come from that perspective,” Reynolds says. “We would say, ‘OK, there’s a behaviour and it’s a result of an emotion; how would the emotion manifest itself?’ With neuroscience it’s looking at the science behind the emotion – it goes to a deeper level.”

Reynolds relates the corporate world to the sporting world and notes that, at the elite level, precious little separates athletes at the technical and physiological level. It’s the ‘mindset’ that makes the difference. “When the stakes are high, your performance is mostly driven by your ability to perform under pressure when you need to most – and it’s often the teams that regress the least that perform the best.”

A high-performance mindset, similar to that held by many elite athletes, consists of several key traits: transparency – people see that you are open; strong character, or what some people might term as honesty and integrity; a will to win – that is, the ability to inspire and motivate; and finally there

HCAMAG.COM

34-37_Leadership_SUBBED.indd 35

must be strong technical understanding. “If you technically understand what you’re doing, it makes you feel better, feel more in control, and hence you generally get better results,” says Reynolds.

KEY ELEMENTS OF A HIGH-PERFORMANCE MINDSET

1

The ability to cope under pressure. When peak performers are observed, they remain on the front foot with their coping. They’re always climbing forward through adversity, rather than being on the back foot, and always reacting to what’s going on around them.

2

Motivation – the ability to harness masteryfocused motivation. To be motivated alone is not enough. Mastery-focused motivation is a particular type of motivation that is important for mental toughness. That is, a motivation that comes from the inside out, directed towards mastery.

When that type of motivation is right, we’re able to maintain a thriving source of energy, resilient in the face of outside pressures.

3

Maintaining the most resourceful self-beliefs.

Self-belief needs to be developed from the inside out. Genuine commitment comes from believing in ourselves, and what we’re doing, despite challenge, failure or rejection.

4

The ability to maintain laser-like focus.

Peak performers take aim and focus on the right thing at the right time, despite distraction. In the current market, wouldn’t it be great if we could maintain such laser-like focus despite the myriad of distractions?

DECEMBER 2014 | 35

20/11/2014 2:44:58 PM

2014 ANNUAL REVIEW / LEADERSHIP DEVELOPMENT

2014 YEAR IN REVIEW

Point one – coping with pressure – is particularly pertinent given the discussion points outlined above. Resilience is being able to cope with the situation as it is. Having resilience means you are able to bounce back from setbacks more quickly.

“Everyone has bad days, but what we’re trying to do is at least give people the tools to understand firstly that it’s occurring, and secondly to know what they can do about it. You hear that expression, ‘I’ll feel better in time’, or ‘I’ll get over it’. But really you could do that right now if you chose to. It’s very much about personal choice,” says Reynolds.

REWIRING THE BRAIN Importantly, resilience can be taught; people are not born with it or born without it. Most people have an innate (and unfortunate) inability to manage perspective. Under pressure, they blow things completely out of proportion. Their coping mecha­nisms get undermined.

“This is about training people to deal with the things they have in front of them,” says Reynolds. “If the brain doesn’t have the information, it tends to make things up. If someone says they’ll be home at 6pm and they’re not, and then 7pm rolls around and their phone is off, what will happen? Your brain will go into overload.”

The same principle applies in the workplace when people automatically jump to the worst-case scenario. In a meeting, someone has a great idea, but the first thing someone else will concentrate on is how it can’t work. “Why not give it a chance?”

Reynolds asks. “Why not look at how it could work, what would be good about it, and then revert to looking at the risk management associated with it?”

People are also not born as positive or negative, but they do have a preference, and over time they can fall towards the preference. It then becomes engrained as habit, and that habit keeps people locked into their own comfort zone.

“It’s easier for me to say, ‘I disagree with this’, than it is to look on the other side. People get comfortable being pessimistic. It’s a natural style for them,” Reynolds says.

THEORY INTO PRACTICE How can the situation be reversed? Training can help. rogenSi first conducts a 360-review of an employee, obtaining clear, direct manager feed­ back. In a questionnaire, the manager will be

36 | DECEMBER 2014

34-37_Leadership_SUBBED.indd 36

asked how, from a resilience perspective, the employee performs. This identifies areas that need to be worked on in four key ‘quadrants’ (keen focus, coping capability, self-belief, and motivation).

“The feedback might say, ‘Terry needs help in the coping quadrant, and specifically what he needs to work on is the way he views things – his positivity, his level of perseverance and maybe his perspective’,” Reynolds explains.

From there, three days of training will be conducted. These training days are broken up by six-week intervals, to allow the student to go back into the workplace and apply what they have learned. In this specific situation, dealing with resilience, the course content will look at reframing: moving the mindset from the negative to the positive. Students keep a learning journal, and the idea is to document the performance as they go through: what worked, what didn’t work, what were the questions asked, and if you had a bad day what was the experience?

“You are told by a client that you lost the deal.

Instead of claiming it’s the end of the world, stop, reframe it. What could be good about losing the deal? The client said the pitch wasn’t so good, or the proposal wasn’t written so well. What’s good about that is if you improve it for next time. The idea is to assist people to build a toolbag of strategies to be able to deal in the moment with these issues,” says Reynolds.

While Reynolds does not anticipate an instant transformation in course participants – he doesn’t expect pessimists to emerge as optimists – he does believe it gives people pause for thought. “The brain is in some ways very simple. If you ask it a negative question, it will find you a negative answer.

Wouldn’t it be great if we could ask a positive question and get a positive answer to begin with, and train yourself to do that?”

Incidentally, Reynolds believes mindset will play a critical role in addressing what he calls “the hot leadership issue for 2015”. That is, unconscious bias. “This is something around personal belief systems and why we think the way we do. The way we think shows up in the way we feel, and that shows up in our behaviour. Unconscious bias sits at the bottom of the iceberg, and it permeates a lot of what we do in life. Leaders who are more aware of their unconscious bias and take steps to mitigate it can have a profound impact on their teams.”

HCAMAG.COM

20/11/2014 2:45:03 PM

Never underestimate the effects of your decisions as a manager or leader.

Never underestimate the power a well-informed decision can have and how much momentum it can gain when shared among other leaders and managers.

The Australian Institute of Management exists to empower the organisation through the individual and has been advancing education and learning in business management and leadership for almost 75 years.

From emerging manager to executive, AIM offers short courses, qualifications from Certificate IV right through to MBA, HR Research, Consultation Services and Customised Learning and Development Solutions.

Plus, AIM membership and events provide invaluable contact with business peers, at all levels.

Help your workforce realise their full potential and you’ll see a real return on investment.

Visit aim.com.au

aim.com.au

34-37_Leadership_SUBBED.indd 37

20/11/2014 2:45:07 PM

PERFORMANCE / SALES REWARDS

Avoiding the entitlement trap Dave Jackson outlines how best practice organisations embed performance at the heart of sales force reward

A sales force operating with the incentive of significant and substantive reward opportunity is a powerful force. But when a sense of entitlement creeps in, impetus can plummet, and costs can spiral upwards.

After hundreds of reward conversations with HRDs, sales directors and reward managers over the past year, one subject stands out above all others: entitlement1.

“It feels like every time we want our reps to focus on something, we need to throw money at them.”

“I don’t want to pay out bonuses when we’re missing target – but the targets are tough, so I need to offer some incentive to chase them!”

“Our growth will come from shifting the performance of the majority of our sales force – but our reward budget is fully committed to meeting the expectations of the top 10%.”

“We have no problem paying out big rewards when results warrant it. But only then!”

If these common complaints sound familiar to your organisation, chances are you have an entitlement problem, too.

38 | DECEMBER 2014

38-39_Solterbeck-benefits-SUBBED_v2.indd 38

ENTITLEMENT EXPECTATIONS The power of reward as a motivator is as fundamental to sales as it is to life generally. And because of the unique characteristics of the sales role (including measurability, prominence, discretion and profitability), the importance of reward as a sales management tool cannot be overstated.

A problem arises when the expectation of receiving this reward – especially the financial element2 – becomes assumed: disconnected in the mind of a participant from objective measures of his or her performance, especially of discretionary effort and incremental growth.

“In the past, we have paid too much for turning up, and not enough for exceptional results” – Roanne Innes, sales effectiveness head, Bristol-Myers Squibb

VICIOUS SPIRALS Carelessly designed reward practices create entitlement expectations.

Accommodating entitlement leads to further bad design, creating more entitlement problems. Repeat ad nauseam – unless you can escape the common traps.

Paying only for sales results works well only with a tailwind, which obfuscates the risks – especially where sales force prominence over outcomes is relatively low. Rewarding inputs is

HCAMAG.COM

20/11/2014 2:45:57 PM

HUMAN RESOURCES DIRECTOR

harder to model financially, but allows less space for entitlement to grow. Plans that are only relative or definitive are equally problematic; balancing the two will substantially reduce entitlement risk.

Six common entitlement triggers 1. Overweight on sales numbers and underweight on sales force practices 2. Rewarding relative performance regardless of definitive results, and vice versa 3. Paying for natural activity, not incremental outcomes 4. Fixed-value reward pools unrelated to economic returns 5. Overly generous fixed rem and/or meaningless at-risk components 6. Compromise through the operational phase

Rigid organisational budgeting leads to fixed reward pools, and a ‘spend it or lose it’ policy means it gets allocated regardless of results. The need for financial certainty presents an inherent conflict – as shown in the table below, the metrics most transparently linked to economic return are at odds with the metrics over which individual sales execs have the greatest prominence.

Cascading metrics

Financial transparency

Employee prominence

Sales outcomes

High

Lower

Milestones

Medium

Medium

Practices

Medium

High

Capabilities

Lower

High

Knowledge

Lower

High

And the risks are not only in the design, but also in the finer detail. An account manager is not clear – through poor documentation or his own oversight – of exactly how ‘gross margin’ is calculated, so when a difference between his expectation and the reality of a payment is revealed, we compromise.

BOLD SOLUTIONS The instinctive response to an entitlement problem is to reduce the reward – which would be wrong. Sure, there are examples of overly generous reward packages, but more often the design failure relates to the performance metrics and not the reward.

HCAMAG.COM

38-39_Solterbeck-benefits-SUBBED_v2.indd 39

“We like to offer exceptional rewards, incumbent upon delivering against exceptional expectations.

We call it performance first” – James Ciuffetelli, sales director, Sensis

The best (and most effective) plans are bold.

They make strong calls that communicate clear messages. They distinguish between expected and exceptional. Accommodating entitlement forces compromise, and compromise so often robs reward plans of their power and punch.

The best plans are accretive. They ask top performers to perform better. They ask middle performers to perform better. And they move low performers on, after fair opportunity.

Being deliberate and explicit about pay distribution intent is helpful, as is using nonfinancial forms of reward. For all the noise that Dan Pink made in the past decade, very few organisations are effectively utilising reward practices fuelled by mastery and purpose.

A key purpose of sales force reward is to drive discretionary behaviour. Yet seldom do we see behavioural metrics playing a material role in reward plans. Quite often, behavioural metrics sit within a separate enterprise-wide performance review mechanism – often a set of broadly defined, universal behaviours and perhaps at best appearing as a checkbox on the commission plan or chairman’s club criteria.

As entitlement is as much emotional as it is financial, there are cultural solutions as well.

“We don’t believe in any of this ‘up on a pedestal’ stuff. Our sales execs see it as a privilege to represent the work of the rest of our team” – Trent Innes, national sales director, Xero

MAKING CHANGES Yet for all the complexity, solutions are sometimes quite simple. Bristol-Myers Squibb simply reduced the amount it paid for near target performance and reinvested it above 110% to target. Optus stopped paying commissions unless customer satisfaction improved. Sensis is starting to celebrate progress and personal bests.

HR execs panicking at the suggestion of avoiding “entitlement,” rest easy ... we are discussing the pejorative connotation of the lowercase noun as a synonym of “inherently deserving,” and not the legislated right to benefits referred to as “Employee Entitlements.”

1

Reward can be over-simplified as consisting of a financial element and an intrinsic element, an indulgence we will adopt here to avoid spending the whole article on its nuance.

2

Dave Jackson is executive director of Solterbeck

DECEMBER 2014 | 39

20/11/2014 2:46:00 PM

WORKFORCE MANAGEMENT / GLOBAL MOBILITY

GOOD MIGRATIONS – protecting the relocation investment

According to Boston Consulting Group, Australia’s critical skills shortage is threatening to slow growth in many sectors, leading to an increased number of companies looking overseas to fill the gap. Sharon Swift explores the issues companies should consider when relocating overseas talent Companies relocating senior talent to Australia are at risk of wasting millions of dollars and reducing business productivity if the relocation fails. Costs can quickly mount up: There are school fees, shipment of effects, accommodation allowances and travel. Hundreds of thousands of dollars can be spent on the cost of a relocation. Worryingly, 78% of businesses surveyed by Ernst & Young in 2013 for their Global Mobility Effectiveness Survey stated that their business does not measure the ROI of their mobility investment.

On top of financial outlay, there are a number of other factors to consider in mobilising staff – all of which can have a commercial impact if not planned and managed effectively:  Engagement of the employee and their immediate team. On-boarding into a new role and business culture while managing a personal

40 | DECEMBER 2014

40-43_GlobalMobility-SUBBED.indd 40

transition can be extremely challenging – the impact will vary depending on the individual and their circumstances.  Productivity can take a dip during any period of change, leading to possible business disruption. This can be more apparent with key senior appointments who are new to a role – and even more should they leave prematurely.  Employee performance and effectiveness – ensuring that the new hire is delivering on the expectations of the role, and whether this is being adversely impacted by the upheaval of the move.

THE ANATOMY OF A RELOCATION Even the prospect of a move is daunting. The move itself is then fraught with complex logistics, a plethora of emotions and tough decisions, not to mention

HCAMAG.COM

20/11/2014 1:01:08 PM

HUMAN RESOURCES DIRECTOR

huge personal and financial cost. In any event, moving is one of life’s most stressful events. Throw distance, logistical concerns and the simple practicalities of managing an international move into the mix – then add the weeks of administration, months of cultural adjustment, finding a new social circle and homesickness. Moving overseas is no mean feat, even for the most resilient amongst us.

I have witnessed firsthand the devastation that can result when a spouse or children have difficulty settling into life in Australia: depression, family breakdowns and early assignment termination. The right support and preparation can smooth the path.

Even better, a bit of hand-holding through the process itself can mean the difference between a blissful experience or disaster.

THE ONE MISTAKE TO AVOID “Family and spouse issues continue to be the biggest challenges that threaten the success of international assignments,” reports the Ernst & Young Global Mobility Survey. Sixty-five per cent of international relocations fail or result in early repatriation. The majority of these are due to personal reasons, such as the spouse or family having difficulty settling in. The report goes on to say that relocation of the ideal candidate, with plenty of advance preparation, can still fail if the family isn’t happy.

In short, companies and business leaders often forget the impact of a move on the family – and in particular, the spouse. Whilst the employee has stability and the routine of work, the spouse can suffer from the tremendous change and turmoil involved in the move. Dual-career families are the norm, and no longer the exception – so a spouse may well have sacrificed their career for the move.

Spousal and family support can make a big difference to the success of a relocation. Help with finding job opportunities, ensuring that school and housing options are suitable, establishing a lifestyle routine and assimilating to the culture are all valuable propositions that can have a positive impact on the move.

According to the PwC 15th Annual CEO Survey, “Mobility is increasingly recognised as playing an

HCAMAG.COM

40-43_GlobalMobility-SUBBED.indd 41

important role in attracting, retaining and engaging talent.” Encouraging staff with the right skills to mobilise must come with adequate support for the family.

A SIX-STEP APPROACH My own experience of 18 international relocations, along with extensive research amongst dozens of families, has led to development of a six-step ‘S.E.T.T.L.E.’ process. Detailed in my book, So, you’re moving to Australia?, this is a powerful framework when translated to the context of a corporate relocation. It can help to set a consistent approach for managing moves, allowing for the best chance of relocation success.

1 Size up – making the decision to move. Ensure that your employee and his or her spouse are armed with the right information to help them decide whether the move is right for them.

Material that can help build an expectation of what is involved in the move, what support you will offer and the life they can expect is invaluable in setting the tone for a smooth transition. If this expertise is not available in-house, then it is crucial to source it.

Embark – preparing for the move. Along with financial assistance, the complexities of a large move cannot be underestimated. Providing support with the logistics and practicalities of juggling accommodation, preparing possessions for shipment and tying up administrative matters will pay dividends in terms of time and stress. This is especially welcome at a time when an employee and his or her spouse are under pressure to perform at work whilst handling these tasks.

2

3 Take up residence – arrival assistance and orientation. Organise an arrival itinerary, including help with finding a suitable home, schooling and routine. This can often be the only support offered by companies, and I would suggest it is the absolute minimum requirement to set your employee on the path to relocation success.

DECEMBER 2014 | 41

20/11/2014 3:44:30 PM

WORKFORCE MANAGEMENT / GLOBAL MOBILITY

Tackle the necessities – pesky administration.

Whilst personal compliance is not the concern of an employer, awareness of the administrative ‘to do list’ is useful. Offering help with navigating local authorities and the minefield of paperwork is a simple and effective way to lighten the load.

4

Learn the ropes – cultural awareness. A mindfulness of ‘how things work’ can help to limit feelings of isolation and frustration. Help to cross the cultural divide by covering topics like dress, language, etiquette, media landscape and social attitudes.

5

6

Explore and discover – lifestyle considerations.

Australia consistently appears in the world’s top countries in which to live. Helping to build a picture of how to make the most of the amazing lifestyle on offer is a powerful and novel way to engage the employee and build loyalty.

Overarching any relocation process must be an appreciation of the emotional journey that accompanies it. Excitement, hope and exhilaration of the move can quickly turn into culture shock, stress and loneliness. When getting stuck into helping with the logistics of the move, businesses would be wise to be sensitive to the emotional aspects of the move, too.

THE LEGALITIES

Sharon Swift is an author, entrepreneur and seasoned expat, having moved across 14 countries in her lifetime.

Sharon is the founder of The Expat Concierge, which helps expat families achieve a successful relocation and transition to life in Australia. Visit theexpatconcierge.com

42 | DECEMBER 2014

40-43_GlobalMobility-SUBBED.indd 42

Legal diligence is a key component of a successful relocation – and the detail often can be overlooked, according to Chris Oldham of Argo Migration. Ensuring that the relocating employee is eligible to work in Australia is one of the first steps to compliance, along with being able to demonstrate why the local labour market was not suitable for the position you are filling with an overseas employee.

Once a visa is issued – most skilled workers enter the country on a Temporary Skilled Visa (Subclass 457) – employers are obliged to keep authorities aware of any changes, pay a fair market rate for the position and prove that the role has not been created just to qualify for a visa.

Along with ever-changing tax and superannuation obligations, businesses would be wise to seek

legal advice when looking to recruit or relocate talent from abroad.

TOP TIPS FOR A SUCCESSFUL RELOCATION Include a ‘look-see’ tour for the family to visit Australia before committing to the move. This can help enormously to limit anticipatory stress, and it helps with planning and achieving familiarity before the big move.

Provide practical support with the preparation and planning of the move. Supply each family with information such as how things work in Australia, lifestyle considerations, cost-ofliving data – this all helps to minimise the personal upheaval and form a realistic view of what to expect from life in Australia.

Involve and include the spouse. The decision to move will be made with your employee’s partner. However, the spouse is then often kept out of communications relating to the move, and is not considered in the overall assistance package. Keeping them in the communication loop, and offering career assistance and cultural coaching, can go a long way to smoothing the transition and improving success rates.

Ensure that you have tools, a plan and resources on arrival for your employee and their family. A clear arrival itinerary of property inspections, school interviews and administrative tasks will help take the guesswork and frustration out of being somewhere new, leaving the family to focus on establishing a routine, and your employee engaged and focused for their new role.

So, you’re moving to Australia? The 6 essential steps to moving Down Under (U.K. edition) is a vital one-stop resource for anyone moving to Australia from the U.K. The book guides readers through six necessary steps of the move; from planning and preparation to the emotional journey, along with all of the practicalities at each step of the transition. Visit soyouremovingto.com

HCAMAG.COM

20/11/2014 1:01:19 PM

WIP Fu

Keeps you in the game

WIP Full page ad HRD Mag 1114_OUTPrint.indd 1 40-43_GlobalMobility-SUBBED.indd 43

13/11/14 2:35 PM 20/11/2014 1:01:23 PM

GLOBAL MOBILITY / CASE STUDY

On the move:

CONQUERING

CHINA

An estimated 40% of expatriated workers return home prematurely, costing employers millions of dollars every year.

Chinese broadcasting giant CCTV provides valuable insights on how small considerations can yield huge savings 44 | DECEMBER 2014

44-47_RelocationCaseStudy_SUBBED.indd 44

HCAMAG.COM

20/11/2014 2:47:59 PM

HUMAN RESOURCES DIRECTOR

When New Mexico native Glen Loveland first arrived in Beijing to work for Disney, he was greeted by an intoxicating whirlwind of new sights, smells, and jaw-dropping urban marvels.

The roads, filled with unusual traffic signs not seen in the US, were abuzz with 20 million city residents who all seemed to be in a rush to get to their respective destinations. Ancient Chinese architecture stood next to modern luxury high-rises.

Local butchers hung skinned pigeons, rats, scorpions, and seahorses in storefronts adjacent to immaculate McDonald’s restaurants and Starbucks coffeehouses.

Young children ran around in the smog-filled air in makeshift cloth diapers, stopping occasionally to urinate in nearby creeks.

For even the most seasoned travellers, this backdrop would certainly be jarring.

This is why Loveland, now HR manager of China’s largest television broadcasting network, CCTV, understands the importance of a smooth transition to an overseas country, especially when it involves a long-term relocation for work.

While culture shock may be inevitable, there are steps HR can take to minimise the friction associated with an international move, and to help employees integrate into their new country and workplace.

With a typical three-year assignment estimated to cost over US$1m, every employee mobility initiative should be considered a non-negotiable business investment.

At CCTV’s headquarters, 80% of employees end up renewing their contracts to remain with the company in Beijing. Loveland shares the strategies that have made their relocation program such a marked success.

BEFORE THE TRIP There are several ways that HR can help employees before they even step on the aeroplane.

First, to ensure that no surprises emerge from a legal standpoint, Loveland recommends that every job posting explicitly outline what is required for candidates to obtain a visa in the new host country.

“For example, most labour bureaus in China will require a university degree and at least two years of postgraduate experience,” he says. “Don’t waste anyone’s time by not being upfront about visa requirements.”

He also applies rigorous selection criteria to ascertain whether candidates can handle the cultural adjustment necessary for a work assignment in East

HCAMAG.COM

44-47_RelocationCaseStudy_SUBBED.indd 45

CCTV studio, Beijing

Asia. Executive-level applicants undergo a Harrison career assessment, and job applicants with a history of adaptability and professional risk-taking are viewed as optimal candidates.

“Generally, if they’re flexible and have a good sense of humour, that’s a good 80% of it,” he says.

Once CCTV extends an offer, the expat must wait for between six weeks and four months before being allowed to start the onboarding process in Beijing.

This gives the employee a sufficient amount of time to place items in storage, terminate phone and internet contracts, and set up an international bank account.

CCTV also provides an informative pre-departure guide, which includes: • recommended city and region-specific travel guides • advice on Chinese power outlets, and where to buy appropriate converters for electronics • suggested books and smartphone apps to assist with Mandarin translations • an overview of the visa registration process • estimates of how much money to have on hand upon arrival, and in what currency • medical guidelines, such as what to expect from hospitals and pharmacies, and suggested vaccinations • detailed information on cell phone carriers and mobile phone offerings “I’d recommend that HR stay in close contact with a candidate and reach out biweekly to keep the candidate informed of their visa paperwork and other matters,” says Loveland.

DECEMBER 2014 | 45

20/11/2014 2:48:02 PM

GLOBAL MOBILITY / CASE STUDY

“Don’t waste anyone’s time by not being upfront about visa requirements” Glen Loveland ADJUSTMENT PERIOD Once new hires arrive in Beijing, CCTV makes a significant effort to ensure the employee feels comfortable and at home in their new environment.

First, the company forbids any work within the first week, besides a quick meeting with managers on the expat’s second day in China. This gives the new employee a chance to overcome jet lag, obtain any medical exams necessary for a visa, and settle into Beijing. Housing is provided for the first 30 days to help eliminate stress as well.

The company also provides an orientation guide, with advice on: • where it’s safe to drink water • acclimatising to Beijing weather • customary practices when dealing with money, such as slang terms for cash, and etiquette for bartering • suggested grocery stores, restaurants that deliver, housekeeping agencies, and taxi services • emergency phone numbers • where to find expat social groups “Companies really leading the way in employee mobility are also doing things like treating the entire family out to a special meal a few days after arrival – Peking duck in Beijing! – and organising a get-toknow-your-new-city tour,” says Loveland.

CCTV’s landmark headquarters, Beijing

46 | DECEMBER 2014

44-47_RelocationCaseStudy_SUBBED.indd 46

A WARM WELCOME Lastly, the company has trained managers to provide a hospitable work environment in which new employees feel eager to participate and be part of the team’s success. These include: • in the days before the expat’s arrival, sending the office an introductory email with back­ ground information on the new employee • taking the team to a ‘welcome lunch’, keeping the expat’s allergies and dietary preferences in mind • assigning a ‘work buddy’ to answer the new employee’s questions and explain office policies • going for a walk around the neighbourhood to point out nearby amenities such as restaurants with English service, places to buy rechargeable cards with phone credit, and other necessities “We also prepare a ‘Welcome’ bag for all new employees, with information about the city, a city map, a prepaid subway card, and other materials that can help them hit the ground running,” says Loveland.

Finally, CCTV works to integrate spouses and children as well.

SAD FAREWELL When expats’ contracts do expire, the company tries to maintain a close relationship with them. To achieve this, it is developing an alumni program in which former expats can go on to work at CCTV outposts in Washington, DC, Nairobi, or Kenya, or serve as freelance correspondents for the network globally.

“These people worked at headquarters; they know what it’s like, and they’re valuable to us,” says Loveland. “We’re asking ourselves, how can we find an opportunity for them to rejoin the organisation from another part of the world?”

Ultimately, Loveland takes pride in helping expatriated workers to assimilate into a new culture, and thereby increase their quality of life – even if that takes a surprising turn sometimes.

“I remember when I worked at Disney helping to onboard new employees,” he says. “One time I got a call from an employee around midnight, who said, ‘You mentioned to me that McDonald’s has delivery.

Do you have their phone number?’

“On the one hand, it was great that I was approachable when he needed something. But on the other hand, I couldn’t help but think, ‘We need to have a talk about boundaries’. ”

HCAMAG.COM

20/11/2014 3:46:29 PM

DIRE

AUSTRA LIA

MBER 1 IND EP NU

CRYSTAL PALACE LUNA PARK, SYDNEY 10-11 MARCH

NT HR EVE NT DE EN

5

’S

START

2015

WITH A

BANG! SPARK FIREWORKS IN YOUR HR CAREER – REGISTER NOW FOR THE NATIONAL HR SUMMIT 2015 AND POSITION YOURSELF FOR SUCCESS. • AWARD-WINNING SPEAKERS • BEST PRACTICE CASE STUDIES • FREE EXPO, WORKSHOPS AND ACTIVITIES • $10,000 CASH PRIZE

GOLD SPONSORS

EVENT PARTNER

DIRECTORS FORUM EVENT PARTNER

DIRECTORS FORUM LEGAL SPONSOR

REGISTER YOUR TEAM NOW

& SAVE

OVER $1600

SILVER SPONSORS

COFFEE ZONE SPONSOR

RESEARCHED BY

OFFICIAL PUBLICATION

www.hrsummit.com.au 44-47_RelocationCaseStudy_SUBBED.indd 47

20/11/2014 2:48:10 PM

RETENTION / BENEFITS

Why follow the leader?

Just because everyone else does it doesn’t mean you have to as well. That lesson is none more relevant than in the employee benefit space. Perhaps it’s time to review what’s on offer Brought to you by Forecasts of stormy economic seas ahead have seen employers continue their cautious, if not ‘steady as she goes’ approach to hiring new employees. At the tail end of 2014 it’s apparent that the priority is not so much about attracting scarce talent as it is about holding onto the great talent already on your books.

It’s no surprise that employers are refocusing on their Employee Value Proposition (EVP), including its myriad elements such as L&D, career opportunity, culture, reward & recognition. And benefits. Yes, benefits. It’s that nice-to-have element of the EVP that often flies under the radar, at best rarely refreshed, and at worst completely neglected.

This is especially the case when times are tough and discretionary spend is spirited away.

“Many business owners and leaders mistakenly believe they cannot afford to offer employee benefits or, worse than that, they provide staff benefits that hold no relevance to them,” says Jason Potter-Rose, head of operations & distribution at Windsor Income Protection. “This has a dual negative effect. Firstly, business owners are spending their hard earned reserves on programs that are not delivering value, and more importantly, engagement; and secondly, staff view this as lost income and become further disengaged.”

BENEFITS THAT ADD VALUE While going without benefits may boost your bottom line in the short run, this conservative approach could strangle your business’s chances for long-term prosperity.

48 | DECEMBER 2014

48-49_Windsor_subbed.indd 48

There are certain benefits that good employees feel they deserve, and it’s an employer’s job to both source and implement programs that will enhance the value of those benefits in an employee’s eyes.

DO’S Health insurance Income protection Identity theft insurance Corporate travel insurance Salary sacrifice programs

DO NOT’S Wine club Movie tickets Restaurant vouchers Life insurance Entertainment books

Sourcing, contributing and implementing a program from the ‘do list’ above can help jumpstart a stalled benefits program.

The key to success is for HR professionals to provide benefits that have a high perception value from the employee’s point of view, yet are affordable for employers. “The trap that employers fall into is that the items they perceive to be of value to their staff are not affordable and would break the bank,” says Potter-Rose. “If you can provide security around share of household expenses you have

HCAMAG.COM

20/11/2014 2:49:18 PM

HUMAN RESOURCES DIRECTOR

provided a relevant product offering to staff that they can resonate with.”

Here’s a brief outline of two outside the box benefits and one reliable standby that’s worth a second look.

IDENTITY THEFT INSURANCE Identity fraud has sadly become more commonplace in the digital age. It can occur when someone steals personal information, opens credit card accounts in your name without permission, and charges merchandise to those accounts.

Specialist players in the insurance industry have counteracted with Identity Theft Insurance, which provides consumers with peace of mind if their identity is stolen while travelling, shopping or even during online activities.

Purchasing Identity Theft Insurance coverage for staff could cost as little as $5 per year per staff member (depending on insured numbers).

How does it work? If you’re travelling and your passport and licence and other identification are stolen this insurance will allow you to pay for: • replacement of documents • travelling expenses • loss of income (stranded overseas) For scams that involve card skimming or online fraud, this insurance covers you for: • legal costs • reimbursement of stolen money

Considerations that will affect price: • Waiting period (consider 7–30 days) • Benefit offered (consider 50–80% of wage or capped benefit) • Benefit period (3–12 months) • Exclusions or restrictions • Length of employment before benefit kicks in “These solutions are cost effective but provide high levels of security and assurance to employees that you have their best interest at heart,” says Potter-Rose.

SALARY PACKAGING While salary packaging has been popular for many years, it remains a viable way for organisations to add greater value for employees. Not only does it give employees the flexibility to decide how they wish to be remunerated, but it also increases the value of their remuneration… without increasing the cost to the employer.

The items you can package will largely depend on the type of organisation worked for:

Expense item

Commercial business

Public hospital

Public benevolent institution

Rebateable organisation

Motor vehicle lease repayments and running costs Laptop/iPad or similar portable electronic device Superannuation

“Covering your staff from anywhere from $10,000–15,000, for an affordable amount, will be seen as a positive amongst staff. It’s a unique offering that isn’t offered at a retail level and only offered by specialist insurers at a group level,” says Potter-Rose.

INCOME PROTECTION INSURANCE Income Protection safeguards an employees’ most important asset: their income. If they are unfortunately struck down with an injury or illness that will keep them away from work for an extended period, Income Protection will kick in and pay a healthy percentage (usually 50–80%) of their ongoing wage in fortnightly instalments until they get back on their feet. It helps to contribute towards the all-important ongoing financial obligations such as mortgages, rent, loan repayments, education expenses and living expenses.

Affordable tailored Income Protection solutions can be built specifically for your organisation.

HCAMAG.COM

48-49_Windsor_subbed.indd 49

In-house benefits Otherwise deductible items Mortgage repayments Personal loan repayments Personal credit card repayments Utility bills Meals/entertainment Accommodation & travel House rent

Windsor Income Protection tailors each of their products and programs to exceed the client’s needs and will happily build hybrid products that contain multiple staff benefits within a single solution. Call 1300 547 966 or email sales@windsorip.com.au to get an obligation-free consultation.

DECEMBER 2014 | 49

20/11/2014 2:49:22 PM

STRATEGY / HR SERVICE DELIVERY

Service matters Peter Szilagyi explores how HR can transform its customer service delivery model

Have you ever thought of your HR department as a service organisation? That is, in the true sense of the word, an organisation that delivers a service to customers with the objective of providing value through every interaction? HR departments deliver a range of services to a business, from transactional support, such as payroll or recruitment processing, through to strategic advice, such as workforce plans and employee engagement – all different services to different customers and in different timeframes, but when put together they define an HR service delivery model. Is

50 | DECEMBER 2014

50-53_HRStrategy_SUBBED.indd 50

your HR service delivery model tuned to support business success?

SERVICE AS A PRIORITY, OUTSIDE AND IN We all know what great customer service feels like.

Walk into an Apple store, call up AAMI with an insurance question, hire a car with Hertz online or fly on Emirates, and we are made to feel special.

What defines these organisations is a laser-like focus on the needs and experience of the customer.

For many HR departments this is not the case, and an organic approach has evolved over time.

HCAMAG.COM

20/11/2014 2:50:59 PM

HUMAN RESOURCES DIRECTOR

What differentiates a customer-driven sales organisation from internal service providers is the focus and measurement of the customer experience at every interaction. Customers are always at risk of switching, and this sharpens focus on attraction and retention.

For internal service providers, where customers are captive, the same dynamics are not always at play. These differences should not lead to less focus on the customer experience as the challenges faced by each delivery model actually have much in common. yyService outcomes difficult to standardise.

HR service delivery is a people-driven inter­ action between the customer and the service provider, and therefore is inherently variable and difficult to standardise (eg the advice provided by different team members may vary). yyComplex service channels. In large organisa­ tions HR services can be delivered in a siloed manner (ie by business unit or by function, such as recruitment or learning). There can be multiple doors to access a service for the customer (eg multiple email or phone contact points). yyVolume. In large HR departments there are literally thousands of transactions completed every month. Often these transactions are critical to an individual employee, to team success, or to the overall benefit of the business.

These services range from simple transactions (increasingly driven by self-service tools) to complex case management or legal advice. yyMore with less. The expectations of service delivery grow every year, as do the expecta­ tions to deliver more with less. For businesses going through large transformations there is additional attention to support transformation, and this requires a unique ability to scale.

None of these challenges are insurmountable, and addressing some key building blocks can result in step changes in the service experience.

The positive effects of great customer service (ie improved productivity and shared accountabilities) and the negative effects of poor customer service

HCAMAG.COM

50-53_HRStrategy_SUBBED.indd 51

It takes 12 positive experiences to make up for one unresolved negative experience (ie lost productivity, combative relationships) are far too great in either direction.

UNDERSTANDING YOUR CUSTOMERS Great customer service starts with understanding what the customer wants and needs. Does your HR department systematically explore what matters to its customers? Customer differences should be mapped and understood through the HR department. Customers of HR can be segmented in multiple ways, such as by level (ie executive to graduate), by business unit or by geography.

Consistent themes will present themselves and require careful thought about how customer needs relate to operational delivery, such as speed and quality. For example, turnaround time before the monthly payroll cut-off, or resolution of performance template issues one week before the appraisal window are good examples of timesensitive processes that have a big impact on customer satisfaction. Resolving appraisal issues two months before the cut-off window is less time and customer sensitive. It’s impossible to be all things to all people, but building a good library of the things that matter (and pain points) allows for the targeting and management of effort. This should be built into the annual planning cycle.

USING DATA TO TELL THE STORY There are many ways to gain great insight into the customer. Broad-based initiatives such as customer engagement forums or ongoing councils, customer surveys and focus groups are all very valuable. Where available, existing data points should also be extracted and understood, for example employee engagement surveys, payroll performance data, and key dates on the HR and business calendars all provide excellent insight into customer wants.

Finally, asking the ‘front line’ HR operational teams and business partners who engage with customers on a daily basis is crucial. Once customer needs and perceptions are understood, a clear customer engagement proposition should be developed and communicated across the HR team.

DECEMBER 2014 | 51

20/11/2014 2:51:00 PM

STRATEGY / HR SERVICE DELIVERY

DEFINING SERVICE OFFERINGS Great customer relationships are sustained through a strong fit between customer needs and the service offering. Mapping the service offering down to specific and tangible deliverables or measures is central. The degree to which customer expectations can be supported by a specific service offering depends on how well tasks and behaviours are standardised and routine.

Some HR services are transactional and readily measurable (ie the recruitment process). It is arguable on the opposite end of the continuum that there is HR work that cannot be as easily measured (eg advisory work). All HR services should be defined, measurable and articulated as a service offering. The infographic shows some metrics that could be applied along this continuum.

The objective here is to categorise and standardise service delivery that is transactional, advisory or conceptual. Many large organisations are well down this path through the establishment of service catalogues (ie a shopping basket of services) and dedicated HR service centres, either in-house or outsourced (and potentially offshored).

Such delivery models provide a ‘front door’ to HR services that can be ticketed and case-managed.

Outsourcing also results in an at-risk relationship (through a contract) that sharpens focus on the quality and cost of service delivery. Finally, the establishment of employee portals that bring

SAMPLE CUSTOMER SERVICE METRICS Description

Metric

Target

Customer satisfaction

% of customers satisfied overall

Customer survey has >90% satisfaction rate

Customer engagement

% of proactive customer interactions vs planned

% planned vs actual

Customer resolution - first contact

% of cases/issues resolved on first contact

80% of queries answered with first resolution

Customer issue/case management

% of cases/issues resolved in 2 days

75% of all cases/issues resolved in days

Customer service capability

% of industry training sessions completed

% planned vs actual

Quality of customer service

% of customers satisfied with advice provision

Advice rated >95% satisfaction

Customer complaint handling

% of overall complaints

Reduction in % of complaints compared to previous month

52 | DECEMBER 2014

50-53_HRStrategy_SUBBED.indd 52

A dissatisfied customer will tell between nine and 15 people about their experience together self-service transactions, targeted policies relevant to the individual, and multichannel communication (such as chat, consolidated email channels, and mobile access) are all best practice trends. Wouldn’t it be great if an employee could log on to one portal, through a mobile device, to see their annual leave balance, their actual policy entitlement, a transaction link to submit a claim, and a chat feature to access a service centre representative about a question on leave balance?

Or, where not solvable in the first instance, a ticket is created and sent to a resolver in the department for follow-up?

QUICK WINS A fully integrated model has many financial and service delivery benefits (eg cost reduction, data insight and standardised customer experience) but is also a significant investment of resources. There are equally many low-cost initiatives that can be undertaken to drive customer service excellence.

The more immediate way is to establish a customer charter that outlines standards for how the HR department should operate. These standards then form the basis of elements within role descriptions, development plans, performance agree­ments, recruitment profiles (ie customer service competencies) and regular communication and messaging. At all points these artefacts should be as specific as possible and talk to hard measures such as activity turnaround times, number of projects completed, and softer measures such as customer satisfaction scores related to those measures. These measures can then roll up for each department and be represented in customer dashboards.

Finally, it is important to test whether we regularly and critically ask ourselves if HR’s customers understand the services that are delivered and the cost they are being delivered at, and whether they are satisfied by them. Developing a compre­hensive communications strategy that

HCAMAG.COM

20/11/2014 2:51:04 PM

HUMAN RESOURCES DIRECTOR

outlines HR services, how they can be accessed, how much they cost, and expected turnaround times, is a very impactful way to build customer awareness and engagement.

News of bad customer service reaches twice as many ears as praise for good customer service HOW YOU CAN PERSONALLY MAKE A DIFFERENCE All of these initiatives drive towards cultural change, which in the area of customer service is fundamental. Culture change, however, starts and ends with the individual! So, the related question then is what is your own personal commitment to customer service? What best practices do you see in leading customer-focused organisations such as Amazon or Hilton? Looking critically at best practice against your own personal systems, routines and behaviours is the best way to sharpen your own customer service delivery.

The points on understanding your customer needs are well outlined above, so leaving that aside, how well do you actually know your customers (eg routines, hobbies and interests, etc)? Moving your relationship away from a transactional exchange to a relationship (even if the work is transactional) should be a key objective. The best way to improve your relationships is to sharpen your communi­ cation and interpersonal skills. Relationships are built through regular and meaningful interaction (quantity and quality). Study frameworks like Myers Briggs or DISC, and more importantly how to apply these frameworks in practical settings.

Do you consciously engage in actively listening? If you get straight to the nitty-gritty with a customer who has an influencer style, you may be missing the mark.

Finally, there has been no greater enabler of customer service excellence than technological innovation. This point should not be lost on any individual in their day-to-day role. Are you using technology to maximise your customer service

HCAMAG.COM

50-53_HRStrategy_SUBBED.indd 53

impact? Some practical examples, irrespective of whether your customer is an operations leader, general manager or vice president, would include: EMAIL: Do you have rules established to workflow important customer work to ‘immediate folders’, or less important information into ‘later folders’?

CALENDAR MANAGEMENT: Do you put the most important tasks for the customer and key cut-off dates in your calendar as opposed to a list?

COMMUNICATION: Do you have reminders to proactively contact your customers to say hi (without relying on an issue for reaching out)? Do you have a library of templates on key annual messages (eg close of performance reviews) so they can be sent several weeks before cut-off?

INFORMATION MANAGEMENT: Do you have a toolset that allows you to capture information about your customers (eg their priorities or key dislikes)?

TASK MANAGEMENT: Do you have a task management system that allows you to keep track of all the multiple priorities? Microsoft OneNote is a great application, but there are many others that enable the points outlined above (eg Evernote or Google Keep). Work methods like this, as well as learning from established and ground-breaking thinkers like David Allen and his Getting Things Done book, are well worth reviewing.

MAINTAINING A SEAT AT THE TABLE

BY DEMONSTRATING VALUE In conclusion, the HR department is fundamen­ tally a customer service organisation, and the expectations of service delivery only get higher every year. The rapid evolution of customer service excellence is potentially leaving many HR departments behind. A proactive approach to building a customer service strategy and a relentless drive to deliver customer service excellence, by your organisation and yourself, are fundamental to that end.

Reference: Lovelock, H.C., et al, (2011), Services Marketing, Prentice Hall

Peter Szilagyi, CHHRI, GPHR, HRMP, is an experienced HR leader in talent management, transformation and change management.

DECEMBER 2014 | 53

20/11/2014 2:51:08 PM

IN PERSON / CHRISTIAN CAMPANELLA

IN PERSON:

CHRISTIAN CAMPANELLA Jacob’s Creek, Brancott Estate and Stoneleigh are names synonymous with premium wines. Despite the glamour, it’s tough, challenging work behind the scenes for Pernod Ricard Winemakers’ 42 HR team members and 2,000 employees. HRD chats to global HR director Christian Campanella about the importance of grad programs, innovation in a tradition-entrenched industry, and why honesty is the best policy 54 | DECEMBER 2014

54-55_InPerson_subbed.indd 54

HCAMAG.COM

20/11/2014 2:52:01 PM

HUMAN RESOURCES DIRECTOR

HR Director: How did you first enter the HR profession and what drew you to it initially?

Christian Campanella: My working career started in 1997. I started as a manufacturing graduate with Campbell Arnotts over a two-year period. It gave me a range of experiences, from supervising production lines to experiences in purchasing, planning, quality and safety. Towards the end of the program I had the opportunity of working in HR. It was a short stint – about three months – but it hooked me. I found it quite fascinating in terms of how it could touch all facets of the business. At the end of the grad program there was an opportunity with Campbell Arnotts to be an HR advisor.

HRD: Can you outline what’s involved in the Pernod Ricard Winemakers graduate program?

CC: There are two programs we’re running under the banner of the graduate program. The first is a Graduate Wine Ambassador Program. This allows grads to take part in a two-year program that educates them in regards to all aspects of wine production. It’s hand-on experience working in our marketing, sales and operations teams in Australia, NZ and Spain. We arm them with the knowledge so they can subsequently be placed in our key markets as ambassadors for our wines. They should have a passion for wine but can come from all backgrounds.

The second program is a Graduate Winemaker program. At the moment it’s just in Australia and New Zealand but we’re hoping to breed the next generation of winemakers. It’s a two-year structured program designed to expose these grads – who are winemakers by profession – to different countries of origin across ANZ and also different styles – in terms of what it takes to make a sparkling versus a white wine versus a red wine, at different tiers, and so on.

HRD: You’re obviously an advocate of grad programs. Why do you think they’re important?

CC: Two things, firstly it’s generating a talent pipeline for the business. We bring people in fresh from university, train them, give them the skills they need and the business needs. Secondly, it’s the diversity piece – you’re bringing in a younger generation into the business. They bring in a different mindset and diversity of thought.

HRD: What’s the best thing about working for a winemaker?

CC: Personally for me it links back to innovation.

When you talk about the wine industry we’re HCAMAG.COM

54-55_InPerson_subbed.indd 55

traditionally not seen as an innovative industry. A wine bottle hasn’t really changed for many years. So what we’ve tried to do is turn it on its head and say, if you want to drive top line growth you need to be innovative. If you look across the business, from how we do our marketing to how our support functions service the business, there’s definitely that entrepreneurial spirit.

HRD: What are you most proud of in your career?

CC: In the last 12 months we launched a creative leadership program called Think, a collaborative effort between the HR team and our global marketing team. It’s a program that taught our leaders how to be creative, to develop innovative solutions to business problems. It’s something I’m quite pointed about with my team – we need to work with the business, add value into the business, and not just go off and do our own little thing. This program was so successful we ended up winning a best practice award within the company. We’re now working with Pernod Ricard University, which is the global learning division of the company, to turn this into a global program.

HRD: Finish this sentence: What I love most about HR is ...

CC: Not one day is ever the same. The greatest thing about people is they are not static; they are complex and diverse. You’re always guaranteed to get a different response from someone in the same circumstance. It’s not a routine job, there’s always something going on…

HRD: What I dislike most about HR is ...

CC: When HR practitioners forget to join the dots between people and business performance.

Sometimes we as HR practitioners can get caught up in the latest fad or something that looks quite nice, but we forget the fact that everything we do ultimately needs to add value to the business.

HRD: What is the best piece of advice you have ever received?

CC: Honesty is the best policy. You can apply this to all facets of your life. In a professional sense you can always have moments where something has not gone as expected or you’ve just made a mistake. Better to be honest and learn from it and move on. And coming back to this concept of creativity and innovation, you need to have an environment where people accept mistakes and failure, learn from them and move on.

CHRISTIAN CAMPANELLA CAREER TIMELINE Qualifications 1994–1995

University of South Australia Advanced Diploma, Human Resources & Industrial Relations

1995–1997

University of South Australia Bachelor, Management (Operations & Logistics)

2000–2005

Deakin University Masters, Business Administration (HR)

Work summary July 1997–August 1999 Campbell Arnotts Manufacturing graduate August 1999–March 2002 Campbell Arnotts HR advisor January 2004–Dec 2005 General Motors Holden HR associate August 2006–July 2007 General Motors Holden HR business partner – manufacturing, engineering & operations July 2007–January 2010 Pernod Ricard Winemakers HR manager – Australia January 2010–July 2012 Pernod Ricard Winemakers HR director – New Zealand July 2012–Present Pernod Ricard Winemakers HR director

DECEMBER 2014 | 55

20/11/2014 2:52:02 PM

LAST WORD / WORK-LIFE INTEGRATION

THE LAST WORD

Work-life balance?

Try work-life integration An undefined ‘ideal work-life balance’ is an outdated concept which polarises two opposite forces, suggests Gary Taylor Some topics in HR seem to remain largely static, with not too much research or new thinking. The issue of work-life balance has been a tricky one, where wellness counsellors tell leaders how they should be running their lives, quoting anecdotal burnout stories, and making workaholics feel guilty.

Work-life does not come in a container with a RDA (Recommended Daily Allowance) for work, leisure and sleep. So, how do senior people achieve a balance in a realistic way, given the competing demands on our 24-hour day?

RESEARCH FINDINGS Research by Blue Steps (a service of the Association of Executive Search Consultants) caught my eye – a survey completed in mid-2014 among 571 executives globally, which sought to provide some insights as to how executives themselves view the issue.

The average work week (including travel and work away from office) is 58.5 hours for most, but over 60 hours for 39% of executives. When asked, 52% of executives are satisfied or very satisfied with their balancing act, 22% are OK with it, and just 20% are dissatisfied.

The research indicates that executives are definitely thinking about the balancing dilemma, which is now better described as ‘work-life integration’, rather than seeking an elusive pass mark on the subjective issue of balance.

Peter Felix, CEO of AESC, puts it this

56 | DECEMBER 2014

56_LastWord_subbed.indd 56

way: “Senior executives are clearly working out how to balance the extreme demands that globalisation and 24/7 accessibility can make on them. Technology, while creating this accessibility, has also provided a form of liberation from the traditional workplace environments and the constraints on personal freedom that they can create.”

For example, only 3% of executives are not available while on vacation, while 51% are always (and 44% sometimes) accessible to colleagues and clients. Is this good or bad? If you believe that people must take an absolute break from work when they are away, you would condemn this behaviour.

However, if you accept that the executive is less stressed by being in touch, then an email from Club Med is as normal as a personal Facebook or Twitter post during the working day.

The lines are becoming increasingly blurred between work and personal space, as the executives are learning from the Millennial generation. This is where the issue is being played out. It is far too simplistic to suggest that it is just about “how much more time can I have away from work for family and relaxation, and what career price am I prepared to pay for that?”

On the one hand, 81% of executives consider work-life issues to be critical when considering a new role. However, 57% of this group regard work-life issues as equally important as earnings, and 63% say that they would not accept lower pay for fewer hours. HR practitioners seeking to

guide work-life policy and practice should take note of these sentiments.

NON-FINANCIAL BENEFITS In the realm of non-financial employer benefits, executives ranked flexible work schedules and telecommuting significantly ahead of maternity/paternity leave, comp time and (lastly) fitness support programs.

We may disagree with their judgment, but we should not dismiss what this key group regards as important.

Perhaps one of the important contributions from HR practitioners is to optimise technological support for remote access to and from executives, such as video-conferencing participation at meetings. Where global contact involves differing time zones or weekend dates, these issues need to be addressed in practical ways.

Impressions? The concept of striving toward an undefined ideal work-life balance is probably an outdated concept which polarises two opposite forces. The debate has been replaced by the daily reality of ongoing work-life integration, which will affect all employee groups, but executives more acutely.

Gary Taylor

Gary Taylor is an HR director who has worked for Australian, South African and British multinationals on two continents, including in the Middle East. He is registered as a Master HR Practitioner with the South African Board for People Practice, and served as the vice president of the Institute of People Management.

HCAMAG.COM

20/11/2014 2:52:39 PM

IBC.indd 57

19/11/2014 9:37:36 AM

Choose Employee Benefits, and provide them more value in the new year.

When current and potential employees ask ‘what else?’, a compelling benefits program will make them sit up and take notice. Highly valued employee perks are proven to attract, retain and engage quality people.

Give each employee the opportunity to save all year round.*

TECHNOLOGY

HOME LIVING

TRAVEL

BEAUTY & FASHION

WELLBEING

KIDS

LIFESTYLE

GIFT CARDS

PARTNER OFFERS

Thousands of offers AT YOUR FINGERTIPS

24/7 ACCESS

*Savings through the Employee Benefits Program are based on reductions to the recommended retail prices and savings will differ based on individual purchasing behaviour.

The products shown are currently available for purchase from the range, and may change from time to time.

The Employee Benefits Program is currently only available for delivery to individuals in Australia.

Talk to us about the role Employee Benefits can play in your total rewards strategy. accumulate.com.au

OBC.indd 1

1300 733 725

linkedin.com/company/accumulate

@accumulateAU

19/11/2014 9:39:03 AM