Human Resources Director 15.02

TEETHING PROBLEMS HR in rapid-growth companies

HUMAN RESOURCES DIRECTOR HCAMAG.COM ISSUE 15.2

YOUR ESSENTIAL GUIDE Employment Law Special Report THE POWER OF DATA Wearable tech’s next iteration

FACING DISRUPTION HEAD-ON IAG’s Gillian Folkes

AUSTRALIA’S TOP RECRUITERS Recognising the agencies that help HR shine

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EDITORIAL www.hcamag.com FEBRUARY 2O17 EDITORIAL

SALES & MARKETING

Editor Iain Hopkins

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AND NOW FOR SOMETHING COMPLETELY DIFFERENT IN 2030, will we look back at how we worked for much of the 20th century – and into the 21st century – and wonder how and why traditional business models survived for so long? It’s highly probable. Similar to the notion of writing a letter to someone, the idea of working nine to five, Monday to Friday, may seem quaint.

The rise of the gig economy has taken many by surprise, challenging existing labour institutions and the traditional workforce. Driven by workers who prefer flexible and diversified work as opposed to typical employment models – for example working nine to five, Monday to Friday – these short-term contract workers are forcing employers to rethink how they operate. Not unexpectedly, this disruption brings with it some teething problems.

For example, a UK Employment Tribunal was recently asked to consider whether Uber drivers were “workers” and not independent contractors, for the purposes of its Employment Rights Act, National Minimum Wage Act and Working Time Regulations.

The Tribunal determined the drivers to be “workers” and therefore entitled to minimum wages, holiday pay, sick pay and breaks, and concluded

The rise of the gig economy has taken many by surprise, challenging existing labour institutions and the traditional workforce that the terms of the contract between Uber and its drivers did not correctly reflect the relationship, describing it to be “fiction” and “unrealistic”.

Employment lawyers have warned the UK decision could impact on a number of companies in the Australian market that rely on similar business models to Uber, such as Deliveroo, Foodora and Airtasker.

“The UK decision highlights that employers who engage independent contractors should focus on the reality of how the work is actually being performed and not assume that contractual provisions describing the relationship will be accepted,” says Athena Koelmeyer of Workplace Law. The employer-employee relationship has always been fluid, and sometimes our employment frameworks (legal and otherwise) have been slow to keep pace. Hopefully innovative employers can tap into this new way of working without exposing themselves to undue risk.

Iain Hopkins, editor

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 Magazine can accept no responsibility for loss.

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FEBRUARY 2017

CONNECT WITH US Got a story, suggestion or just want to find out some more information?

CONTENTS

HRDirector_au +Hcamag HumanResourcesDirector

UPFRONT 01 Editorial

Why the gig economy cannot be ignored

29

FEATURES

EMPLOYMENT LAW SPECIAL REPORT

18 INDUSTRY SURVEY

AUSTRALIA’S TOP RECRUITERS What makes for a great recruitment partner and how are their services being utilised in 2017? Find out as HRD reveals the results of its inaugural Top Recruiters survey

COVER STORY

ALL ABOUT MINDSET

All businesses face disruption, but as IAG’s Gillian Folkes reveals, it’s the mindset that accompanies disruption that makes the real difference

Employment law is an everchanging field. HRD presents a range of topics relevant to all HR practitioners

04 Statistics

Closing the gender gap in digital fluency

06 News analysis

With pressure mounting to provide a nationwide standard for paid domestic violence leave, HRD looks at how employers can prepare

08 Upfront: Employment law

Courts are awarding larger sums in sexual harassment cases – here’s why

10 Upfront: L&D

Can mindfulness training transform your organisation?

PEOPLE

38

12 Head to head

BREAKING NEW GROUND IN PSYCH TESTING

54 Career path

FEATURES

Today psychometric tools and assessments are helping businesses navigate a rapidly changing world

Which member of the C-suite would you like to build a stronger relationship with, and why?

From the study of mass media to a stint at IBM during the Sydney Olympics, and now head of people and culture at Konica Minolta, Cindy Reid shares her career path with HRD

56 Other life

For HR consultant and author Karen Gately, karate is not so much a sport as a way of life

50 FEATURES

THE NEXT ITERATION OF WEARABLE TECH Wearable technology can enhance employee health and wellbeing, but what happens next? Iain Hopkins investigates

HCAMAG.COM CHECK IT OUT ONLINE

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STATISTICS

FEBRUARY 2017

DIGITAL FLUENCY: CLOSING THE WORK GAP

Canada

7

45/100

While workplace equality is still an unreached ideal, digital fluency has the potential to close the economic gap between the genders WHILE MEN currently have an employment advantage, it is a gap that is closing, due in large part to a significant uptick in outcomes for women driven by digital fluency.

According to an Accenture study, #GettingtoEqual: How digital is helping close the gender gap at work, nations with higher rates of female digital fluency also have higher overall rates of gender equality. A digitally fluent person can decide when to use specific digital technologies to achieve their desired outcome, and also articulate why the tools they are using will provide their desired outcome.

71

16

% of respondents who agree that “the digital world will empower our daughters”

number of countries in which women have attained higher levels of education than men (of the 31 studied)

United States

The work flexibility afforded by newer forms of technology seems to have an outsized effect on women: almost six out of 10 women surveyed who were not currently engaged in formal employment said that working from home part or all of the time would help them find work. A similar proportion reported that having more flexible hours would assist them in their search for employment.

Hearteningly, most study respondents – 76% of male and 79% of female respondents – agreed that women have more opportunity afforded to them now than in times past.

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% of respondents who say women’s employment opportunities increase as their digital fluency climbs

52/rank 5

1

55/100

55/rank 3

A WORLD OF OPPORTUNITY When it comes to quantification of digital fluency, the US has the highest overall score, indicating that with the help of digital fluency American women have made significant progress. Digital fluency is the combined result of factors including education, employment and advancement at work. Accenture rated each nation out of 100 on these core components to produce an overall score and a digital fluency rating. Here are the top 15 nations.

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% of women in developing countries who would like to start a new business in the next five years

Rank

Overall score

Digital fluency

LARGEST GAPS

ACCELERATING THE PACE

Of the five countries with the largest gap between the digital fluency of the genders, the top two are both in Asia; the remaining three countries are in mainland Europe.

In a scenario in which women were enabled to become digitally fluent at double the speed, gender equality could be reached decades earlier than the current date forecast.

80 2100

70

ity ual q e der : h gen O QU ac TUS s to re A T r S 5y 8

68

60

63

58 53

50 40 44

52 46

42

ality equ r e end O: S QU reach g U T A ST yrs to 50

54 48

30 2015

20

25

2065

YEARS FASTER

2040

2X SPEED: 25 yrs to reach gender equality

2015

40 YEARS FASTER

2060

2X SPEED: 45 yrs to reach gender equality

10 0 Japan

Singapore

Women

4

France

Switzerland Netherlands

Developed countries

Developing countries

Men

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Netherlands

2

Nordic

52/100

63/rank 1

4

51/100

58/rank 2

Switzerland United Kingdom 9 5

49/100

45/100

48 /rank 10

Germany

53/rank 4

Austria 15

Ireland 14 8

45/100

41/100

40/100

47/rank 11

42/rank 16

United Arab Emirates

47/rank 12

11

France

Spain

44/100

52/rank 6

Singapore 6

46/100

10

52/rank 7

44/100

46/rank 13 12

Argentina

13

41/100

42/100

42/rank 15

Australia 35/rank 19

3

52/100

50/rank 8

SMALLEST GAPS

REACHING AN AGREEMENT

The countries with the smallest gap tend to be developed nations, with three of the top four located in Europe. Of note is the fact that in three out of five cases, women’s digital fluency outstrips that of men.

An overwhelming majority of respondents agreed that women’s employment opportunities increase as their digital fluency rises, with only a minor discrepancy between the genders.

60 54 50 53 47 47

49 48

52

Respondents agreeing that women’s employment opportunities increase as their digital fluency rises:

50

40 35

30

32

20

72% Women

10

68% Men

0 UK

Ireland

Women

Korea, Rep.

Spain

Argentina

Men Source: #GettingtoEqual: How digital is helping close the gender gap at work, Accenture, 2016

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UPFRONT

NEWS ANALYSIS

TAKING A STAND With pressure mounting to provide a nationwide standard for paid domestic violence leave, HRD looks at how employers can prepare IN DECEMBER 2016, Queensland became the first jurisdiction to legislate paid domestic and family violence leave for public sector workers.

The move came amid increasing community and political pressure for more action to be taken to support victims of domestic violence. At the Council of Australian Governments (COAG) meeting on 9 December, several Labor state premiers pushed for the provision of mandated family violence leave in the National Employment

unpaid, family and domestic violence leave to be included in the majority of modern awards.

A decision as part of the award review is likely to be handed down in the next few months, presenting observers with the unexpected scenario of guessing who will reach a decision quicker: the FWC or the COAG. Ashurst special counsel Trent Sebbens says, regardless of the outcome of that race, it’s an issue that is not going away.

“I think this issue will remain on the

“The issue will be what will the scope be for any such policy?”

Trent Sebbens Standards, which set out the minimum entitlements for Australian workers covered by the Fair Work Act. A COAG decision is likely to be made in the first quarter of 2017.

The modern award review Law firm Ashurst has identified paid domestic and family violence leave as one of the key employment law issues for 2017.

This follows not just the COAG meeting but also the 2016 Fair Work Commission (FWC) hearing of the Australian Council of Trade Unions claim, as part of the fouryear modern award review process, for an entitlement to 10 days’ paid, and two days’

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agenda, primarily through the four-year review of modern awards by the Fair Work Commission but also due to what has happened in Queensland,” he says.

The Bill, which will repeal the Industrial Relations Act 1999 (Qld), provides for 10 days of domestic violence leave for those workers covered under that legislation.

“There might be a push for it to become a legislated amendment to the National Employment Standards,” Sebbens says.

leave – to cover employees struggling with domestic violence.

In terms of the practical application of such leave entitlements, Sebbens suggests the Queensland provisions might provide the lead for other states to follow.

“It may be that the employee meets the criteria described within the clause being sought for inclusion by the ACTU or within any eventual legislation. It would then be up to the employee to approach their employer and seek the leave. The employer could then ask for reasonable proof of the purpose of the leave. Within the Queensland legislation, for example, this might be evidence from the police or from a court; it’s evidence that would satisfy a reasonable person that the leave is being taken for the intended purpose, which is quite similar to the proof required to take personal carers’ leave or compassionate leave.”

Employer concerns Employer groups have suggested there are already appropriate leave entitlements – such as carers’ leave and compassionate

EA inclusions Sebbens adds that an increasing number of employers will be called upon to introduce

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EXISTING PROGRAMS 35% of employers have a strategy in place to support employees experiencing family or domestic violence* 14% of employers train their HR teams to support staff experiencing domestic violence* 94% of employees agree that their employers should take a leadership role around violence towards women^ 48% of the respondents to a Victorian survey said they had disclosed being a victim of domestic violence to their manager at work, but only 10% of those had found the response helpful *Workplace Gender Equality Agency ^White Ribbon Australia

the entitlements into enterprise agreements, due to mounting pressure for such provisions to become mainstream.

“This has already started to happen and that was raised by both sides, unions and employers, in the proceedings before the Fair Work Commission – about whether or not workplace policies and EAs were already meeting this particular need.

The evidence tended to indicate that a number of employers had adopted policies, and some employers in the transport, telecommunications and banking industries already had existing policies.”

On the EA front, Sebbens says the evidence was “a bit equivocal”, but there was an indication that there were a substantial number of agreements that already included clauses that dealt with domestic violence leave.

“Depending on which party was putting it forward, the figure was somewhere between 300 and 700 agreements already including clauses that dealt with domestic violence leave, so you would expect that trend would continue,” he says.

Employer action plan To be on the front foot, Sebbens suggests employers focus on the existing Qld legislation, as this may provide a road map for other states.

“Really the issue will be what will the scope be for any such policy? What will it apply to and how will it interact with other forms of leave? Also, what might the impact or potential cost to a business be?”

In the proceedings before the FWC, the parties put forward different costs and outlined hypothetical cases for how this type of leave would likely be utilised. For example, the unions put forward evidence that only 1.5–2.0% of female employees and less than 1.0% of male employees would access this type of leave; they also claimed the cost to businesses and the economy would be relatively modest. Employer associations said the cost would be more significant, possibly anything between $120m to $2bn, for the economy if the leave was to be introduced.

Sebbens says it’s critical for organisations to consider what the impact on their business

might be, how broadly they might apply such a policy, and in what circumstances would they make that leave available. “They should also consider what other sorts of systems or procedures might they already have in place that deal with this issue.”

Employers might look to other companies that have taken a proactive stance, such as Konica Minolta, which launched its domestic and family violence policy for employees back in 2015. The policy provides paid leave, flexible working arrangements and EAPs to all of its 500 employees across Australia.

Konica Minolta did not limit its policy to supporting victims of domestic violence: employees who are actively supporting a victim can also access the benefits of the policy, as can perpetrators who choose to come forward.

Konica Minolta developed the policy in consultation with the University of New South Wales (UNSW) Gendered Violence Research Network and the Women’s Legal Service Queensland. A key element of the policy includes Konica Minolta employees receiving training from UNSW faculty members.

Employees who complete the training will then act as ‘go to’ people for victims and perpetrators alike.

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UPFRONT

EMPLOYMENT LAW UPDATE NEWS BRIEFS FWC judge resigns due to ‘biased’ system The Fair Work Commission vice president, Graeme Watson, has resigned due to what he believes is a biased system that doesn’t “promote economic prosperity or social inclusion”. Watson wrote to the Governor-General, Peter Cosgrove, and said he was formally stepping down.

Watson also wrote a letter to Minister for Employment Michaelia Cash, explaining his concerns about the way workplace relations is regulated and administered in Australia. “I have made this decision because it is increasingly clear to me that the operation of the workplace relations system is actually undermining the objects of the Fair Work legislation,” Watson said in his letter to Minister Cash.

Pizza Hut breaches workplace laws Three quarters of audited Pizza Hut outlets are failing to comply with workplace laws, according to a Fair Work Ombudsman activity report. Of the 34 franchisees audited by the Ombudsman, 24 were found to be breaching workplace laws, while only two were meeting all of their legal obligations to delivery staff. The audit found two franchisees in Sydney and one in Brisbane paid drivers just $5.70–$8.00 on a per-delivery basis, and they did not issue payslips. Fair Work Ombudsman Natalie James said those employed as delivery drivers were often very young, making them more vulnerable to exploitation in the workplace.

Case highlights fatigue risks for employers A Supreme Court decision has highlighted the need for employers to consider whether they are adequately managing the risks associated with fatigue. In Kerle v BM Alliance Coal Operations Pty Limited [2016] QSC 304, the Court found a

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worker bore no responsibility for a car accident after working four consecutive 12-hour night shifts. The employee had embarked alone on a 430km journey home by car, and was injured after his car crashed. The Court found the employer had breached their duty of care as there were four reasonably practicable ways of removing or minimising the risk.

COURTS AWARDING LARGER SUMS IN SEXUAL HARASSMENT CASES The trend is being viewed as a ‘corporate deterrent’

Newsreader sues for unfair dismissal Channel Seven newsreader Talitha Cummins is suing the network for unfair dismissal after she was allegedly sacked from her role while on maternity leave. The 36-year-old claims that soon after her son was born the network informed her that she would not be returning to the role she had held for three years. Cummins had expected to return to her weekend newsreader role but was offered a weekday 5am time slot instead. However, that time slot was not appropriate given the recent birth of her son. Cummins has lodged a general protections application with the Fair Work Commission. She alleged Channel Seven’s decision constituted an adverse action.

Can bonuses be withheld?

Deutsche Bank has opted to cut bonuses for local employees as it struggles to turn a profit in the wake of a large litigation bill.

Bonuses and incentives usually depend on the terms of the employment contract and any applicable bonus or incentive plan. In most employment contracts the payment of a bonus is said to be at the sole discretion of the employer. However, this discretion is not unfettered, legal experts say. If a target is achieved by the employee, a court may determine that any subsequent attempt by the employer to withhold payment of the bonus is capricious, arbitrary and in breach of the terms of the employment contract.

Stricter community standards are influencing the courts’ decisions to award higher damages to sexual harassment victims, according to Lander & Rogers partner Aaron Goonrey.

The amounts awarded traditionally have been quite low and in line with personal injury damages.

“Where sexual harassment cases are pursued in courts, the question of determining appropriate compensation can be difficult,” Goonrey says.

“The damage suffered by a victim may not be obvious or tangible, and courts have typically acted conservatively, with damages for hurt and humiliation, or pain and suffering, generally in the range of $5,000 to $20,000.”

Goonrey adds that it is clear that prevailing community standards are influencing the courts’ decisions to award higher damages to victims. Indeed, the recent case law demonstrates that courts are more inclined to award damages in excess of $100,000, or even over $1m.

The idea is that these high sums will act as a ‘corporate deterrent’ to inappropriate workplace behaviour.

Moreover, they are meant to encourage organisations to implement and maintain proper policies and training.

The firm’s advice for employers is that, ultimately, it is not just about mitigating the risk of a sexual harassment claim succeeding.

Instead, it is really about how to transform an organisation’s culture so that it offers a safe working environment for its employees.

The firm states that employers should

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ensure they have in place a clear sexual harassment policy that is communicated effectively to every staff member and is understood.

Lander & Rogers believes that employers should conduct regular training sessions for all staff and management on sexual harassment and the organisational policy.

It is also important to ensure that the training is specific about the types of

Employers should conduct regular training sessions for all staff and management on sexual harassment and the organisational policy behaviours that may amount to sexual harassment.

The firm also argues that: • an organisation’s policy on workplace sexual harassment must be led from the top down, and managers need to understand their roles in the process.

The CEO or a senior management representative should endorse the policy and emphasise the fact that all staff are required to comply with it.

• in addition to having a very open and transparent sexual harassment policy, employers should survey their workers and ask if they have experienced or witnessed anything they believe to be sexual harassment. If people do not feel comfortable in speaking out, doubt can arise over what really constitutes harassment and any policies that are in place may be diluted.

• employers should establish internal procedures for dealing with sexual harassment complaints or grievances to enable in-house resolution.

Q&A

RESTRUCTURING AND REDUNDANCIES Joe Murphy Director, workplace relations Australian Business Lawyers & Advisors

Fast fact A 2016 OECD report found that each year around 2.3% of Australian workers lose their jobs as a result of corporate downsizing or closure. Of those who lose their jobs, 70% find a new one within a year and 80% are re-employed within two years. However, their new jobs are more likely to pay less than the ones they left behind.

Can you announce a restructure and implement redundancies on the same day?

There are a number of very good reasons as to why businesses like to announce restructures and implement the resulting redundancies as soon as they can. Some of those reasons include the desire to minimise the negative impact on culture, avoiding other legal liabilities (eg workers’ compensation claims), and to eliminate the risk of industrial sabotage.

While one can sympathise with an employer’s desire to move quickly (and in fact some employees welcome a speedy exit), an employer’s legal obligations will vary depending on whether an enterprise agreement or a modern award covers the affected employee(s).

Those legal obligations require employers to ‘consult’ with the affected employees as provided for in a relevant enterprise agreement or modern award.

In some cases employers take the view that, as they believe they pay their employees ‘over award’, then a modern award is not relevant. This is not so. For the purposes of redundancies, an employee’s rate of pay will not be relevant to the question of award coverage, which is determined according to the classifications and coverage provisions of the relevant modern award.

What process should businesses follow to avoid?

First consider whether affected employees could be covered by an enterprise agreement or a modern award. Seek advice from workplace professionals if you are unsure.

The first requirement is to inform affected employees ‘as soon as a definite decision’ is made to implement a restructure.

The next requirement is usually to: 1. discuss the likely effects on affected employees 2. discuss measures to avert or mitigate adverse effects 3. give prompt consideration to matters raised during consultation The discussion: 1. must commence as soon as practicable after a definite decision has been made 2. must include representatives of affected employees, eg unions, and 3. all relevant information about the changes must be provided to the employee(s) and their representatives What are the ramifications of failing to comply?

The first legal risk that comes to mind is that a failure to consult means an employer cannot rely on the unfair dismissal exemption relating to cases where an employee is dismissed for reasons of ‘genuine redundancy’ given the relevant requirements place an obligation on the employer to have consulted with the affected employee in order to rely on the exemption. The second, and perhaps more problematic issue, is the risk of being prosecuted for civil penalties of up to $54,000 for companies and $10,800 for individual employees (or persons involved in a contravention).

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UPFRONT

L&D UPDATE

CREATING A MINDFUL CULTURE Workplaces should encourage individualism and open dialogue about employees’ passions. Here’s why

Mindfulness can be a powerful tool for HR and L&D professionals, particularly when it has the power to transform their organisations’ leaders, teams and broader culture.

Steve Hoskins, managing director of Stop At Nothing (SAN) Australia, tells HRD that his company has seen teams and organisations thrive when mindfulness is put into practice.

“We have a saying at Stop At Nothing: ‘The person with the most awareness has the most responsibility in any relationship’,” Hoskins says.

“This is to say that, when you know who you are, you are in control of your emotional wellbeing, live life free of drama and ego, have the power to

NEWS BRIEFS

avoid being triggered by others’ opposing states, and hence live with less stress and more productivity in life and work.”

Hoskins says SAN has seen organisations transform from “dysfunctional underperforming entities” into highly productive, happy and profitable companies.

“If you imagine an entire organisation whose people are self-aware and working together, everyone would be looking to ensure their workmates are looked after, that their emotional states matter, and looking to help wherever possible,” he adds.

“This collective direction, away from self

How Amazon is helping underperformers

Internet giant Amazon is rolling out a new training program designed to help underperforming employees.

The program, called ‘Pivot’, is being rolled out in February and pairs struggling learners with ‘Career Ambassadors’ who provide guidance and support for a fixed period of time. Pivot is a program for employees “who show a sustained period of underperformance, despite coaching and support”. The push comes as Amazon seeks to improve its unpopular performance improvement plan, more commonly known as ‘PIP’, which is designed to put pressure on those deemed to be failing to reach their goals.

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and towards others, removes the drama and ego that inhibit optimal business performance in workplaces.”

Hoskins points out that rather than organisations asking how they can get more out of their learners, they should reflect on what they can do so that their learners are finding a connection with their life goals at work.

Hoskins says studies have shown that the more individuals feel that their occupations – and ultimately the daily tasks they perform – are connected to their purpose in life, the more productive and emotionally balanced they are.

“In turn, they’re more likely to encourage that in others,” he says.

“The classic saying ‘Love what you do and you’ll never work a day in your life’ is what we’re referring to here. Workplaces should encourage individualism, open dialogue about employees’ life interests, their loves, their hobbies, their unique nuances and idiosyncrasies.”

Managers and people leaders should take time out to address departmental alignment within their organisation with the people in that division and their connection to their “life purpose” and the focus of that area of the business.

Hoskins says this involves taking time out of the workplace, capturing everyone’s aligned goals and coming up with a vision for the next few years for their division and the company.

“Once the colours are nailed to the mast in this way, everyone pulls in the same direction and helps each other to succeed. It’s wonderful to see,” he says.

Destination determines learning success

Whether learners are likely to succeed in online courses largely depends on where they live. A study, published in Science, found that people in less-developed countries complete massive open online courses (MOOCs) at a lower rate than those in more developed parts of the world. Researchers found that more than 25 million people enrolled in MOOCs between 2012 and 2015 (including 39% from lessdeveloped countries). “Judged by completion rates, MOOCs do not spread benefits equitably across global regions. Rather, they reflect prevailing educational disparities between nations,” said lead study author René Kizilcec.

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Q&A

Paul Findlay Managing director PD Training

Fast fact Almost 50% of Australians rated workplace issues as a cause of stress in a 2013 study by the Australian Psychological Society.

The most stressful jobs were reported as sales support workers, followed by non-managerial hospitality workers and legal, social and welfare professionals.

FACING UP TO WORKPLACE PROBLEMS What problems are workers facing that resilience can help with?

Workers across all industries face common challenges that impact their personal wellbeing and the health of their organisations. They include pessimism, low resilience, poor attitude leading to infectious negativity, and feeling unrecognised, which feeds into lower commitment and engagement. Problem-solving for people with a pessimistic mindset becomes a maze of issues and barriers instead of them confronting obstacles as something that can be overcome. Resilience is the capacity to withstand and adapt to the challenges that life throws at us.

What industries are experiencing the most problems that require resilience training?

Organisations undergoing restructuring and industries where customer-facing activity is normally stressful can benefit from training to boost resilience. People get worn down by relentless change, and they commonly end up becoming short-fused, negative and mildly depressed.

Resilience is tested in client-facing roles where people get a lot of negativity – the constant knocks from dissatisfied customers and demanding clients.

Emergency and other healthcare workers regularly confronted by distressing or unpleasant situations are among those whose resilience is tested every day.

Could L&D help HR professionals help people to cope with stress?

L&D programs using positive psychology can assist HR

Digital skills training must be a priority, says study

More than half (55%) of Australian workers don’t think they have the digital skills to guarantee future employability, according to new research from HR and recruitment specialists Randstad.

A further two thirds (67%) believe that digitisation of the workforce requires different skill sets to those available at their current employer. Randstad Australia and New Zealand CEO Frank Ribuot says there is more pressure than ever on employers to upskill the workforce. With 85% of the Australian workforce agreeing that every employer should have a digital strategy in place, Ribuot adds that focus on training needs to be the priority.

professionals to help improve the lives of their people and improve the performance of organisations. When people are happy, positive and resilient, organisations are healthy, stable and profitable. Organisations constantly ask their people to do more with less. They also need to support their people with tools and skills to do so. If workers are more resilient, it’s easier to be at work and to feel stable in times of stress. Resilience flows into optimism, positive attitude and maintaining energy throughout the day.

A positive state of mind is linked to stronger goal-setting, innovation, concentration, creativity and mental capacity to make quicker decisions.

Is corporate resilience training a new thing?

Using positive psychology in L&D is not new. What is new is a scientifically sound and measurable program that we’re delivering called ORANGES, which gives workers more than 40 tools to change the way they approach their work and lives. Developed by children’s charity Camp Quality from research by world-leading universities, it provides training in Optimism, Resilience, Attitude, Now (mindfulness), Gratitude, Energy and Strengths. Based on emotional intelligence and neuroscience research, the resilience training shows how the brain, body and emotions are linked and helps workers to withstand life’s challenges by activities that boost positive mood, manage negative emotions and increase the duration and intensity of their peaks.

L&D professionals face change fatigue

The vast majority (95%) of L&D leaders want to respond faster to changing business conditions, but only 19% are making progress, according to new research by Towards Maturity.

Moreover, 90% want to play an active role in supporting business innovation, but only 17% report they are succeeding. The report’s research team, Laura Overton and Genny Dixon, said today’s successful workplaces are fast-moving, global and digital. “Learning innovation, done well, delivers results that can support sustainable, agile workplaces.

Business and learning leaders alike need to expect more,” they said.

Top MBA programs announced

INSEAD’s MBA program was announced by the Financial Times as being the world’s best for the second year running. To achieve the top ranking, INSEAD scored highly in alumni career progress, international diversity and idea generation. In 2016, INSEAD – which has campuses in France, Singapore and Abu Dhabi – became the first school with a one-year MBA program to take the top spot. Rounding out the top five in 2017 are Stanford Graduate School of Business; Wharton; Harvard Business School; and Judge Business School at the University of Cambridge. www.hcamag.com

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16/02/2017 3:48:25 PM

UPFRONT

HEAD TO HEAD

GOT AN OPINION THAT COUNTS? Email hrd_editor@keymedia.com.au

Who to connect with?

Which member of the C-suite would you like to build a stronger relationship with, and why?

Ho

Kalena Jefferson

General manager people and culture Southern Cross Care (NSW & ACT) All exec team relationships are critical.

Whilst an HR leader must and should partner with the chief executive, the CIO, CMO and CFO are partners who can assist in delivery of key people projects which are well integrated. Marketing and IT alignment can ensure efficient, slick and timely delivery of HR programs.

Ultimately, though, our client is the operations who serve the customer, and HR must deliver relevant programs and activities to meet the strategic and operational goals of the business. Being a trusted adviser and close partner to operational heads will ensure buy-in and deliver the most impact.

Mathew Paine

Director of human resources International Convention Centre Sydney As CHRO it is essential to continually build a strong relationship with the CEO. The CHRO should be a trusted and credible adviser to the CEO and be strong enough to provide the CEO with feedback on their performance when needed.

The CEO sets the culture of the organisation and must live and actively demonstrate the company’s values, mission and objectives, always being a role model displaying the desired organisational behaviours. A Chinese proverb says, “The fish rots from the head”; so it is with the CEO and their C-suite team. The buck both starts and stops in the boardroom.

Erin Cramlet

Senior director, human resources Stryker When I first started at Stryker, I remember a senior leader saying, “Magic happens when our whole organisation aligns behind our customers”.

At Stryker the team that is closest to our customers is our sales team.

As an HR leader it is critical for me to be very close and proactively partnering with our sales leaders. This relationship gives me valuable insight into our market and the needs of our customers. As a leadership team we then work to align all of our teams behind our strategy and the needs of the surgeons and hospitals we work with. When our customers win, we all win!

TOP-DOWN CULTURE With corporate culture transmitted from the top down, HR itself is now routinely represented in the modern C-suite. But that C-suite is a more crowded space these days. Even as the chief human resources officer (CHRO) has taken his or her place in the C-suite, also newly on deck are such roles as chief digital officer (CDO), chief innovation officer (CIO), chief marketing officer (CMO), chief risk officer (CRO), chief strategy officer (CSO) and chief technology officer (CTO). Other newcomers to the C-suite in Australia include the chief product officer (CPO) of Fairfax Media, the chief customer officer (CCO) of Insurance Australia Group, the chief strategy officer (CSO) of Deloitte Australia and Myer’s crowded C-suite, which includes a chief transformation officer (CTO), chief digital and data officer (CDDO) and chief merchandise and customer officer. Alongside traditional C-suite roles, which ones should HR be building alliances with?

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www.hcamag.com

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16/02/2017 3:49:45 PM

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3:49:43 PM 16/02/2017 2:49:38

COVER STORY

GILLIAN FOLKES

ALL ABOUT MINDSET All businesses face disruption, but as IAG’s Gillian Folkes reveals, it’s the mindset that accompanies disruption that makes the real difference JUST OVER 12 months ago, IAG pioneered the use of drones to view the damage caused by the devastating bushfires in Victoria’s Great Ocean Road area, thus fast-tracking the assessment process for customer claims.

For Gillian Folkes, group general manager, people & culture enterprise at IAG, that

us to obtain aerial footage from a safe location and then fast-track the claims assessment process. What we need to be doing as an insurer is become really clear on how we can paint a realistic view of the future, because we can no longer extrapolate from the past; we must innovate for the future.”

“Increasingly our profession has been simplifying its processes to help employees manage the flood of information at work and build a culture of collaboration, empowerment and innovation” Gillian Folkes, IAG particular innovation made logical sense for a company with such a core focus on customer experience.

“We know that customers value technology because it can make their lives easier and simpler,” she says. “Drone technology allows

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Disruption, which is often spearheaded by technology, is keeping businesses in all sectors on their toes, and insurance giant IAG is no exception. The company’s ‘spirit’, or mission statement, is about being ‘closer, braver and faster’, and Folkes

believes this speaks volumes about the organisation’s culture.

“In terms of how we think about disruption, it’s not only about how we use technology but also about the mindset we bring to the disruption and how we create the behaviours around being closer, being braver and therefore working faster.

“To do that requires incubating creativity and innovation. It’s matching those two halves: taking an entrepreneurial spirit and applying it internally.”

HR’s role This has major repercussions for the HR function as it helps the broader business keep pace with change and also reinvent itself.

“We need to urgently complement our more traditional decision-making methods with insights from analytics, AI, neuroscience, behavioural economics, and social media,” says Folkes. “How can we bring all those elements together to breathe new life into how we think about people and culture?”

She adds that many of the tools used by

www.hcamag.com

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PROFILE Name: Gillian Folkes Company: Insurance Australia Group Title: Group general manager, people & culture enterprise HR experience: Over 20 years Previous roles: – Gillian Folkes Consulting – Promina – Woolworths Supply Chain – Mr Price Group First HR role: HR manager, Edgars Qualifications: Bachelor of Arts, University of KwaZulu-Natal

www.hcamag.com

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16/02/2017 4:37:29 PM

COVER STORY

GILLIAN FOLKES

IAG companies – which include NRMA Insurance, SGIO, SGIC, CGU Insurance and others – have been customised to the needs and wants of customers. Many are also relevant in terms of their application to IAG’s employees. “These days everyone is both a customer and an employee, so the access to information and level of responsiveness and insights that we expect as a customer we now expect as an employee.”

A recent PwC report suggested a major challenge all businesses are dealing with is the impact that technology is having on all aspects of working life. HR has a critical role to play. “We employ people who are impacted by the change in technology, whether it’s how we serve our customers or how they do their jobs,” Folkes says. “Increasingly our profession has been simplifying its processes to help employees manage the flood of information at work and build a culture of collaboration, empowerment and innovation.”

To that end, Folkes is keen to tap into a wide range of thought leaders. “We are looking to start-ups and leading-edge organisations to see who’s disrupting the status quo and thinking about the future of work in interesting, creative ways,” she explains.

She cites insights generated by the Lynda Gratton-led Future of Work Research Consortium, which is widely acknowledged as one of the most innovative and collaborative forums for exchanging insights, models and concerns about the future of work. Recent research has focused on ‘the 100-year life’ and the impact that living longer will have on work, and specifically the challenges of managing millennials and baby boomers who are staying in the workplace for longer. “We’re seeing the rise of millennials, but at the same time we see people working and living longer,” she says. “That multigenerational mix is a real challenge from the people

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PUTTING THE END USER FIRST IAG’s HR team is utilising insights gleaned from human-centred design that place end users at the core of systems, processes and functions. “It’s based on the notion that you must first gain a deep understanding of the needs, hopes and aspirations of future users. Then we look at how we can create effective and more innovative solutions for them,” Folkes says. A three-phase process is followed.

DISCOVER. “This is about unlocking underlying needs and insights that can lead to breakthrough solutions.”

REFLECT. “This is taking time to unpack the user inputs and think about how we can build on the deeply human insights and new opportunities that the Discover phase has allowed us to be privy to.”

EXPERIMENT. “We are seeing a big shift in the work we do. It’s an iterative cycle: ideating, prototyping, testing, learning, allowing us to find meaningful solutions with real, sustainable value because we’ve started with our people at the centre of the design process.”

www.hcamag.com

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16/02/2017 3:51:01 PM

perspective, but it’s also an opportunity for us to lean into. These two trends converging see the development of the most multigenerational and diverse set of talent which organisations have had to navigate.”

It also plays into IAG’s diversity ambition, which will be a major focus for the HR team in 2017. “We’ll be looking to add value to the experiences of our people and harness the opportunities that diverse ideas bring to our organisation, our stakeholders and customers,” Folkes says.

Back to the core In an uncertain world facing unrelenting change, Folkes says a company’s core purpose has never been more critical – and IAG’s core purpose demonstrates this perfectly.

“I like to think what we do is protect the things that people love,” she says. “That’s about making the world a safer place. When a company has a strong purpose and you understand why you’re in business, things become very clear. When I’m faced with decisions, I always come back to: does that make the world a safer place?”

A fresh personal perspective Folkes will also be drawing on experiences obtained by stepping out of the corporate world and into her own consultancy – a career step she took prior to joining IAG four years ago following a career spent mainly in large organisations. She concedes that “you learn an enormous amount about yourself ” when you step outside the infrastructure and support that a large employer affords. “You go from being surrounded by very smart people who are sounding boards and being part of a team to operating by yourself. It required me to think about how to constantly stimulate my own thinking and learning in order to remain current and relevant.”

Even more helpful to her move back into a corporate role was the unique insight that

“We need to urgently complement our more traditional decision-making methods with insights from analytics, AI, neuroscience, behavioural economics and social media” being an external consultant created. “If you want to consult and add real sustainable value, you need to understand the purpose of the business: Why does it exist? Why do they do the work they do? Why do people show up every day? Then it’s critical to couple that with an understanding of how they make money. You can’t really consult into a business meaningfully if you don’t understand their

strategy, purpose and how they make money, or what it is that their people do.”

Her advice to other HR practitioners is to do their homework early to understand everything about the business, know what they do, what they don’t do and why.

“If you have a clear picture of the business and its operations, then you can really add value,” Folkes says.

www.hcamag.com

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16/02/2017 3:51:09 PM

INDUSTRY SURVEY

AUSTRALIA’S TOP RECRUITERS

TOP RECRUITERS What makes for a great recruitment partner and how are their services being utilised in 2017? More importantly, which agencies are the best of the best? Find out as HRD reveals the results of its inaugural Top Recruiters survey

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WHEN MASTERS Home Improvement announced the closure of its 82 stores late last year, Gillian Davie, HR director for the home improvement division of Woolworths, faced a dilemma. A decision had been made to place a member of HR into almost every store in order to smooth the transition and help support store managers. This required the HR team to expand from seven to 70 in the space of just a few days. Davie needed urgent help, and she called on trusted recruitment partners to fill the roles.

The Next Step and Hays rallied to find and onboard 63 new ‘employee support advisors’ in just seven days. “I could not have done it without the assistance of our recruitment partners,” she confessed to HRD. It’s a story that many HR professionals can relate to. The recruitment sector has been under enormous pressure in recent years to change its offering and add value beyond the transactional nature of ‘bums on seats’. Today, more than ever, true recruitment partners are worth their weight in gold.

And it appears that business leaders understand this importance.

LinkedIn’s Australia Recruiting Trends 2017 report indicated that 79% of surveyed leaders believe talent is the number one priority in their organisation. Over the following pages, HRD reveals who are the best of the best in the recruitment industry.

www.hcamag.com

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METHODOLOGY In November and December 2016, HRD surveyed readers, asking them to rate the performance of recruiters (at firm level, not individual) they had worked with over the past 12 months. We received a total of 1,410 responses.

The survey has determined winners (gold/silver/ bronze) in nine specialist areas, with an overall Recruiter of the Year award given to one firm.

WHAT HR WANTS FROM RECRUITERS* Quality of hire 4.78 Client service 4.55 Sustainability of new hires 4.45

SURVEY RESPONDENTS:

Depth of market knowledge 4.22

COMPANY SIZE Less than 50 staff 12% 51–200 staff 27% 201–499 staff 21% 500–999 staff 14% 1,000+ staff 26%

Candidate care 4.17 Cost 4.01 Time to hire 3.67 Existing relationship 3.28

THE AVERAGE cost of a failed hire is estimated at around 25% of their salary, although the implications of a bad hire can go beyond the monetary element, extending to the corporate culture and overall performance of a workplace. It’s therefore no surprise that HR professionals ranked ‘quality of hire’ as the most important element in judging a recruiter’s performance. A combination of in-depth knowledge of both the industry for which they are recruiting and the client company itself is more likely to result in higher-quality candidates. One reader noted that sometimes this is easier said than done and praised their recruitment partner, an executive search firm in Brisbane, for completing a particularly challenging task: “Tracey Swan Search found a quality candidate in a location that is remote and difficult to recruit for.”

For others, a recruiter who is able to find quality candidates can be a significant time saver. “Being provided with a quality candidate after an initial struggle to find anyone ourselves who met the basic expectations of the role is just one example

of what our partner has done for us,” wrote one respondent. Another commented on the reach recruiters can have into quality candidate pools: “Our original brief was to conduct an inhouse exercise but my recruiter sent through multiple candidates of really high calibre that I just couldn’t reject. We finally ended up with a really good candidate from the recruiter in the role.”

First impressions count, so HR professionals are always keen for candidates to be given exceptional client service.

This ranked number two on the list. One respondent relayed their own experience as a candidate: “I’ve been working with an amazing recruiter. Our first catch-up was over coffee and they were extremely down to earth and genuine. Since then, they have kept in touch every couple of months, either to check in or with potential opportunities. That is amazing candidate service.”

Another reader commented on how critical a positive recruitment experience can be to the employer brand: “I’m keen to partner with someone who treats candidates the same as clients. They are valued and it

Other services offered (eg psychometric testing, pre-employment screening, workforce planning) 2.32

0

1

2

3

4

is important for our brand that they are treated with respect.”

HR professionals are also mindful of sustainable new hires – in other words hiring those who will stay with the company for a period of time. When asked for their best recruiter experience over the last 12 months, one respondent said: “Converting two senior interim employees into permanent positions”.

Another applauded the efforts of one recruiter who went above and beyond to know more about the company in order to make a successful, sustainable hire: “Despite a long-standing relationship, the recruiter (Jennifer Hobbs) took the time to come to the office where I was new to the role to get

www.hcamag.com

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5

*Respondents were asked to rate the above factors for importance on a scale of 1 to 5 where 1 = not important and 5 = extremely important

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16/02/2017 3:58:31 PM

INDUSTRY SURVEY

AUSTRALIA’S TOP RECRUITERS a ‘feel’ for the environment and take time to better understand the business and the challenges we face.”

Indeed, depth of market knowledge was ranked as fourth on the list of considerations for engaging a recruiter.

Specialists wear this knowledge as a badge of honour and will know the key players, the market trends and the key components of the roles for which they are hiring.

“I was impressed with a specialist recruiter who provided me with industry information knowing that I was not looking to engage them. It was great to see that they were prepared to give me something with the long-term goal of me engaging them in

the future,” wrote one respondent.

While the time to fill roles is obviously important, our readers did not consider this a priority, rating it seventh out of nine priorities. Clearly quality of hire is deemed more important, except in exceptional circumstances, as this reader pointed out: “Getting an ideal candidate in less than a week in a talent-short market was nothing short of a miracle.”

And like so many aspects of business, relationships in recruitment really do matter. HRD readers selected ‘existing relationship’ with recruiters as being less critical though still an important consideration.

BUDGET AND RESOURCES 2% 1%

“They ensure a great candidate experience and take the time to understand the business they are supporting to ensure the right fit is provided.”

– Melissa Young, HR business partner, Mission Providence “We are looking for our partners to really understand our business and find the people who will flourish.”

– Louise Patience, group recruitment manager, Inghams Group Limited

HOW DOES THIS BUDGET COMPARE TO 2016?

3% 9% 4% 3% 3%

WINNERS! Two readers each won a ticket to the National HR Summit in March for providing their thoughts on what makes a great recruiter.

2017 RECRUITMENT BUDGETS

39%

18% 18%

$0–$20,000 $21,000–$50,000 $51,000–$100,000 $101,000–$150,000 $151,000–$200,000 $201,000–$250,000 $251,000–$500,000 $501,000–$1,000,000 $1,000,001–$2,000,000 $2,000,000+

WHERE IS YOUR BUDGET SPENT?

22% Increase

22%

Decrease

56% Stayed the same

Recruiting events Employer referral program Employer branding Recruiting tools (eg sourcing, screening, ATS)

4% 6%

4% 3%

Other

39%

17% 28%

Job boards/advertising

Recruitment agency costs Source: LinkedIn’s Australia Recruiting Trends 2017 Report

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A significant 39% of surveyed employers have a budget range of $0–$20,000 and a further 18% have a budget range of $21,000–$50,000.

Fifty-six per cent said this budget had remained unchanged since 2016. Not surprisingly, LinkedIn reports that the bulk of this budget (39%) is used on job boards and advertising, followed by 29% on recruitment agency costs.

www.hcamag.com

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16/02/2017 3:58:33 PM

WHERE AND WHEN RECRUITERS ARE USED DO YOU EXPECT TO GROW YOUR FTE HEAD COUNT IN THE NEXT 12 MONTHS? Yes 61% No 23% Unsure 16% 0

20

40

60

80

100

It appears that Australian employers are confident about increasing their FTE head count in 2017, with 61% saying they will be expanding throughout the year.

Despite this healthy hiring activity, internal recruiting teams are not expected to greatly expand in 2017. When asked

by LinkedIn if their recruitment team would expand in the coming year, 62% of respondents said it would remain the same.

ON AVERAGE, WHAT PERCENTAGE OF NEW HIRES WOULD YOU USE A RECRUITER FOR? 60 50

56%

40 30

27%

20 10 0

Less than 10%

11–50%

9%

8%

51–75%

Over 75%

In 2017 there are more options for employers in terms of sourcing fresh talent. With tools like LinkedIn now widespread in internal and external recruiting teams, the role of external recruiters has changed. In HRD’s survey, 56% of participants would use an external recruiter less than 10% of the time and 27% of respondents would use them up to half of the time they have a vacancy.

FOR WHAT ROLES WOULD YOU TYPICALLY USE A RECRUITER? Graduate 6% Volume recruitment 16% Project work 31% Temporary/casual 38% Executive 75% Specialist/niche 83%

0

20

40

60

80

100

(More than one selection allowed)

Not surprisingly, it’s when trying to fill specialist or niche roles that HR opt to use recruiters the most. One respondent wrote: “When we had to recruit an extremely unique and niche banking position in a non-banking/mortgage company, Hays were able to find the perfect candidate and give us valuable advice regarding this role and the requirements needed.”

Seventy-five per cent of respondents selected executive roles as requiring recruiter assistance. One respondent noted: “We had struggled to fill a senior marketing manager role for several months. Our recruitment partner provided a seamless search and hiring experience with exceptional quality candidates, and management of the candidate process.”

Matching the rise of the gig economy, recruiting temps/casuals (38%) and project workers (31%) also required recruiter help.

ARE YOU MORE LIKELY TO USE A GENERALIST RECRUITER OR A SPECIALIST RECRUITER?

Generalist recruiters 11%

Specialist recruiters 61%

Both about the same 28% While SEEK and LinkedIn are entrenched in the recruitment market, it’s the specialist recruiters that employers are turning to in order to fill positions. A significant 61% of HR professionals would use a specialist recruiter, compared to 11% turning to a generalist.

More than anything, it’s the high level service and knowledge of the industry that sets specialists apart from the pack. “My recruiter is small and niche but has great candidate filter and profiling abilities,” wrote one respondent. “They provide good quality candidates, have excellent industry knowledge and are courteous in communication. There’s no harassment and they follow the communication point of contact.”

Over the following pages, we reveal which recruiters lead the pack in various industry segments. Respondents were asked to name the best recruitment firm in the categories listed, taking into account relevant criteria such as candidate care, cost, quality of hire, time to hire and the overall level of service.

www.hcamag.com

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16/02/2017 3:58:36 PM

INDUSTRY SURVEY

AUSTRALIA’S TOP RECRUITERS BANKING & FINANCIAL

GOW RECRUITMENT

MICHAEL PAGE ROBERT HALF

The banking and finance jobs market remains subdued. In September, SEEK reported a 6% year-on-year decline in job ads. However, David Jones, senior managing director of Gold winner Robert Half, says employers are hiring quite strongly along the East Coast, with business expansion and new projects being the primary drivers of demand in Sydney and Melbourne.

While employers remain focused on cost and head count – particularly for back-office

With the decline in Australia’s mining industry, the pressure has been on the construction industry to take up some of the slack. Fortunately, the story has been positive over the past 12 months. The latest data from SEEK Employment Trends shows a 13% year-on-year increase in job ads for the construction industry to October 2016.

Candidates are in particularly high demand in NSW and Victoria, with Queensland also seeing a resurgence in construction-related roles – particularly project management and contract administrative roles. In Sydney alone, the NorthConnex and WestConnex projects, which are still in the planning stages, will likely keep the construction industry busy in coming years.

Gold winner Randstad acknowledges the talent shortage for certain roles within construction and engineering, but takes pride in the relationships and networks it has built with leading organisations in these sectors.

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roles such as reporting – there are still some in-demand professionals. These include client-facing roles, such as relationship managers, as well as financial planners and compliance and risk professionals.

In general, employers are expecting more from their finance professionals, with increasing regulatory requirements being added to their mandate.

Jones says that looking ahead the

increasing influence of financial digitisation and workplace automation will be one of the key factors shaping the financial landscape in 2017, driving demand for finance professionals with well-developed IT skills.

He says the key to a successful recruitment agency partnership with HR is “honesty, integrity, professionalism and personalised service”, all of which are core principles of the Robert Half business and the people it hires. “Central to the Robert Half business philosophy is that our recruitment services consultants only fill assignments within their field of expertise,” Jones says. “Each specialised division focuses solely on their particular industry, allowing us to provide unrivalled professional service and client support.”

Jones says the Gold award “speaks volumes about all the hard work Robert Half employees put into their daily workload to excel our business”. He adds that Robert Half is committed to an ‘ethics first’ approach and this provides the behavioural framework for its relationships with employees, clients, job candidates, shareholders and suppliers.

CONSTRUCTION & ENGINEERING

HUDSON RANDSTAD “It will be more important than ever for recruitment consultants to show the value to clients through insights and the ability to deliver top talent – that is, to be a true business partner,” says Felicity Epsom, HR director at Randstad.

She adds that although the recruitment industry is being disrupted with technology,

REDPATH PARTNERS

Randstad firmly believes there will always be a place for individuals to apply their intuition and human instinct, and provide quality service to their clients and candidates while harnessing the available technology for an efficient process. “It’s about having the right balance of technology and the human touch – we call it tech & touch,” Epsom says.

www.hcamag.com

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16/02/2017 3:58:44 PM

EXECUTIVE

TALENT2

DAVIDSON U&U Executive recruitment is an art unto itself.

Perhaps more than any other form of recruitment, those working in this space must display patience, professionalism and, more than anything, in-depth market knowledge. Executive recruitment is all about relationship building. That means knowing the key players, knowing the career aspirations of key talent, and knowing how to deal with multiple stakeholders.

More than anything, it’s being aware that there is a dearth of ready C-suite-level talent available in the Australian market. Such talent needs to display leadership capabilities, tenacity and commitment, prior experience at a strategic level, and the ability to provide solutions to organisational and sector challenges.

One respondent suggested, “It is no longer a tick-box exercise on candidate competency.

If you think hiring for your industry or profession is tough, try recruiting an IT, tech or digital professional. According to Indeed.com, five of the 10 most chronically unfilled jobs in Australia are technology-related. Employment in the IT sector is expected to grow by 2.5% per year over the next three years to 2020 (approximately 100,000 additional workers).

Comparatively, employment for the economy as a whole is forecast to grow by 1.6%.

“The biggest challenge faced by the IT, technology & digital industry is perhaps the shortage of suitable candidates with the necessary skills,” says Nick Deligiannis, managing director of Gold winner Hays.

“For example, there’s a big focus right now on security and for System/Infrastructure Engineers with cloud experience (Azure and AWS). DevOps is a growing focus too.”

Mobile development is a market that’s growing significantly as organisations diversify their digital strategy across multiple platforms. Deligiannis adds that within the

IT, TECHNOLOGY & DIGITAL

C-suite level candidates are assessed on different criteria. Recruiters have to dig deep into the individual’s capabilities. That is, their capability in turning around a failing business or implementing an organisational change strategy.”

Culture fit is also critical for executive hires.

“The level of conversation you have with someone on this level is more strategic.

Candidates expect the recruiter to understand the client in much more detail, as that can determine their interest and commitment towards the role,” wrote one respondent.

It’s something our Gold winner u&u has in spades, as one reader has found: “We’ve built a relationship with u&u based on the quality of their consultants and the results they deliver.”

The agency, which has offices in Sydney and Brisbane, helps employers to map, identify, approach and secure the best executive talent for each assignment. In addition, when it comes to sourcing and checking the credentials of executive talent, u&u has a dedicated research team.

RANDSTAD HAYS digital talent pool there is a split: on one side are expert developers who will always have work; on the other side are a growing number of entry-level graduates and career-changers who want to be part of the digital boom.

“As anyone and everyone tries their hand at mobile app development the market may get saturated; however, exceptional candidates

TALENT INTERNATIONAL

will remain in demand,” he says.

What is Hays’ key to successfully partnering with HR? “I’d say it involves regular and relevant communication, ensuring you fully understand a client’s requirements, delivering what you promise, providing timely and engaging insights and willingly sharing your expertise,” says Deligiannis.

www.hcamag.com

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INDUSTRY SURVEY

AUSTRALIA’S TOP RECRUITERS HUMAN RESOURCES

FRAZER JONES

PEOPLECORP THE NEXT STEP Given the background of most of our voters, the HR category is perhaps the most highly prized in this survey.

It’s appropriate that Gold winner The Next Step produces its own HR Job Index, a monthly analysis of the HR job market. Several trends are apparent, reports John Baker, managing director at The Next Step.

Firstly, HR generalists have remained in demand, but many roles are now being offered

Australia’s healthcare and medical industry – which includes vital roles such as doctors, nurses, dentists, dieticians, physiotherapists and pharmacists – is the nation’s largest employment sector, accounting for more than 11% of total employment.

The sector faces unique challenges. As highlighted in the federal government’s 2015 Intergenerational Report, health expenditure per person is projected to more than double over the next 40 years and demand for nursing roles is also expected to grow in line with our ageing population.

Meanwhile, key healthcare occupations, such as physiotherapy, remain on the list of occupational skill shortages in Australia.

Overall, it appears that employers are hiring in the healthcare and medical sector too. In mid-2016 SEEK reported an 11% year-on-year increase in job ads.

Our Gold winner, Sugarman, is a specialist in this area, filling countless roles across the broad spectrum of the medical and

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on a contract basis. Contract roles made up over one third of all opportunities in HR in 2016. Opportunities for talent acquisition professionals now make up one in five of all roles in HR. Analytics specialists and experienced reward professionals are also in demand.

“The issue for most employers when they try to recruit in the HR market is not so much quantity of candidates, but finding people with the right mix of experience and capability for

their unique requirements,” says Baker.

The Next Step has developed a suite of programs that focus on the assessment and development of the commercial capability of HR practitioners in a wide range of areas such as business partnering, financial decision-making and coaching. The Next Step publishes articles and blog posts to share its views online, and hosts larger events to bring leading HR thinking from practitioners in business to a larger audience.

One reader agrees that The Next Step goes above and beyond: “I’m working with Next Step to recruit our HR team. The professionalism and market knowledge was incredible and the quality of hires has been exceptional.”

Bronze winner Frazer Jones did not miss out on praise either: “I vote for Frazer Jones and their ability to fill roles quickly with high quality candidates who exactly nail the brief.”

Another wrote: “Ciaran Foley [head of Frazer Jones Australia] is a career coach, not just a consultant. He cares more around right fit between job and person, not just the placement fee.”

HEALTHCARE

HUDSON SUGARMAN healthcare professions. The agency has this motto: you care for others, we care for you.

Here’s what one respondent had to say about Sugarman’s services: “Working with Jasmin Ammoun from Sugarman in WA, she goes above and beyond but is not pushy like other recruiters can be. She understands our

HEALTHCARE AUSTRALIA

budget restrictions being a not for profit and knows that we will approach her if we need assistance to recruit a tricky role. Jasmin also worked with me to establish a preferred supplier agreement with Sugarman that we use nationally and has seen a reduction in our placement fees.”

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••••

H�D HUMAN HUMAN RESOURCES RESOURCES

RECRUITER ECRUITER OF THE YEAR Top Recruiters Recruiters 2017

In an ever-changing world, it’s good to know that caring about our clients’ and our candidates’ success is still an award-winning formula in HR. We are honoured to receive another industry award; however, it is the results we achieve for our customers that we really value.

Wi _CARE... about your success

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INDUSTRY SURVEY

AUSTRALIA’S TOP RECRUITERS PROFESSIONAL SERVICES

LLOYD CONNECT

HAYS RANDSTAD

It has been a mixed 12 months for jobs in the professional services sector. For example, SEEK reported that job ads for accounting roles were down by 3% year-on-year. The market has been hit by the offshoring of transactional roles such as accounts payable and reconciliation roles.

Despite these industry-wide trends, certain professionals remain in high demand.

Good accountants – particularly commercial accountants with a thorough understanding of the operations of sales teams – will be in demand

Although the public and government sector went from strength to strength in 2016, with job ads rising by 26% year-on-year to September, the sector does have unique talent challenges. For example, FTE head count restrictions remain in place in many departments, particularly in the ACT. This means that contract and non-ongoing roles are the preferred hiring method.

The move to shared services within the federal government is also adding to the rise in temporary assignments for ‘business as usual’ as well as project work.

A continued focus on cost savings is another issue, which has also seen a trend towards engaging candidates on fixed-term contracts for the duration of a project.

Nick Deligiannis, managing director of Gold winner Hays, adds that with salary bandings set, employers can face an attraction challenge. Government departments – particularly in the federal government – are

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from employers. And as the Australian economy continues its transition from mining to a broader service-based economy, organisational restructures and realignments are occurring with greater regularity, so insolvency and corporate recovery services skills are also in demand.

SEEK job ads for the legal sector grew by 8% year-on-year in May 2016. Lawyers with at least five years’ post-qualification experience were also identified as being one of the five

professionals most in demand by Robert Walters in 2016.

Silver medal winner Lloyd Connect, which has experience in a number of areas, including in the ICT, legal and non-profit sectors, offers a ‘Recruitment as a Service’ (or RaaS) model to clients. The client pays a monthly fee and contacts Lloyd Connect when their services are needed. The subscription service is based on each client’s planned and unplanned staffing needs and enables a true partnership approach in talent acquisition. It’s a model that is connecting well with clients, as this respondent noted: “Jenny Lloyd from Lloyd Connect has won us over with her business model of the subscription based service. It is so much better than the lump sum amount the old recruiters use and incredibly kind to a small business cashflow. She is extremely knowledgeable and well connected when it comes to finding the right candidates. She never disappoints.”

Another had this to say: “I admire the professionalism and sector knowledge shown

by Lloyd Connect. The candidate and client care are exemplary!”

PUBLIC SECTOR/GOVERNMENT

DFP

RANDSTAD HAYS

offering extra L&D opportunities in order to retain staff.

“In our Staff Engagement – Ideas for Action report, we found that career development and training is a very important engagement factor for attracting new employees and

retaining existing staff,” says Deligiannis.

“From the responses collected we discovered that employees ranked regular learning and development higher than regular salary reviews when it came to being engaged in the workplace.”

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INDUSTRY SURVEY

AUSTRALIA’S TOP RECRUITERS SALES & MARKETING

HAYS

RANDSTAD HUDSON According to SEEK, the sales industry was the only sector to experience a year-on-year decline in job ads, slipping by 7%. This is good news for employers, who potentially have more candidates to choose from.

Gold winner Hudson’s Talent Insights 2017 research found that the top challenges for sales and marketing roles involve improving the digital customer experience, and increased customer demands.

“This is being driven by rapid innovation,” says Dean Davidson, Hudson’s executive general manager of recruitment Australia. “In a digitally connected world and ‘on demand’ economy, customers expect more immediacy and personalisation. Marketing and sales teams are at the coalface of this innovation, but the skillsets they require are constantly evolving and the pool of available talent is small and specialised.”

According to Davidson, the top five technical skills in demand are: • marketing strategy development • brand management • Google Analytics • campaign management • content management systems However, soft skills are also important, and employers are seeking candidates with skills such as innovative thinking, stakeholder engagement, and critical thinking.

On the future of the recruitment industry, Davidson says: “Where we see a big shift is in the candidate mindset. Active and passive labels are no longer accurate, as our research shows that most professionals would consider a new job opportunity if it came along. The Talent Insights research shows that a year ago, one in three professionals said they were open to new opportunities a year ago; now, one in two feel that way.”

He adds that this means HR professionals need to tap into candidate networks on an ongoing basis, and work with recruitment firms who have strong, specialist talent pools.

2017 RECRUITER OF THE YEAR:

RANDSTAD

With strong showings in multiple market categories, Randstad takes out HRD’s Recruiter of the Year Award Felicity Epsom, HR director at Randstad, responded to the news: “We are thrilled! Absolutely delighted. Our clients and candidates are at the centre of what we do. We never forget that. We go above and beyond for our customers and our colleagues – it’s part of our DNA/culture – we call it ‘just one more’.”

Despite the breadth of its services, Randstad considers itself a specialist recruitment and HR solutions business. “We have the breadth to work with our clients across many roles and industries but real depth in each of our

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core specialisations,” Epsom says.

Randstad does not feel threatened by the increasing capabilities of in-house recruitment functions, and says the role of internal recruitment is critical to an organisation’s overall attraction and hiring strategy – for consistency, internal equity, EVP and managing stakeholders internally.

However, Epson adds that relationships with external recruiters are crucial to being able to deliver on this successfully. “Many of our clients have fabulous internal recruitment teams and we work with them to achieve a

common goal – hiring the best talent to meet their organisation’s objectives.”

One reader agreed that Randstad is a cut above the rest: “Randstad representatives are excellent at building rapport. They are keen to understand and learn all the details of our business, our culture and our role. When we have met with candidates they presented, the candidates confirmed that Randstad had given an accurate view of what to expect at interview and in the business if successful.

Their level of service, follow-up and genuine care for our business has stuck with me.”

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EMPLOYMENT LAW SPECIAL REPORT Employment law is an ever-changing field. HRD presents a range of topics relevant to all HR practitioners 30 The big gig

34 Is workplace bullying on the rise?

Given the rise and rise of the so-called gig economy, what are the legal ramifications for employers?

It’s time to separate facts from fiction when it comes to instances of workplace bullying

32 Psychological injury claims

36 Litigating the glass ceiling

What are some of the catches when using a reasonable action defence in psychological injury claims?

Class actions alleging gender discrimination are ubiquitous in the US. Will Australia go down the same path?

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16/02/2017 4:03:29 PM

EMPLOYMENT LAW SPECIAL REPORT

THE GIG ECONOMY

THE BIG GIG Given the rise and rise of the so-called gig economy, Benjamin Gee outlines the legal ramifications for employers THE EMERGENCE of the gig economy is facilitated by the advent of business platforms that are able to simulate labour markets by matching users with vendors of goods and services. FCB Workplace Law is closely watching the spread and penetration of this gig economy in Australia, and its influence on the traditional employment model.

businesses, calls for a fundamental rethink of the basic wage unit in Australia.

A new way of engaging labour In a gig economy, the job vendor uses a platform to invite people to bid on specific tasks offered at a set price. The vendor selects the desired party to perform the task, then

The emergence of the gig economy in Australia poses some significant challenges for the Australian labour ecosystem Since 1907, Australia has had a system for establishing minimum wages and work standards in the domestic labour market.

Throughout the 20th century, the basic wage model evolved in Australia through awards, and more recently enterprise agreements.

Awards and enterprise agreements are almost exclusively based on assigning value to an employee’s time, with no reference to labour productivity, output or the value created by the work. The emergence of the gig economy as a viable source of work for Australians, and as a labour supply chain for

30

rates the quality of the work upon completion.

The whole transaction occurs without any consideration of the award rates of pay, minimum employment standards and other conditions that would apply under an award or enterprise agreement. Depending on your viewpoint, the gig economy either subverts minimum work standards for all Australians, or ushers in an exciting new wave of innovation in the engagement of labour.

The advent of a labour market making platforms for all types of services, including professional, administration, payroll,

transportation, cleaning and short-term leasing of property or vehicles, means it is now fast, easy and convenient to microoutsource a significant number of tasks and jobs. However, it appears workers in the gig economy are not yet reflected in labour market statistics.

Currently, over 51% of all employed Australians are covered by an award or enterprise agreement. Many locationbased industries – transport and logistics, cleaning, hospitality – enjoy a natural captive labour market as they cannot be performed elsewhere. However, a number of award-based industries, including call centres, manufacturing and IT, can be outsourced to foreign workforces in

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and other minimum entitlements. Uber immediately announced they would appeal.

While the comparable UK laws are broader than Australia’s, particularly in relation to the concept of defining an ‘employee’, this ruling begs the question of how a similar claim would play out in Australia.

The emergence of the gig economy in Australia poses some significant challenges for the Australian labour ecosystem: • Should the ecosystem embrace gig work and set minimum standards for workers who are not in a traditional employment model?

• If a business or app matches workers – eg programmers, lawyers or engineers – with end user clients, who is then legally responsible for the quality of the output?

• If a business owner books a cleaner via an app to come and clean the workplace and an item is broken, who is liable for replacing the item?

• If a business or app derives its income from matching a worker with a job vendor, then how should the relationship between the worker, the end user customer and the business/app be described?

countries with little regard for domestic employment conditions.

We cannot avoid the fact that the Australian labour market is competing in a global marketplace, where work inputs can be fluidly distributed and sourced based on a complex web of factors, including skills, qualifications, customer preference and labour cost. Here lies the question of whether letting the market set the price of individual tasks or jobs is fair, and if so, what impact will this have on Australia’s traditional labour market?

The emergence of the gig economy and the impact of the global labour market calls for major debate on both the ecosystem of the Australian labour market – the National

Employment Standards, awards and enterprise agreements – and the basic wage unit. Yet the Fair Work Commission, which is near to completing a four-yearly review of modern awards, has heard almost no evidence or critical examination of whether a wage system measuring units of time is still the best system for a 21st century economy.

Questions for the Australian market Uber is perhaps the most widely known phenomena in the gig economy. On Friday 28 October 2016 the UK Employment Tribunal deemed a small group of Uber partner-drivers to be employed as “workers”

by Uber. As a result, those partner-drivers were entitled to the UK minimum wage

While Uber and its peers are offering new pastures for work in Australia, the legal principles involved have not yet been applied to offer clear guidance on whether to regard such workers as employees or self-employed, and if so, on what terms.

For Australian employment law this is very much a ‘stay-tuned’ time. If your business is operating in the gig economy, you would benefit from taking advice on how well your business model is equipped to comply with Australian workplace legislation.

Benjamin Gee, partner and solicitor at FCB Workplace Law, is also an accredited specialist of workplace law in Victoria. For questions relevant to the above article, please contact: bjg@fcbgroup.com.au.

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EMPLOYMENT LAW SPECIAL REPORT

WORKERS’ COMPENSATION

REASONABLE ACTION IN PSYCHOLOGICAL INJURY CLAIMS The reasonable action defence for psychological injury claims has and can be used successfully in workers’ compensation jurisdictions; however, there are some catches, as Amber Chandler outlines THE RECOGNITION of an employer’s right to take ‘reasonable action’ is found throughout Australia’s federal employment law and state workers’ compensation laws.

When drafting the workplace anti-bullying provisions of the Fair Work Act in 2013, the federal government was careful to ensure that the new jurisdiction did not interfere with usual management of an organisation or business, hence the inclusion of the word ‘unreasonable’ in the definition of ‘bullying’ in the Act. The Explanatory Memorandum for the Fair Work Bill stated: “The Committee also found that balanced against this definition [of bullying] is the need for managers to be able to manage their staff. New subsection 789FD(2) is included to clarify that reasonable management action when carried out in a reasonable manner will not result in a person being ‘bullied at work’. … [Employers] need to be able to make necessary decisions to respond to poor performance or if necessary take disciplinary action and also effectively direct and control the way work is carried out. ….” i

The reasonable action defence Likewise, state-based workers’ compensation legislation allows an employer to rely upon

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‘reasonable action’ as a defence to a claim for psychological injury, but there are three common elements that must be present in defending such a claim (see box below).

UNIFYING ELEMENTS While each state’s legislation contains different versions of the general defence, it is safe to conclude that three common elements are required to be present in order for an employer to rely upon it in defending a workers’ compensation claim: 1. The action taken by the employer must fall within the distinct circumstances set out in the legislation; 2. That action must have caused the psychological injury; and 3. The action must be reasonable.

Let’s examine each of these elements in turn.

The action taken by the employer must fall within the distinct circumstances set out in the legislation Each state’s legislation differs greatly in relation to this particular aspect. ‘Management action’, ‘employer action’ and ‘administrative action’ are just some of the terms used in the various Acts to define action taken by an employer in regard to an employee.

1

While Victoria’s Section 40,ii Queensland’s Section 32,iii Tasmania’s Section 25iv and South Australia’s Section 7(4)v are quite broadly worded to different degrees to include any type of management or administrative action, New South Wales’ Section 11A(1)vi and ACT’s Section 4(2)vii are limited to only seven types of employer action. The national Comcare scheme’s Section 5Aviii is also quite broadly worded. Western Australia’s Section 5 and the Northern Territory’s Sections 3A and 3(1)x fall somewhere in between, with 10 and 15 specific categories of employer action listed, respectively.

The NSW and ACT workers’ compensation legislation is identical in terms of the list of seven categories of action taken, or proposed to be taken, by an employer that may be covered by the defence. These are: transfer, demotion, promotion, performance appraisal, discipline, retrenchment or dismissal of workers, or provision of employment benefits to workers.

It is important, particular for national companies, to be aware of these differences in the way the defence is worded as employer action in one state will not have the same protection in another.

The employer action must have caused the psychological injury The worker’s injury must have been caused

2

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by the action identified above. Each state has various tests for determining the degree that the injury was caused by the management action, with the stricter test of ‘wholly and predominantly’ being the most prevalent.

The meaning of ‘wholly or predominantly’ was considered by the NSW jurisdiction in the context of the defence, and the court noted the following: “‘Wholly’ is self explanatory.

Psychiatric cases sometimes turn upon single traumatic events but more often they involve multiple stressors not all of which may be work related. If those stressors happen to fall into one of the categories as I have just found then the meaning of the word ‘predominantly’ will require interpretation.”xi It is important to beware of the claim where there are other potential causes of psychological injury that may fall outside the realm of the circumstances listed in the legislation. Such other causes may be a disagreement with a colleague, or a secondary psychological injury caused by a physical injury at work. If other causes exist, it is possible that reliance on the reasonable action defence may not succeed.

Ultimately, the cause will be determined by the medico-legal evidence supporting a claim.

Once a doctor has diagnosed a psychological or psychiatric injury, they will then undertake the exercise of attributing the injury to a cause or causes, with apportionment between competing causes. The doctor will have regard to factual evidence in doing so, whether it be the worker’s own version of events or the statements of witnesses.

The action must be reasonable The NSW Workers’ Compensation Commission has noted four particular matters that must be considered in determining whether the action was reasonable. These are: • All the circumstances surrounding the employer action, both before and after • Weighing the rights of the employees against the objective of the employer (fairness) • It is not sufficient that the employer has complied with its own protocols, but the

3

Commission can determine when it thinks the protocols are objectively reasonable • Even where the particular employer action was justified, the Commission will have regard to the parties’ previous relationship (eg a long-term employee being dismissed without notice)xii In the case of Kosior v State of Victoria,xiii a teacher was involved in various incidents

of relying on the defence begins with employers implementing sound policies and procedures in the workplace.

Codifying the procedural steps in policies and procedures so that both employee and employer understand the expectations, and adhering to them in appropriate circumstances, will generally be found to constitute reasonable action.

This will require HR to work closely

It goes without saying that if management action does not comply with sound workplace policies, the employer organisation is left wide open leading to questions as to her health status.

The employer took steps to address the issue. The teacher then brought a workers’ compensation claim for psychological injury, citing three particular events: a counselling meeting, a negative performance and development review, and attempts by employer to have her medically assessed by a neuropsychologist.

The employer denied liability on the basis of a reasonable action defence. The magistrate accepted the employer had reasonable grounds to implement each of the management actions. However, the magistrate rejected the employer’s submissions that all of these actions were carried out in a reasonable manner, and thus the defence failed. The magistrate found that the performance review should have been delayed, given the other issues at the time, and that the employer had no legal authority to arrange an appointment with a neuropsychologist who was not a doctor and therefore could not provide an acceptable opinion on fitness for duty.

Practical tips The reasonable action defence for psychological injury claims has and can be used successfully in workers’ compensation jurisdictions.

However, ensuring there are good prospects

with managers to ensure the procedures are understood and all employer action is contemporaneously documented so there is a clear paper trail demonstrating what took place and the reasons for the action. It goes without saying that, if management action does not comply with sound workplace policies, the employer organisation is left wide open, in terms of not only workers’ compensation claims but also, for claims under adverse action, unfair dismissal and discrimination laws.

References: i

Explanatory Memorandum, Fair Work Amendment Bill 2013. p29 – Circulated by authority of the Minister for Employment and Workplace Relations, the Honourable William Shorten MP ii

Workplace Injury Rehabilitation and Compensation Act 2013 (Vic) iii

Workers Compensation and Rehabilitation Act 2003 (Qld)

iv

Workers Rehabilitation and Compensation Act 1998 (Tas) v vi

vii viii ix

Workers Compensation Act 1951 (ACT)

Safety, Rehabilitation and Compensation Act 1988 (Cth)

Workers Compensation and Injury Management Act 1981 (WA) x

xi

Return to Work Act 2016 (NT)

Jackson v Work Directions Australia Pty Ltd (1998) 17 NSWCCR 70, per Walker J xii

xiii

Return to Work Act 2014 (SA)

Workers Compensation Act 1987 (NSW)

Shore v Tumbarumba Shire Council [2013] NSWWCCPD 1.

Kosior v State of Victoria (Department of Education and Early Childhood Development) (WorkCover) [2014] VMC (29 October 2014)

Amber Chandler is a Sydney-based partner practising in employment law at Barker Henley.

She regularly advises employers in regard to HR issues and appears before the Fair Work Commission, the Federal Circuit Court and state employment tribunals.

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EMPLOYMENT LAW SPECIAL REPORT

BULLYING

IS WORKPLACE BULLYING ON THE RISE? Alice DeBoos says it’s time to separate facts from fiction when it comes to instances of workplace bullying A REPORT released late last year created headlines when it concluded that workplace bullying was steadily increasing in Australia, with 9.7% of workers experiencing bullying and 32.6% of those being bullied on a weekly basis.1 But is this more perception than reality?

Bullying has been a widely reported taboo at work for many years now, and it seems incongruous that, with all the awareness training, policy work and organisational attention unlawful behaviours would be on the rise. Without diminishing the devastating effect that bullying can have, is it not the reality that employees are more likely to attach the label to behaviours rather than there being any actual increase in true workplace bullying?

My experience is that the most common grievances dealt with by organisations are allegations of bullying made by employees against their supervisors or managers.

However, once investigated, it is unusual for such allegations to be substantiated. Leaving aside those complaints that can be readily dismissed, more usually a finding that there has been a communication breakdown or less than ideal management techniques is the outcome.

This mismanagement or communication failure creates frustration, tension and often distress, but it is not unlawful bullying.

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A definition of bullying Nobody likes to be performance managed.

Nobody likes to have a manager whose style and approach clashes with their own, and nobody likes to have a difficult relationship with their manager. When any of these issues arise, work can become stressful and riddled with tension.

In those circumstances, it is not surprising that an employee answers in the affirmative when they are asked if they have experienced bullying – defined as the following: “offensive behaviour has to occur repeatedly over a period of time and the person confronted has to experience difficulties defending him or herself ”.2

A ‘REASONABLENESS’ TEST Whether or not someone finds the behaviour of another offensive is entirely subjective. The legal test applied, however, is one that is objective in nature and based upon a test of reasonableness. This is the reason for the divergence between perception and reality. It is absolutely the case that a difficult working relationship can cause distress and anxiety, but this effect should not automatically lead to the conclusion that the behaviour causing the problem was unlawful or even unreasonable.

The anti-bullying jurisdiction of the Fair Work Commission has borne out this conclusion. If workplace bullying was as prevalent and increasing as reported, then surely there would have been numerous orders being issued by the Commission to curb such behaviour. Instead, in three years, only a small handful of successful applications have been made, and those orders have almost entirely involved small businesses that lack the policies, training and systems that more sophisticated employers accept as the norm. Instead, the Commission has routinely rejected applications in a series of decisions which have taken a sensible approach to the issue, highlighting that performance management, workplace tension and conflict are all normal hallmarks

of the workplace and not to be mistaken for unlawful bullying, regardless of how the employee feels about their treatment.

Bringing it back to reality This does not mean that bullying does not occur, but it does in my view mean that the emphasis should be on two key aspects of workplace interaction.

Firstly, employees need to understand that workplace tension, difficult situations and relationships do not necessarily create bullying and instead are circumstances that need to be addressed through training, discussion and mediation, rather than resorting to bullying complaints.

can instead enable a culture of complaint, rather than teaching employees that difficult relationships need to be resolved through other means. A good policy is drafted to enable a flexible and discretionary approach to dealing with complaints, which can then free up valuable HR resources to manage the relationship issues at the heart of the problem.

Time to refocus While employers always need to reinforce a zero tolerance approach to bullying within the workplace and discharge this fundamentally important legal duty of care towards employees, it is also the case that employees need to understand that

I often see employers automatically launch into formal investigations of bullying complaints when an informal approach would have been more appropriate Secondly, focusing on managers’ skills is vital in reducing tension to begin with. Managers need to be confident about giving performance feedback and having difficult conversations.

They need to understand and appreciate that employees have to be managed in different ways, and be aware of perceptions and personality types. Not everyone responds to the same management style and managers need to be adaptive and responsive.

Cultural change can also be assisted by organisations taking a less formal approach to workplace complaints when any reasonable assessment of the complaint concludes that the behaviour is not bullying as defined by the law. I often see employers automatically launch into formal investigations of bullying complaints when an informal approach would have been more appropriate. The employer feels it is mitigating legal risk, but in reality a standard formal approach, when the allegations are not of a serious legal nature,

resilience is a vital quality. My view is that employers have a very good understanding of their obligations with respect to workplace bullying and all that I deal with have the required systems, training and policies in place. Rather than an increase in unlawful behaviour, we are experiencing an increase in the labelling of difficulties as bullying. We need to change the dialogue on this issue and focus instead on ensuring that everyone in the workplace understands how to manage difficult situations and relationships within teams.

References: 1

Bullying & Harassment in Australian Workplaces: Results from the Australian Workplace Barometer Project 2014/2015 – November 2016, Potter, Dollard, Tuckey 2

Alice DeBoos is a partner and global practice area leader of the Labour, Employment & Workplace Safety team at K&L Gates.

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16/02/2017 4:13:58 PM

EMPLOYMENT LAW SPECIAL REPORT

GENDER DISCRIMINATION

LITIGATING THE GLASS CEILING Class actions alleging gender discrimination are ubiquitous in the US. Helen Donovan and Kirsty Faichen look at whether Australia is set to go down the same path ONE OF a director’s key responsibilities is to assess whether there are appropriate policies and procedures in place to enable effective oversight and management of risks, including (but not limited to) the identification of principal risks, and effective management of those risks. This article considers a compliance and brand risk that may not be at the forefront of every director’s mind. The risk of being subject to a class action involving current or former employees alleging gender discrimination is not far-fetched or fanciful, particularly given how popular that type of litigation is in the US. Boards should include this risk when assessing employee-related risks, and they should develop and implement strategies to manage any identified risks associated with gender discrimination within their organisations.

In the US, the home of the class action law suit, class actions alleging gender discrimination are ubiquitous. It’s even a topic of popular culture. Recently, Hilary Swank revealed that she was offered 5% of what a male counterpart was offered for a role

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in a film. She had won two Oscars, “… but the male hadn’t had any kind of critical success … and he got offered $10m, and I got offered $500,000”. In an acceptance speech at the Oscars in 2015, Patricia Arquette referred to the need to close the wage gap. “It’s time to have wage equality once and for all, and equal rights for women in the United States of America,” she said.

Earlier this year, Novartis agreed to pay $8.2m to settle a proposed class action lawsuit by more than a dozen female employees alleging gender discrimination in relation to pay and promotional opportunities. In the last two years, Goldman Sachs, Daiichi Sankyo and Sterling Jewellers (among others) have all faced class actions involving gender discrimination in relation to pay and promotional opportunities

Australia is regarded as an attractive jurisdiction for class actions and there is an increasing presence of litigation funders here Gender discrimination overseas It’s not hard to find examples in the US of employees litigating the glass ceiling. In August 2016, Kerrie Campbell, an equity partner at the law firm Chadbourne and Parke LLP, commenced a $100m class action against the firm on behalf of current and former female partners alleging discrimination in relation to pay and decision-making power.

(among other things). Perhaps the most wellpublicised class action in recent times involved the claim by Ms Dukes against Wal-Mart Stores alleging gender discrimination in relation to pay and promotion. This matter went all the way to the US Supreme Court, which found in 2011 that the 1.5 million employees in the class action did not have enough in common to proceed as a class action.

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boardroom enhances decision-making and can boost organisational performance.

We are yet to witnesses large-scale class actions in Australia alleging gender discrimination. Despite this, Australia is regarded as an attractive jurisdiction for class actions and there is an increasing presence of litigation funders here. The largest litigation funder in Australia, IMF Bentham Limited, has a presence in five Australian cities.

Recent research by Professor Vince Morabito (Monash University) indicates that class actions involving workers have declined somewhat in the past decade or so. This may be due to unions using other mechanisms to resolve disputes and workers relying on the Fair Work Ombudsman to recover

Closer to home In Australia, closing the gender pay gap and improving diversity in the workplace is gaining greater attention and becoming more of a business issue. This is driven by shifting social expectations and an increase in legislative reporting requirements and focus on diversity at the board level.

Private sector organisations with more than 100 employees are required under the Workplace Gender Equality Act 2012 (Cth) to report to the Workplace Gender Equality Agency against a set of indicators, including equal remuneration between women and men. At the board level, the ASX Corporate Governance Council Principles and Recommendations on Diversity report suggests that boards of listed entities set measurable objectives for achieving gender diversity. The Australian Institute of Company Directors’ diversity campaign, the 30% Club, aims to achieve 30% women on S&P/ASX 200 boards by 2018. This campaign recognises that diversity at the board (and senior management) level is not just a social imperative – research indicates that having both genders in the

the same volume of litigation as in the US. Arguably, the rules of litigation in Australia do a better job of fending off spurious claims (despite the relative simplicity of commencing such actions). Courts in Australia require that the losing party pay costs, unlike in the US. Also, lawyers are not allowed to charge contingency fees calculated by reference to award or settlement value (although litigation funders may take a percentage of the amount paid to the members of the class, and ‘no win no fee’ is allowed in most Australian states).

Litigation funders are always looking for new claims to invest in, and awards in discrimination claims are on the rise in Australia. In 2014, the Full Court of the

Boards would be well advised to include in their risk assessments the possibility of a class action involving current or former employees entitlements. However, we do know that since class actions became permissible in the Federal Court of Australia in 1992, class actions by aggrieved workers have made up a good proportion (13.7%) of all class actions pursued in that jurisdiction.

Future directions There may be signs on the horizon that class actions involving workers could become more common. Recently, a group of former workers filed a class action in the Federal Court against Appco, one of Australia’s largest charities, alleging sham contracting and underpayment of wages. It is estimated that up to 8,000 former workers could join the class action. And Unions NSW has recently foreshadowed a possible class action against job-posting websites such as Airtasker for not paying minimum award (see its report, Innovation or Exploitation: Busting the Airtasker Myth).

Perhaps, though, we won’t see quite

Federal Court made an award for $100,000 in damages in a sexual harassment claim. In 2015, the Victorian Civil and Administrative Tribunal made an award for $180,000 in general damages, plus $20,000 in punitive damages, also in a sexual harassment claim.

If the trend towards greater damages in discrimination claims continues, litigation funders may become more interested in litigating Australia’s glass ceiling.

Boards would be well advised to include in their risk assessments the possibility of a class action involving current or former employees and ensure strategies are in place to ensure gender equality in the workplace.

Kirsty Faichen is a partner and Helen Donovan is a senior associate in the employment practice at law firm Herbert Smith Freehills.

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FEATURES

PSYCHOMETRIC ASSESSMENTS

A NEW ERA FOR PSYCH TESTING Psychometrics as a science may have its roots in Cambridge as far back as 1886, but today psychometric tools and assessments are helping businesses navigate a rapidly changing world

“IF WE’RE going to emerge from the worldwide economic slump, entrepreneurs will lead the way.” That was the 2012 prediction of Sangeeta Badal and Joseph H Streur of global consultancy Gallup.

For those who view entrepreneurialism as something that thrives in start-ups but flounders in larger organisations, think again.

Although entrepreneurship has been hailed as a crucial engine of economic growth, the

entrepreneurs, has to this point produced an inconsistent body of research with limited empirical evidence.

Enter a psychometric instrument known as the Entrepreneurial Mindset Profile (EMP).

The original goal of the tool was to identify and measure a set of variables that clearly distinguished between entrepreneurs and non-entrepreneurs. The EMP takes less than 10 minutes to complete online, and the report

“Computer-generated reports made the real difference to usefulness of psychometrics in the workplace” Sharon Hudson concept of an entrepreneurial mindset does not just apply solely to business owners.

Entrepreneurially minded employees, sometimes referred to as ‘intrapreneurs’, are shaking up established norms across all business sectors.

But how do you know if you or one of your team has the traits of an entrepreneur? The search for individual differences between entrepreneurs and non-entrepreneurs, and between more and less successful

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it generates, while comprehensive, is easy to understand. The normative data enables individuals and teams to compare their results with those of entrepreneurs and corporate leaders across all industry segments. The report also includes constructive strategies to promote the entrepreneurial skills of both managers and individual contributors.

The EMP is one of several psychometric assessment and diagnostic tools offered by Talent Tools.

Fit-for-purpose tools The core purpose of the field of psychometrics remains largely unchanged. It can include the measurement of innate traits, such as personality characteristics and behavioural traits, as well as innate skills, such as strengths in numerical or verbal abilities, values, attitudes, bias, and much more.

Sharon Hudson, founder of Talent Tools, says the range of psychometric assessments and diagnostic tools on the market today is much wider and deeper than it once was. “Computergenerated reports made the real difference to usefulness of psychometrics in the workplace,” she tells HRD. “The days of completing a form and turning the page to see how to add up and apply the scores, or turning to the page with your result in the accompanying booklet, are long gone.”

However, identifying the option best suited to your needs can be daunting. Hudson says it’s critical to firstly choose a tool that is fit for purpose. In the workplace environment, she adds, this cuts down the contenders very quickly. “The majority of instruments on the market are aimed at ‘whole of life’ with relevance to your work,” she says. “What you need is a product specifically designed for workplace applications, which will also have relevance away from work.”

From there it’s critical to assess both the validity and reliability of tools.

“When we talk about the validity of a tool, we are talking about how closely the questions/choices correlate with the test intent,” says Hudson. “For example, if I’m assessing social reasoning then mathematical equations are unlikely to yield any useful data.

Are we testing what we say we are testing?”

The reliability of the instrument means ensuring that if the assessment was done on the same person, under the same conditions, on several occasions over a period of time, the results would be either stable (reliable) or erratic (unreliable).

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THE POWER OF POSITIVE PSYCHOLOGY

Hudson suggests there are three components of any assessment that need to be run through a validity and reliability check to ensure it’s a rigorous tool: The questionnaire, the ‘instrument’ used to collect the data. This can be a challenge, because different assessment purposes and outcomes require different initial data input. Hudson explains: “For example, if I want to get to your unconscious natural self, say for a personality or behavioural diagnostic, to get past your conscious mind’s filter and get to your unconscious level I need a tool which is low in face validity. This is where it is not obvious what the outcome is going to be from considering the question and the available answer options. If the assessment

Peter Drucker was one of the first business thinkers to identify that organisational success is built on the collective strengths of those in the organisation. He stated: “It takes far less energy to move from first-rate performance to excellence than it does to move from incompetence to mediocrity.” Indeed, research shows that over 80% of all employees don’t get the opportunity to do what they do best every day, which subsequently has a negative impact on engagement and execution. Strengthscope, also offered by Talent Tools, enables employers to discover the strengths of their employees individually and collectively and understand how these combine with skills, knowledge and experience to unlock peak performance.

“Strengthscope is the key for employers to identify your own strengths and play to them every day at work, and then identify employees’ strengths to create a positively engaging workplace™,” says Hudson.

is like Strengthscope [see box above], which wants your conscious response and is searching for what energises you, then an instrument with face validity is more likely to get accurate responses to analyse. The instrument is paramount, because once the data has been gathered, that is what is going to be analysed and used to populate the report.

The data cannot be improved upon, only analysed and presented.”

The analytics, the algorithms and intellectual property that does the analysis of the data collected. “This is a great unknown as it is never seen nor shared to any great extent. A good indicator of a rigorous analysis is whether the system has an inbuilt safeguard to not provide a report if the data does not meet strict consistency protocols or standards, ie garbage data in, no report out.”

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FEATURES

PSYCHOMETRIC ASSESSMENTS Brought to you by

THE ENTREPRENEUR IN YOU The Entrepreneurial Mindset Profile feedback report provides scores on 14 discrete scales that fall within two broad domains: the personality characteristics and motivations that often distinguish entrepreneurs from non-entrepreneurs; and the cognitive and behavioural skill dimensions that indicate how entrepreneurs typically approach tasks and the abilities they demonstrate. Examples include: • Independence: the desire to work with a high degree of independence • Preference for limited structure: a preference for tasks and situations with little formal structure • Non-conformity: a preference for acting in unique ways; an interest in being perceived as unique • Risk acceptance: a willingness to pursue an idea or a desired goal even when the probability of succeeding is low • Action orientation: a tendency to show initiative, make decisions quickly, and feel impatient for results

TALENT TOOLS Based in Brisbane, Talent Tools has been providing scientifically validated workplace assessments for every stage of the employee life cycle throughout Australasia for over 10 years. Talent Tools is a one-stop shop for workplace diagnostic and developmental reports, training resources, accreditation training and in-house workshops. To arrange a free, no obligation 20-minute strategy session, email: team@ talenttools.com.au or call 1800 768 569 or 61 7 3103 0177.

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The report: its contents and presentation.

“Does it provide the information you need to fulfil the purpose for which it was obtained?

This goes to author Stephen Covey’s advice to ‘begin with the end in mind’. Even then, it is not difficult to design aesthetically appealing reports that are easy to read and contain seemingly relevant content. But regardless of how good the report looks, if the original data is poor and the analytics weak, it could be inaccurate and misleading.”

Big data in psychometrics Hudson adds that a solid ‘foundation tool’ can ensure that HR decisions can be made at the individual, team and organisational levels throughout the employee life cycle – thus negating the need for a different

Using FinxS enables the organisation to use the same competencies throughout its Talent Tools Logo Branding Colours assessment processes. darkmagenta Psychometric tools such as FinxS are also utilising insights gleaned from big darkslategray data. Employees with a certain profile warning signal can be identified throughout Font the organisation. For example, someone with a high consciousness and high need for autonomy profile, but who lacks clear direction from management, will be performing below their capability. Low job satisfaction and disengagement typically follow. FinxS can mine the organisation’s talent data to identify profiles that meet this criteria, enabling management to take corrective action.

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“What you need is a product specifically designed for workplace applications” Sharon Hudson product each time specific individual or team data is required.

She believes the best foundation tool is Extended DISC’s groundbreaking FinxS System.

Once the individual’s data is collected through the online questionnaire, which takes around 12 minutes to complete, the system uses sophisticated algorithms to analyse the data and provide the results compared to a continually growing database of workplace competencies. At last count there were approximately 1,500 competencies available.

This enables the company to determine the relevant measurements for the role and to measure against those same competencies for recruitment, onboarding and performance management. This consistency is often lost in organisations when they use one set of competencies to recruit, another in their performance assessments, and yet another in their 360-degree feedback initiatives.

management, especially in multinational organisations where this issue can easily go unnoticed,” Hudson says.

Time for a training session?

Market-leading suppliers conduct ongoing research and longitudinal studies to identify patterns and trends in the worldwide data collected by their instruments. From this they can pose and test hypotheses and make new discoveries.

“Becoming accredited and staying abreast of developments is really important to getting the most from your investment,” Hudson adds.

Talent Tools accreditation training takes a blended approach, usually consisting of one or two days of training – including selfpaced online learning via a learning app – and then a training workshop or live online learning. Talent Tools practitioners also enjoy ongoing support and regular system and application updates.

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FEATURES

REWARD & RECOGNITION

A BRIDGE TO ENGAGEMENT SUCCESS

Looking to become a ‘Best Employer’ in 2017?

A reward & recognition framework, which places engagement at its core, may be a step in the right direction

AT THE start of a new year, everything within HR’s broad mandate will be reviewed and assessed for efficiency and results – and the company reward & recognition strategy is no different.

Taking stock requires being aware of emerging trends. Debra Corey, global reward director at Reward Gateway and author of

suggests employers are reacting and preparing for this by adding both choice and flexibility to their R&R offerings. They do this in a few ways: Multiple plans – “Companies are finding that just one R&R plan is not enough; they need multiple plans to reach their entire diverse workforce,” says Corey.

“The world’s most successful companies break the rules of traditional HR. They rebel against the status quo” Kylie Green, Reward Gateway Effective HR Communications, tells HRD there are two key emerging themes.

Spreading the love far and wide Trend number one is diversification. For the first time there are five generations operating side by side in the workplace. What does that mean for R&R offerings? How can employers support a more age-diverse workforce? Corey

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“Think of it like a balanced meal, with different types of food (plans) making up a healthy meal. Add some e-cards, some instant awards, perhaps an employee of the month – whatever it takes to create the right balanced ‘meal’ at your company.”

Multiple awards – Companies are also finding that different R&R awards

motivate different people. Corey explains: “Some are motivated by cash, others by vouchers, and others by a simple thank you.

So the trick here is to not put all your eggs in one basket, as the expression goes, and add many ‘eggs’ to your R&R basket: different sizes, different colours, you get the idea.”

Multiple senders – “In the past R&R programs were top-down, so made up of manager-to-peer recognition,” Corey says.

“However, studies have shown the power of peer-to-peer recognition, with one study finding that peer-to-peer recognition is 40% more likely to have a positive impact on financial results than manager-only recognition.” For this reason, more and more companies are creating ‘anyone’ recognition, so opening it up to allow anyone, regardless of job level, to join in on recognition.

In the now A second emerging trend is immediacy.

The world is getting faster and faster, which impacts all facets of our lives, including R&R. Many complain about this, saying the world needs to slow down, but in some situations it can have a huge positive impact. A perfect example of this is in R&R programs.

In today’s world, R&R can happen in a matter of seconds: go online, select the employee name, click on ‘send’, and the reward or recognition gets sent immediately.

“This has completely changed R&R, creating the immediacy which delivers a more effective overall program,” Corey says.

While mobile and social technology may be hogging the headlines, Corey also references a new term, ‘digital mesh’, which was listed in a survey by Gartner as one of the top 10 strategic technology trends.

It can be explained as an expanding set of endpoints people use to access applications and information or to interact with others

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Brought to you by

THE ENGAGEMENT BRIDGE Reward Gateway has developed ‘The Engagement Bridge’ over the last 10 years through work both at home (with the company’s employees) and with over 1,300 clients. The model highlights the practical areas that organisations need to examine in order to build a highly engaged company culture, taking into consideration each of the 10 pillars of the bridge.

both at work and at home (eg computers, laptops, mobiles, etc). An example shows how it works.

Picture an employee using a benefit such as an online discount portal. The employee goes onto the portal on their work computer at lunchtime to select a few items they want to redeem their award for, but leaves them in their basket as they have to run to a meeting. Once they’re on the train home they pull out their mobile, go into their basket, and complete the transaction. So from the employee’s perspective, the experience follows

them from device to device, meshing together the experience. It’s something to consider for your organisation’s R&R strategy.

Getting a framework in place With so many moving components, HR professionals should also focus on creating an R&R framework – indeed, Corey suggests that such a framework can be the difference between success and failure. HR should start with a strategy. You do this by answering one simple question: Why? Why do you have or want to have recognition at your company?

Are you doing it to improve productivity, improve engagement, reduce turnover, achieve a business target, drive company values, or possibly a combination of all or some of these?

The next step is to begin ‘filling your basket’, or developing your R&R program and plans. You do this by answering the question: What? What kind of program do you want to create to support these objectives? Here are some of the key decisions to consider: • Do you want a formal or informal program?

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FEATURES

REWARD & RECOGNITION Brought to you by

R&R IN BEST EMPLOYER COMPANIES “The world’s most successful companies break the rules of traditional HR. They rebel against the status quo,” says Kylie Green, sales director at Reward Gateway ANZ. Here are a few ways they do this: They make sure that each and every R&R program is linked to both their business and HR strategies.

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By definition, they’re not afraid to do things differently.

This isn’t related to an R&R program, but a great example is a global company that gives employees access to salaries for every single employee at the company. Is that mad or genius?

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They gain top-down support for their R&R programs, understanding that they need leadership standing right next to them as they blaze new trails. They also see it as critical to role-model R&R behaviours, creating a strong recognition culture.

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They empower their managers, giving them the responsibility and tools to drive R&R.

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REWARD GATEWAY Reward Gateway provides employee engagement technology to the world’s leading companies. Over 1,300 clients, including Optus, KPMG and McDonald’s, use the company’s products to attract, engage and retain the best employees.

The company’s products power employee communications, employee recognition, employee benefits and employee insights through a single employer branded hub called SmartHub®.

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• Do you want to recognise with cash and/or non-cash?

• Do you want to recognise individuals and/or teams?

• Will it be just manager-to-employee recognition or will it also include peerto-peer recognition?

• Will all employees be eligible?

• Will it be global or local?

• Will it be online or paper-based?

“Whatever you decide, make sure that what you put in your ‘basket’ goes back to your strategy. If not, they won’t fit in your

The best way to do this is by taking a holistic, integrated and real-time approach to employee engagement. Reward Gateway advocates a model called ‘The Engagement Bridge’ (see diagram, p43) to do just that.

The model highlights the practical areas that organisations need to examine in order to build a highly engaged company culture, taking into consideration each of the 10 pillars of the bridge. R&R (called ‘recognition’ on the bridge) is absolutely critical but if done in isolation will not deliver the results companies want and need to succeed.

“One study found that peer-to-peer recognition is 40% more likely to have a positive impact on financial results than manager-only recognition” Debra Corey, Reward Gateway basket properly,” Corey suggests.

The final step is often overlooked but is critical: create engagement. You can create an amazing program, but if no one engages with it then it serves absolutely no purpose.

Becoming a ‘best employer’ If your aspiration in 2017 is to obtain ‘best employer’ or ‘employer of choice’ status, it’s critical to consider R&R as one component of an overall engagement package. Corey cites Glenn Elliott, founder and CEO of Reward Gateway, who says: “The truth is that employee engagement isn’t easy and you will never finish the job. You will have setbacks and problems. It’s much more of a jungle gym than a ladder. But if you push forward in the right direction you will make progress, sometimes just one person at a time.”

Corey offers three tips for using the engagement bridge.

Firstly, there is no fixed starting point.

Start where you can act fastest and/or where you believe you’ll have the greatest and/or quickest impact.

Secondly, it’s important to not skip a pillar; each and every one is important and should be tackled at some point. If not, like a bridge missing a pillar, engagement will fall apart.

And finally, it’s a never-ending journey, so think of it as a marathon and not a sprint.

“The good news is, the more effort you put in, the more you’ll get out,” Corey says.

For further information about The Engagement Bridge, visit rewardgateway.com, where there are always lots of helpful blogs with tips for each of the bridge pillars. Alternatively, read the book, titled Build It: A Rebel Playbook for Employee Engagement, which will be published in December 2017.

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INSIDE HR

COMMVAULT

SCALING FOR GLOBAL GROWTH

While significant expansion would make most organisations envious, it can come at a cost. HRD chats to one global HR leader who has helped transform and scale his company’s operations 46

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IN LATE 2016, Commvault celebrated what company insiders called its 20-10 anniversary: 20 years as an independent company and 10 years on the NASDAQ stock exchange. CEO Bob Hammer and around 40 Commvault software developers went to New York to ring the closing bell for the day of trading. For Jesper Helt, CHRO at Commvault, the day was highly symbolic: instead of a group of senior executives in attendance it was the developers. “That is Commvault’s story,” he says. “It’s our bread and butter.”

Commvault is a global technology vendor that provides data protection and information management solutions for some of the world’s

HRD: What’s the history of Commvault?

Jesper Helt: It was formed in 1988 as a development group in Bell Labs, and later became a business unit of AT&T Network Systems. It was incorporated in 1996 following the deregulation of the telecoms sector, and segments of that business were sold off. At that time our current CEO, Bob Hammer, came on board. You could not really call him a founder, but in a way he is.

When we became an independent company 20 years ago he was there, and he is really the founder of the Commvault we know today.

We have 2,700 vaulters all over the world.

“It can be hard to move an HR function along … In larger HR organisations, which I’ve been part of in the past, it’s very tough” largest enterprises. It operates across the Americas, Europe, Africa and the Asia-Pacific, and employs almost 2,700 staff worldwide – last quarter alone it posted over half-a-billion dollars in revenue.

Helt joined the business two and a half years ago, just as it was undergoing a massive global rebrand to address the company’s declining revenue and its failure to take significant market share away from competitors. During this transformation, Helt played a key role by changing the recruitment process, specifically focusing on the types of people being hired for the business. HRD chatted to Helt about how HR has helped with the transformation.

Around half of these are based in the Americas – the US, Canada and Latin America – and around 35% are in EMEA and the remaining in APAC. We have a presence in 36 countries and, although we have not entered a lot of new markets in recent years, just in my two and a half years in the company we’ve opened up seven new markets. We’re headquartered in New Jersey and really the business has grown from that base. We’ve been in Europe for close to 18 years, and APAC came a little bit later. However, from a presence and head count perspective in the last 2.5 years alone, growth in both APAC and EMEA has been quite significant.

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INSIDE HR

COMMVAULT MANAGING THE PAIN POINTS McKinsey & Company identified three common ‘pain points’ for rapid-growth companies.

Stifling structures Well-defined organisational structures establish the roles and norms that enable large companies to get things done. Therefore, when growth plans call for doing things that are entirely new – say, expanding into new geographies or adding products – it’s well worth the leadership team’s time to examine existing organisational structures to see if they’re flexible enough to support the new initiatives.

Sometimes they won’t be.

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Unscalable processes Business processes are another area that companies often overlook, to their detriment, when they are growing. It’s important for a company to determine which processes will come under particular stress when it grows.

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Unprepared people Growth naturally creates new interactions and processes, expected and unexpected, and often at a fast pace. To manage them, the employees who face the greatest complexity – for example, those in functions or businesses that will see increased activity – must have ‘ambidextrous’ capabilities. These enable people to take initiative beyond the confines of their jobs, to cooperate and build linkages across the organisation, and to complete many tasks in parallel.

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HRD: How does HR operate at the company?

JH: I have a global role. I was brought in with a background in HR in the pharma and technology industries, which I’d worked in around the world for a number of years. I joined when I was on the West Coast of the US, based in Silicon Valley. The idea, as my boss said to me, was “to bring a West Coast feel to an East Coast company”.

What he meant by that is, there’s a tendency in the US to foster more innovation – particularly HR innovation – on the West Coast rather than the East Coast, which tends

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to be more conservative and old-school HR. The Valley in particular spearheads this. A lot of the cutting-edge outside-of-the-box thinking is coming out of that part of the US. So I was enticed by that opportunity. Also, the company had enjoyed tremendous growth but did not really have a strategic HR function. There was of course an HR function but it was more an administrative, transactional HR function.

That said, the people agenda has been front and centre at Commvault from the get-go, so it wasn’t like good things weren’t being done; it was just the HR function was not built to scale up. The company had reached a point in time – around 1,500 people – where it was

down to actually putting it into practice there is a lot of resistance, not only from the HR function but from the business itself. How do you bring the business along if it’s been accustomed to certain things?

HRD: Can you provide a specific example?

JH: Take vacations. This is mainly a US phenomenon, but in the US certain companies have moved to unlimited vacations, versus the old way where you had a certain number of allocated days off and the employer kept track of it. Getting the business to feel comfortable with a change like that, and the HR function

“When I joined Commvault, I found that if I asked 10 different people what prospective talent or what a high-potential candidate looked like, I’d get 10 different responses” decided that what had been done historically would not help with the scaling of the culture and processes.

who manage it – because it requires a slightly different mindset – can be a challenge. Trust is the key.

HRD: Many larger organisations do look to those tech start-ups for bright HR ideas. How well received was that West Coast approach in a more traditional, structured HR company?

HRD: Continuing the change theme, I understand you joined the company just as it was undergoing a significant transformation. Can you outline what was happening?

JH: It can be hard to move an HR function along. I was lucky in that there was only a small HR function so there weren’t a whole lot of changes for me to undertake. But in larger HR organisations, which I’ve been part of in the past, it’s very tough. It puts your identity to the test. If you have been a very well-executing HR function but focused on the classic HR policing of policies or being very strong on transactional HR, suddenly you need to forget about policies and move towards guidelines, for example. It’s more about adding strategic value. That’s a tough transition, one that many HR functions are struggling with. They like the talk – it all sounds very appetising – but when it comes

JH: The simple version is the whole industry we are in was being disrupted. In the storage back-up industry we’ve seen more and more enterprises move to the cloud. It happened so much faster than anybody anticipated, and the industry at large had a hard time adapting to that. We saw it coming and we were working on it, but the speed by which it hit took us by surprise. What that essentially meant was that a company that had become a Wall Street darling because it had seven years of 20% growth on top- and bottom-line results, quarter after quarter, all of a sudden hit a wall.

That was part of it; the other part was coming out the other side and building a company that could scale beyond 1,500 people.

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HRD: What did you do?

JH: We’ve spent a year and a half, maybe a little longer, transforming in a couple of ways. For example, we worked to get our set of solutions and software second to none in relation to our customers being able to manage, secure and access their data in the cloud as well as if it’s on-premise. That required massive innovation in our platform and in our solutions. Other work was done on the organisational front in terms of scaling the organisation, building out the capabilities – be it in sales, technical roles, marketing – because with the disruption also came the need for different types of personnel.

HRD: I understand you were involved in changing the recruitment process?

JH: We didn’t have a recruitment function or capability that was built to find as much talent as we needed. So that was a major part of it: building up the recruiting function in all parts of the world. The even bigger element was getting proactive with some of the technologies that are now available in the recruitment space – for example, building a sourcing strategy so we can leverage social media data and rapidly locate talent globally. We wanted to be able to source talent proactively and build talent pools so even if we didn’t need it immediately we’d have someone to get in touch with in three or four months – and of course, as part of that, building robust talent selection processes. That meant ensuring there was a strong partnership between the talent acquisition function and the hiring managers, and then establishing what sort of talent we want.

When I joined Commvault, I found that if I asked 10 different people what prospective talent or what a high-potential candidate looked like, I’d get 10 different responses.

When organisations are growing so fast, that sort of thing just happens. We were venturing into new markets and moving from being a mid-market player to being an enterprise player. The skill sets required were different, and it took some time to define and crystallize the profiles of people who are likely to be successful here. We worked with the business

Jesper Helt at Commvault HQ

THE PERSONAL IMPACT OF RAPID GROWTH Jesper Helt outlines three ways he’s managed to keep on top of an ever-changing work environment: Prioritise what makes the biggest difference. “That also means leaving behind some of the things that could keep me very busy; I used to do them but they are not really moving the needle.”

Move to an agile philosophy. “Forget about sequential strategy implementation. Break away from that and do spurts instead – spurts on different projects or tasks so you can move on many things in parallel. You do not necessarily look to get to 90–100% completion. If you get 60–70% of the way there that’s good enough because you’ve been able to move on five things in a fairly short period of time versus carefully planning out one or two initiatives but taking twice the amount of time. At least in my world, a lot of things will have changed, so even two-year strategies or projects run the risk of not being relevant once we get to the end of it.”

Foster courage in your team. “Trust your instincts and celebrate on an ongoing basis if you’re heading in the right direction.” to build success profiles, and thinking through what has changed and how that will impact on the experiences people will have when they join us. That then impacted on the talent pools in which we were looking for talent.

HRD: How far along the transformation process do you think you are?

JH: It’s ongoing. You need to keep on your toes, especially in this industry. From an HR perspective I think we’re getting to the point where we’ve solidified the foundation, we’ve built our team, we have some more robust, scalable processes in place. The next step is to ramp up the benefits of having those foundations, which is about getting the brand and the story out there, and then bedding in these processes and ensuring they

become part of the DNA of the company.

We want to have fun along the way; I have a photo of me on the slide at work and that’s exactly the sort of work environment we’re trying to create. We have game rooms and outdoor fitness facilities, and at first you go, ‘Does that really belong in the workplace?’

But yes, it does. It helps you get into other parts of your brain, and if your job is to innovate, that’s a good thing. Our sporting competitions also help connect people. We’ve now got 800 people at our headquarters, so we started to run into trouble with the development team not collaborating with the marketing team, and so on, due to the distance between people that growth can create. These cross-functional, fun competitions help build connections.

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FEATURES

TECHNOLOGY

THE NEXT ITERATION OF WEARABLE TECH We all know that wearable technology can enhance employee health and wellbeing, but what happens next? Iain Hopkins investigates

WHAT DO Usain Bolt and the average HR director have in common? Looking purely at standards of health and fitness, possibly not a lot. However, there is a shared bond, and it comes from an unexpected source: wearable technology.

The elite sporting world has been utilising wearable technology for years in order to identify the conditions in which a person’s body can achieve optimum performance. The data provided by this technology indicates what we probably all know: peak performance is difficult to maintain at all times. Elite athletes need periods of rest. They will focus on intense bursts of high performance followed by periods when they replenish themselves with rest or lowerstress physical activity. Contrast that with the

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expectations of high performance in your organisation: it’s not just expected nine to five but possibly around the clock.

It’s this disconnect that technology is helping to close.

Kicking wearables to the next level Wearables in the business world have been utilised in several areas – wellness and safety programs being the two obvious examples. It’s commonplace to hear of employers buying Fitbits for employees in order to shift them towards healthy activities. Meanwhile, companies like Rio Tinto have been building sensors into equipment and clothing to monitor fatigue and guard against micro-

sleeps. However, according to Aaron McEwan, HR advisory leader at CEB, this barely scratches the surface of what’s possible.

“For me there are much loftier goals that we can work towards,” he says. “This technology can be an effortless collector of data which could enable organisations to do so much.”

Using the right algorithms, HR managers could greatly reduce the impact of workplace stressors, engagement obstacles and unconscious bias so that organisations can more accurately make informed decisions regarding appropriate work environments, task distribution, promotions, pay and overall performance.

“By using technology in this way, HR can

Paying a debt to neuroscience, psychological ‘nudges’ will gently push people towards the right behaviours ensure greater and faster access to information about individuals and networks that can more accurately measure the true impact of employees on the business, rather than just relying mostly on managers or 360-degree viewpoints,” McEwan says.

Nudging towards greatness Fitness trackers have been very effective at

changing behaviours and doing so in a way that doesn’t require an intervention from a manager or coach: people simply get a kick out of hitting their step count. That feedback is immediate and (hopefully) a positive inducement to keep doing it.

Then there’s the ‘nudge’ factor. Paying a debt to neuroscience, psychological ‘nudges’ will gently push people towards the right

behaviours. McEwan cites an example in the UK. Rather than punishing people for not filing their tax returns on time, the government opted to use psychological ‘nudges’ to gently make them do the right thing. Another example comes from Norway.

Exiting the local subway system, commuters had a choice of stairs or escalator. Around 90% of people use the escalator and 10% the stairs. However, once the stairs were turned into an interactive piano keyboard, the usage rate flipped.

“What we’ve got are basic fitness trackers to give us these feedback loops around positive behaviours – whether it’s the number of steps taken or the number of times we

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FEATURES

TECHNOLOGY

PATTERNS, CONNECTIONS AND COMBINATIONS: ALGORITHMS IN ACTION When combined with the right algorithmic-based talent management platforms, wearables have the potential to change many elements of people management – but what are the ‘right’ algorithms?

“We have the same problem with big data: you’ll find what you go looking for. Often we develop a hypothesis and then go through the data. You’d be better off not going in with a preconceived notion of what the data is going to tell you. Instead, look at the right patterns, connections and combinations of variables. That’s what we mean by having the right algorithms in place.”

An outbound call centre, employing thousands of call centre operators, provides a case study. The company wanted to know what differentiated their high performers from their mediocre performers and whether it would be possible to predict who might become a high performer. Instead of creating ‘success profiles’ off the back of psychometric assessments of high performers, and then looking for the correlations between high performance and cognitive output, EQ, outputs, etc, algorithmic processing was tried. This meant looking for patterns in the résumés of all call centre operators.

The best predictor of high performance was a surprise: it turned out to be a background in the performing arts. “It makes sense in hindsight,” McEwan says. “These employees have to act all day, be flamboyant and interesting. The implication for that company was rather than outsourcing their entire operation to Manila, which was planned, they moved their operations 15km down the road and set up next to one of the country’s leading performing arts colleges where they had contingent workers on tap.” stand up from our desks each day. All these things can create certain conditions for high performance,” says McEwan. “Then you have the nudges as well. The Apple Watch is probably the closest to getting us using those types of nudges. There’s an app called ‘Breathe’, which prompts you to take a moment to take some deep breaths and relax.”

For McEwan, wearable technology is

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the “dark horse” which, when combined with algorithmic-based talent management platforms, “has the potential to change the landscape when it comes to engagement, performance and wellbeing”.

He believes wearables will be able to track workflow, as well as peaks and troughs of activity. They’ll also keep track of who employees are working with.

“Our research clearly identifies that more than 50% of performance is driven by their network – that’s how people contribute.

Wearables are also a way of understanding who the hubs are in the network and who are the people being drained. From there we can see how to spread that impact so we don’t overstress certain individuals.”

The other obvious use is when any type of survey is required, such as engagement, or any other process needs to be measured.

“I dream of a future where businesses don’t have to do that sort of survey; rather, employees contribute to that data set effortlessly and it’s just a matter of collecting it,” McEwan says. “For example, if I walk out of a particularly uninspiring meeting with my manager, I don’t have to tell anyone about it; we just know thanks to the data being collected by wearable technology. By aggregating that data we can see there are particular points or activities that are actively demotivating our staff and we don’t have to wait 12 months to find out.”

He cites an example of a large US retailer. The company was frustrated that the highest rates of staff turnover coincided with their busiest periods – ‘Black Friday’ sales, Christmas holidays, etc. They couldn’t determine why this was occurring and their engagement surveys did not reveal anything useful. An old-fashioned precursor to today’s Apple Watch – which allows the user to draw a smiley face on the watch face and send it to someone – provided the answer.

“Someone had the idea of getting every staff member as they clocked off their shift to write down whether they felt engaged, not engaged, disengaged, and drop it off anonymously on their way out,” McEwan explains. “Within a couple of weeks they’d identified what the problem was – it turned out there were several managers who weren’t allowing staff to change shifts directly with each other; they had to go through the manager.”

Of course, both examples – the unhappy retail workers and the employee dissatisfied with his meeting – required manual input from the employee. This too is changing.

Right now, there are mobile apps that act almost like Tinder: you’re engaged or not engaged through a process or workflow or activity. While this all still relies on manual input, McEwan believes we’ll rapidly get to a point where heart rate, sweat levels, cortisone levels, blood pressure and biometric data will be picked up by sensors – and obviously the wearable technology will be less clunky than it is today.

Hurdles on the way to the future McEwan concedes there are hurdles to clear before we get to the point where employees will readily agree to having technology attached to them that will gather information on behalf of and for their employer. “It’s pretty out there for us today – it’s a bit sci-fi,” he says.

if it means they get the flexibility they desire.

If it means someone telling them that coming into work at 8am is not ideal for them and they’d be better off coming in at 10am, that’s only going to be beneficial to them.”

He adds that this is already occurring – Facebook, LinkedIn, even supermarkets and airline loyalty programs all thrive on the data collected about users. “Airline loyalty programs are the prime example,” McEwan says. “They are among the most advanced at collecting this data, at nudging our behaviours in gentle ways, and making it incredibly attractive to share that data. In return we get free flights, a higher level of service and treatment based on you as an individual. Employees want all of that too – convenience, work-life balance, and respect.

“I dream of a future where businesses don’t have to do that sort of survey; rather, employees contribute to that data set effortlessly and it’s just a matter of collecting it”

WEARABLES IN THE WORKPLACE: ARE EMPLOYEES READY? A PwC study of over 2,000 working adults in the UK found the following:

65% of employees

believe that technology has a real role to play in their health and wellbeing

61% of employees

are keen for their employer to take an active role in their health and wellbeing

38% of people

do not trust their employer to use the data they collect to benefit the employee

Aaron McEwan “If I was a glass half empty person I’d be looking at the horribly scary dystopian future of Orwell.”

However, he believes that certain changes occurring at societal level will make this sharing of data more likely to occur.

Firstly, there’s the burning desire of employees for flexibility. While some employers have been slow to embrace this – possibly, according to McEwan, due to a fear that customer expectations won’t be met if flexibility is offered – there will come a time when refusing to offer flexibility won’t be an option.

Secondly, McEwan has seen evidence that millennials are much more inclined to give up their data if they get something for it (see boxout).

“If those two things coincide with the ability to manage big data and manage the associated privacy issues around it, employees will likely be willing to give that up – especially

If we can give those things to employees they will share their data relatively freely.”

A brighter future McEwan readily admits he is an optimist. He hopes for a ‘softer’ future, one that allows people to live the lives they want to and to feel enriched by their experiences. He adds that industrialised nations currently have the highest levels of depression, anxiety and suicide and the lowest levels of happiness and wellbeing.

“We’ve been continually putting the onus on individuals to fix that themselves; my belief is it’s our institutions that perhaps have the greatest role and responsibility – and maybe this is the way we get there. What I’m most interested in is the acceleration to that future whereby we can understand the conditions that create not just optimum performance but optimum human functioning.”

25% of people

who did not trust their employer would be willing to share their data if they were given an incentive, such as increased pay or flexible working hours

1 in 4 people surveyed would have a chip fitted to help them manage their lives – the chip would be used like a passport, in money transactions and as a health tracker

73% of millennials

believe their employer should be involved in their health and wellbeing. This age group is also the most likely to share data and use new technologies in the workplace

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PEOPLE

CAREER PATH

HIGH FLYER

From the study of mass media to a stint at IBM during the Sydney Olympics and now head of people and culture at Konica Minolta, Cindy Reid shares her career path with HRD Cindy Reid’s university career had a suitably bold start. In the first year of her psychology degree 1989 at Sydney’s Macquarie University she left a note A DESPERATE JOINS IBM on the office door of the head of her desired SEEKER In the fi nal year of her degree, study program, pleading for admission: ‘Desperately Seeking Mass Reid had the opportunity to meet an executive from IBM; it was to be Communication’, the note said. The gambit was successful and she the beginning of a beautiful friendship. spent the next few years in the study of mass media.

“My father said, ‘Walk in and be interesting’ – [being hired by IBM] had nothing to do “We produced shorts and studied advertising – it was fantastic; but [later] I felt with my knowledge; it had to do with being an interested person, being inquisitive, it wasn’t that meaningful for me.“ enthusiastic. I’d encourage any person going to interview to be who you are, really try to engage. You’re looking for a mutual fit.”

1994

1986

RISES HIGH Reid’s time at IBM brought her numerous opportunities, including a communications role for a year, and a position shadowing a corporate services executive in which she learned about stakeholder management. Reid was then selected for a key role in acquisition work and recruitment that afforded her M&A experience and deeper commercial knowledge. At the same time, she began her MBA at the Australian Graduate School of Management.

“I was developing in HR as HR was developing as a respected business contributor” 1999

LEARNS FROM THE C-SUITE With her Olympic role settling into maintenance mode and the dotcom boom raging, Reid was headhunted by Excite@ Home to lead a greenfield start-up angled at engaging Gen Y talent in a competitive market. It was a more executive role that gave her some experience of the C-suite while she finished her MBA.

2010

PARTNERS WITH KORN FERRY Reid moves to Korn Ferry as a client partner leading its Human Resources Centre of Expertise Executive Search. She was charged with recruiting HR executives for her clients.

“Korn Ferry was all about being your own contributor. That was a fantastic role for me. I was meeting the greatest business leaders.”

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1998

GOES FOR GOLD A highlight of Reid’s time at IBM was her selection as HR leader for the Sydney 2000 Olympic Office.

The challenging role involved developing and staffing a workplace of 700 and sourcing staff with twin specialisations in tech and sport.

“Our client was SOCOG; we were the coordinator for SOCOG’s 11 tech providers, so we had to have the timing of a Swiss watch. IBM threw everything at it.”

2001

ENLISTS IN PWC’S ‘WAR FOR TALENT’ Reid joined PwC’s human capital team as an HC director and went on to lead PwC’s most successful campus and professional talent acquisition campaigns, focusing on EVP and employment brand in a ‘war for talent’ environment. Later she moved to a consulting director role in which she won and successfully delivered a $4.4m change management contract for a large client.

2014

MOVES TO KONICA MINOLTA When Reid joined Konica Minolta as head of people and culture she sought to further the company’s CSR program by partnering with charities. The company has also been recognised as an employer of choice by the Workplace Gender Equality Agency.

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PEOPLE

OTHER LIFE

18

Age at which Gately started her own business as a karate teacher

9,000

Estimated number of hours Gately has spent teaching

75

Age of Gately’s oldest student (the youngest was 4)

THE KARATE CONSULTANT

For HR consultant and author Karen Gately, karate is not so much a sport as a way of life

WHEN FOUR-YEAR-OLD Karen Gately started begging her karate-teacher father to join him in his training sessions she couldn’t have realised that the martial art would become a passion that she would pursue for 25 years and up to a ranking of third dan black belt.

Indeed, karate dominated the life of the now-HR consultant as a youngster. Often Gately – who started taking lessons at age five – would go straight from school to the dojo that was the family business and do homework in between lessons and sparring sessions.

She started teaching classes of children herself at the age of 13 before taking on classes of adult students at 15. In between, at age 14, she became the youngest black belt ever in the karate style Shukokai.

“I was a really grown-up kid. Martial arts teach you discipline and focus; in my teens people would think I was mid-20s.”

Gately met her husband – now a third dan black belt himself – through the practice of karate and continued sparring all through her pregnancies, so it is fitting that the sport provided the framework for her first book, The Corporate Dojo.

“I studied HR to become a better people manager, and remember thinking, ‘What would I do in the dojo to get more out of these people?’ I’ve drawn heavily from that background,” she says.

“It’s embedded in who I am. I literally don’t remember not doing karate.”

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