Human Resources Director 15.07

SPECIAL REPORT: EMPLOYMENT LAW Your essential guide CITIZEN OF THE WORLD Travelport’s CHRO talks bespoke HR

HUMAN RESOURCES DIRECTOR HCAMAG.COM ISSUE 15.07

DOTTING THE I’S AND CROSSING THE T’S Compliance, payroll and HR

SHOOTS OF OPTIMISM:

2017 HR SALARY & JOBS GUIDE Key benchmarking for you and your team

DS AUSTRALIAN HR AWAR

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Finalists revealed!

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JULY 2017

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CONTENTS

+Hcamag HumanResourcesDirector

UPFRONT 02 Editorial

Why cybercrime is becoming a clear and present danger for employers

04 Statistics

A snapshot of the take-up of HR data and analytics

06 News analysis

Workplace legislation is struggling to keep pace with changes occurring at a wider political and social level – HRD outlines some hot topics

08 Upfront: Recruitment update Does ‘blind recruitment’ really work?

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PROFILE

CITIZEN OF THE WORLD

Rose Thomson of Travelport has made M&As and structural transformations a key focus.

She shares her story with HRD

10 Upfront: Technology update Empowerment in the digital age

12 Head to head

How are you supporting millennials to become leaders?

FEATURES 26 Dotting the i’s and crossing the t’s

A spate of high-profile and costly payroll failures has shone a light on compliance in this business-critical function. Is it time to review what your organisation has in place?

30 FEATURES

BECOMING A MILLENNIAL TALENT MAGNET

18 COVER STORY

SHOOTS OF OPTIMISM: 2017 HR SALARY + JOBS GUIDE A surge in demand for HR generalists is keeping the profession on its toes as companies scramble to build restructured teams

HRD outlines what millennials expect from a recruitment process

PEOPLE 54 Career path

Carolyne Burns has come a long way to the “simple survey” that offers recruiters insight

56 Other life

Robert Godden’s devotion to the world’s most popular beverage is just his cup of tea

38 FEATURES

HCAMAG.COM CHECK IT OUT ONLINE

SPECIAL REPORT: EMPLOYMENT LAW

HRD presents four features looking at the ever-changing world of workplace law

2017

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SUPPLEMENT

AUSTRALIAN HR AWARDS

HRD reveals the finalists for the industry’s night of nights

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UPFRONT

EDITORIAL

A CLEAR AND PRESENT RISK

T

he cost of cyberattacks is set to hit US$8trn for global businesses in the next five years, according to a report by Juniper Research.

The report put the root causes of this climb down to higher levels of connectivity and inadequate security responses. To put the spiralling costs into perspective, the World Bank estimated that the total GDP of Australia stood at US$1.34trn in 2015.

We’ve already seen the damage these attacks can cause – May’s WannaCry ransomware attack infected 30,000 computers in over 150 countries. Another attack, dubbed ‘GoldenEye’, struck across the globe in late June, taking out servers at Russia’s biggest oil company and shutting down computers in multinational businesses, including the Australian offices of a global law firm.

The malicious software locks up computer files with all-but-unbreakable encryption and then demands a ransom in the virtual currency bitcoin for its release.

The research also forecasts that the number of personal data records stolen by cybercriminals will reach 2.8 billion in 2017 and will almost double to five billion in 2020.

There are few areas like this where businesses must strike such a delicate balance between ethics, technology and broader nationalistic interests The direction from which industrial espionage comes has also now shifted: today a threat is as likely to come from internal sources as it is from external – and sometimes hacking efforts are coming from both inside and outside agents.

These worrying trends put employers in a difficult situation. They must create a safe, secure and disciplined work environment, cooperate with governmental agencies in criminal and national security investigations, and also ensure that employees’ rights to privacy and freedom from surveillance in the workplace are respected.

Employers can of course use technology and cybersecurity measures to protect the workplace from breaches, but the end results, which can be so varied, don’t always match the intended purpose behind such initiatives – as the many cases of employers ‘spying’ on employees point to.

There are few areas like this where businesses must strike such a delicate balance between ethics, technology and broader nationalistic interests – it’s an apt challenge for the modern-day HR practitioner.

Iain Hopkins, editor

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www.hcamag.com JULY 2O17 EDITORIAL

SALES & MARKETING

Editor Iain Hopkins

Marketing & Communications Manager Lisa Narroway

Journalist John Hilton Editorial Assistant Hannah Go Production Editor Roslyn Meredith

ART & PRODUCTION Design Manager Daniel Williams Designer Marla Morelos Traffic Coordinator Freya Demegilio

Business Development Managers Steven McDonald Clive Thomas

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

EDITORIAL ENQUIRIES iain.hopkins@keymedia.com.au

SUBSCRIPTION ENQUIRIES tel: +61 2 8011 4992 subscriptions@keymedia.com.au

ADVERTISING ENQUIRIES steven.mcdonald@keymedia.com.au clive.thomas@keymedia.com.au

Key Media Regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 www.keymedia.com Offices in Singapore, Sydney, Auckland, Denver, London, Toronto, Manila, Bengaluru

Human Resources Director is part of an international family of B2B publications and websites for the human resources industry HRD MAGAZINE CANADA iain.hopkins@keymedia.com.au T +61 2 8437 4703 HRD MAGAZINE SINGAPORE hrdmag.com.sg HC AUSTRALIA ONLINE hcamag.com HRM NEW ZEALAND hrmonline.co.nz

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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UPFRONT

STATISTICS

MUCH DATA, LOW CONFIDENCE

WHAT’S THE DATA FOR? Answers to the question ‘What type of people analytics do you produce using your talent data?’ show that the most dominant use for HR analytics is in the analysis of turnover.

Data-driven insights are the ideal, but right now there’s a significant gap between promise and reality CONFIDENCE IN people analytics remains low and the teams carrying it out are overwhelmingly “green, lean, and unloved”: these were among the findings of the Still Under Construction: The State of HR Analytics 2016 report from New Talent Management Network.

Of the companies that reported having staff dedicated to people analytics, more than three quarters (77%) had been operating for less than three years; indeed, one in four

34%

increase in people analytics teams from 2015 to 2016

85%

of organisations are already performing people analytics

TOP TIPS Engaging with people analytics should begin with the question ‘Why?’ Why use this function, what are your goals, what information do you expect to be able to deliver? Here are some tips for starting the process: Determine whether data informs your decisions or drives them; it decides much of the process.

Determine what insights you are aiming to gain: have target questions to explore.

Have a recipient for these insights in mind; it will help prioritise and gauge the value of your work.

Have a plan for utilising the data; it comes at a cost and must deliver value.

Given the highly technical nature of the work, consider contracting a specialist rather than opting for the internal HR team to deliver outcomes.

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had been in place for a year or less.

In addition to being green, these efforts were for the most part lean: almost nine in 10 reported the number of staff dedicated to people analytics to be four or less. Three out of 10 teams comprised a single full-time employee. And in answer to a question as to what effect the capability of the HR analytics team had on the success of the people analytics project, four respondents in 10 said that it acted to hinder.

69%

of organisations plan to start performing people analytics in the next year

95%

of companies are projected to conduct some level of people analytics in 2017

WHERE WE’RE AT Most organisations are performing only basic people analytics; the only rapid development in the space has to do with incorporating the HR analytics function into other areas, rather than getting deeper insights from the existing data.

Most orgranisations run relatively unsophisticated analytics

70% 60% 50% 40% 30% 20% 10% 0% Stage 1 Preparation You are actively preparing to begin talent analytics activities within the next 12 months

Stage 2 Fundamental analytics You can identify and report on basic workforce statistics, including turnover, time to hire, engagement levels by manager, etc.

Stage 3 Advanced analytics You can identify and report on data trends, correlations and, selectively, cause and effect relationships.

These findings inform your people management practices.

Stage 4 Decision management You manually analyse broad-based talent data and identify specific actions that managers or employees should take.

Stage 5 Automated decision management Your system automatically analyses broad-based talent data and generates specific guidance to managers about talent-related actions they should take.

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84%

Turnover analytics – basic (ie desired and undesired turnover)

75%

Talent acquisition analytics – basic (ie time to fill, cost per hire)

43%

Identify development needs of groups

35%

Workforce planning (not including leadership succession)

31%

Estimates of individual potential to advance (ie likelihood of promotion or upward movement)

28%

Turnover analytics – advanced (ie identifying key turnover drivers for select groups)

How confident are you in the following elements of your people analytics approach?*

26%

Identification of factors correlated with high-performing employees

22%

Ability to predict future gaps/challenges

Talent acquisition analytics – advanced (ie source of hire vs performance and potential)

23%

22%

Ability to share unique insights about the performance-driving factors in your organisation

Workforce productivity statistics

23%

26%

Ability to identify high-potential leaders * % saying very or extremely confident

USEABLE? WHY NOT?

BACKSTABBING DATA

By far the most frequently given reason in response to the question ‘Why is your organisation’s data not structured and available for analysis?’ is that the data is dispersed; secondary to that is the quality of the data itself being low.

Organisations attempting to advance their people analytics often find that the data itself acts to sabotage these efforts, as shown by the answer to the question: Is your organisation’s data structured and available in a way that supports people analytics?

70% 60%

77%

50%

58%

40%

Yes

30%

25%

20% 10%

23%

0% Data is dispersed across multiple incompatible HR systems

Data is not reliable/ trustworthy – inaccurate or incomplete

Different metrics/ measures used for the same item

Lack of raw data available for manipulation

30% No

70% All data sourced from: Still Under Construction: The State of HR Analytics 2016, New Talent Management Network

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6/07/2017 2:11:10 PM

UPFRONT

NEWS ANALYSIS

HR IN A GLOBAL WORLD Workplace legislation is struggling to keep pace with changes occurring at a wider political and social level. HRD outlines some hot topics FEW PERIODS of recent history have been more tumultuous for global geopolitics than the last 12 months. The June 2016 Brexit vote, the November 2016 US presidential election, and political developments thereafter within the EU and elsewhere have revealed a groundswell of support for populist and inward-looking nationalist policies.

Not surprisingly, many businesses have been caught in the crosshairs. “A quite significant amount of uncertainty” is how Joydeep Hor, founder and managing principal of People + Culture Strategies, describes the prevailing mood in business circles over this period.

interesting to see what happens there.”

Hor says employers based in countries that have taken more of a protectionist stance in trade should perhaps brace for more restrictive employment laws and regulations – although he quickly adds that there was “no consensus opinion” reached at the forum as to whether this would occur.

“A lot of things have been tabled for now, but the reality of what the position will end up being remains very uncertain,” Hor says. “This goes to things like the migration piece as well, which is hugely relevant in the context of this populist rise that’s happening worldwide.”

“Employers need to be vigilant in terms of what kind of behaviours and conduct – whether it’s social media or otherwise – will be tolerated” Joydeep Hor Fresh from attending an international forum on employment law in Dublin, Hor says there is very much a wait-and-see approach being taken to what happens next with Brexit.

“In the employment law context one very relevant issue is the huge amount of uncertainty in terms of what the next Brexit piece is going to look like, and what that will translate to in terms of regulation of employment laws,” Hor says. “Some suggest the existing EU laws have been overly restrictive; others don’t want these laws to change too much. It will be

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What also emerged quite strongly at the forum was how these worldwide events are actually translating into discourse in organisations – that is, people sharing passionate political views in the workplace – and, more importantly, the question of employers’ scope to regulate that conduct.

“This came up not just in the context of social media but also behavioural regulation in workplaces,” Hor explains. “There was a lot of strong counsel to employers that they do need to be vigilant in terms of what kind of

behaviours and conduct – whether it’s via social media or otherwise – will be tolerated.”

Hor adds that in some jurisdictions the concept of constitutional freedom of speech is extremely well protected; in others personal viewpoints are less likely to be shared. “Where you have 35 different countries represented, as there was at this conference, there is quite a wide spectrum of what is acceptable workplace behaviour – but regardless of which country you are operating your business in, you must be clear about what you will or won’t tolerate.”

Research from software firm BetterWorks, in conjunction with Wakefield Research, provides insights into how disruptive political debates can be in the workplace. As reported earlier this year, 87% of 500 working American adults surveyed were reading political social media posts during the workday. This equates to two hours lost during the day. Seventy-three per cent said they often talked to their colleagues about politics and 49% said they witnessed conversations turn into full-blown arguments – and that number rose to 63% when it involved millennials.

“Workers aren’t just reading and talking about politics. They’re actually feeling distracted

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STAYING THE COURSE Kris Duggan, CEO of BetterWorks, suggests five ways managers can keep productivity high despite the distraction of big changes outside the office.

Don’t micromanage – Don’t cut employees out of social media, and allow them the freedom to have the information they need.

Focus on goals – Don’t deviate from goals you have already set with the employees. “Goals adds focus amidst the distraction and help employees get their work done,” Duggan says.

Encourage work-life integration – Be cognizant of the fact that true integration means they will bring their personal life into the office, including their political beliefs. Try to find a way to manage their workload until things normalise so they are not too overwhelmed.

Hold your tongue – You have political beliefs of your own, and if you’re tempted to argue with an employee who doesn’t share your view, change the subject before you ruin the manager-employee relationship.

Unite over work – In the face of a major distraction, it is your job to find a way to help employees stay productive. “When employees have the means to stay focused on work, it can actually feel like a respite,” Duggan says.

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“It’s time for organisational leaders to shift their focus to empowering managers to deal with distraction” Kris Duggan from their work, and dedicate much of their time (both at work and at home) to thinking about and processing the current political situation,” says Kris Duggan, CEO of BetterWorks.

“The onslaught of news articles and social media posts isn’t going away anytime soon.

It’s time for organisational leaders to shift their focus to empowering managers to deal with distraction.”

Hor suggests employers review not just their social media policies but also their dispute resolution procedures. These guidelines may also be utilised as a means of dealing with complaints by employees about management decisions in the wake of political developments.

Moving away from global politics, another hot topic of debate at the forum was intellectual property in the digital age. Hor says jurisdictions such as Canada, the UK, the US and Australia

share a lot of commonality in terms of the idea that work created in the course of employment does typically belong to an employer. In other jurisdictions it’s actually the reverse presumption – where it’s the employee creating something and regardless of the context of employment or not, it belongs to the employee.

“However, what we heard as a common theme in relation to this discussion was that employers are not too concerned necessarily about the technicalities of who owns intellectual property and how that’s created in the course of employment, but rather what’s going to happen when someone who has created it leaves to go to a competitor,” Hor says.

This creates an odd hybrid of employment law, including restraints of trade style litigation and IP law. “It was probably the only topic discussed at the conference where the whole

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group of employment lawyers paused at some point and said, ‘This is usually the point where I’d bring in some IP specialist advice’,” Hor says. “But it does have strong employment relevance and connotations, so it can’t just be seen as an IP issue. These issues become more pronounced in a global workforce where workers are constantly moving between jurisdictions.”

The rise of the gig economy, global supply chain management and the automation of jobs were other key topics debated at the event. Hor says that on just about every one of these issues Australian legislation is struggling to keep up – but he hastens to add that so too is legislation in every other nation. “Unsurprisingly, legislation is often introduced more in a reactive than a proactive way, and we’re seeing that happen more so now because of the rapidity of the technological, commercial and general environmental change,” he says.

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UPFRONT

RECRUITMENT NEWS BRIEFS Employers losing candidates due to slow recruitment

Slow recruitment times are causing Australian companies to lose out on top candidates, according to research by Robert Half. In fact, during a long recruitment process, 39% of Australian jobseekers become disheartened, 33% lose interest and pursue other roles, while 30% question the company’s ability to make other decisions. When asked how long is too long for a hiring process – that is, from the day they initially interview for a job to the day a job offer is extended – one in three (30%) Australians say 15–21 days is too long.

Soft skills on the rise

Soft-skill-intensive jobs are expected to account for two thirds (63%) of all occupations in Australia by 2030. That’s according to the Soft Skills for Business Success report by Deloitte Access Economics. While businesses in Australia spend a staggering $11bn on employee training and staff recruitment annually, one fourth of employers report having difficulty recruiting entry-level vacancies because applicants lack soft skills. Soft skills are nine times more likely to be endorsed on LinkedIn than a technical skill, yet less than 1% report having any soft skills listed on their profiles.

Recruitment company offers quirky incentive

Canberra-based recruitment company HorizonOne is offering a six-week paid holiday up front for the person successful in securing its vacant role for a new recruitment consultant. The six weeks’ leave is in addition to the standard four-week annual leave period. The offer of six weeks’ leave

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is intended to attract employees to the ACT from interstate. For example, the six weeks could be used by the new worker to get their family settled in Canberra after a move. “Our company was always designed to be different; we wanted to see a change in the recruitment industry,” says HorizonOne director Simon Cox.

Social media screening hits all-time high

The number of employers who use social media to screen job candidates has reached an all-time high in the US, according to a recent poll commissioned by CareerBuilder. In fact, about 70% said they used social media before hiring – a significant rise from 60% last year, and 11% in 2016. “Most workers have some sort of online presence today – and more than half of employers won’t hire those without one,” says Rosemary Haefner, chief HR officer at CareerBuilder. Results came from a February to March survey of 2,380 hiring and HR managers.

Engineering skills in demand this financial year

Civil engineering, change management and UI/UX design are three of the skills sought by the 45% of employers who say they’ll increase permanent staff levels this financial year.

This far exceeds the 11% who expect to decrease permanent staff levels.

It’s also more positive than the past financial year, when 42% of employers increased their permanent head count but 20% decreased it. According to Hays, operational management departments will lead this jobs growth, with 56% of employers indicating they’ll add to their head count in this area. Other areas experiencing growth include engineering departments, project management, purchasing/procurement, sales and HR.

DOES BLIND RECRUITMENT ACTUALLY ACHIEVE ITS AIMS? Blind recruitment has been hailed as a solution to workplace discrimination.

But how effective is it?

Deloitte, Ernst & Young, Victoria Police and Westpac Bank are just some of the major organisations that have embraced blind recruitment in order to boost diversity.

In fact, organisations are increasingly adopting blind recruitment, which involves omitting personally identifiable information, such as name, gender, age and education, from applicants’ CVs. Nick Deligiannis, managing director of Hays in Australia and New Zealand, says this technique can help organisations ensure a diverse flow of talent into their selection process.

“It can also boost your employment brand since jobseekers say they have the opportunity to better position their strengths in an interview,” Deligiannis says.

However, a new study appears to contradict the hypothesis that blind recruitment is always more effective in boosting diversity.

The Department of the Prime Minister and Cabinet used 2,100 public servants from 14 departments to assess whether women and minorities were discriminated against in the early stages of the recruitment process for senior positions in the Australian Public Service.

Participants were randomly assigned to receive application materials for candidates in standard form or in de-identified form (with information omitted about candidate gender, race and ethnicity).

Interestingly, the study found that the public servants actually engaged in positive (rather than negative) discrimination

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towards minority candidates and women.

In particular, participants were 2.9% more likely to shortlist female candidates and 3.2% less likely to shortlist male applicants when they were identifiable, as opposed to when they were de-identified.

Moreover, minority males were 5.8% more likely to be shortlisted and minority females were 8.6% more likely to be shortlisted when identifiable compared to when applications were de-identified.

Male reviewers also showed more positive discrimination towards minority candidates than their female counterparts

A new study appears to contradict the hypothesis that blind recruitment is always more effective at boosting diversity did, and reviewers aged over 40 displayed much stronger affirmative action in favour of both women and minorities than the younger ones did.

The Harvard academic who oversaw the study, Professor Michael Hiscox, says the results were surprising.

“We anticipated this would have a positive impact on diversity – making it more likely that female candidates and those from ethnic minorities are selected for the shortlist,” he says.

“We found the opposite, that de-identifying candidates reduced the likelihood of women being selected for the shortlist.

“We should hit pause and be very cautious about introducing this as a way of improving diversity, as it can have the opposite effect.”

Q&A

Philip Jenkinson Senior marketing executive MEDIA ACCESS AUSTRALIA

Fast fact About 71% of organisations aspire to have an inclusive culture, but just 12% have achieved this objective, according to Bersin’s survey of 245 global organisations and more than 70 interviews with the firm’s clients.

HIRING STRATEGIES FOR PEOPLE WITH DISABILITIES To what extent are companies currently hiring people with disabilities?

Overall, working aged people with disabilities currently have both lower participation (53%) and higher unemployment rates (9.4%) than people without disabilities (83% and 4.9% respectively), according to the latest Australian Bureau of Statistics data (4430.0) from 2016.

What are the benefits of having a diverse and inclusive workforce?

Making the recruitment process fully accessible enables employers to reach more highly qualified applicants; it reduces the possibility of disability discrimination in the hiring process, portrays a positive and inclusive organisational culture, and helps diversify the workforce.

For some employers with a strong customer focus, having a diverse workforce that reflects their customers and the broader community means that they can better understand their customers’ experience and improve service delivery. It’s also been proved to increase morale and lift productivity, and the business benefits of hiring people with disabilities are outlined in a report compiled by the Australian Network on Disability.

What’s more, a 2002 Deakin University study found that workers with disabilities are no more likely to be injured at work than other employees, and there are no differences in performance and productivity. It also identified that employees with disabilities actually have fewer scheduled absences than employees without disabilities, and assistance with the cost of making workplace adjustments is still available through the Australian Governmentfunded Employment Assistance Fund.

What can HR do to ensure their hiring strategy is not excluding people with disabilities?

The Disability Discrimination Act 1992 prohibits discrimination against people with disabilities in employment, education, provision of goods and services, and other contexts. Just as importantly, having a non-accessible recruitment strategy excludes some talented individuals from being considered for a position if forms, processes and procedures are inaccessible.

So it’s important to ensure that your job ads, position descriptions, online application forms, timesheets, and mandatary policy-adhesion documents, such as a social media policy, are accessible to screen readers for those with a vision impairment (with alt text in place and a phone option), offer flexibility for deaf and hearing-impaired people (captions on videos and also options to a phone number only), and those with a cognitive disability or English as a second language (not too much jargon or complicated language).

Not-for-profit digital access advocates Media Access Australia have put together a new guide on digital accessibility in recruitment to provide practical ‘real world’ advice and tips on how to address accessibilityrelated issues in human resources management.

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UPFRONT

TECHNOLOGY

EMPOWERMENT IN THE DIGITAL AGE Employees need to be bolstered by the right culture, policy and tools, says report

Employees in Australia do not feel empowered to embrace the demands of the digital workplace, according to a new study by Microsoft.

While 66% of Australian respondents consider themselves to be mobile workers and spend at least 20% of their time working outside of their office, only 45% feel empowered by their organisation’s culture and management to be able to work together productively and collaboratively.

Moreover, only 32% of respondents agree their organisation is committed at a leadership level to ensuring every employee is included in closing the digital skills gaps within the workforce.

Sharon Schoenborn, director, office business

NEWS BRIEFS

group, at Microsoft Australia, says organisations need to rethink how they empower their workforce with the right culture, policy, infrastructure and tools to maximise their potential. This means enabling collaboration from anywhere, on any device, she tells HRD. “However, it is also critical for business leaders to evaluate and implement changes to counter cultural and management challenges that are hindering employees in working seamlessly from wherever they are, which will in turn hinder an organisation’s growth and progress in the digital age,” she says.

The study also found that mobile professionals in the market are embracing flexi-work today,

Brace for tech change, says report

The latest MYOB Future of Business report indicates 40% of local business operators believe the nature of their industry will be significantly changed by technology in the next 10 years. Just 17% of local business operators anticipate no technology-driven change over that period.

The business operators who believe their industries are most likely to be transformed by technology work in finance and insurance (53%), manufacturing and wholesale (44%), and retail and hospitality (43%). Even in the country’s rural sector, only 13% of business operators are not expecting to see any change in the next decade.

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and organisations should look at new workplace practices, especially with the impending influx of digital natives (born after 2000) entering the workforce for the first time.

Schoenborn says that, as the nature of work changes, how employees collaborate and work together will be impacted as well.

“However, it is also important for businesses to bridge the leadership and employee gap with more focus on people and culture.”

Workplace shifts have undeniably resulted in new ways of working, as technologies have enabled increased collaboration between

“It is also important for businesses to bridge the leadership and employee gap with more focus on people and culture” individuals and teams across geographies and groups. However, the study found that there were certain gaps today that hindered collaborative and productive outcomes from teams.

The top challenges included: • Too many face-to-face meetings taking up productive time (24%) • Teams are too rigid and not open to new ways of working (23%) • Company-wide meetings are too impersonal in communicating organisational goals (20%) • Teams are taking too long to respond to internal issues (20%)

Admin tasks cost time – and money

Australian office workers spend 636 hours per year completing administrative or repetitive tasks, the equivalent of 80 workdays, according to a global survey commissioned by Unit4. Aussie workers lost more time to administration than their global counterparts. Across all 11 countries surveyed, office workers spend an average of 552 hours a year (69 days) completing these tasks, the equivalent of roughly a quarter of the working year.

The cost of lost productivity to the service industry is more than $300bn per annum, ranking Australia fifth in terms of most costly productivity lost.

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Q&A

Nathan Reynolds Director of sales, ANZ CERIDIAN

Fast fact Ninety-five per cent of surveyed managers are dissatisfied with their performance management system, with 29% considering removing performance ratings, according to a survey by CEB/Gartner.

RAISING THE PERFORMANCE BAR How is performance management evolving with the help of HCM technology?

In today’s world of work, an optimal employee experience is grounded in frequent and meaningful communication.

This underlying truth impacts performance management discussions too.

Annual reviews asking managers to condense a year’s worth of accomplishments into a few answers discourages meaningful conversations. For one, bias and the rater effect collude to reveal more about the reviewer than the person being reviewed – that a lenient manager will give better reviews, regardless of the performance of their people, and a strict manager will give worse reviews, independent of how their direct reports actually perform.

In addition, annual reviews tend to bell curve while actual performance does not follow this pattern.

As a result, many organisations – including our own – opt for a more frequent and developmentally focused approach to performance development, leveraging the functionality of cloud-based HCM technology to help facilitate.

What HCM technology allows for is the ability of employees to participate in their development every day, using the same system they use to access their pay, view their schedules and perform other common processes.

Moreover, through HCM technology organisations can equip their people leaders with tools that prescribe how to provide feedback based on the unique strengths of their team members. This personalised coaching elevates

Digital learning on the rise

Both digital learning platforms and content are experiencing a boost in investment, according to a survey of 1,000 L&D professionals by Fosway Group. The areas of digital learning that are seeing most new demand are video learning (77%), mobile learning (76%) and learner engagement (74%) from a platform perspective. David Wilson, CEO of Fosway Group, cautioned that, while learner engagement as a whole had risen, questions remained. “There are still significant issues and concerns about how to create a strategy that delivers sustainable business impact,” he said.

the ability to tailor conversations, ensuring the message is understood and acted upon.

With employees regularly talking to their leaders on a range of performance topics, they continue to feel appreciated and gain a better understanding of the opportunities unique to them.

How can HR leverage people analytics to make data-driven decisions and enhance the employee experience?

More HCM technology companies are adding predictive analytics solutions to their software mix, allowing for insight into the likelihood of an employee leaving, their performance potential and their overall level of engagement – information that can help business leaders make better decisions.

Having said this, predictive analytics is very much based on real figures – using a combination of data mining, modelling, machine learning and artificial intelligence to analyse current information and make predictions about the future. Each model requires an objective – be it flight risk, or promotion potential – and the HCM data of an organisation’s choosing (such as compensation levels) to complete their algorithm and predictive probable outcome.

With insights based on real data, business leaders become better equipped to take on a proactive employee engagement approach.

Why employees want better digital skills

According to new research, 47% of employees want to learn additional digital skills – and for good reason. The importance of these skills in the workplace is self-evident, with most processes being online and requiring a thorough understanding of digital literacy.

Nick Deligiannis, managing director of Hays in Australia and New Zealand, said this was an area that should factor into staff retention.

“Clearly, career progression, ongoing learning and development – particularly in digital skills – and challenging or exciting work are key to successful staff retention in the year ahead,” Deligiannis said.

Should after-hours emails be banned?

Business owners and management are so engaged in their work that they’re unknowingly setting similar expectations of long hours for staff, according to Zac de Silva, co-owner of Nurture Change. A US survey of 1,000 people found 59% of employees regularly received emails from their co-workers ‘after hours’ and 75% had themselves sent emails after 6pm. After 9pm the figures were surprisingly high – 62% of men sent work emails after 9pm and 46% of women surveyed had done so.

Further, 61% of those surveyed checked their work email while on holiday. www.hcamag.com

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6/07/2017 2:28:38 PM

UPFRONT

HEAD TO HEAD

How are you supporting millennials to become leaders?

Millennials will soon make up the majority of the workforce, and they are looking to lead

Martha Travis

General manager people and culture Assetlink Millennials need to feel they have somewhere to ‘go’ in the business. Our training strategy provides clear career pathways with the required skills and attributes; we provide strategic milestones specifically related to succession and leadership development.

A leadership immersion program for mid-tier and frontline leaders provides a combination of learning, development and team-building activities as well as opportunities to share ideas. High-potentials also feature, allowing upcoming leaders to work across the business and understand how they can contribute to mutual growth.

The key to the success of these strategies is empowerment: allowing millennials to take control of their destiny.

Ashleigh Elbaz

Senior HR business partner R/GA We don’t zero in on millennials; we focus on those interested in becoming a leader or displaying leadership potential. It’s dangerous to make assumptions or create strategies based on generational generalisations.

Our people are all unique, and that is what we concentrate on. In performance conversations we ask our employees (75% of whom are millennials) what influences their happiness at work, what motivates them, do they wish to go into leadership, and how currently satisfied are they in those areas.

This creates unique ‘dashboards’ for each employee that their leaders can use to better reward them and develop their careers.

Evita Soldo Head of talent ING DIRECT

Millennials are accustomed to today’s fast-paced digitised society; however, the corporate world has its own operating rhythm: it takes time to develop leadership skills and experience.

We encourage honest and continuous conversations between leaders and their teams, including setting realistic expectations.

We emphasise making an impact through personal contribution versus leadership being associated with a specific position.

Our people are excited by opportunities to enhance their capabilities via interesting and challenging work – oftentimes cross-functional and cross-geography.

This approach has helped achieve and maintain above-industry employee engagement levels, of which we are proud.

REACHING FOR THE TOP Millennials are ambitious – more than 90% have it in mind to assume a leadership role. That said, many realise they are not fully prepared for that level of responsibility.

According to a poll from Deloitte published earlier this year, only about a third of current millennial leaders considered themselves fully prepared when initially taking on their posts. According to the Millennial Leadership Survey by WorkplaceTrends.com and Virtuali, the generation that came of age against a backdrop of change typically envisages a leadership style for themselves that prioritises “empowering others to succeed”; for 43% the main motivation to become a leader was reported to be the desire to “empower others”. Only 5% cited money as their primary impetus, while a mere 1% reported power to be the spur. Either way, Generation Y is set to dominate the workforce – by 2025 it is forecast that millennials will comprise three out of every four workers.

12

www.hcamag.com

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PEOPLE

GLOBAL HR LEADER

CITIZEN OF THE WORLD From IBM’s graduate program through to HR roles in global companies like The Coca-Cola Company, The Walt Disney Company and Barclays Bank, Rose Thomson has made M&As and structural transformations a key focus.

She shares her story with HRD WITH HER impressive body of work experience and current global HR role, an obvious question to ask Rose Thomson, CHRO at Travelport, is how a global HR leader can possibly hope to gather what is likely to be many vastly different corporate cultures in a global entity into something that resembles a unified front.

Her response is telling: “I’m a very simple thinker. The way I’ve been talking to my team, the senior leadership team and the board is very much about the fact I see us as being more similar than different, and I liken that to vanilla ice cream. My whole 2020 HR strategy is predicated on ice cream!”

Thomson elaborates that it’s the common frameworks and “key elements” that make Travelport the company it is.

Then it’s about acknowledging that each country, each division, will need to take a “bespoke” approach. “That’s the topping – the sprinkles or the strawberries. So it’s done from a functional perspective: if you sit in the commercial or technology department you’ll have a slightly different flavour to

14

that, and if you sit in Asia or Australia you’ll have a slightly different flavour as well. It’s about how we build the framework that is Travelport, which everyone understands, and then add that flavour on top that acknowledges there are some legitimate unique elements that we must also address.”

in Langley, UK. We’re a B2B specialist in technology for the travel industry. We have a very large sales force and an equally large technology function, so we look after airlines, travel agents, hotels, cruises, car hires, all that back-end technology. When you as a consumer use an online travel website, for

“My personal mantra is to never say no when someone asks you to do something” HRD sat down with Thomson – on her fleeting visit back to her hometown of Sydney – to discover what else she has learned throughout her career.

HRD: Can you provide some context around Travelport as a company?

Rose Thomson: Travelport on last count had 4,100 employees globally and a 2016 net revenue of over $2.3bn. We’re represented in around 80 countries, including Australia, Canada and Singapore, with our headquarters

example, we pump all our content into that website, so when you’re doing an online search for flights and a hotel, you’ll be seeing our content. However, you’ll be seeing it on the front end of an online retailer.

HRD: What are you currently concentrating on in your role?

RT: We have close to 100 HR professionals in the global team, and one thing we need to look at is how efficient we are in supporting the business and the role that HR plays.

www.hcamag.com

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6/07/2017 2:33:37 PM

PROFILE Name: Rose Thomson Company: Travelport Title: CHRO HR experience: 17+ years Qualifications: Bachelor of Arts, Macquarie University; Master of Arts, Macquarie University – Graduate School of Business Previous roles: »»Managing director, HR, Barclaycard »»HR director, Coca-Cola Great Britain and Ireland »»HR director, North West Europe, The Coca-Cola Company »»HR director, Coca-Cola South Pacific »»General manager human resources, Coles Group »»HR director – South East Asia, The Walt Disney Company

www.hcamag.com

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6/07/2017 2:33:41 PM

PEOPLE

GLOBAL HR LEADER Moving forward, my vision for HR at Travelport is very much that it’s an instrument of business transformation, because as a business we are undergoing tremendous change. I’m focusing on HR’s role in driving that. How do we leverage our people resources to enable that strategy? How do we create agile leaders so as the organisation changes, as our customers change, as their customers change, how do we need to be leading? And then having a high-performance culture, which is very much about how do we raise the bar on what good and great looks like, and then how do we ensure people have the capabilities and competencies and what’s required to get there.

HRD: You have experience in change management, and M&As in particular.

What have you taken from some of those experiences?

RT: Let me tell you about the reason I got into HR in the first place – because I actually

perspective and from a personal perspective.

It’s about helping people to understand why change is important, helping them to see what that means for them, and doing that in a respectful way. Change is always going to happen, but we’ll be judged based on whether we treated people with respect and fairness once the emotion is removed from those decisions. That was the catalyst for me moving into HR, and since then I’ve worked on several M&As, I’ve done divestments, all sorts of projects.

HRD: You’ve worked around the world in some well-known global companies. Can you outline some of your best learning experiences from those companies?

RT: I moved into HR when I left IBM in the 1990s. The majority of my career has been with big multinationals – IBM, Disney, CocaCola, Barclays, and now Travelport. I’ve been fortunate to work with those companies. I’ve

“I’ve had incredible opportunities, I’ve seen the world, I’ve done things I never would have dreamed of doing” started not in HR but in the graduate program at IBM in software manufacturing. I lived through the night of the long dark knives when IBM in Australia lost half its workforce almost overnight. I was lucky; I survived – but I remember it well. It was a Friday when it happened, and when we came back on the Monday there were six desks between me and the next person; everyone’s name tags were still on their desks and it was almost like they had all died in a terrible accident.

All the effort was rightly put towards those who were exiting, but as survivors we suddenly had to do the work of 5,000 people, but there were only 2,500 of us. I just thought these kinds of changes could be done in a more effective way, and that’s what flipped me into HR. I think I’ve always enjoyed change and transformation, because that’s about growing, both from an organisational

16

had incredible opportunities, I’ve seen the world, I’ve done things I never would have dreamed of doing. I’ve dressed as a princess, I’ve stood on the street and handed out free cans of Coke – not to mention all the more serious HR work I’ve been involved with!

I’ve just had a privileged career.

HRD: What do you put that success down to?

RT: My personal mantra is to never say no when someone asks you to do something.

And throughout my career that willingness to take on more responsibility and also take accountability for things has led me to bigger roles and bigger opportunities. It’s not that they’ve fallen into my lap – because I don’t think that happens – but I’d like to think those opportunities come from hard work and doing the best I can on a daily basis.

MY TOP CAREER TIP… Rose Thomson’s career has evolved from holding local to regional and then international roles.

Here is her top tip for kicking your career to the next level.

“My number one tip would be this: don’t be afraid to say yes to opportunities, but also go and seek them out. I’ve been lucky that the companies I’ve worked for have allowed me to work overseas, and I think if you aspire to a global role you must experience other cultures. The way people work around the world is very different, and unless you can experience that first-hand, you’re going to wonder why things don’t always happen how you thought they would. Getting out and about and understanding the market challenges and opportunities, as a senior business leader, with my business hat on, is what I try to do.”

HRD: How do you stay on top of everything you need to in a global role?

RT: I’m lucky that I’ve lived and worked across Asia, across Europe, and I’ve worked with big American corporations, so I’ve spent a lot of time there as well. Things change all the time in terms of legislation and regulation, and I think it’s impossible for any one individual to be on top of those things. So whether it’s leveraging your own team in terms of making sure you understand what’s going on in their markets, or whether it’s just being connected through various industry networks or leveraging your legal partners, or just reading a lot about what’s going on, while I say you can’t be on top of everything you do need to at least recognise that things do change.

www.hcamag.com

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6/07/2017 2:33:49 PM

HR Tech

sydney.hrtechsummit.com

13 September | Hilton Sydney

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Principal partners

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David Dunne

Leigh Yardy

Bridget Spiteri

Head of People Systems & Operations Salmat

Head of Human Resources City of Parramatta

HRIS Manager Caltex Australia

Exhibitors

Official publication Organised by

6/07/2017 5/07/2017 2:33:52 3:30:58 PM

ANNUAL REVIEW

HR SALARY AND JOBS GUIDE

SHOOTS OF OPTIMISM: 2017 HR SALARY + JOBS GUIDE A surge in demand for HR generalists is keeping the profession on its toes as companies scramble to build restructured teams 18

www.hcamag.com

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THE HUMBLE HR department is proving itself to be a microcosm of the Australian economy as a new financial year creeps around the bend. HR departments around the country continue to undergo a period of change in terms of candidate demand and salary trends.

Across the country, regional economic factors are dictating demand and salary trends, while sweeping changes to the public sector continue to create strong demand for specialist talent and generalist hiring activity.

If there’s a characteristic applicable to the HR job market in 2017/18 it’s not so much about the technical expertise of candidates as it is about their behavioural competencies. Lisa Morris, regional director of Hays Human Resources, has noticed that experienced candidates with broad skill sets at the HR adviser level continue to be sought after as companies endeavour to capitalise on positive market conditions. HR business partners, meanwhile, are also being sought to provide high-level advice to line managers so they can lead their teams in new directions and make sound decisions aligned with organisational goals, legislation and changes in policies.

“Interestingly, for HR generalist roles the focus is now less on like-for-like experience and more on candidates with strong behavioural competencies, including leadership development, commerciality, influencing skills and change leadership,” Morris says.

She adds that most clients today are also looking for candidates who can do more than provide traditional HR services; they want candidates who can add value to the bottom line.

HR coordinators/administrators are still required to support business partners and HR managers, Morris says.

“In the public sector, sweeping changes continue to create strong demand for generalists as well as specialists. As federal and state government departments continue to restructure, merge and redefine parts of their workforce, the public sector requires candidates for generalist HR roles and in workforce planning. Due to rigorous recruitment and selection processes within government, hiring managers are

45%

of employers will increase permanent staff levels

75% say business activity

will increase in the next 12 months

www.hcamag.com

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6/07/2017 2:34:35 PM

ANNUAL REVIEW

HR SALARY AND JOBS GUIDE DO YOU SEE THE GENERAL OUTLOOK FOR THE ECONOMY IN THE FORTHCOMING 6-12 MONTHS AS...

9%

Weakening?

55%

Static?

36%

Strengthening?

OVER THE COMING YEAR, DO YOU EXPECT PERMANENT STAFF LEVELS TO ... (ACROSS ALL DEPARTMENTS)

11%

Decrease?

Remain the same?

44%

Increase?

45%

HR advisers – Broad skill sets at this level will continue to attract higher salaries as companies endeavour to capitalise on positive market conditions

HOT

Instructional designers – A niche, very technical role of expertise that is constantly evolving as companies look to reinvigorate their e-learning and L&D frameworks

HOT

Comp and ben managers – Demand for these roles has come from the public sector as it looks to reinvent itself into a modern, innovative workforce

HOT

IR/ER professionals – These roles are in high demand in 2017, fed by constantly changing legislation and growing corporate compliance

HOT

Recruiters – New infrastructure projects in most states are driving up a need for recruiters, particularly in the contracting and temporary space

HOT

DO YOU THINK SKILL SHORTAGES ARE LIKELY TO IMPACT THE EFFECTIVE OPERATION OF YOUR BUSINESS/DEPARTMENT?

35% No

42%

23%

Yes – in minor way

increasingly engaging temporary workers to fulfil immediate requirements.”

Ciaran Foley, head of Frazer Jones Australia, has witnessed something similar.

“The generalist market has seen activity this year,” he says. “There is definitely a trend towards direct hiring in the generalist HR space. For example, more head of HR and HR director roles are being advertised by the hiring entity. There are obvious costeffective benefits to hiring directly; however, there are a large number of senior HR generalists that wouldn’t apply directly for a

20

HOT ROLES

Yes – significantly

senior role, so the candidate pool is smaller.”

Jennifer Rees- Gay, manager HR Recruitment at Robert Walters, says the HR market in Australia has been “very busy” over the past 12 months with lots of hiring across both contract and permanent roles.

“The ‘hot’ generalist roles are at the senior level, $150k plus across all industries, and in the HR adviser space $70k–$90k within the professional service industries,” she says.

A wide range of infrastructure projects in most states have been keeping the generalists busy. Meanwhile, redundancies across the

Workforce planning managers – As federal and state governments continue to restructure, merge and redefine parts of their workforce, the public sector requires candidates in workforce planning

HOT

Change managers – Organisational change is high up on the agenda for large and complex organisations. Those with plenty of change experience are in high demand

HOT

IN YOUR NEXT REVIEW, DO YOU ENVISAGE ASKING FOR A PAY RISE?

Yes

31% 45% 24%

Not sure No

www.hcamag.com

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6/07/2017 2:34:38 PM

SALARY COMPARISONS FOR PERMANENT ROLES Role

Hays ($)

Robert Walters ($)

Michael Page ($)

Frazer Jones ($)

2016 HRD median

2017 HRD median

% change (median)

HR director (large employer)

280,000

295,000

200,000

240,000

210,000

260,000

23.8%

HR manager (large employer)

180,000

172,500

165,500

180,000

171,875

176,250

2.5%

HR business partner

120,000

135,000

131,500

145,000

132,500

133,250

0.6%

-

97,500

-

105,000

93,750

101,250

8.0%

76,000

86,250

13.5%

HOT

Senior HR adviser/consultant

HOT

HR officer/adviser

85,000

77,500

92,000

87,500

HR coordinator/administrator

65,000

65,000

68,500

62,500

61,250

65,000

6.1%

-

-

53,000

60,000

57,500

56,500

-1.7%

L&D head

220,000

-

-

195,000

210,000

207,500

-1.2%

L&D manager

150,000

147,500

142,000

130,000

141,875

144,750

2.0%

L&D specialist/consultant

95,000

102,500

94,500

100,000

101,875

97,500

-4.3%

L&D coordinator

70,000

-

63,000

72,500

76,667

70,000

-8.7%

HR graduate

L&D instructional designer

130,000

105,000

110,000

140,000

106,875

120,000

12.3%

Trainer

85,000

-

68,500

110,000

93,750

85,000

-9.3%

HOT

Rem & ben head

200,000

232,500

163,000

215,000

196,875

207,500

5.4%

HOT

Rem & ben consultant/specialist

100,000

100,000

118,000

135,000

110,000

109,000

-0.9%

HOT

Payroll manager

-

-

-

120,000

115,000

120,000

4.3%

HOT

IR/ER manager

160,000

170,000

184,000

160,000

146,250

165,000

12.8%

HOT

IR/ER specialist/consultant

110,000

-

102,000

112,500

107,500

110,000

2.3%

HOT

Recruitment manager/head of talent

130,000

142,500

157,500

185,000

141,250

150,000

6.2%

HOT

Recruitment specialist/officer

95,000

105,000

94,500

100,000

94,375

97,500

3.3%

WHS/OHS head

170,000

180,000

157,500

220,000

193,750

175,000

-9.7%

WHS/OHS manager/consultant

140,000

-

89,500

165,000

135,000

140,000

3.7%

WHS/OHS coordinator

100,000

102,500

-

107,500

87,500

102,500

17.1%

Health & wellbeing manager/officer

120,000

-

-

-

110,000

120,000

9.1%

OD manager

150,000

-

-

205,000

160,375

177,500

10.7%

OD specialist

110,000

130,000

-

130,000

116,250

130,000

11.8%

HOT

Workforce planning analyst

110,000

175,000

-

-

112,500

142,500

26.7%

HOT

Change manager

200,000

185,000

-

212,500

185,000

200,000

8.1%

Injury/RTW manager

130,000

-

-

125,000

112,500

127,500

13.3%

HRIS manager/consultant

90,000

173,500

177,500

112,500

173,500

54.2% 8.1%

HRIS specialist/analyst

-

105,000

100,000

100,000

92,500

100,000

Diversity manager

150,000

-

-

-

150,000

150,000

N/A

Diversity consultant

110,000

-

-

-

110,000

110,000

N/A

Average

124,941

133,659

7.0%

Hays: Figures are the median from a lower and upper range (eg $160–$170K); all figures are Sydney-based for companies with >1,000 employees; all salaries exclude superannuation.

Robert Walters: Figures are for Sydney permanent roles, taken from the median of a lower and upper range; figures are basic salaries inclusive of superannuation, but exclusive of benefits/bonuses unless otherwise specified.

Frazer Jones: Figures are inclusive of superannuation and exclusive of incentives and other benefits. Figures are for ‘large’ organisations.

Michael Page: Salary ranges the median from a lower and upper range. All figures relate to ‘large’ organisations.

While we have taken great care, these salary ranges can only be approximate guides as there are often specific circumstances relating to individual companies. Contact your recruitment agency for additional information.

www.hcamag.com

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6/07/2017 2:34:41 PM

ANNUAL REVIEW

HR SALARY AND JOBS GUIDE

If there’s a characteristic applicable to the HR job market in 2017/18 it’s not so much about the technical expertise of candidates as it is about their behavioural competencies

DOES YOUR COMPANY OFFER FLEXIBLE SALARY PACKAGING?

71%

manufacturing and mining sectors have resulted in an increased number of talented HR professionals entering the market. In Western Australia, where the majority of organisations are completing restructures and consolidating their workforces, salaries are ultimately expected to stabilise and the trend towards contracting remains strong.

Movement at the top Those who have read HRD’s annual guide to salary and jobs previously would appreciate that it has been a sluggish couple of years in terms of senior HR movements. Foley of Frazer Jones suggests there have been more moves than in previous years, but it hasn’t been busy. “We have seen a noticeable difference in demand in our Hong Kong and Singapore offices, reinforcing the view that many senior HR roles are leaving these shores,” he says.

Morris adds: “There has been movement at the mid to senior end; however, all the roles have been temporary or contract. When an opportunity becomes available, the quality of applications is usually outstanding.”

However, Robert Walters has seen a significant increase in demand at the senior end of the market. Maternity leave contracts and new roles within organisations that have

22

Specialist roles When it comes to specialty areas of HR, Foley says two areas have been in some demand: recruitment and L&D. “Usually, these are positive indicators that businesses expect growth and want to retain staff through offering more opportunities to develop their skills,” he says. “More recently, we have seen an increase in demand for IR specialists.”

Morris agrees that there’s been a push towards hiring specialist experts in employee and industrial relations. In addition, she suggests that experts in compensation and benefits are needed. “The bulk of this demand has been from change and reform projects, with the majority of the roles being created within the public sector,” she says.

Morris also echoes Foley when she states that many organisations across Victoria and NSW continue to grow their internal teams, so the demand for strong recruiters is also an ongoing factor.

Elsewhere, organisational change is high up on the agenda for large and complex organisations, which is creating strong demand for senior candidates with solid

OF THOSE WHO ANSWERED YES, THE FOLLOWING BENEFITS WERE INDICATED AS BEING COMMONLY OFFERED TO (%)...

18% 10% 52%

20%

Car

Yes

29% No

moved into Sydney from APAC have been the biggest drivers, Rees-Gay says.

28% 38% 18%

15%

Bonuses 13%

6% 10%

Above mandatory superannuation

Private expenses

44% 9% 6%

40%

58%

6% 6%

Private health insurance

41% 71%

32%

30%

25% 4% 5%

66%

Other

16%

12%

Parking

24% 11% 8%

57%

Salary sacrifice

All employees

Less than 50%

More than 50%

Few employees

www.hcamag.com

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6/07/2017 2:34:43 PM

experience in this area. In the public sector, workforce planners are required.

“As the focus nationally turns to developing and maintaining key talent, salary expectations will remain at the forefront of HR dialogue. Organisations experiencing growth will continue to seek specialist talent in organisational development to support a healthy workplace culture and empower leaders in their businesses,” Morris says.

Instructional design is another niche area of demand. “It’s also very technical and is constantly evolving,” Morris says. “With more organisations wanting to innovate their e-learning or L&D frameworks, the supply of instructional designers cannot keep up with demand.”

In addition, ethics and compliance specialists are sought, particularly by international businesses that are focusing on this area to minimise risk. In fact, Morris suggests more HR roles are beginning to incorporate this within their job descriptions.

And while certain specialist roles haven’t dropped off the radar in the past 12 months, some geographic locations have. For example, in WA in particular, redundancies and restructures have seen specialist positions reduce. Morris adds that these reductions are being made in the area of WHS and injury management. “Instead, candidates with generalist backgrounds are finding it easier to secure their next role since they can cover a range of functions,” she says. “For example, an HR adviser could now also be responsible for internal recruitment, learning and development and ER/IR. In South Australia, and again due to the change in market due to redundancies, permanent specialist roles have dissolved and HR generalists have been placed in these vacancies either on a contract or temporary basis.”

Robert Walters has seen specialist HR roles remain steady over recent months,

albeit with a surprising, yet slight, decline in safety roles. One reason for this trend, Rees-Gay suggests, could be the current focus on remuneration thanks to the financial year-end for many organisations.

OF THOSE YOU COUNTER-OFFERED, ON AVERAGE, DID THEY...

48%

IS IT YOUR POLICY TO COUNTER-OFFER STAFF WHEN THEY RESIGN?

60% 38% 2%

Leave anyway?

No Sometimes

30%

Stay longer than 12 months?

18%

Stay 3–12 months?

4%

Stay less than 3 months?

Yes

Remuneration There is both good news and middling news when it comes to remuneration for HR professionals. First, the good news. Frazer Jones’ research indicates that approximately 70% of Australian HR professionals are eligible to receive a bonus. The bonus payments are generally decided based on a mix of business and individual performance.

Now, the middling news. In general, salaries have tracked rates of inflation or remained the same. National overall salary growth has dropped from 4.1% in 2012 to 2.8% in 2017. A promotion or change in job is when a salary increase tends to occur.

Morris suggests the trend is definitely one of a cautious approach to salary increases.

“This continues the trend we’ve seen over recent years of smaller salary increases,” she says. “As noted in our 2017 Hays Salary Guide, most employers will give HR staff a pay rise of up to 3% in their next review. Just 24% will receive 3% or more. Eleven percent will receive no pay rise.”

AVERAGE HR SALARY INCREASES OVER NEXT 12 MONTHS 70 60

65%

50 40 30 20

19%

10 0

3%

3–6%

5%

11%

6%+

None

www.hcamag.com

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6/07/2017 2:34:47 PM

ANNUAL REVIEW

HR SALARY AND JOBS GUIDE

Companies making super contributions above the standard have decreased by 10.3% over three years

There are some exceptions, notably for particular expertise in short supply. For instance, specialist experts in employee and industrial relations as well as compensation and benefits are offered competitive salary packages. Likewise, in the eastern states senior candidate shortages have been an ongoing theme, resulting in increasing salaries at the HR adviser and senior adviser level.

Other trends Of particular note for HR professionals may be the finding of the 2017 Australian Institute of Management National Salary Survey that companies making super contributions above the standard have decreased by 10.3% over three years.

Another red flag for HR professionals with salary budgets to consider has come from research by Willis Towers Watson, which claims that in a low-yield environment Australian salary costs are increasing.

A recent assessment of the Willis Towers Watson Australian remuneration database for local and international companies that have consistently provided data for all employees indicates that although growth in the cost of actual remuneration increases

has been restrained (approximately 2% per annum between 2014 and 2016), the incentive payout ratio across all roles is increasing and nearing the target.

Nidhi Malik, senior consultant in Willis Towers Watson’s talent and rewards practice, says the findings raise key questions regarding the sustainability of remuneration practices, and whether the alignment of performance and reward is effective.

Malik commented: “In years of lower funding, businesses need to assess if budget is being allocated to optimise the spend, with high performers receiving the majority of funding, rather than directing scarce dollars to those who fail to meet expectations. It can also beg the question of whether the annual pay-for-performance programs, which are truly meant to reward for performance, risk becoming an entitled aspect of the total reward package.”

There was a decrease in the incentive payout ratio from 97% in 2014 to 87% in 2015, but this jumped to 102% in 2016. This trend plays out across the spectrum of job levels.

“Another key question is how are companies assessing contribution – both in terms of the roles and performance – and

IF YOU EXPECT STAFFING LEVELS TO INCREASE, PLEASE SPECIFY HOW

82%

30%

23%

Full-time/ permanent staff

Temporary/ contractors

Employment of part-time staff

(through an employment consultancy)

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20% Employment of casual staff (on your payroll)

5% Mixture, other

3% Job sharing

(inc. overseas recruitment, acquisitions)

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how rewards are linked to this. We often see the cost for businesses increasing as more organisations are offering incentives based on classification of roles and not on the contribution of the role. In recent years we have also seen a trend towards incentives being expected by more employees. As a result there is a need for companies to review their reward frameworks.

“Businesses need to develop a strategy that addresses this issue. A performance and reward alignment that is based on ‘looking forward’ rather than ‘looking back’ – what we call a more future-oriented definition of performance – may help. This includes taking role criticality, skill criticality and team contribution into account when making reward decisions,” Malik says.

PAY RISE TIPS

Looking to prove your worth in the coming financial year? Lisa Morris of Hays suggests it’s critical to use your accomplishments and the value you add to your organisation as the basis of your negotiation. In this way, you’ll clearly demonstrate your worth and will be in a stronger negotiating position. Hays’ tips include: Prepare a list of your recent achievements that exceed your objectives; you may need to look back at your original job description. Also, list any changed or rising work volumes or duties you’re now undertaking and consider projects you’ve been involved in.

Then list the resulting benefit to the organisation of your results. The aim here is to provide strong evidence to support the value you provide, so focus on outcomes.

Have a fall-back position. If your employer cannot afford to increase your salary, can you agree a date for another pay review in three or six months? What about additional benefits?

Flexibility the key Surveyed business leaders said ‘economic conditions’ had the most influence on business, followed by ‘consumer/business confidence’ in second position. Despite the uncertainty, in its own way the Australian workforce is adjusting itself just as it as has always done.

A significant 44% of leaders surveyed by Hays predict the next 12 months will see a trend towards a flexible temporary workforce. As the economy continues to strengthen, businesses will continue to show confidence in increasing head count to cope with business demands. In the short term at least, this will require the immediacy and flexibility of contract specialists.

The next 12 months will see a trend towards a flexible temporary workforce

All graphs, unless indicated otherwise, are taken from Hays 2017 Salary Guide

GENERAL HIRING TRENDS Business activity increased for 70% of employers in the past 12 months, while three quarters (75%) expect it to increase in the next 12 months.

45% of employers expect to increase permanent staff levels, far exceeding the 11% who say they’ll decrease.

Meanwhile, 23% expect to increase their use of temporary and contract staff, also exceeding the 9% who anticipate decreasing in this area.

23% of organisations now employ temporary and contract staff on a regular ongoing basis, and another 44% employ them for special projects or workloads.

In the last 12 months, 15% of Australians asked for a pay rise but were declined – a further 17% asked for a pay rise and were successful.

The success of the latter perhaps explains why 45% say they intend to ask for a pay rise in their next review.

A further 24% are as yet unsure.

32% of employers say staff turnover has increased in their organisation.

65% of employers, compared to 60% last year, are worried that skill shortages will impact the effective operation of their organisation or department in a significant (23%) or minor (42%) way.

38% of employers say they sometimes counter-offer staff when they resign and 2% say they always counter-offer resigning staff.

Yet of those counter-offered 48% left anyway, 22% accepted but stayed 12 months or less, and just 30% accepted and stayed over 12 months.

71% of employers offer flexible salary packaging. Of these, the most common benefits offered to all employees are salary sacrifice (offered to all employees by 57% of employers), above mandatory superannuation (41%), parking (32%), private health insurance (30%), and bonuses (28%).

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FEATURES

SECTOR FOCUS: PAYROLL

DOTTING THE I’S AND CROSSING THE T’S A spate of high-profile and costly payroll failures has shone a light on compliance in this businesscritical function. Is it time to review what your organisation has in place?

YOU POSSIBLY saw the headlines or perhaps laughed at the punchlines from late night talk show hosts when celebrity chef George Calombaris’ restaurant group was found to be paying staff incorrectly over a long period, leading to $2.6m in back payments. However, given that some employees were also overpaid, the general consensus was that this was an honest mistake – and as poor an excuse as it sounds, Calombaris himself never claimed he was an

the assistance of an external auditor to help rectify the situation. However, it’s these kinds of payroll errors that Jason Low, head of TAPS (The Association of Payroll Specialists) sees time and time again.

“You can make a tiny mistake and it compounds so quickly,” he warns. “Before you know it you’re in the headlines for all the wrong reasons. Six months ago, Chemist Warehouse made a little mistake in interpreting one of their awards. It was

“Data privacy and security concerns are often more significant when there is a service organisation involved” Anij T Janardhanan, Ascender accountant or payroll professional; he was merely a chef.

Indeed, an independent review found that outdated systems and processes were to blame for the discrepancy in payments that did not meet the latest industry awards.

While it was a regrettable – and costly – error, Calombaris is unlikely to see any lasting damage to his organisation’s reputation, primarily because he has proactively sought

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an honest mistake, but by the time it was rolled through their employee base they had a backpay situation of $3.5m. They were upfront and paid it. But the fact it was an honest mistake almost makes it scarier.”

From something as innocuous as an outof-date system or a failure to keep abreast of changes to awards, through to outright fraud, compliance (or lack thereof ) has emerged as a topic of note recently.

Change – and change again Compliance means more than just changes dictated by the Australian Tax Office. There may also be requirements from Fair Work Australia, such as the recent 3.3% increase to the minimum wage, and additional tweaks to superannuation and workers’ compensation.

While many of these will typically occur at the start of a new financial year, Low says in reality changes can occur at any time. Add in alreadycomplex individual awards, and industries that hire a high proportion of casuals, contractors and freelancers, and mistakes are almost bound to happen.

Looking ahead through the rest of 2017, Low says further changes can possibly be expected to penalty rates.

“The cutback on Sunday penalty rates, if it does go through on 1 July, will cause massive problems for business,” he says. “If you’ve got an electronic time and attendance system, which has all those rules programmed in the background, you’re going to need to get that all reprogrammed. So there’s potential in the short term for people being overpaid until you update your systems.”

Meanwhile, the ATO is introducing Single Touch Payroll – a government initiative intended to streamline business reporting obligations – in a number of phases from 1 July 2017.

“We see legislative changes coming through in dribs and drabs, often with very short turnaround times in terms of implementing the changes,” says Low. “This is stressful for businesses; oftentimes they’re not making the taxes easier, they’re making them harder.”

Compliance in an age of outsourcing One key mistake that too many organisations make is to assume that out of sight means out of mind – in other words, because the payroll function is outsourced to a third party, the employer washes its hands of compliance issues. This is not the case.

“You can’t outsource your obligations,” says

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SELECTING AN OUTSOURCE PROVIDER What should organisations look out for when selecting an outsource provider for payroll? Anij T Janardhanan suggests that, as a minimum, attention should be paid to areas like:

Low. “It’s not enough to say, ‘We outsource to this company; they made the mistake’. What you’ve outsourced is the labour and expertise. At the end of the day you still need to sign off on it.”

In addition to the obvious requirements around legislative compliance, organisations that outsource payroll to service organisations also face the risk of not being able to extend the same level of internal controls to the service organisation.

“With payroll being one of the most important, if not the most important, functions, controls assuring the completeness, accuracy and integrity of the process are very critical,” says Anij Janardhanan, Head of Global Compliance, Ascender.

Janardhanan adds that the ability of a service provider to demonstrate an effective control framework based on full understanding of inherent risks in payroll processes through independent auditors’ reports like ISAE 3402 SOC1 (International Standard on Assurance Engagements (ISAE) No. 3402, Assurance

• Robust programs to understand and apply data privacy and payroll tax legislation as they occur • Existence of a risk-based internal control framework practice that is independently audited. The easiest way to demonstrate this is through an ISAE 3402 SOC1 Type II report • An information security management system that is based on widely accepted international standards like ISO 27001:2013 • A program for business continuity and disaster recovery that covers risks affecting people, infrastructure and technology “The commitment of management towards compliance is absolutely critical for any organisation to drive compliance,” says Janardhanan. “This is often demonstrated by setting up an independent function with experts for compliance and internal audit. Organisations that lead the way in compliance are the ones where the leaders set such examples of priorities. As a customer, you will easily differentiate those providers who have compliance as their second nature.”

Reports on Controls at a Service Organization) is critical. Similarly, he says business continuity and disaster recovery of the payroll services and systems are often overlooked, with no back-up for payroll data. Availability of back-up personnel with the right skills and capabilities in the absence of primary staff is also critical to the success of any business continuity program. While this has been a very familiar challenge for in-house payroll

departments, outsourcing payroll adds little value in mitigating this risk if the provider does not have enough breadth and depth of talent pool to be used for contingencies.

The ‘elephant in the room’ for all payroll professionals, whether they work in-house or as part of an outsource consultancy, is data privacy. Low says this is a critical issue for outsource payroll providers.

“The Privacy Act in Australia puts the onus

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SUPPORTING THOSE BEHIND THE SCENES It’s often said that payroll is only ever noticed when something goes wrong, and sadly Jason Low of TAPS says this is true. “This kills me,” he says. “Payroll often seems to be forgotten. The expectation is you type some numbers into the payroll software and it spits out the answer. It’s not as easy as that. There is so much legislation and so much you need to know.

If you don’t know the right information, if you don’t know the right questions to ask, you don’t know the right information to punch into the payroll system.

Look at termination, for example.

That can split into 15 different categories. There are different sets of rules for redundancy, which also gets split into 15 different categories. Depending on the types of payments and reasons behind the payments, that impacts on how it’s taxed. The computer doesn’t know the questions to ask. If you want to get your payroll right you need a properly trained payroll person who is getting updated on the latest information because it changes so quickly.”

ASCENDER Ascender’s 900 highly trained employees work across 19 countries, delivering compliant, accurate and timely payroll and HR services. They use their expertise and proprietary software to power an efficient, cost-effective and intuitive solution so businesses can mitigate the risk of in-country payroll compliance and unlock the power of data-driven insights. www.ascenderhcm.com

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on you as a business to protect the data of your clients – so as a payroll outsourcer they absolutely have a responsibility to protect that data. Increasingly, we’re seeing businesses outsource using software in the cloud, like Ascender, but they still need to go through really rigid checks to ensure they are compliant with the Act.” It is also important to understand that information security does not just stop at privacy. For example, ensuring that access to perform transactions is limited to only authorised personnel is a key priority for a financial process such as payroll.

“Data privacy is ensuring that personal

Ascender’s in-house capabilities to interpret and apply in a timely manner. Ascender has also appointed dedicated personnel at leadership levels to drive other aspects of compliance, like data privacy, information security, business continuity, etc.

“At Ascender, we are trusted with the prosperity of millions of employees,” says Marjukka Mäki-Hokkonen, CEO, Ascender.

“That is millions of people who rely on Ascender to act with the highest level of integrity, security, privacy and compliance. Our executive leadership has the responsibility to ensure compliance is lived and breathed across every function and process so it can weave its

“Our executive leadership has the responsibility to ensure compliance is lived and breathed across every function and process” Marjukka Mäki-Hokkonen, Ascender information is collected, used, retained, disclosed, and destroyed in conformity with the commitments in the entity’s privacy notice and applicable legislations. In addition to managing the privacy requirements, a mature payroll provider should also be able to manage confidentiality, security, availability and processing integrity for its customers’ payrolls,” says Janardhanan.

The Office of the Australian Information Commissioner provides some excellent guidelines for Australian businesses on its website (www.oaic.gov.au). Information security is a much broader domain, and there is significant interest in the security of data being stored in the cloud. “Data privacy and security concerns are often more significant when there is a service organisation involved in the payroll process with technology and personnel outside Australia,” says Janardhanan.

Ascender uses a multi-tiered approach to managing compliance by sourcing legislative and data privacy updates from leading firms and providers and combining that with

way into the strands of our cultural DNA. It has simply become the way we do business and why we are different.”

A focus on getting it right Low is keen to shift the standing of the payroll function in businesses away from a function that costs money to one that can potentially save money. He cites an example of one of his members who recently started a new payroll job. One of the first things he did was examine the parameters of the payroll system, to get a feel for what was happening. He noticed that in the past six months multiple redundancies had been made. These redundancies were pegged in the payroll system as being subject to payroll tax, which is a tax that companies must pay based on the size of their payroll. Spotting this mistake and making the necessary changes, the new hire was able to save his company $30,000.

“Payroll is a big part of your business,” says Low. “Business leaders must pay attention to it and must train payroll staff – it’s only in their best interests to do so.”

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FEATURES

SECTOR FOCUS: RECRUITMENT

BECOMING A MILLENNIAL TALENT MAGNET

Some employers are still struggling to adjust their recruitment approaches to attract the best talent from what will soon be the most dominant workforce demographic

TODAY, EVERY employee is a digital employee. However, the term could have been invented solely to describe millennials.

For those born between 1981 and 2000, the flexible, data-driven experiences they’ve encountered for most of their lives mean that their expectations as consumers – and employees – have shifted.

Why should employers care about this shift? For one thing, according to Galaxy

of their predecessors. The hiring halflife for millennials averages 3.4 years, compared to 7.3 years for baby boomers and 5.8 years for Gen X. • 15% of millennials average less than two years in a position, compared to 1% of baby boomers and 6% of Gen X. • 10% of millennials try to stay no longer than two years with an employer, with 7% attempting to cap their contracts.

“The fundamental element of the employer brand is its alignment with the target employee profiles the organisation wants to attract and retain” Olivier Pestel Research,* millennials will make up half the Australian workforce by 2021 and a staggering 75% by 2025. This research from Galaxy reveals further interesting insights about this working generation.

First, the downside. Millennials present a challenge to traditional recruiters because: • They swap jobs at double the speed

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While it’s easy to criticise the hype around just how ‘different’ millennials are from previous generations, and it’s important not to fall into identifying people by generational stereotypes, it’s also critical to acknowledge that employees’ needs and preferences are changing due to the influence of technology in our personal and professional environments.

For example, consider the following: • Employees are constantly distracted (eg by email, IM, social networks, meetings).

• Attention spans are diminished and are being measured in minutes and seconds.

• Work is happening across multiple locations (eg homes, satellite offices, customer sites, overseas locations).

• Workers are becoming more collaborative and are looking towards peers and professional networks to gain and share knowledge and best practices.

• How people undertake L&D has changed. According to one study, ^ 91.5% of surveyed employees stated that they had used e-learning of some kind at work and 74.9% stated that online learning leads to higher employee satisfaction.

• With a wide array of tools at their fingertips (eg MOOCs, social networks, the internet), millennials are empowered to seek answers and knowledge on their own.

The influence of technology is also apparent in how employers attract and recruit talent – and, as always, the employer brand is playing a critical role in this socialmedia-driven digital era.

Building the brand Attracting prime millennials to your company brand is a question of understanding what motivates them, tapping into their concerns and utilising their strengths.

“The way an organisation is perceived by jobseekers via its employer brand is an important element to attract talent,” says Olivier Pestel, Senior Director Solution Consulting and Business Development, Asia Pacific Japan, at Cornerstone OnDemand.

He adds that, in an age in which information is widely accessible, tech-savvy candidates are able to review their future employers in all areas of reputation – from

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BUILDING AND SELLING YOUR COMPANY BRAND interviewing and hiring practices via platforms such as Glassdoor or LinkedIn, through to their values, demonstration of corporate social responsibility, or even their internal culture.

“More specifically in regard to millennials, an employee-centric approach connects with the millennial desire to shape their own future and empower the individual with purpose and development,” says Pestel.

Switched-on companies are meeting millennials halfway, negotiating jobs and working conditions that suit their more agile way of working. They are also ensuring the following elements are emphasised in their employer brands: Mobility – Mobile technology, 24/7 availability of information, and social learning are a boon for contemporary employers keen to meet the tech-savvy millennial demand for interactive, responsive and genuinely engaging forms of learning and development.

Once your company culture is defined, employers can begin targeting the candidates who will bring the most value to their businesses. Olivier Pestel suggests: “Use your website, social media channels and internal job boards to both show and tell the story of your brand via text, image and video – offering a genuine glimpse into your company from the shop floor to the executive suite.”

An employer’s aim should be to win candidates looking for flexible, creative, contemporary workplaces; demonstrate a far-reaching social network via LinkedIn, Seek and Facebook; tell candidates about the company’s culture, company vision, senior leader perspectives, global presence and potential for learning, upskilling and career growth; offer exciting career pages via job postings with, for instance, branded video.

Flexibility – The Deloitte Millennial Survey 2017 reveals that 84% of millennials report that their workplaces offer flexible work conditions, with 39% saying they have highly flexible work environments.

They believe this encourages greater productivity and staff engagement, as well as promoting individual health and happiness.

Flexible workplaces also greatly enhance staff loyalty, the survey reveals, as well as making workers two and a half times more likely to feel that flexible work practices positively impact the company’s financial performance.

Social purpose – The Deloitte research also revealed the importance of socially conscious workplaces to Gen Y: • More than half of those surveyed said they were given the opportunity to contribute to charities and worthwhile causes in the workplace.

• Those given these opportunities showed greater levels of loyalty to their employers.

• Millennials intended to stay longer with employers who engaged with social issues like education, unemployment, and healthcare.

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SECTOR FOCUS: RECRUITMENT Brought to you by

THE MILLENNIAL MINDSET Employers specifically targeting millennials should be focusing on: A personal approach. Two thirds (65%) of surveyed* millennials said they would stay longer with an employer who showed a personal interest in their work and asked them what would enhance their job.

Money motivation. Financial reward emerged as a top motivator for 84% of millennials, compared to 69% of baby boomers and 75% of Gen X. Passion and performance. If it doesn’t feel good, millennials tend to move on. Around 60% left a position within one year of feeling they were no longer achieving peak performance – with 32% leaving within three months.

Career development.

Two-thirds of millennials practise strategic swapping – choosing to stay with an employer as long as they are still undertaking the necessary training and acquiring the vital skills to advance their careers. *Source: Motivating Millennials: Managing Tomorrow’s Workforce, Today,

by Galaxy Research and Kronos Australia

CORNERSTONE ONDEMAND Cornerstone OnDemand is pioneering solutions to help organisations realise the potential of the modern workforce. As the global leader in cloud-based learning and human capital management software, Cornerstone is designed to enable a lifetime of learning and development that is fundamental to the growth of employees and organisations. www.cornerstoneondemand.com.au

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More than any generation before, the millennial generation is driven by information and storytelling, and that means a company’s online presence must provide a transparent view into its mission, products, values, culture and future plans.

“From a 360-degree office view to quick video profiles of your employees, strong social media branding and messaging will help connect you to millennial candidates,” says Pestel. “Your website, Instagram, Snapchat, Twitter, Facebook – all of these platforms should tell a cohesive story about what it’s like to work for you.”

For many organisations, this leads to how digital is transforming their existing processes and content. It’s not about creating something new out of legacy but about defining and designing new content and interactions – for instance, defining your mobile strategy.

“Effective social media use can also reveal a lot about a person’s confidence. The professional networks and relationships they build, and the ability to make and share insightful comments and opinions, could impact positively in the selection process for the right candidate,” Pestel adds.

Time for a rethink While technology has changed the way employees interact with and engage with their employers, it can also provide solutions to attracting and retaining the best talent, regardless of age – but especially millennial talent. Perhaps it’s time to rethink how your organisation is serving employees and start delivering on the digital employee experience, from attraction through to all stages of the employee life cycle.

Cornerstone’s Recruiting Suite can

“Social media profiles often offer you more information than you would get on a résumé” Olivier Pestel Pulling it all together Stepping back, rethinking and redesigning processes can even extend to how employers are assessing candidates. Privacy laws notwithstanding, a candidate’s digital footprint is public information and is increasingly being checked by recruiters and managers.

“Social media profiles often offer you more information than you would get on a résumé,” says Pestel. “Reviewing a candidate’s digital footprint across platforms can provide you with a sense of their personality and interests.”

Employers – particularly those with strategic objectives tied to profile-raising and business development – will also increasingly look at the ‘social capital’ of candidates. That is, those who have the most ‘reach’, who can ‘trade’ off their social profiles via thought leadership content.

redefine the way you source and onboard top people via the cloud – for faster, streamlined talent management that embraces the future.

Using social network and résumé integration, these systems allow employers to build talent pools of internal and external staff, along with the development of training, assessment and collaboration models. These systems can provide insights into areas such as skill gaps and talent pipelines; centralised collection and analysis of candidate data; streamlined application processes; and identification of core values and key competencies.

Sources: *Motivating Millennials: Managing Tomorrow’s Workforce, Today, by Galaxy Research and Kronos Australia; ^Global Journal of Business Research, Volume 8, Number 4, 2014, “Corporate Elearning Impact on Employees”,

by Prince F. Ellis, Brown Mackie College, Cincinnati, and Kevin D. Kuznia, Ashford University

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FEATURES

SECTOR FOCUS: HEALTH & WELLBEING

HEALTH COMES OF DIGITAL AGE

Are your traditional health and wellbeing benefits not getting cut-through? It may be time to trial digital services – a potential lifeline for struggling employees

THE STATISTICS around absenteeism in Australia are daunting. In 2016, absenteeism levels increased by 0.9 days to an average of 9.5 days per employee per annum, at an average cost of $3,608 to business. Absenteeism costs the Australian economy more than $33bn in wages and lost productivity every year.

healthiest employees working approximately 143 effective hours per month compared to 49 effective hours per month worked by the least healthy.* With these statistics, it’s little wonder that more organisations today are placing the physical wellbeing of employees at the heart of their operations.

“Sometimes these initiatives are a little too far removed from the kind of assistance the employee actually needs” Gerard McCarthy Clearly, an HR team that can improve these statistics even marginally will enhance their organisation’s productivity levels – a fact reinforced by reputable research. An Australian study considered the combined effects of self-rated work performance and absenteeism – it found that the healthiest employees are almost three times more effective than the least healthy, with the

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however, do they provide a tangible and immediate result?” McCarthy asks.

The tried and true health interventions used by HR in the past are indeed coming under scrutiny. A fruit box is a nice idea, but does this help an employee who has a chronic health condition? Free or discounted gym memberships are always requested by active employees, but how does this help the physically unable? EAP programs are helpful but can cater to a particular need and generally have low levels of utilisation.

“Sometimes these initiatives are a little too far removed from the kind of assistance the employee actually needs, and don’t necessarily have a tangible impact on performance in the workplace,” McCarthy says.

In addition, these traditional means of supporting employees may not be enough to meet the needs of today’s workers, for whom flexibility is a priority. The need to tend to health, family and work concerns requires greater flexibility as the line between working life and personal life continues to blend. For example, today’s workforce has greater carer responsibilities stemming from having to look after younger or older family members. Time is a finite item, yet having to attend a medical consultation at 5pm means that someone has to look after the kids or care for elderly parents.

In response, employers are shifting their employee health benefits towards digital wellness programs, the most innovative of which will embrace the concept of telehealth.

The rise of digital health Looking beyond the tried and true Gerard McCarthy, Head of People and Culture at Allianz Worldwide Partners, says HR professionals will typically look to the levers of health and wellbeing programs by offering health checks, flu vaccinations, seminars, massages, gym memberships, and so on.

“We all use these types of programs and they do have a place in a holistic program;

Fed by the explosive uptake in mobile devices, telehealth is transforming how employers provide medical services to employees. Today some 73% of Australians say they want to interact with their health service via digital technologies.^ In fact, between 2011/12 and 2015/16 teleconsultations in Australia increased at a rate of 55% per annum (based on the Medicare

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EMBRACING A DIGITAL AGE Telehealth Quarterly Statistics Update, August 2016).

The concept of telehealth draws on the idea of being able to provide access to health and doctor services to people across geographic, social and cultural barriers. Perhaps most crucially in today’s time-poor world, employees do not need to leave the office to access highquality medical help. Telehealth cuts down on unproductive time out of the office while giving people more control over their health, supported by the use of cutting-edge technologies.

One example is Allianz Worldwide Partners’ partnership with Doctors on Demand Pty Ltd (DoD). After introducing the digital health platform to some segments of their markets and realising the tangible benefits, it was a natural progression to incorporate the platform into their own staff health and wellbeing offering.

Are there any technology restrictions or issues to be aware of? Gerard McCarthy responds: “Doctors on Demand Pty Ltd purposely designed its platform as a flexible platform to work across the main browsers people use to access the internet and also via the dedicated application (both IOS and Android). The technology that DoD is using embeds the video call software into the web browser/application itself. In terms of the security of data and quality controls, all internet traffic on DoD uses 256-bit SSL Certificates and Positive SSL certificates provided by Comodo. In the event that there is poor internet or broadband access in an area, consultations can be delivered by voice only instead of video, or even via a telephone call. All data used and stored on the website is encrypted, and confidential medical records and patient notes are not held on the platform itself, rather on the treating doctor’s patient management system, which is the same as they use for face-to-face consultations.”

The simplicity and ease of use of the technology made it an appealing and easyto-adopt offering for Allianz Worldwide Partners. To access the platform, an employee browses the application, clicks ‘redeem a benefit’, and enters their staff number. They can then search for accredited Australian doctors by availability, time zone and other criteria, such as gender and languages spoken.

The employee books the appointment and receives details of the video link. The doctor and employee both log in at the agreed time. The doctor and employee can have an appointment immediately (if the doctor is available), or for middle-of-the-night appointments a customer can connect with a doctor within minutes – much quicker than the in-home GP services on offer today.

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SETTING IT UP Setting up the digital health platform through Allianz Worldwide Partners is straightforward. All an HR team needs to do is decide how many GP services they want to provide to employees.

The basic services are: • Business-hours video consultations • After-hours video consultations • Prescription services

s of CEO succession

“Our solution allows you to offer employees access to any combination of the core Doctors on Demand services per year,” says Gerard McCarthy. “Direct your employees to access the Doctors on Demand services through the DoD app or website. You will not need to load any additional software onto your systems.

AWP will work closely with you to manage the set-up process so that it is as easy and simple as possible.”

AWP then provides one simple monthly invoice and report that outlines aggregate numbers of employees and services utilised in the period and a breakdown of those services.

ALLIANZ WORLDWIDE PARTNERS Allianz Worldwide Partners is the world’s leading B2B2C specialist, with expertise in the automotive, digital health, international health, travel insurance and assistance industries, providing continuous protection and care to business partners’ customers and employees worldwide, 24/7.

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Once the appointment is completed, any prescriptions, medical certificates or referrals will be finalised via email or express posted to the employee’s home. Alternatively, prescriptions can be sent to the patient’s nearest pharmacy. All paperwork remains accessible in the employee’s account and the privacy of employees is safeguarded at all times. Medical consultations and records are confidential between the doctor and patient.

Allianz Worldwide Partners invested in the digital health technology platform, Doctors on Demand, who they are now a major partner of, because they believe that the platform will complement any existing EAP – mainly because it offers something

of illness and a measurable level of attendance across the business.

“Given this, the business case becomes difficult to measure but logical in its stated aims,” says McCarthy. “Unfortunately, given the need to demonstrate financial ROI, health and wellness initiatives are always on the back foot.”

The true measurement of the ROI of the telehealth services can be seen in the ability of the product to be used as an alternative to an employee having to leave work to attend a doctor’s appointment.

Time lost due to travel to and from medical appointments is significantly reduced by allowing the employee to book a time that works for them through the DoD

Employees do not need to leave the office to access high-quality medical help that traditional EAP programs don’t: the ability for immediate and real-time access to qualified physicians that can diagnose, prescribe and follow up on illness.

“Employees using DoD can engage in a consultation, receive an initial diagnosis, obtain a prescription and organise a further consult in real time. This is something that traditional EAP programs can often overlook,” says McCarthy.

The ROI McCarthy says the ROI business case for health and wellbeing initiatives is often tricky to articulate given that the benefits of such programs are difficult to link with bottom-line performance.

For example, it is hard to demonstrate that an increased investment in flu vaccinations across a workforce has led to a quantifiable drop in absenteeism, therefore ensuring a stable level of productivity. Rather, it falls on the HR team to explain the logical connection between prevention

site and simply connect via their computer or smartphone at that time.

Given the service offers 24/7 access it is also possible for employees to arrange a consultation in real time outside of working hours, regardless of the time of day or night.

“In this light the business case becomes one of productivity, with assumptions made on the time saved, and therefore productivity gained, each time an employee elects to use the service for consultations that would otherwise require their attendance at a doctor’s surgery,” says McCarthy.

Of course, the benefits of providing such services to employees may also result in a level of goodwill and add to the organisation’s EVP. “Put simply, just because you can’t quantify it doesn’t mean you won’t benefit from it,” McCarthy concludes.

References: *www.comcare.gov.au/__data/assets/pdf_file/0006/99303/Benefits_to_business_the_evidence_for_ investing_in_worker_health_and_wellbeing_PDF,_89.4_KB.pdf ^Tim Kelsey, Australian Digital Health Agency, Webcast, 14 Nov 16

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EMPLOYMENT LAW SPECIAL REPORT

39 DIGITAL SURVEILLANCE AND EMPLOYEE RIGHTS Can you check an employee’s emails without their knowledge? Vanessa Andersen and Olivia Hillier provide an update

40 INVESTIGATIONS BEYOND REPROACH

Luis Izzo explains the five critical steps that ensure your workplace investigations stay on track and beyond reproach

42 DEMYSTIFYING THE DISMISSAL PROCESS

In what can be an area rife with potential legal loopholes, Alice DeBoos outlines the do’s and don’ts for employers looking to dismiss employees

With employment law constantly undergoing change, HRD’s second 2017 legal special report presents a range of topics applicable to all HR practitioners

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44 INSIDE THE LANDMARK SUNDAY PENALTY RATES DECISION

FCB Group led the case for the ARA, resulting in a victory for retailers and small to medium businesses alike. Here is the inside story from the firm’s Nick Tindley

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LEGAL SPECIAL REPORT

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EMPLOYEE SURVEILLANCE

DIGITAL SURVEILLANCE AND EMPLOYEE RIGHTS Can you check an employee’s emails without their knowledge? Vanessa Andersen and Olivia Hillier respond IN A digital age when the line between personal and public is becoming increasingly blurred, the question often arises as to the rights of an employer to monitor employee email.

Australia is split on this issue. Australian private sector employers in states and territories other than NSW and the ACT can check employees’ emails without prior notice, agreement or policy. There are also special rules for public sector employers. However, both

surveillance has already commenced, or will commence in less than 14 days before a new employee joins, notice must be given to the new employee before they join; • The notice must identify how the computer surveillance will be conducted, its start date, its duration (specified period or ongoing), and whether it will be continuous or intermittent; and • The surveillance must be conducted in

Best practice is to have a clear policy about permitted use of work email and computer surveillance NSW and the ACT have introduced legislation regulating private sector workplace computer surveillance.

In NSW and the ACT, unless a covert surveillance authority is obtained from a magistrate, complying with the legislative requirements for overt surveillance will mean an employer can lawfully check emails when needed. These requirements are: • The employee must be given 14 days’ written notice (or less if agreed) before surveillance is commenced. Note: If

accordance with a policy notified to the employee in advance of the surveillance (it must be reasonable for the employer to assume the employee is aware of and understands the policy).

In the ACT, the policy must also meet certain content requirements, including providing information about how the computer resources are logged, who may access logged information and how compliance with the policy is monitored and audited.

Once the above requirements are met,

employers in NSW and the ACT can check emails without their employees’ knowledge provided that the basis for checking is consistent with the reasons for monitoring given in the surveillance policy. As such, when preparing a computer surveillance policy, any desire to assure employees of their privacy needs to be balanced against legitimate monitoring purposes to avoid unreasonably fettering the employer’s prerogative to monitor its own IT email system.

Using the results Employers must nonetheless take care when using surveillance results. Checking emails and relying on your findings in support of disciplinary action can be very helpful, but only when done lawfully and in accordance with communicated expectations regarding work email use.

In NSW and the ACT, covert surveillance results can only be disclosed as permitted by the surveillance authority. Overt surveillance results can be used more broadly. For example, the results can be used for a legitimate business purpose such as disciplinary action.

If the results are used to dismiss an employee and legislative requirements have not been met, or if the employer’s policy has not been complied with or is vague or contradictory, you can be certain that the employer will be staring down the barrel of a claim (unfair dismissal being the most obvious for eligible employees).

For all employers, best practice is to have a clear policy about permitted use of work email and computer surveillance. The policy should state that work email is not private and may be monitored.

In NSW and the ACT, private sector employers need to take the further steps of notice and/or consent to that monitoring. The best way to obtain such consent is by including an appropriate clause in an offer letter or contract of employment.

This article was contributed by Vanessa Andersen (partner) and Olivia Hillier (special counsel), Maddocks.

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6/07/2017 2:37:30 PM

LEGAL SPECIAL REPORT

WORKPLACE INVESTIGATIONS

INVESTIGATIONS BEYOND REPROACH Luis Izzo provides five tips for improving your workplace investigations AS A director of Australian Business Lawyers & Advisors, I am regularly called to advise on disciplinary action arising from workplace investigations. As the disciplinary process unfolds, what often becomes apparent is that flaws arising during the investigation process often undermine the employer’s decisionmaking process and tend to increase exposure to unfair dismissal or breach of contract claims.

Here are five tips for ensuring your workplace investigation stays on track and beyond reproach.

• Firstly, you might find that the investigation lacks direction and unnecessarily traverses matters that are irrelevant to the allegations being investigated.

• Alternatively, certain parties may become aggrieved if their particular issues are not addressed. A defined scope helps to provide boundaries on the behaviour subject to scrutiny and helps ensure that other unrelated issues (including, for example, legitimate performance

A common (and justifiable) complaint by many respondents to investigations is that they are not provided with sufficient detail of the allegations against them Set the scope Regardless of whether you are investigating a matter internally or engaging an external investigator, it is important to set the scope of what is being investigated at the outset. Sure, developments might arise during the investigation process that require the scope to be expanded or narrowed. However, if you don’t set a scope or framework for the investigation at all, the following two consequences are likely to arise.

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management and operational differences of opinion) do not become entangled in the investigation.

Don’t run away from the ‘he said, she said’ scenario Investigations will often involve situations in which two witnesses have opposite recollections of the same incident.

In these cases, many employers will automatically conclude that they cannot

reach any finding regarding what took place – given the conflicting evidence from the only available witnesses.

Employers need to remember that the standard of proof that needs to be applied in these cases is ‘the balance of probabilities’.

That is, is it more likely than not that the alleged conduct took place?

While the existence of a factual disagreement between the two direct witnesses often muddies the waters, there could be a myriad of other circumstantial evidence that might assist an employer in determining what actually took place. For instance, a contemporaneous complaint or file note, contemporaneous email correspondence and a regular pattern of behaviour by a particular employee are all types of evidence that will form part of the overall framework of facts that are relevant to determining whether certain conduct has taken place.

It could well be the case that, having considered all of this evidence, it is still impossible to make a finding either way.

That is inevitable in some cases. However, don’t simply give up at the first hurdle

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they are not provided with sufficient detail of the allegations against them. The more thorough your questioning, the more specific the allegation and findings and the more defensible the investigation process becomes.

Clarify who can see witness statements, and how much information is provided

Try to ask as many questions as possible.

When did the events occur? Where? Why? Who witnessed the events? without trying to explore whether a finding can be made.

Don’t declare war on the support person It is now well understood by most HR practitioners that support persons are there to emotionally support the person involved in the investigation and do not have the right to act as an employee’s advocate.

However, we find that some HR practitioners tend to take an unnecessarily hostile approach to support persons, fervently reminding them of their limited role at any opportunity and refusing any requests for breaks or to clarify questions. In our experience, taking an amicable approach to the investigation process is more likely to achieve a constructive outcome. Unless the support person starts misbehaving or disrupting the investigation process, an

accommodation for a five-minute break or to clarify the meaning of a question is unlikely to prejudice the employer’s position and will lead to a more harmonious investigation process.

Of course, when asking questions of employees, it is important that you do obtain the employee’s answer directly from them, as opposed to the support person. This is particularly important in dishonesty cases to ensure that the employee can be accountable for what is said in the investigation meeting.

Get specific You can never ask enough questions in an investigation. Try to ask as many questions as possible. When did the events occur? Where?

Why? Who witnessed the events? How does the witness know about the matters they are describing?

A common (and justifiable) complaint by many respondents to investigations is that

Witnesses often request that their evidence be kept confidential when disclosing information about fellow employees. On the other hand, respondents often complain when they can’t see the witness statements made against them, alleging that they do not have a fair opportunity to respond to the allegations.

How does the employer balance these competing issues? The short answer is that a respondent needs to be provided with sufficient detail of the allegations against them in order to be given a fair opportunity to respond.

However, this doesn’t necessarily mean they need to see witness statements. Rather, the respondent will often only require specific detail about what it is alleged they have done.

In rare cases, though – particularly where witness motivations for giving evidence could be called into question – the only way to give the respondent a fair opportunity to respond could be to disclose the effect of evidence from relevant witnesses.

Workplace investigations can be complex matters, and only a few key points have been covered in this article. ABLA runs regular webinars and training courses on this subject and can tailor the training for your organisation. Call 1300 565 846 or visit ablawyers.com.au to book in a comprehensive training program for your staff.

Luis Izzo is a director at Australian Business Lawyers & Advisors (ABLA). Serving business and only business, this legal and advisory firm is trusted by the Australian Chamber of Commerce and Industry and is the leading voice for industry in the Fair Work Commission.

Contact Luis on 1300 565 846 or luis.izzo@ ablawyers.com.au if you have any questions about workplace investigations.

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6/07/2017 2:38:45 PM

LEGAL SPECIAL REPORT

EMPLOYEE DISMISSAL

DEMYSTIFYING THE DISMISSAL PROCESS Alice DeBoos, partner at K&L Gates, outlines the do’s and don’t’s for employers looking to dismiss employees

DISMISSING EMPLOYEES is hard, right?

Of course it is. Emotions run high, and none of us are machines. This is a process that takes a personal toll on all involved. The difficulty, however, is in the human side of the decision, not necessarily the legal requirements.

While employers will often feel daunted by the risk of unfair dismissal claims in particular, the law is in reality quite logical and straightforward. It becomes complicated

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only because we are all human and often our perceptions of a set of circumstances are very different when assessed by an outsider.

So, in simple terms, what does an employer need to remember?

Before stepping into the breach, consider whether there is a valid reason for dismissal. Be able to clearly articulate that reason and ensure that the reason is supported

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by evidence before making a final decision. It is often the case that the reason relied upon by the employer is undermined by evidence that later comes to light during the legal process.

Ensure that the decision-makers are clear on the reason for dismissal and that the reason is proven and supported.

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The fundamental requirement is one of process. Was there a proper, soundly

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based performance management process? That involves explaining to the employee the issue with their performance, allowing them an opportunity to improve before revisiting the issue, and assessing whether or not improvements have occurred. If it was an issue of misconduct, was a proper investigation or fact-finding process undertaken and conclusions formed based on sound facts and evidence?

Is dismissal fair in all the circumstances?

In large part, this often relates back to process. If performance is the issue, the Fair Work Commission will consider whether the

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treatment of other employees in the same circumstances, or some other consideration of the personal circumstances of the employee.

Above are the four fundamental do’s, so what are the don’ts?

1. Never construct a reason for dismissal that is not the real reason.

If an employer wants to dismiss an employee, the reason for that decision needs to be genuine and the one communicated to the employee. Very often we see situations where, as a consequence mainly of frustration, a quick decision to terminate is made and

While employers will often feel daunted by the risk of unfair dismissal claims in particular, the law is in reality quite logical and straightforward employee was afforded a ‘fair go all round’.

Were they given a genuine chance to improve, and did they clearly understand that failure to improve could lead to dismissa? This is a really important step to be able to verify. Whether or not a policy applied to the issue in question, also relevant to this issue is whether the employee knew about and followed the policy.

If an employer has a policy it must follow it.

Failure to follow policies is a common mistake made by employers.

The issue of whether the dismissal is harsh in all the circumstances needs to be considered. That is, does the punishment fit the crime? This is often an area that employers struggle with. The best way to mitigate risk is to ensure that the decision-maker actually records that he/she has considered issues that may add to the harshness of a decision to dismiss, such as a very lengthy period of service, a previously unblemished record,

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‘performance problems’ are constructed. This will always unravel in Commission proceedings.

2. Never fail to follow a clear and fair process. Process failings are perhaps the most common reason for successful unfair dismissal claims. Take care with process and seek advice as appropriate.

3. Don’t ignore factors such as length of service and disciplinary record.

Where the conduct is objectively serious, these factors will be discounted, but they still need to be considered. In general terms, decisions of the Commission tend to allow employees a ‘chance’, rather than accept that dismissal is an appropriate outcome.

On that issue, be sure to consider alternatives to dismissal and record your consideration of them before making a decision. Would demotion, transfer or counselling be a more appropriate outcome in all the circumstances?

COMING OUT IN FRONT There is no way to manage the risk of unfair dismissal claims away entirely. However, by following fair processes and relying upon clearly articulated reasons for dismissal, not only is the chance of a claim reduced but the ability to defend a claim and refuse to settle is greatly increased.

4. Lastly, always conduct dismissals in a dignified, respectful manner.

In my experience, the more that an employee feels humiliated by the manner of the dismissal, the more likely a claim will arise.

Hold meetings and discussions in private areas and in a manner and tone that demonstrates you understand how serious an impact this decision will have on the employee’s personal life. There is rarely a need to have security escort an employee off the premises, and wherever possible this type of overt, humiliating experience should be avoided. This does reduce the likelihood of a claim.

There is no way to manage the risk of unfair dismissal claims away entirely. However, by following fair processes and relying upon clearly articulated reasons for dismissal, not only is the chance of a claim reduced but the ability to defend a claim and refuse to settle is greatly increased. Always remember that you will need evidence to properly manage the risk of claims, so ensure that all of these factors can be supported by notes, forms and other types of evidence. The process itself will always remain a difficult one because of emotion, but the legal risk can be effectively managed.

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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6/07/2017 2:39:49 PM

LEGAL SPECIAL REPORT

PENALTY RATES

UNITY, FUNDING & QUALITY:

INSIDE THE LANDMARK SUNDAY PENALTY RATES DECISION The Penalty Rates Decision, which was handed down on 23 February, marked a historic moment for Australian legislation. FCB Group led the case for the ARA, resulting in a victory for retailers and small to medium businesses alike. Here is the inside story from Nick Tindley, executive manager, FCB SUCCESSES FOR employers in these types of award cases are rare, and large wins in relation to the General Retail Industry Award 2010 are next to impossible. So, how did the landmark penalty rates reduction decision come to pass? The FCB Workplace Law team acted on behalf of the Australian Retailers Association (ARA) and the retail industry in this historic case. And we put the win down to three things – unity, funding and quality.

The Shop, Distributive and Allied Employees Association, the retail union, has historically dedicated significant resources to defending changes to retail awards, has consistently out-spent employer groups and has previously run better cases. FCB and the ARA proposed to the rest of the retail industry that if we weren’t able to fund a single, unified case, with high-quality representation in the 2014 Review, the existing Sunday penalty rate structure would be entrenched. The industry, and all of the retail associations, agreed to work together to fund the case, so we commenced planning.

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Case strategy In this case, we wanted the FWC to accept the following statements: a) Existing Sunday penalty rates were the key reason retail employers limited available hours, and therefore limited employment opportunities.

difficult to find enough employers prepared to step forward to provide it. To counter this challenge we would develop common threads between expert, survey and individual employer evidence to enable us to put our contentions to the FWC in a compelling way.

This case seeks to level the playing field, allowing for small businesses to flourish and create more diversity in the marketplace b) People work on Sundays for a variety of reasons, and despite the fact that reducing Sunday penalties would have a negative impact on employees, the existing penalty was overcompensating them for the disabilities associated with Sunday work. c) And finally, at least part of the reduction in Sunday rates would be offset by additional hours offered to existing employees.

To make these arguments we needed evidence, and traditionally it has been

Case conduct We commenced with an expert report on identifying what retail employers were currently doing with Sunday rostering and how this would change if the penalty rate was reduced. Next we collaborated with other parties to present survey evidence to support this report and presented direct evidence from retail employers across a variety of geographical locations, size and retail categories. Armed with this we presented our arguments based on the common threads arising from this

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evidence, and the FWC accepted them.

We also needed to address the issue of employee preferences and the problems employees associated with Sunday work, knowing the unions would present a vast amount of evidence regarding this. In addition, we needed to convince the FWC that reducing the Sunday penalty rate would not cause the industry difficulties in sourcing sufficient employees prepared to work on Sundays at that reduced rate.

While our retail-specific expert report, survey results and focus group findings identified some of the disabilities associated with Sunday work, it also showed that employees were prepared to work for lower penalty rates and had chosen to work on Sundays because it suited them, with very few being forced to work on Sundays. This was crucial in countering evidence presented by the unions about employee choice and preference.

To prove this we put to the SDA expert and lay witnesses in cross examination questions regarding the freedom they had to accept or reject Sunday work, and their preparedness to continue working Sundays at a lower penalty

rate. Almost across the board those witnesses confirmed their willingness to work.

The outcome On 23 February 2017 a Full Bench of the FWC issued its decision in the penalty rates case. In an historic ruling, the Full Bench determined that the Sunday and public holiday penalties in a number of modern awards would be reduced from 200% to 150% for full-time employees and from 200% to 175% for casual employees.

The transition The Commission determined that Sunday penalty rates would be reduced via a four-stage transition for permanent staff, and a threestage transition for casual staff in the retail industry. The Commission has also confirmed that Take Home Pay Orders are not available to employees impacted by the reductions, and that there will be no “red-circling” or “grandfathering” of existing employees.

What does this mean?

The Penalty Rates Reduction Case was a

huge win for small businesses throughout Australia. Currently, most franchises and large businesses are covered by an enterprise agreement and therefore enjoy reduced penalty rates already. This case seeks to level the playing field, allowing small businesses to flourish and create more diversity in the marketplace. For employees, we will see increased Sunday and public holiday employment opportunities, with more businesses having the capacity to roster on more hours.

FCB Group is Australia’s leading workplace legal and human resources solutions business.

If you would like find out how we can assist your organisation, call us on (02) 9922 5188 or (03) 9098 9400 or visit fcbgroup.com.au.

Nick Tindley is executive manager of HR Consulting and Advisory Services at FCB. Based in the firm’s Melbourne office, he has over 12 years’ experience in providing industrial relations and employment law advice, with particular expertise in the retail industry.

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6/07/2017 2:40:14 PM

AUSTRALIAN HR AWARDS FINALISTS 2O17

2017 Friday 8 September | The Star Sydney Nominations for the annual Australian HR Awards reached a new record this year with hundreds of entries received from across the country. We present the industry leaders and pioneers who made the shortlist OVER THE years, the Australian HR Awards has come to define excellence in the HR profession. This year, on 8 September, The Star Sydney will again play host to an evening of celebration featuring entertainment, networking and of course trophies.

The Australian HR Awards is the leading independent awards event for the HR profession from the industry’s rising stars to the HR Directors and CEOs at the forefront of visionary leadership in people management. Winning one of the 20 trophies is therefore extremely difficult and with nominations up over 40 per cent this year, simply

OFFICIAL PUBLICATION

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making this list of finalists is an achievement to be celebrated.

HRD is proud to present the outstanding individuals, teams and companies that have achieved fantastic results and made it into this year’s list of finalists. Along with our publisher Key Media, we would like to thank all those who submitted nominations this year and all our sponsors who make the Australian HR Awards a success.

We look forward to celebrating your success at The Star Sydney on Friday 8 September. For more information and to book your table visit www.hrawards.com.au.

AWARD SPONSORS

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EVENT PARTNER

DAVIDSON AUSTRALIAN HR DIRECTOR OF THE YEAR

HAYS AUSTRALIAN HR MANAGER OF THE YEAR

ELLE BELLE AUSTRALIAN HR RISING STAR OF THE YEAR

AUSTRALIAN HR CHAMPION (CEO) OF THE YEAR

FINALISTS

FINALISTS

FINALISTS

FINALISTS

 Neil Baker, Cooper Grace Ward Lawyers  Greg Barnier, icare  Fiona Crawford, InfoTrack  Gwilym Davies, Brisbane Airport Corporation  Alex Diab, NSW Business Chamber  Laurence Halabut, Toyota Finance Australia  Denise Hanlon, Vocus Group  Jane Keating, Queensland Treasury Corporation  Mathew Paine, International Convention Centre Sydney  Assistant Commissioner Carlene York, New South Wales Police Force, Human Resources Command

 Helen Calladine, Corrs Chambers Westgarth  Joanna Copeland, The Citadel Group Ltd  Richard Griffiths, New South Wales Police Force  Jane Klumpp, Brisbane Motorway Services  Che Lewer, Heinemann Australia  Kariss O’ConnorKerr, Honeywell  Lacey Schulz, Deloitte People & Performance  Jane Shand, Endeavour Foundation

 Jessica Amanoel, Merivale  Lachlan Fleming, Endeavour Drinks Group, Woolworths Ltd  Camille Hughes, Quantium  Brett Johnson, University of Southern Queensland  Sam Johnson, PwC  Daniel Ko, The Fred Hollows Foundation  Karley McCormick, Access Community Services Ltd  Chris Purdy, Mantra Group

 Stephen Canning, JCurve Solutions  Stephen Capello, BankVic  Lyndell Fogarty, performHR  Aurora Fonte, Assetlink  Trent Innes, Xero  Gail Ker OAM, Access Community Services Ltd  Philip Noble, Queensland Treasury Corporation  Lou Pascuzzi TLC Healthcare

AWARD SPONSOR

AWARD SPONSOR

AWARD SPONSOR

TROPHY PARTNER

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6/07/2017 2:41:21 PM

AUSTRALIAN HR AWARDS FINALISTS 2O17 PEOPLE + CULTURE STRATEGIES

AUSTRALIAN HR TEAM OF THE YEAR

( 1000 EMPLOYEES)

AUSTRALIAN HR TEAM OF THE YEAR

(>1000 EMPLOYEES)

EMPLOYER OF CHOICE (1-99 EMPLOYEES)

EMPLOYER OF CHOICE

(100-999 EMPLOYEES)

FINALISTS

FINALISTS

FINALISTS

FINALISTS

 Amadeus IT Pacific Human Resources Team  BankVic People & Culture Team  Employsure  GrainCorp Operations Ltd, Human Resources Team, Storage & Logistics  NSW Business Chamber HR Team  Queensland Treasury Corporation, Human Resources Team  Sanofi-Aventis Australia Pty Ltd  Xero Australia

 Endeavour Drinks Group People & Culture Team  Honeywell HR Team  ING Direct  International Convention Centre Sydney  New South Wales Police Force Human Resources Command  PepsiCo  Southern Cross Care (NSW & ACT)  Vocus Group

 AdRoll  Carman’s  Corporate Technology Services  DDG  Excite Holidays  JCurve Solutions  Learning Seat  VGC Food Group Pty Ltd

 Adshel Street Furniture  Credit Union Australia  Dexus  Employsure  HESTA  Lindt Australia  NSW Business Chamber  oOH!media  QinetiQ  Roche

AWARD SPONSOR

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EVENT PARTNER

ACCUMULATE EMPLOYER OF CHOICE

EMPLOYER OF CHOICE

(1000+ EMPLOYEES)

(PUBLIC SECTOR & NFP)

BEST CHANGE MANAGEMENT STRATEGY

BEST GRADUATE DEVELOPMENT PROGRAM

FINALISTS

FINALISTS

FINALISTS

FINALISTS

Accenture ALDI Australia Assetlink Group Mantra Group PepsiCo PETstock The Star Entertainment Group  TLC Healthcare

 Adelaide Shores  BankVic  Cancer Council NSW  icare  Infoxchange  Key Assets – The Children’s Services Provider  Maari Ma Health Aboriginal Corporation  Port Stephens Council

 Australian Unity  Brisbane Motorway Services  Casey City Council  Defence Bank Ltd  Medibank Private  PepsiCo  Vodafone Hutchison Australia  Westpac Group

 AMP Adviser Academy  Broadspectrum  Flight Centre Travel Group  Philip Morris International  PwC Australia  Quantium  Telstra Corporation Ltd  Winson Group (incorporating Signet and insignia)

      

AWARD SPONSOR

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6/07/2017 2:41:14 PM

AUSTRALIAN HR AWARDS FINALISTS 2O17

BEST HEALTH & WELLBEING PROGRAM

AFTERBURNER BEST LEADERSHIP DEVELOPMENT PROGRAM

BEST LEARNING & DEVELOPMENT PROGRAM

BEST RECRUITMENT CAMPAIGN

FINALISTS

FINALISTS

FINALISTS

FINALISTS

 Anglican Care  Arts Centre Melbourne, Arts Wellbeing Collective  Colliers International  Commonwealth Bank of Australia  Deloitte People & Performance  Mercy Health  Sydney Trains  Youi

 Adshel Street Furniture  ANSTO Training & Development Team  Australian Unity Human Resources Team  Deloitte People & Performance  Healthscope  IKEA  McDonald’s Australia Ltd  Special Broadcasting Services  Vodafone Hutchison Australia

 Bakers Delight  Campbell Arnott’s  Cooper Grace Ward Lawyers  Edwards Lifesciences  Griffith University and AMP Partnership  Medibank Private  Merivale  Rio Tinto Iron Ore (WA)

 Accenture  Cox Purtell Staffing Services  Inghams Group Ltd  International Convention Centre Sydney  McDonald’s Australia Ltd  PwC Australia  Telstra Corporation Ltd  WSP Australia Pty Ltd

AWARD SPONSOR

50

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EVENT PARTNER

CEB GLOBAL BEST USE OF TECHNOLOGY

SMARTGROUP BEST WORKPLACE DIVERSITY & INCLUSION PROGRAM

BEST WORKPLACE FLEXIBILITY PROGRAM

FINALISTS

FINALISTS

FINALISTS

FINALISTS

 BankVic Sapphire Awards  Commonwealth Bank of Australia  Connect Hearing  Employsure  Merivale  The Star Entertainment Group  Western Power  Westpac Group

 Blackmores HRM Project Team  Commonwealth Bank of Australia  HUGO BOSS  IAG Capability & Learning Team  ISS Facility Services  Mantra Group  McDonald’s Australia Ltd  WSP Australia Pty Ltd

 Cooper Grace Ward Lawyers  Crown Resorts  Deloitte People & Performance  EY  HESTA  New South Wales Police Force Human Resources Command Workforce Relations and Strategy  The Star Entertainment Group  Vision Australia

 Accenture  Dexus  Family Planning Victoria  Medibank Private  NSW Business Chamber  performHR  Philip Morris International  Roche Products

AWARD SPONSOR

AWARD SPONSOR

AWARD SPONSOR

SOLTERBECK BEST REWARD & RECOGNITION PROGRAM

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AUSTRALIAN HR AWARDS FINALISTS 2O17 ABOUT THE EVENT PARTNER

Ironfish plays a key role in the Australian property market as a leading property investment services company with 14 offices across Australia and China. We support our investors in acquiring a diversified property portfolio, backed by the confidence of the latest research, personalised strategies and quality investment opportunities.

CONTACT: T: 02 9439 6068 E: northsydney@ironfish.com.au W: www.ironfish.com.au

AWARD SPONSORS Chat to us about how we can help you create a more vibrant, sustainable workplace culture to inspire positive behavioural change.

CONTACT: Russell Flint, Senior Manager, Commercial Partnerships T: 03 8645 6457 E: russell.flint@accumulate.com.au W: accumulate.com.au

Afterburner is the leader in collaborative team development and strategic planning experiences. More than 2.8 million people across the globe have undertaken the program to achieve their business goals. Afterburner brings people together to have fun, create a future vision and plan to execute on time and on target.

CONTACT: Crystal Tarasin, General Manager T: 02 9939 2731 E: ctarasin@afterburner.com W: www.afterburner.com.au CEB is a best-practice insight and technology company. In partnership with leading organisations around the globe, we develop innovative solutions to drive corporate performance. CEB equips leaders at more than 10,000 companies with the intelligence to effectively manage talent, customers, and operations.

CONTACT: Sam Whiteman, Market Director, HR Practice & Talent Measurement T: 02 9321 7560 E: swhiteman@cebglobal.com W: cebglobal.com

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EVENT PARTNER

Davidson HR Consulting offers a range of HR solutions to assess, develop, and transition your people, and design your business around them. With offices in Sydney, Brisbane and Melbourne, the team demonstrates ROI across specialist services such as organisational design, psychometric assessments, people analytics, leadership development, surveys and career transition.

CONTACT: Amanda Sheard, NSW General Manager T: 02 8093 0608 E: Amanda.Sheard@davidsonwp.com W: davidsonwp.com elle belle recruitment specialise in Temporary and Permanent Business Support based positions across all industry sectors.

We work in partnership with their clients through the recruitment process by providing exceptional levels of service, open communication and an honest approach. We are big enough to deliver and small enough to care.

CONTACT: Linda Lewin, General Manager T: 03 9553 4436 E: linda@ellebelle.com.au W: www.ellebelle.com.au

We understand that HR professionals are critical to the future growth of any company. Our recruiting experts offer a personalised recruitment service to guide you through every stage of the recruitment process, while our HR career advice will ensure you achieve your work ambitions.

CONTACT: Hays Human Resources T: 02 8226 9797 E: sydhr@hays.com.au W: www.hays.com.au People + Culture Strategies provides legal and strategic solutions in labour/employment law. PCS’ clients include blue-chip corporates, government departments and private businesses. The PCS approach is to partner with HR teams of its clients to prevent legal issues arising, reflected in its breadth of pricing options suitable for all budgets .

CONTACT: Joydeep Hor, Founder and Managing Principal T: (02) 8094 3101 E: joydeep.hor@peopleculture.com.au W: peopleculture.com.au

Established in 2001, Smartgroup has become an award-winning, ASX listed company recognised for innovation and exceptional customer service.

Our employee benefits services provide efficient and easy-to-access solutions in salary packaging, novated leasing and share plan administration.

Smartgroup also helps organisations become more efficient through innovative fleet management services and workforce-modelling software.

CONTACT: Greg Parkes, General Manager T: 0414 944 789 E: greg.parkes@smartgroup.com.au W: smartgroup.com.au Solterbeck pioneered employee recognition in Australia, and continues to be the leading practitioner in delivering world’s best practice. Whether you’re looking to develop a new program or re-invigorate your current one, we can help inspire your employees to share your goals, reflect your values and to support and recognise each other’s efforts.

CONTACT: Dave Jackson, Executive Director T: 0419 358 188 E: davidj@solterbeck.com W: www.solterbeck.com

TROPHY PARTNER Established in 1884, today we provide corporate Australia with efficient and cost effective milestone, employee service and employee incentive awards online. We offer a wide range of solutions, including services and brand name products to help you celebrate, streamline and manage this important element of the human resource equation.

CONTACT: Nic Holdsworth, General Manager T: +61 3 98858825 E: nic@hwholdsworth.com.au W: www.hwholdsworth.com.au

BROUGHT TO YOU BY Key Media organises industry awards and professional development events in association with our leading magazine titles. These include the Australian HR Awards, Australian Mortgage Awards, Australasian Law Awards and the New Zealand Law Awards.

www.hcamag.com

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BOOK YOUR TABLE NOW IAN TRAL AUS

2017

Johnson & Johnson Family of Companies ANZ Employer of Choice (>1000 Employees) Friday 8 September 2017 • The Star Sydney hrawards.com.au

Award sponsors

Event partner

Trophy partner

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Official publication

Presented by

6/07/2017 2:41:22 PM

PEOPLE

CAREER PATH

NATURAL DISRUPTOR

Carolyne Burns has come a long way to the ‘simple survey’ that offers recruiters insight

Carolyne Burns’ entrepreneurial streak made itself felt when she took to washing cars and AN EARLY collecting recyclables while still in primary ENTREPRENEUR school. This appetite for work came to the fore later when a job in data entry segued into a position as an 1986 executive assistant who doubled as an accountant. It gave Carolyne a GRABS THE OPPORTUNITY taste of operating at a high level that she was unwilling to relinquish.

An ad in the newspaper looking for someone with “an insatiable appetite “I was a hard worker from the get-go; that came from my parents.” for work” led Burns to another EA position, this time at Morgan Grenfell. Her work included money market management, which she wasted no time in 1989 mastering, while also completing a commerce degree.

WHEELS INTO A NEW FIELD “Where I see an opportunity, I grab it.”

When Morgan Grenfell closed down the team went on to create a boutique bank. This inadvertently led to Burns’ 1997 fateful early contact with tech when she was asked to FINDS THE SURVEY help a start-up with one client and in need of a corporate company secretary. The company was Hostworks, a tier Her interest in psychology and her persistent drive for self-improvement, one mission-critical internet host listed on the ASX; it was coupled with a growth phase at Hostworks, took Burns to workshops hosted subsequently acquired by Macquarie Broadcasting.

by Glyn Brokensha (with whom she later co-founded Expr3ss!). There she “It was literally the same team; we wheeled our chairs across the road to witnessed the breathtaking accuracy of what at the time was a survey. a different office.”

1972

1998

BACKS HERSELF The decision to launch the survey in software herself put Burns at the forefront of the early stages of the dot-com boom.

“I decided to go out and launch it myself. I was going to take my own advice: I did not feel I was [only] my job title. No bank would look at us; I had to back myself. I sold my house, my car, the whole lot – it was a pretty scary time.”

2015

GAINS MARKETPLACE RECOGNITION The Expr3ss! team reached finalist level in the 2015 Telstra Business Awards – the first year of application – and also the 2014 Recruitment International Australia Industry Awards.

The honours came shortly after the company moved premises as a result of an almost tripled head count.

“The award has high credibility because of the thoroughness of the process; it’s the marketplace giving us recognition from a huge group of people.”

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“I saw the power of this thing – it showed people how they function when under pressure, their flash and friction points, where they would clash and where they would fit together. It was remarkable”

2005

EXPR3SS! IS BORN The process was further refined and released as a fully integrated cloud-based system.

“It’s not just a survey any more; we changed the whole approach. We were helping people do their recruitment fast – applicants are time-poor and so are employers; it takes less than 10 minutes to complete our process. One client said that after 32 years he’d finally worked out what it is about because of this simple survey.”

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SPONSORED FEATURE

SMARTGROUP

PLACING VALUE ON VALUED EMPLOYEES John Day, CEO of Smartequity, explains how a well-designed employee remuneration strategy firmly anchored in business objectives helps organisations attract, retain and motivate employees

greater differentiation in pay increases between average and top performers.

Today, this trend continues and is accelerating, with more companies keeping fixed pay at a minimum. This provides companies with opportunities to differentiate using performance-based incentives.

Using incentives to attract, retain and motivate Implementing the right mix of performance-based incentives will help companies stand out in attracting, retaining and motivating key talent.

Short-term incentives influence behaviour to achieve certain specific immediate organisational requirements. Bonuses tend to be the most frequently used pay variable.

Long-term incentives aim to imbue an employee with a vested interest in maximising the organisation’s long-term value. An employee equity plan is an effective way to achieve this, as employee and shareholder interests become aligned. When shares in a

HOW EMPLOYEES are remunerated affects how they think, work and behave. If employee behaviour and actions are to align with the objectives of directors and shareholders, it follows that remuneration – particularly short- and long-term reward structures – also aligns with business objectives.

Moving away from fixed pay

Demonstrating the value of the employee

“The emphasis of the next decade will be on customised programs that build support for changing and evolving business strategies but are also sensitive to each employee’s personal needs and goals”

As the notion of the ‘employee’ transforms to ‘stakeholder’ and ‘major business asset’, it is essential organisations establish a set of company values that are not only belief-oriented but also acknowledge the value of high-performing people.

Remuneration planning is one of the most efficient and effective means of not only communicating company values to employees but also obtaining their inherent acceptance by encouraging the employee to maximise her or his value.

FUNDAMENTAL STEPS TO MOTIVATING EMPLOYEES THROUGH REMUNERATION

1 Agree on realistic performance targets with 2 3

employees and provide meaningful incentives to achieve those targets.

Enable employees to share directly in the benefits generated by achieving targets.

Empower employees by allowing remuneration to be taken in a form that helps them more easily satisfy immediate financial needs, and achieve financial and lifestyle goals sooner.

The traditional view of remuneration is set to shift over the next 10 years as effective remuneration planning becomes less about paying employees and more about rewarding employees and developing their sense of connection with the company.

John Day, CEO, Smartequity Pty Ltd The trend towards performance-based pay A 2014 major WorldatWork study 1 revealed that 85% of companies were setting base remuneration levels at the market median, noting that “the market isn’t compelling employers to accelerate wage growth in any significant way”. In contrast, ‘pay for performance’ was thriving, with 72% of respondents indicating they had a rating system with performance scores tied to pay increases, and 82% of organisations using bonuses to deliver performance-based pay.

Furthermore, it was shown that an employee’s understanding of the remuneration strategy tended to be higher when there was

company represent a significant asset for the employee, they begin to treat the company like their own – an excellent motivator.

Regardless of the ultimate remuneration mix, it is essential that the remuneration structure is consistent with management values and overtly supports the achievement of business objectives.

Source:

2014, Compensation Programs and Practices, WorldatWork 2014

1

John Day is founder and CEO of Smartequity, and a widely recognised expert remuneration consultant. Smartequity is the employee share plan administration provider in the Smartgroup network of companies, an ASXlisted corporation recognised for innovation and exceptional customer service.

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PEOPLE

OTHER LIFE

TELL US ABOUT YOUR OTHER LIFE Email hrdeditor@keymedia.com

TEA FOR TWO

Robert Godden’s devotion to the world’s most popular beverage is just his cup of tea

WHEN HE started in HR, Robert Godden, a lifelong tea drinker, made a point of identifying which tea shops offered the best brews for his numerous daily meetings. Fittingly, when he left full-time HR, he did so to buy a tea shop with his wife that had been the site of many of his interviews.

These days the tea shop has moved online to a website marketing the blends Godden creates with his wife Anne – while also working as an HR consultant. They have diversified their offerings to include events, the most popular of which are talks covering the history of tea.

Friends from an online group who wanted Godden’s expertise on the subject of using teas for health and beauty provided the initial spark. Godden devised an interesting means of presenting the information and addressed a meeting of the group to great effect – then word of mouth did the rest.

Styling themselves as ‘Lord and Lady Devotea’, Godden and his wife also advertise their whereabouts in various tea shops across the globe in the course of their travels, and in so doing meet many “weird and wonderful” characters.

Meanwhile, not only does he blog on the subject of tea but Godden has also written a book on the topic, The Infusiast; any spare time left over is spent trawling second-hand shops for unusual teapots.

The day we spoke Robert was drafting a talk on the environmental effects of teabags, to be presented at the World Environment Fair, an event expected to attract 20,000 people. “Teabag,” he says, “is a swear word.”

8–12

number of cups of tea Robert drinks a day

56

21

number of tea blends available online in the Devotea range

450 billion number of teabags sold a year (“... and it should be none! says Godden”)

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