Human Capital magazine issue 9.06

HC

VIDEO CONFERENCING MADE THE HR STAR P.46 » SIX HR FADS FOR THE DUSTBIN OF HISTORY P.50 » INSIDE HR AT IBM P.52 »

HUMAN CAPITAL MAGAZINE | www.hcamag.com

g n ti

a r b

e l e

C

ISSUE 9.06

dec

z

ess

sin

u eb

ga ma

th

.4

e2

issu

s

aker

n-m

sio

ci c de

gi rate r st

up ise hedg on the r c y ps stin

e fo

azin

mag

ss

sine

e bu

th

ec ic d

rs

ake

nm

isio

g

The

m ess

ate r str

e fo

zin

aga

03

20 July

P

in

bus

re cs a etri our y m to y Wh ucial iness cr bus

1:22

1

Allmetric te

ho syc

$9.95

Al nu

ide

gu

to

Ave

l le

PAid

entA PAR

son Bran rategic t on s HR op

95

2

Untit

st w to s: ho hem CEO aying t p s over rofit

s

aker

n-m

isio

The

ness

busi

ine

gaz

ma

ic

g rate

-m

ion

ecis

ic d

teg

ra r st

rs ake

r st

e fo

zin

fo

eb

th

ess

n usi

ga ma

kers

-ma

dec

The

ness

busi

e azin

for

e

ic d

teg

stra

n cisio

g

ma

P le v alia’s ustr age Peop rt for A g f r sho arin u Prep g labo in com 5

$9.9

2003 uary Febr 03 ch 20 Mar

ITAL P A C N HUMAliveringalia Post TH

E

S BU

INE

SS

MA

GA

ZIN

E FO

TR R S

AT

EG

IC

DE

CI S

De ustr A for

-1

6

itled

$9.95

ISSU

E 3.7

AK

ER

B

ott Abb gle n is a the e to ine L uid A g ttom Bo le 003 Trip it 2 ide m Sum howgu HR S h and

S

EY DN SY tionary N e TO volu driv H IL its re ent de uitm Insi recr LK TA g tin AM s TE correc am l te and ying ctiona tif un TE Iden dysf BA DE ing in st lace g te Dru workp e th

nita eA Dam

5

$9.9

Unt

IO

N -M

k dic Rod

UL TIF U EA

AL T I P A C N A M HU ON

LUTI

LL SO

RO PAY CT

RFE

30

34:

011

11:

AM

BY

E BA

6/2

5/2

N TH

NX

TIO ERA

$9.95

GEN

TH

-4

han Nat n o i L

U E B

O KES

TA

SIN

ES

A S M

OM

BO

Z GA

ERS

INE

E PE

• TH

FO

T R S

RA

TE

G IC

D

IS EC

IO N

-M 51

44:

011

11:

AK

ER

S

AM

5

$9.9

2

itled

O

P R CE ME TO YOU O G N ROT TH ACI A REPL $9.95

UE

3.1

for War The

nt Tale

s e su

r senio s e fire n to xecutiv e Whe

6/2

5/2

Unt

ISS

ship ader 2003 e l on R in :H sive Exclu

gers ana Rm rH ION UAT ge fo T T N N f chan FAS EN RA PE ons o ITM antity – U U c S CR d qu s& RE n Pro AL ality a ON AS get qu E S to How

is

n

o Ati oc

Rel

An

02 r 20 embe Dec

AM

11:4

/201

5/26

$9.

led-3

s

aker

n-m

isio

ic

g ate

r r st

fo ine

EDITORIAL

Crikey! We’re 100!

‘L

abour shortage may hold back economic growth’. With employers wary of squandering a possible future resources-led boom, that may sound like a headline ripped from today’s news; but in fact, it dates back to February 2004. Like so many things in the HR space, the more things change, the more they stay the same. The challenges facing HR professionals, outlined in Human Capital’s first issue in January 2003, are still present and correct today.

Of course, there have been some interesting diversions along the way: fads that didn’t quite fly; people who burned brightly before fading away; hot issues that turned cold within a few months. Does anyone recall the virtual world of Second Life as a recruitment tool? No? Thought not. How about recruitment brokers? Or just-in-time supply – a recruitment strategy borrowed from manufacturing industries which struggled to gain traction due to the shortage of skills needed to feed the pipeline?

And yet, looking back through the HC archives, it was interesting to see how some of these germs of ideas did in fact grow in other directions. While Second Life may not have taken off, perhaps the seeds of online social recruiting were sown in that nascent idea. And if just-in-time supply didn’t fly, perhaps it mutated into the growing casualisation of Australia’s workforce, whereby employers can turn off and on talent taps with greater ease.

Then there were the stories, profiles and quotes that just brought a smile to my face. For famous last words, it’s hard to go past the December 2003 announcement from Federal Employment and Workplace Relations Minister Kevin Andrews, who scuttled the possibility of any plans for government-funded paid maternity leave, and argued that financial encouragement for having children should not be work-related.

From Dame Anita Roddick to Kieren Perkins, via a bizarre cover story on Steve Irwin’s Australia Zoo (crikey indeed!), HC has had its ups and downs as well. Yet I hope that most of you will agree that it’s exciting to witness – and be part of – a profession that is evolving, gaining strength and spreading its influence. It will be interesting to see what the next 100 issues brings. As always, we thank you for your support.

Iain Hopkins, editor

EDITOR Iain Hopkins

HUMAN RESOURCES MANAGER Julia Bookallil SALES & MARKETING

COPY & FEATURES

NATIONAL COMMERCIAL MANAGER Sophie Knight

JOURNALIST David Corkery

SALES MANAGER Sarah Wiseman

EDITORIAL ASSISTANT Rebeccah Elley

SENIOR MARKETING EXECUTIVE Kerry Corben

PRODUCTION EDITORS Carolin Wun, Moira Daniels and Hayley Beullens

MARKETING EXECUTIVE Anna Keane TRAFFIC MANAGER Jessica Jazic

ART & PRODUCTION

CORPORATE

DESIGN PRODUCTION MANAGER Angie Gillies

MANAGING DIRECTOR Mike Shipley

DESIGNERS Lucila Lamas, Jacqui Alexander

CHIEF OPERATING OFFICER George Walmsley

CONTRIBUTORS

CHIEF INFORMATION OFFICER Colin Chan

SALES DIRECTOR Justin Kennedy Carroll & O’Dea Lawyers, The Next Step, Kenexa Australasia, EmployeeConnect

Editorial enquiries Iain Hopkins tel: +61 2 8437 4703 iain.hopkins@keymedia.com.au Advertising enquiries National commercial manager, HR products Sophie Knight tel: +61 2 8437 4733 sophie.knight@keymedia.com.au Sales manager, HR Products Sarah Wiseman tel: +61 2 8437 4745 sarah.wiseman@keymedia.com.au Subscriptions tel: +61 2 8437 4731 • fax: +61 2 8437 4753 subscriptions@keymedia.com.au Key Media www.keymedia.com.au Key Media Pty Ltd, regional head office, Level 10, 1 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 Offices in Singapore, Hong Kong, Toronto www.hcamag.com

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

www.hcamag.com

1

CONTENTS

Inside this issue

12

12 Cover story: HR’s past, present and future

Over eight years and 100 issues, Human Capital has seen plenty of events and changes in Australian business and management strategy.

This special report looks at the development of HR in Australia since 2003, and also asks what the next decade might bring

30 The Human Capital archives

A look back at recruitment, pre-employment screening and HR strategy through the years

46 Video made the HR star

The latest technology has transformed video conferencing from the sole domain of executives to a tool increasingly being used by HR departments for internal communication and education. Tim Fulton reports

30

50 The dustbin of history

HR has often been slow to embrace new trends and technology.

To speed things up, Grant Mason has identified six old HR favourites that just won’t cut it in the next decade. These practices must be eliminated because they are “evil”, says Mason

52 100 not out

As Human Capital celebrates 100 issues, IBM celebrates 100 years.

Iain Hopkins talks to Robert Orth about HR’s role in keeping the company at the forefront of people innovation

Regulars 4 In Step – HR career experts 6 Legal 8 HR Consulting Letters to the editor

Do you have a burning HR or people management issue you would like to share with others? If so, Human Capital would like to hear from you. Send through your comments to editor@hcamag.com. Alternatively, express your thoughts on the readers’ forums at www.hcamag.com

2

www.hcamag.com

46

CONTENTS

www.hcamag.com

3

A MID-YEAR REVIEW HR Career Experts

A

s we approach the end of the financial year, in this month’s Instep, we take a quick look at the conditions that are currently influencing the HR market, as well as the trends for the upcoming financial year.

The overall view As everyone knows, the economy is relatively strong but many experts describe it as “patchy” with lots of contradictions. On the one hand we have the mining boom trundling along, yet sectors such as retail are gloomy and the housing/construction industry is going nowhere fast with flat demand. The banks have reported record results and yet other service sectors are struggling. The high A$ is making exporting challenging and the news overseas is still of modest improvement in Europe and the US – the reality is that it’s hard to get a fix on the overall economy.

So to try and get a read on the financial year ahead, we have turned to a recently published survey by the Australian Institute of Company Directors.

The Director’s Sentiment Index canvasses business leader’s views on current and future economic and business conditions and their business concerns and future intensions.

The top line is that the survey has identified skilled labour shortages as the primary economic challenge facing Australian business. The survey found that most Directors believe that this will fuel wages, inflation and interest rate rises.

Over 54% of Directors said that skilled labour shortages were the main challenge facing Australian businesses. The next concerns reported, with only 29% each were: low infrastructure spending; the minority federal government; and too much regulation. Also, only 11% of Directors thought that the very high profile issue of an emissions trading scheme or a carbon price is an issue.

So what does all that mean for HR professionals?

Clearly, there are real reasons to think that there are implications for HR professionals with such a large percentage of Company Directors stating that a skilled labour shortage is the most dominant factor in the whole economy. Therefore, one would easily conclude that there will be large investments in a whole range of HR initiatives.

The question is, does the linking of this critical concern for Australia’s business leaders mean more resources and dollars for HR functions? A resounding ‘NO’ would be the answer from most HR professionals around the country. Why is that?

To answer that question would be highly subjective but this seems to be a curious facet of the Australian business landscape.

Therefore, it’s safe to say that whilst Australian business leaders are focused on the skill shortages acting as a risk to their business, HR functions are going to see more demand. Extra demand, without extra resources probably, will lead to an overall increase in the turnover in HR teams – a sad fact that many HR leaders are dealing with now and will continue to deal with in the new financial year.

Some demand areas in HR Whilst the budgets might not be being drastically expanded as a result of the concern from skill shortages, there are some areas in HR that are in demand and are good forward indicators of the general trends in HR. Recruitment – definitely picked up. There has been a strong increase in activity and roles in the internal corporate recruitment functions as well as in the external outsourced market. The WA market for recruitment professionals is, not surprisingly, very strong and the absolute hot spot in Australia. This is the one area of HR that has benefitted from the awareness of the skills shortages issue.

Compensation – there will definitely be the normal and heavy demand for high quality and experienced professionals in the remuneration area.

Change management – there has been a clear need for capability in the HR change management space. This will continue to be driven through FY2012. Some of this demand is clearly being driven from the new IR landscape.

Generalist/OD – HR professionals with a strong OD orientation have also been in demand. An OD orientation combined with a strong HR generalist toolkit is definitely a priority in terms of the market going into the new financial year.

L&D (product, process, system) – whilst technology will do the heavy lifting here, L&D professionals will still be in demand.

The final word It’s a fascinating reality that even though there is documented concern about the skills shortages, there won’t be a significant increase across the board in the overall HR team budgets to counter this business risk.

Why this is the case is open to subjective opinion.

Craig Mason is a Director with The Next Step, a specialist consulting practice in the human resources market. For more information call (02) 8256 2500 or email cmason@thenextstep.com.au or visit www.thenextstep.com.au

Recent HR Market Moves supplied by The Next Step

Joining Graincorp in the role of General Manager Corporate Services is Heather Miles. Her role encompasses HR, Legal, Company Secretary and Risk. She previously held senior executive roles with leading businesses such as Westpac, Carter Holt Harvey and McKinsey.

Hewlett-Packard has appointed Maria Sitaramayya into the role of Senior HR Director ACPAC. Maria has forged a successful career with leading IT corporations Sun Microsystems and Oracle where she held Director level roles with global reach.

Laurence Halabut has been appointed the Senior Manager HR

Lisa Skovron has joined Macquarie Bank in their ITG Division as their OD&L Relationship Manager. Lisa brings strong experience from businesses such as AMP, Deloitte and DLA Phillips Fox.

Earl Hayes has joined Visy as the HR Manager Northern (VIC).

Earl’s previous experience was gained within organisations such as National Foods and the Coles Group.

Jetstar has appointed Diana Jovcevska as their Manager People. Diana was HR Manager with Autoliv Australia.

Tarnia Sniadala has commenced with Honda in the role of HR

at Toyota Finance. He has previously held Head of HR roles with both Bankwest and HBOS.

& Administration Manager. Tarnia’s most recent role was Group HR Manger with Securency Australia & Securency International.

Astellas Pharma Australia has appointed Caroline Spring as their HR Manager. Caroline brings a wealth of experience gained within senior HR roles in the banking and pharmaceutical sectors.

Joining leading FMCG organisation Kellogg’s as their Director Human Resources ANZ is Michelle Bakar. She was Zone HR Operations Manager with the Coles Group.

Tracey Lane has joined leading medical indemnity insurer Avant

Janine Bakker is now Talent & Capability Manager with SP

as their General Manager HR. Tracey was previously the General Manager HR for Tabcorp Wagering & Media.

AusNet. Janine worked with businesses such as Superpartners, Lion Nathan National Foods, Toyota Motor Corporation and Clayton Utz.

Top-tier firm Minter Ellison has appointed Evette Tattum as their NSW HR Manager. Evette enjoyed a successful career with Westpac holding a range of senior HR roles.

Phillips has appointed Paula Brooks as their HR Manager. Paula was most recently the Senior HR Manager AUS, NZ & India with leading travel services business GTA.

By supplying Market Moves, The Next Step is not implying placement involvement in any way.

SHARING A BIRTHDAY WITH THE FAIR WORK ACT – WHAT HAS CHANGED IN TWO YEARS? Legal Experts

I

n celebrating Human Capital’s milestone of 100 issues in June 2010, it is fitting to pause during the festivities to contemplate the second birthday of the Fair Work Act (FW Act). The FW Act, which commenced in most part on 1 July 2009, signalled the death of the Howard Government’s ‘Workchoices’ regime and overhauled the national industrial landscape by establishing a more uniform, cohesive system covering the vast majority of Australian workers. But is the FW Act’s birthday cause for celebration or wistful reflection?

In order to assess the impact of the FW Act since its commencement, it is important to consider how it came into force compared to the Workchoices regime. Workchoices had the Constitution’s corporations power as its legislative core and used this power to oust the industrial jurisdiction of the various States and Territories by ‘covering the field’ on employment matters. This heavy-handed approach at federal level, coupled with the harshness of the provisions as they applied to employees, unsurprisingly generated friction between the States and the Commonwealth, led to constitutional challenges, and permitted non-corporate employer entities to fall between the legislative ‘cracks’.

In contrast, the FW Act was enacted following agreement between most of the States and Territories (WA being the sole dissenter), which agreed to ‘refer’ their industrial powers to the Commonwealth.

This allowed for the FW Act to cover employer entities beyond constitutional corporations, making partnerships, incorporated associations and sole traders subject to the new national system.

Two significant changes to the industrial landscape wrought by the FW Act have been the expansion of the unfair dismissal jurisdiction and the creation of the ‘general protections’, the latter of which have broad application beyond existing employees to prospective employees and contractors.

In the first quarter of 2011, Fair Work Australia (FWA) received 3,219 Unfair Dismissal applications and 566 General Protections claims. During 2009/2010, FWA received 13,054 ‘termination of employment’ applications (including general protections applications involving dismissal from employment). By contrast, FWA’s predecessor, the Australian Industrial Relations Commission, received 7,996 such applications in 2008/2009, the final year of Workchoices’ existence.

The increased jurisdictional coverage of the FW Act’s national system has meant that small

www.hcamag.com

businesses and partnerships that were previously outside the system are now subject to the provisions of the FW Act and their employees can utilise the remedies available under the Act. Claims from all participating jurisdictions can be filed in the registry of FWA. Notwithstanding the shorter deadline for the filing of unfair dismissal claims, it seems that most employees are aware of the FW Act’s remedies and the concept of procedural fairness underpinning its provisions. Further, as the general public and the legal profession become more familiar with the general protections provisions, with more cases proceeding to the Courts, the quantity of such claims is bound to increase.

A clear advantage of the new FW Act has been its streamlining effect, which has resulted in interstate employers enjoying greater certainty as to their industrial obligations regardless of the state in which their employees work. This has been aided by the establishment of a more efficient single entity - Fair Work Australia and its enforcement arm, the Fair Work Ombudsman – which is responsible for administering almost all employment and industrial matters Australia-wide, including but not limited to the drafting of modern awards, the conciliation and determination of claims and disputes, and complaint investigation and enforcement.

One of the most significant new changes has been the introduction of a national system of employment conditions from 1 January 2010.

The FW Act has codified uniform employment conditions across all participating States and Territories through an increased national minimum wage, 10 ‘national employment standards’ (NES), and 122 modern awards. The NES override any less favourable standards that may be contained in an employee’s existing contract or industrial instrument. The Modern Awards apply to all national system employees through industry or occupational coverage terms and have replaced over 1,500 awards previously in force in the federal and state systems. With these latter provisions now in place for over 12 months, and the balance of the Act for nearly two years, employers and employees are now becoming more confident in exercising their rights and obligations under the FW Act.

www.codea.com.au

Peter Doughman, Solicitor Carroll & O’Dea Lawyers Level 18 St James Centre 111 Elizabeth Street Sydney NSW 2000 Phone 02 9291 7100

HR Consulting

HCM – THE TRANSFORMATIONS THAT LIE AHEAD

T

he occasion of the 100th issue of HC Magazine provides a timely opportunity to reflect on the enormous strides that Human Capital Management and HR have made over the years – and to consider the challenges/opportunities that lie ahead.

Back in 2003, when HC Magazine started, what was ‘front of mind’ for most of us was how to ensure that the people agenda was adequately represented at the highest levels of organisations. Getting the HR Director onto that ‘top table’ was of enormous importance, as it was crucial to achieving genuine influence, enabling businesses to make decisions with a full appreciation of people factors. It was seen as a vital step in changing perceptions of HR from being a non-critical service/compliance function into something at the heart of business performance.

Now that most organisations have their HR Director on the Board (a huge achievement in itself), we should ask ourselves how strong their influence is. To what extent have they driven the agenda and enabled organisations to perform more strongly through a powerful appreciation of the crucial role of people in business success? To what extent have they enabled leaders to recognise that a ‘humanising agenda’ is not at odds with commercial success, but is in fact the primary thing that enables companies to thrive?

Based on our consulting work, it is clear that the achievements in this area are considerable. Many organisations now have an appetite for building commercial and people strategies in tandem – suggesting an appreciation of the fact that results simply won’t be achieved if people are not making them happen. This is a huge ‘feather in the cap’ of HR Directors. However, the picture remains a varied one.

There is still a suspicion that, to many organisations, people issues are regarded as laudable windowdressing or gloss on the ‘real’ agenda of running a business, or merely a means to an end; something to be talked about because we know we should, rather than because it genuinely determines success.

During the GFC, many people initiatives were scaled back or ‘saved for better times’. How often is there a tangible recognition that people strategy is the single most important element of commercial strategy – especially when times are tough?

Since 2003, there has been a growing focus on diversity, a wider recognition of the key role of work-life balance, increased attention paid to such

factors as ‘the employee value proposition’ and a focus on how organisations can engage with social networking.

All of these are examples of people/HR issues setting the agenda, not only from an ethical perspective, but also in terms of driving the effectiveness of businesses. At their best, these concepts all represent organisations relating to people in a more rounded way, rather than merely as ‘suppliers of work’.

Perhaps the next step is for diversity to be widely perceived as not only about being ‘fair’ or legally compliant but as unlocking performance potential – because it is about being blind to irrelevant factors and focusing flexibly on those things that drive success.

What is fairness other than enabling the best people to do the best job possible, in a flexible range of ways, without allowing other factors to get in the way?

Similarly, work-life balance has become a prominent theme. We have begun to see the emergence of a new concept, ‘work-life blend’, implying that work at its best can be a positive and fulfilling element of life rather than something to be ‘balanced against’ life. Perhaps we should also move away from talking about ‘compensation’ because that suggests that we need to recompense people for something negative; why not agree on the already popular term ‘reward’? Such changes in language can be merely cosmetic (which only drives cynicism) or can represent genuine transformations in attitude and focus.

The wide adoption of the term ‘Human Resources’ was undoubtedly positive, as the use of the word ‘resource’ emphasises the value of people (rather than merely regarding them as a cost). Perhaps the next step is simply to talk about ‘People’ rather than ‘Human Resources’ – reflecting the notion that human value is not just a goal that underpins economic success but is in fact the same goal. Since people are more productive when they find meaning in their working lives, running businesses in such a way as to enable people to fulfil themselves also drives commercial success. Although such notions can easily be derided as naïve, I believe that the organisations that operate in this way will be the ones who succeed. This is likely to be the next challenge for our field – a challenge that is much harder, but more exciting, than what we have achieved so far.

Ed Hurst, Managing Director Kenexa Australasia Level 2 451 Little Bourke Street Melbourne, VIC 3000 03 9602 3899 ed.hurst@kenexa.com

ENABLE GROWTH AND MINIMISE RISK: WHAT COULD BE SIMPLER? For this special 100th issue of Human Capital, past regular contributor David Burrell returns to talk about the future of HR

H

as HR got a future? Are CEOs lying awake at night worrying about it? Are the folks in Marketing, IT and Finance worrying about the future of their respective professions? Or is it just us HR guys and gals who spend time on it. The answers, from my corner of the world are: Yes, No, I’ve seen no evidence of it and Yes. Might well I trumpet that HR has a future, because I’m biased. I think that HR is one of the hardest roles in any organisation. Hell, if it was that easy, everyone would want to do it.

It’s hard because HR, when done well, is almost as broad a role as that of a CEO. The really good Heads of HR lead their teams to appreciate and understand all aspects of an organisation, all the functions, and how they all fit together to ensure achievement of organisational goals. Just like a CEO should.

To me, really good HR reaches into all aspects of an organisation and has influence up and down and across. To do that, and do it well, requires special capabilities, and at the core is the capability to ensure that any decision which impacts people either enables organisational growth or minimises risk or – and this is where the really great are separated from the pack – it does both, at the same time.

That’s why I think HR has a real future.

Balancing the drive for ‘growth’ against the everpresent element of ‘risk’ are the two main issues confronting organisations today, and any function which can have impact on one or both will be valued.

Those that don’t will be disbanded.

So the challenge is clear for Heads of HR and their teams: To continue to be valued and have influence means that every HR strategy, policy, process, endeavour, decision, idea and activity must be able to clearly demonstrate its impact on growth and risk.

Anything that does not meet this simple criteria has no place in HR of the future.

Well, that’s WHAT we have to do. The big question is HOW to do it. And those who do the HOW part better will reap the rewards.

HOW it is done will differ from organisation to organisation, but for now, here’s my basic seven starting points: I call them the Seven Strategic HOWs of HR.

1) Clarity of vision and purpose Define what HR is in your organisation, what it does and what it does NOT do.

2) No fads! Align HR outcomes with organisational priorities Establish a FAD-FREE ZONE in your HR function.

Align strategies, priorities and capabilities with the organisation’s needs and focus on deploying the limited resources where they will make the largest impact on the success of the organisation.

3) Add visible, useful value to all decisions which impact people Develop value-added decision support tools and use metrics to tell the narrative.

4) Be highly capable and credible Develop high-calibre, business-oriented, personallycredible HR Professionals, and be one yourself.

5) Watch the future Be prepared, particularly regarding governance, ethics, social responsibility, social media and knowledge management.

6) Don’t boil the ocean Less is always more. Go for the quick, qualityladen wins.

7) It’s time It is time to: »» Stop professing and start being professional business leaders »» Add value, not write value statements »» Build competitive not comfortable organisations »» Be proactive, not reactive »» Act, not be acted on »» Perform, not preach »» Deliver outcomes, not dialogue »» Set strategy, not procedures Over to you all… HC About the author David Burrell is the founder of LDKS Consulting and works with CEOs and Senior HR professionals on Strategic HR, succession and career planning and leadership performance Contact: www.ldks.com.au, or 0407 770 409

Opinion

ASK THE EXPERT HRIS

Negotiating skills In this month’s ‘ask the expert’, Ari Kopoulos responds to a reader’s question about negotiating with HRIS suppliers

Q

We have identified our preferred supplier and are about to sign contracts; can you offer any tips on the negotiation process?

A

So you’ve made that important decision to purchase and now feel compelled to enter the elaborate dance of negotiation. This process itself sits somewhere between science and art, and is more often perceived to be a process of conflict. Let’s make this clear, effective negotiation is not about conflict, defiance or dishonesty. It’s not about posturing, bullying or threatening for that matter. Effective negotiation is about exhaustive preparation, utter clarity, and a sincere and demonstrated desire to fully understand each other’s needs.

Ideally, you’re entering the process on the premise that the vendor will be your long-term partner offering solutions that drive performance and competitive advantage. This means the single objective of negotiation is a win-win relationship.

Before you announce your intentions, clearly define your requirements and scope. Be very specific to avoid the need for eternal change requests or worse, being told this was outside your scope.

Next, determine the elements of negotiation, your goals and limits. Setting limits before you negotiate will allow you to make rapid decisions during the process, giving you strength and confidence, as well as pleasing the vendor. Negotiation is about options, so have alternatives whenever possible.

Define your budget in terms of current and future licence requirements, implementation, and support and maintenance. Be realistic as there is nothing more frustrating than realising you’ve underestimated the true cost of the product. It’s also a known fact that the larger your budget, the greater the influence you have.

From a functional perspective, rank and categorise your requirements in terms of needs and

wants. With respect to service levels, identify the absolute minimum you require to effectively support the product. Include your training and consulting needs as this is an area where the vendor can be quite generous. When looking at warranties, focus on the critical functions of the product and services. Finally, all warranties should have a remedy. Without this, the vendor faces no consequences should a problem occur.

You also need an idea on what’s most important to you, functionality, service or price, and what you’re willing to contra. Also, make a list of what you’re prepared to offer the vendor. These include: reference site, beta test site, user group participation, case studies, testimonials and use of logos. Vendors will typically do what they can to make their clients happy, especially when they have access to a client who will tell a great story.

You are now ready to meet. Ensure you are negotiating with the right person and offer the vendor the same. The last thing anyone wants to hear is, I need to speak to my boss. Perhaps the most critical element in this process is effective communication. Be clear in your position, listen carefully, and ensure the listener understands your message whilst maintaining emotional control. Egos should be left outside, and never make or react to threats or intimidation. Silence is not a bad thing, get comfortable with it.

Finally, both parties will mark up documents for quick reference and review. Ensure you use appropriate software that automatically captures changes, additions and deletions as revisions.

Identifying the differences between the original contract and the revised contract will ensure there are no delays or frustrations.

Remembering the win-win objective and recognising the value in the relationship will result in better vendor negotiations with successful outcomes and reduced risk.

About the author Ari Kopoulos is national sales and marketing director for EmployeeConnect.

For more information, visit www.employeeconnect.com

DIVERSITY Indigenous recruitment

11

www.hcamag.com

COVER STORY HR past, present and future

2003

n HOT HR ISSUE: Triple bottom-line reporting WORLD EVENTS

»» An American businessman is admitted to the Hanoi French Hospital in Hanoi, Vietnam with the first identified case of SARS »» The second Gulf War starts »» Space shuttle Columbia disintegrates, killing all seven astronauts on-board »» Voters recall California Governor Gray Davis from office and elect actor Arnold Schwarzenegger to succeed him

HR’s past, present and future Celebrating 100 issues 12

www.hcamag.com

n BEST EMPLOYERS:

EOWA Leading Organisation for the Advancement of Women (>500 employees): American Express International Inc – Australia; Hewitt Best Employer Australia & New Zealand: Cisco Systems, Flight Centre

WORKPLACE EVENTS

SARS has a particularly devastating effect on business travel to Asia

»» Federal Employment and Workplace Relations Minister Kevin Andrew rejects government-funded paid maternity leave, arguing that financial encouragement for having children should not be work-related »» The Victorian government makes a deal that defers its industrial relations powers to the Commonwealth, which gives 350,000 of Victoria’s low-paid workers access to new entitlements, such as redundancy and bereavement pay »» Hutchison Telecoms launches the Three network with the first video call

www.hcamag.com

13

COVER STORY HR past, present and future

2004

n HOT HR ISSUE: Drug and alcohol testing in the workplace WORLD EVENTS

»» Huge tsunami causes mass devastation in Asia »» Terrorist attack in Madrid, Spain kills 191 »» Scientists in South Korea announce the cloning of 30 human embryos »» Riots in Redfern, NSW after death of TJ Hickey »» Facebook is founded

Over eight years and 100 issues, Human Capital has seen plenty of changes in Australian business and management strategy. From constantly evolving industrial relations to the emergence of diversity as a corporate agenda item, through to the ongoing development of HR technology solutions and poking friends on social networks – to name just a few – it’s been a tumultuous, but inspiring, period for the builders of people. This special report looks at the development of HR in Australia since 2003, and also asks what the next decade might bring

T

ake any HR manager of today, find a working time machine – ideally a DeLorean à la Back to the Future – and set the dials to January 2003. That person will find themselves in a whole new (or old) world. Tucked away in an office corner, a typical HR day could involve browsing through hundreds of paper files, sifting essentials from the trash. Relationships are different, too – the door says ‘personnel manager’, but there’s rarely a chance to meet the CEO. Indeed, the only people knocking on the door are there to lodge complaints about missing pay. Sandwiched between the employees and the employer, from the vantage point of 2011, it may be difficult to ascertain which group should be represented, or why both dislike the function.

Head back to 2011, and things have changed dramatically – for the better. The personnel manager is now a fully-fledged HR professional – or a ‘people & culture’ professional for the more discerning – with a key role in writing and executing business strategy. If not already part of the highest decision-making levels, there is at least access and communication with the C-Suite helm. And employers acknowledge the significant contribution of best practice recruiting, talent development, performance management, employee relations and

14

www.hcamag.com

compensation strategy. Moreover, these functions are fast-becoming a blueprint for survival.

Gary Taylor, HR professional and regular contributor to Human Capital, says the biggest shift over the past 10 years has been the concept articulated by Dave Ulrich as the ‘business partner’ role for HR. “For much of HR’s development before then, it was about how we could become even more specialised in our respective discipline and even the sub-disciplines of HR. We seemed to get our kicks out of showing our unique expertise to our line management colleagues,” he says.

Taylor adds that the decade since then has witnessed a growing concentration by HR on adding value to the business they’re in by bringing their HR skills to the table in an applied manner, rather than for its own sake. “This has seen a growing number of HR execs move into CEO and other senior roles because of their demonstrated relevance,” he says.

There is still plenty of work to be done. Kym Quick, COO of Clarius, says the split between strategic and transactional still exists, and HR is often seen as the second line of defence to impact strategy rather than being involved in the initial development and implementation. “There is an increasing need for HR to be involved with the business at the coal face, in both understanding and influencing the business and its decisions regarding people,” she says. “Although progress is being made, we still, to a large degree, see HR’s impact being restricted by line management who feel that they should have complete control over these issues without the influence of HR.” HR-watchers will be monitoring the coming decade closely. With technology changing every day, and the talent crunch forcing employers to get the most out of each and every staff member, the focus on HR is set to continue. Whether or not the profession will shine or shrink from the limelight – especially given the challenges outlined in the following pages – is yet to be seen.

n BEST EMPLOYERS:

EOWA Leading Organisation for the Advancement of Women (>500 employees): Alcoa World Alumina Australia; Hewitt Best Employer Australia & New Zealand: SalesForce

WORKPLACE EVENTS

Facebook is founded

»» Qantas launches its discount domestic airline, Jetstar »» Hewlett-Packard opens an education centre for staff and customers, providing technical training on HP products and services »» NSW’s lowest paid workers granted a $19 a-week pay rise, after the NSW Labor Council wins its case in the NSW Industrial Relations Commission »» The federal government introduces 14 weeks paid maternity leave for women in the workplace

GENERATIONS AT WORK n 43% of Baby Boomers intend to retire within the next three years, with 84% overall set to exit the workforce before 2020 n Applied to the Australian workforce, this equates to more than three million Boomers heading out of the door within 10 years

A brief history of HR

Elton Mayo, an Australian, is known as ‘the father of the human relations movement’. From 1924 to 1932, Mayo conducted the Hawthorne studies, which investigated the relationship between employer and employee. Specifically, he looked at the effect that environments have on productivity. Mayo concluded that human factors, such as workers’ feelings, were more important than physical conditions.

Consequently, the concept of employee motivation became an essential role in the success of businesses.

Originally, human resources was called ‘welfare management’ or ‘scientific management.’ The idea of human resources was born after the industrial relations, as the

government implemented protection laws over children and workers.

Labour departments in organisations grew during World War l and II, as labour standards and minimum wages were created. In the 1940s, employment boomed and the role of personnel managers became essential to the running of businesses. The 1960s and 1970s saw emerging fields in market research, communications and public relations.

These new managers emphasised the importance of positive relationships between employers and employees. Rather than ‘scientific management’ or ‘personnel’, human resources became the more commonly used term, as it highlighted the resource-like nature of employees.

n 28% of Baby Boomers are opting to work longer due to the GFC Source: SageCo

www.hcamag.com

15

COVER STORY HR past, present and future

2005

n HOT HR ISSUE: Gen Y and balancing multiple generations at work WORLD EVENTS »» »» »» »» »»

Pope John Paul II dies Terrorist attacks rock London, killing 52 Bali bombings kill 26 Million Dollar Baby wins best picture at the Oscars The largest UN World Summit in history is held in New York City »» George W Bush inaugurated for second term

Plugging the talent gaps

With great power, comes great responsibility – and if HR now holds the power to form the all-important people strategy of an organisation, it’s fair to say it must take the plaudits (Best Employer awards, healthy remuneration packages), alongside the brickbats (spiralling recruitment costs, irritation from talent-starved executives and line managers).

At the top of the critical list on Australia’s business landscape is the impending talent shortage that is set to hit organisations of all shapes and sizes.

According to Quick, this is a critical area for HR focus in the current and future market. She adds that the responsibility to ‘come up with the goods’ does

16

www.hcamag.com

not solely rest on HR, although they do have a strong role in the establishment and management of talent attraction and retention tools.

“Often HR is left to ensure that such initiatives and cultural issues are managed across the business, therefore the entire business needs to focus on this. A strong HR department is part of the DNA of a great business, almost like the silent partner. It’s critical to the ongoing success and outcomes of the operation, yet HR is often managing such issues in the background, leaving the organisation and line management to benefit from their activities,” she says.

n BEST EMPLOYERS:

EOWA Leading Organisation for the Advancement of Women (>500 employees): ANZ; Hewitt Best Employer Australia & New Zealand: SalesForce

WORKPLACE EVENTS

Hurricane Katrina wreaks havoc in the US

Now, with the Baby Boomers set to move into retirement while only smaller-sized age groups available to replace them, the talent crunch will move into a more permanent fixture. Not only will there be renewed focus on growing and retaining talent, but consideration will also need to be given to the impact this exodus will have on business productivity. Quick says HR can play an effective role in minimising this, by ensuring their organisations have identified critical IP at risk through retirement and the building of succession plans. Additionally, it involves planning around how some of these skills can be retained through flexible work arrangements and alternative forms of engagement with those workers. “The key is planning – knowing in advance where the risks and challenges are, and working towards solutions

»» The Western Australian Industrial Relations Commission rules that employees across the state are entitled to up to 16 weeks redundancy pay »» Prime Minister John Howard implements changes to industrial relations, to become known as ‘Work Choices’ »» Westpac launches a community involvement program, designed to improve a battered corporate image and boost staff morale »» Foster’s acquires Southcorp Limited

before they become problems,” she says. David Bowsher, head of HR, Australia, BBC Worldwide, feels that this question of age diversity and how HR handles it may be the tipping point for those reluctant to accept HR as a true business partner.

“Diversity will increasingly become part of the equation, because workforces are changing, they are becoming more flexible, and people are moving around more. Gen Y will choose to join an organisation for totally different reasons to why I did, and we need to be mindful of that. We’re not going to have people staying with one company all their lives like they used to; people will pick and change, so we need to continue to engage with them.

Also, we’ve got an ageing population, so it will come down to how we interact with that reality, as people go through their whole career span.”

Then and now: HR remuneration

By David Owens, managing director, HR Partners For some time I have been supporting the view that the importance of HR management has been on the up. To support this observation, I have pointed to CEO involvement in the personal briefing of recruiters like HR Partners and direct involvement in the interviewing and selection of senior HR professionals.

Furthermore, I have included of HR professionals in senior leadership teams and decision making as evidence of this.

I have also been interested in charting the increasing participation of HR professionals in performance-related bonuses as an indication of their further ability to demonstrate value and to be treated like all other contributors to the successful performance of a business.

I think we would all agree that the HR profession is now in a very different position to that of the early 2000s, and a quick glance at an extract from a salary survey which HR Partners produced in conjunction with Hart Consulting shows exactly that.

In 2000, average total reward was as follows: »» HR Manager $105,909 »» HR Consultant $76,385 »» L&D Coordinator $47,972 »» Rem & Bens specialist $93,107 The latest HR Partners salary survey data drawn from www.hrsalarysurvey.com.au shows the following data for median salary package »» HR Manager $125,895 »» HR Consultant $89,380 »» L&D Coordinator $89,925 »» Rem & Bens specialist $135,977 The strong suggestion here is that the generalist roles have increased at a lower rate than the specialist roles. Both HR Consultant and HR Manager positions have increased by approximately 20%, whereas the specialist rem & ben role increased by 50% and the L&D coordinator a staggering 100%.

It is possible that the L&D data in 2000 is a little on the low side and indeed the 2011 data for L&D coordinator a little on the big side, but I think the trend line is compelling.

The absence of the HR business partner job title in the 2000 survey is "interesting". www.hcamag.com

17

COVER STORY HR past, present and future

2006

n HOT HR ISSUE: Employer branding WORLD EVENTS »» »» »» »» »» »»

Huge earthquake in Java, Indonesia kills thousands Saddam Hussein is executed Australia hosts the Commonwealth Games in Melbourne Google buys YouTube for US$1.65bn, a year after its launch The military seizes power in Fiji, in a coup d’etat North Korea claims to have conducted its first nuclear test

Gender diversity When HC asked its LinkedIn members for their views on the most important development in HR’s evolution over the past decade, gender diversity was high on the list. This is hardly surprising. The debate over paid maternity leave, flexible work arrangements, and more recently, the paucity of women on boards and executive teams, has placed this issue front and centre for business leaders.

Jennifer Dalitz, founder and SheEO of sphinxx, said that recognition of the contribution women make to leadership teams and the impact that difference makes in terms of innovation, product development and performance has been the most significant development of the past 10 years. “I hope that in the next 10 years we’ll see more gender balance in leadership teams, more women leading and as a result, workplaces and leadership teams that better reflect the communities their organisations serve,” she comments.

Diversity and inclusion in 2003 was more around compliance and tokenism. The workplace saw it as a nice to have, and there was not a great deal of recognition around the difference it could make to the bottom line. The opportunities that diversity and inclusion provided had yet to be truly and authentically embraced by the Australian workplace.

Donna de Zwart, general manager of Diversity@ Work, says the situation in 2011 has greatly improved.

Australian business, she notes, has moved from understanding ‘what’ diversity is, to ‘why’ we need it, and now we’re entering into the ‘how’ phase. “It’s an exciting time in corporate Australia because many organisations are now actively building systems and structures to address known diversity issues.

Real progress will come as these strategies begin to be adopted and embraced as the norm – that’s our biggest cultural challenge moving forward,” she says.

However, there is still a lot of work to do, particularly around cultural change. de Zwart says people are still hung up on equality rather than equity: “Equality is where we don’t acknowledge difference and everyone is treated the same. We need acceptance that there are differences; this is part of what makes us human,

18

www.hcamag.com

n BEST EMPLOYERS:

EOWA Leading Organisation for the Advancement of Women (>500 employees): IBM Australia; 2006/07 Hewitt Best Employer Large Organisation Winner: American Express Australia

WORKPLACE EVENTS The Workplace Surveillance Bill passes in NSW, resulting in debate over privacy and the ethics of email monitoring

and these differences must be accommodated if we are to create genuine inclusion.”

Australia lags behind other developed nations in terms of pay equity and workplace flexibility.

Corporate Australia has struggled with effective strategies that encourage line management cultural change. Quotas (whether we agree with them or not) have evolved out of pure frustration that little else has worked in the past. de Zwart adds that quotas work on ‘hard issues’ like workplace safety, and questions why they wouldn’t work on ‘soft issues’ like gender or other aspects of diversity.

“For a society that prides itself on being ‘egalitarian’ and giving someone a ‘fair go’, the playing field is still uneven when it comes to gender.

Much of the discussion has been in the form of motherhood statements and ‘aspirational’ targets.

Previously, organisations have worked very hard at developing women as opposed to developing the organisational culture, policies and procedures. It’s not women that need to be fixed, it’s the system. The emphasis to date has been on ‘empowerment’ or ‘personal development’ programs for women. The

»» The Queensland Anti-Discrimination Tribunal awards damages to eight women, aged between 36 and 56, who claimed that Virgin Blue discriminated against them on the basis of their age during the recruitment process »» Negative reaction to the federal government’s Work Choices increases »» Deloitte CEO Giam Swiegers named the country’s best HR champion at the annual AHRI Awards

intention is to assist women in progressing onwards and upwards through an organisation. But whilst many women benefit and grow through participating in these programs, the barriers still remain.”

For organisations to focus on this aspect of diversity effectively, de Zwart says they must first communicate to their senior leaders that gender diversity is not just a female issue. It is vital that women make inroads at every level to create longlasting systemic change. de Zwart adds a final coda to the diversity issue: she challenges corporate Australia to change its mindset around diversity and inclusion. “If I were to ask employers if they could guarantee their workplace was physically safe for their employees, they would all say yes. After all, we have legislation in place to ensure this. However, if I were to ask if they could guarantee that their workplace was emotionally safe, I would expect quite a different response. It is only when we can ensure that the workplace is an emotionally safe environment that we'll give people the freedom to express their diversity without fear of being discriminated or harassed.”

WORKFORCE STATS n Australians on average work 38.6 hours a week, assuming they work 48 weeks a year

Source: ‘How Australia Compares’ by Rodney Tiffen and Ross Gittins

www.hcamag.com

19

COVER STORY HR past, present and future

2007

n HOT HR ISSUE: Outsourcing and offshoring WORLD EVENTS »» »» »» »» »»

‘Live Earth’ benefit concerts held around the world Final book in the Harry Potter series is released First cracks of GFC appear The Departed wins best picture at the Oscars Vladimir Putin, President of Russia, announced as Time Magazine's Person of the Year

A foreign question It is estimated that the nation will need an additional 2.4 million skilled workers by 2015, and the number of extra workers needed will grow to 5.2 million by 2025. It’s hardly surprising that Australia’s talent pinch has forced employers to look overseas for talent more than ever before. The options available to employees today are endless, and those willing to work in different countries have a multitude of exciting options.

Indeed, Blyde Neser, a HR consultant based in regional Australia, commented on LinkedIn that globalisation had been the single most impactful element of HR’s evolution. “If I have to single out one area, I would say it is globalisation and the way in which this has been enhanced by technological development,” she said. “I think there is a higher level of skills migration across the global society, which has become easier due to technological advancements. Look at me – I am an HR professional based in Coffs Harbour, but I am working for a client in Tasmania at the moment.”

Quick adds that it is a global market for talent, but only as much as the workforce wants it to be global. She says the lifestyle expectations of some areas of the market mean that this is not necessarily going to change the face of the workforce overnight. “The internet and online job hunting solutions give a great deal of choice to both employers in how far they cast the net, and employees in how far they choose to go. However, it does not necessarily make filling jobs offshore any easier. Here in Australia, we are also faced with the added challenge of visa restrictions making it more onerous to bring talent into the country.”

There has been plenty of media comment that the lack of skilled workers will inhibit Australia’s potential to have a (primarily resources-driven) booming economy. The consensus from employers is the government needs to be doing more to ensure it remains an attractive place for overseas workers.

“There is clearly a genuine basis for concern about the availability of skilled and indeed semiskilled labour in Australia. There are particular

20

www.hcamag.com

concerns about the ability of the local labour market to meet the demands of major resources projects in their construction phases,” says Teresa Liu, partner at Fragomen.

The demands of the mining boom potentially shifting skilled workers away from other sectors and creating economy-wide wages pressure – and thus an inflationary effect – cannot be ignored. It’s been the basis of discussion around the two-gear or multigeared Australian economy for some time.

The Australian immigration program for skilled labour is both supply and demand driven.

The General Skilled Migration (GSM) program is recognised as the supply-driven program for skilled labour and is focused on more mid to longterm labour needs. The government recently made significant changes to the GSM program to lessen the focus of the program on international students in Australia.

These changes were in addition to the reduction in the number of migrants accepted under the GSM program that occurred last year, in reaction to the general downturn in the economy in 2009.

The demand-driven program (which includes the subclass 457 visa and the permanent Employer Nomination Scheme visa) is more flexible and can more easily be used to meet the immediate and short-term demands of employers/business in Australia. Importantly, both the ENS and 457 visa programs are ‘uncapped’ and increased in recent

HR trends

GENERATIONS AT WORK n There are currently 4.65 million Australians in Gen Y, comprising 21% of the workforce.

In 2020 this number will double to 35%.

Baby Boomers will decline from 36% to just 15% n There are 4.22 million Australians in Gen Z and although not currently working, by 2020 they will comprise 12% of the workforce Source: McCrindle Research

IBM’s 2010 Global Chief Human Resource Officer (CHRO) report identified three significant trends for Australian businesses: »» they are increasingly investing in leadership development but struggle to both find and nurture effective future leaders. One in four Australian/New Zealand executives believe their organisations excel in leadership development »» they are working to build greater flexibility into their operational practices in order to balance the demands of efficiency and growth, including a mix of part-time workers and outsourcing resources »» they must start capitalising on collective intelligence, such as fostering collaboration, knowledge sharing, social networking and workforce analytics tools.

n BEST EMPLOYERS:

EOWA Leading Organisation for the Advancement of Women (>500 employees): Mallesons Stephen Jaques; 2006/07 Hewitt Best Employer Large Organisation Winner: American Express Australia

WORKPLACE EVENTS

Kevin Rudd becomes Prime Minister

times in reaction to the growing need to fill skilled roles in Australia on a short-term basis, including mining and other resource projects. Data from the Department of Immigration indicates that the proportion of overseas workers who migrate to Australia as permanent residents (or who become permanent residents after their arrival) sponsored by their employers continues to rise. Employersponsored migration comprised 38% of the 2009–10 permanent skilled stream, compared to 33% in 2008–09 and 22% in the 2007–08 program year.

While the need to increase permanent migration and find long-term solutions is important, Liu says

»» Organised by women’s magazine marie claire, the Push It rally sees highprofile women talk passionately about paid maternity leave »» The Federal Labor party proposes to accelerate harmonisation of OHS and workers compensation regulation through a more empowered national body, and financial incentives to the states and territories to adopt reforms »» Work Choices blamed for landslide defeat of the coalition in Federal election »» Wesfarmers acquires Coles Group Limited

the greater issue is more about how, in the short term, the immigration program and Australian business can better attract overseas skilled workers to Australia, retain its Australian employees (rather than lose them overseas), and attract skilled Australians overseas back home.

“The economy is a global one, and the global competition for labour is fierce. At the same time, it is clearly necessary that businesses and government focus on long-term initiatives to increase local workforce participation and to skillup local people to fill these critical roles in the longer term,” she maintains.

www.hcamag.com

21

COVER STORY HR past, present and future

2008

n HOT HR ISSUE: Restructures and redundancies WORLD EVENTS »» »» »» »» »» »» »»

PM Kevin Rudd apologises to Indigenous Australians Lehman Brothers files for bankruptcy protection The price of petroleum hits US$100 per barrel for the first time Australia 2020 Summit held in Canberra No Country For Old Men wins best picture at the Oscars Mortgage giants Freddie Mac and Fannie Mae collapse US Senate approves $700bn bailout package

Creative compensation & benefits One of the starkest areas of change since the first issue of Human Capital landed on desks eight years ago has been centred on compensation and benefits. In essence, this is now being handled with significantly more creativity and attention to detail.

From the traditional fixed and variable components of compensation, HR has introduced more flexible benefits, flexible work arrangements and both monetary as well as non-monetary benefits over the years. There has also been an added emphasis on equity rewards – shares and stock options – for senior staff. This aims to increase the sense of ownership and accountability for executives. But it also means greater variability in overall pay for many workers.

More companies are also structuring their benefits more flexibly, to meet the needs of employees from various age groups and profiles.

Mercer’s Workplace 2012 report outlined several key remuneration and benefit trends: »» Salary grades could become obselete and salary will be based on performance, with recruitment targets and bonuses set for every individual. »» Employers will offer in-house childcare options and salary sacrificing for children’s education. »» As national and global mobility of workers grows, relocation benefits may increase. »» Benefits such as subsidised gym memberships will switch to lunch-time personal training sessions or

lunch-time yoga at a department or team level. »» Subsidised financial advice and education will be provided by more employers, particularly around ‘transition to retirement’ superannuation. »» Wellness will become a greater focus. The provision of health checks, subsidised private health insurance and health education at work will become more common. »» Leave arrangements will be more flexible to meet individual needs and desires, such as extended holiday or travel, community involvement, sabbaticals or study.

There is evidence to suggest benefits will continue to be more lifestyle driven. Georgie Drury, founder of corporate health experts Springday, suggests that investment in staff wellbeing has gone from ‘nice to have’ to somewhat more essential over the past decade.

“Research has proven that an investment in staff does help with productivity, but the concentric rings of ‘have to have’ for employment, are now getting wider to include corporate wellness initiatives.

Employees are talking with their feet and demanding that their employers provide and integrate them into work. We have seen a move from being ‘wealthy’ to being ‘well-thy’,” Drury says.

Drury adds that employers need to step up to the plate, to become more like ‘change agents’ when it comes to the wellness of employees. And these days,

What will the next decade bring… for L&D?

By Tania Horozides – Senior Manager, Thought Progression and Improvement, TP3 In the next decade we will see an increase in learning for work, at work. I think we will see a shift away from generic, classroombased training to learning opportunities embedded in daily work activities through coaching, just-in-time learning resources and establishment of cross-functional learning teams. I strongly suspect we are in for a few

22

www.hcamag.com

WORKFORCE STATS n Australia is listed as number 10 on the countries with the most worked hours with 1,816 hours worked on average per person every year.

South Korea is number one with approximately 2,423 hours worked on average per person every year Source: Aneki.com

surprises as to the role that technology will play when learning occurs, how learning is delivered and how the output of learning is shared amongst a community. It would not surprise me if there is a greater reliance on outsourcing learning to specialists who can provide access to a variety of different learning methodologies and approaches which can be tailored to meet the needs of specific organisations. Although this is happening today – how this will look in the future I think is currently beyond our imagination.

n BEST EMPLOYERS:

EOWA Leading Organisation for the Advancement of Women (>500 employees): Deloitte; Hewitt Best Employer: Bain & Company

WORKPLACE EVENTS

Apple iPhone released in Australia

it’s not enough to consider just physical health; mental health is also emerging on corporate agendas.

“We’re hearing themes of resilience, positive psychology and happiness being discussed and it is now becoming the responsibility of transformational leaders – and organisations – to help their employees with their mental wellbeing,” she says.

As for the age-old gripe that corporate health initiatives are too hard to track in terms of ROI, Drury confirms that quantifying ‘wellness’ is indeed a tricky area. However, she suggests that business leaders need to consider both commercial and social outcomes. “I usually ask the question, ‘what would

»» Goldman Sachs announces new partners for its ‘10,000 Women’ scheme to provide business and management education to female entrepreneurs in less-developed countries »» St.George Bank merges with Westpac Banking Corporation in a $47bn deal »» Mitsubishi Motors Australia closes its Clovelly Park manufacturing facility, ending more than 40 years of manufacturing at the site »» November jobless rate of 4.4% is highest in a year

happen if you don’t do anything?’ Let’s look at outcomes, rather than just numbers,” she says.

The future of corporate wellness will see a raft of specialised services coming together like consortiums to do specific tasks – eg, assessment/awareness/ action/accountability – rather than relying on the onesize-fits-all approach some organisations are currently taking. Advances in technology for delivery and/or methodology should also result in cost efficiencies and easier integration – examples include online Wellness Portals and Health Hubs.

Organisations will include spouses/partners/ kids at home, ensuring the ‘whole family’ benefits.

www.hcamag.com

23

COVER STORY HR past, present and future

2009

n HOT HR ISSUE: Compliance with Fair Work Act WORLD EVENTS

»» Barack Obama becomes the first African-American president of the US »» Michael Jackson dies »» G20 Summit meets in London »» Australia witnesses the most deadliest bushfires in its history »» Slumdog Millionnaire scores best picture winner at the Oscars »» US auto manufacturer General Motors is declared bankrupt

Technology & communication evolution Lol. That means laughing out loud.

How about: Thx; Tmr; Sez; YF Well, the answers are: Thanks; Tomorrow; Says; and Wife.

And before ‘those crazy kids’ are blamed for butchering the English language, these are actually taken from an old morse-code book of abbreviations.

The point, says Grant Mason, director of Web 2.0 enterprise software firm Yackstar, is that technology impacts how we communicate. “The last 20 years has clearly been the double-decade of email. Emails were supposed to help eliminate paper and transform the worklife. The days of big wads of reading binders with the obligatory signature page have declined. Instead, we have a volume of CCs and spam,” he says.

The next decade will see a shift from emails to activity streams, Mason says. Rather than emailing people, we'll post information, collaborate across functions and share openly. This era in business is about being skilled in communication methods via social networks. From teenagers to grandmothers, new expectations are being created and new competencies are evolving. People want communication that is faster and more informal.

“Technology will enable HR processes to become faster and more informal,” says Mason. “HR processes will foster collaboration and transparency. Culture change processes will be enacted in activity streams, not PowerPoint pitches.”

However, this is still a work-in-progress. Maree Mattner, the leader of HR and Learning Outsourcing in Australia and New Zealand for IBM Managed Business Process Services (MBPS), says that Generation Y, and Z following behind them, have very different ways of thinking and connecting. She says businesses need to be able to capitalise on that because it has massive ripple-effects on how people work and collaborate. “There is still some discussion on what collaboration actually means,” she says.

“For some, it’s the tools and enabling infrastructure underneath. For others, it’s determining who is the subject matter expert within a company. For others, it’s the ability to post content from anyone, anywhere,

24

www.hcamag.com

any time. For others, it’s creating a culture so people don’t sit in their silos but collaborate across business units. Perhaps it’s a combination of all those. Maybe organisations require some assistance to catch up.”

Mariah Gillespie, social media strategist at JXT Consulting, commented on HC’s LinkedIn member page that the explosion of the internet, and particularly, the social media’s move into the candidate sourcing space, was the biggest shift in HR over the last decade.

“Jobs were previously posted in newspaper ads, on television, radio and other forms of traditional media.

These days, you can advertise a job to millions within minutes or even seconds of getting the job spec from a client. You’re able to pre-screen candidates before even meeting them based on online profiles; you can headhunt and make 80% of the placement without ever leaving your desk or picking up the phone – not ideal, obviously, but it could be done,” she says.

Advances in web technology are set to make all HR applications even more intelligent, says Ari Kopoulos, national sales and marketing manager at EmployeeConnect. “While Web 2.0 enables you to publish a position on a recruitment job board, Web 3.0 will take your recruitment request and intelligently match you with the perfect candidate, becoming more accurate as you use it,” he says.

HR information systems (HRIS) have also become more sophisticated. Fuelled by the promise of the paperless office, early HRIS provided managers with a basic overview of areas like recruitment, compensation and benefits, expense reporting and training.

Self-service applications built on data stored in these systems enabled employees to manage their own personal records and payroll details.

Talent management software now provides an overview of the talent pool and helps management identify and retain top performers. It can also help organisations keep track of who is next-in-line for a promotion and aid succession planning.

Research from the International Data Corporation predicts that the worldwide market for talent management software will reach US$2.55bn by 2012.

WORKFORCE STATS n As of March 2011, 11,457,100 people are employed within Australia.

8,105,600 of these people are full-time and 3,351,500 are part-time* n Labour force participation is 65.8 %* n Unemployment is 4.9% in Australia. US unemployment is 8.8%, UK is 7.8% and New Zealand is 6.8%* n Australia has the second highest number of part-timers in the West^ Sources: *ABS; ^‘How Australia Compares’ by Rodney Tiffen and Ross Gittins

n BEST EMPLOYERS:

EOWA Leading Organisation for the Advancement of Women (>500 employees): Mercy Health; Hewitt Accredited Best of the Best: Microsoft, Dimension Data Australia, Express Data

WORKPLACE EVENTS

Swine flu gives rise to concerns over legal rights and obligations of employers

As demand for more flexible work practices escalates, so too does technology. The demand for work-life balance, globalisation, mobility and generation mix means companies need to adapt technology that will help workers learn, collaborate and communicate.

Furthermore, cloud computing is a metaphor for the new version of the internet. It’s where providers deliver a variety of IT-enabled capabilities as ondemand services, on a pay-per-user basis. Of these, the SaaS model is perhaps the most widely utilised.

This involves the delivery of an application through a browser to a large number of users.

»» Employees in Asia-Pacific see the most drastic cuts to their pay rises in 2009, as companies cut back across the board due to the economic downturn »» The level of planned hiring across Australia falls »» Fair Work Australia (FWA) launches as the new government industrial relations institution created by the Fair Work Act 2009 »» Companies review and test their pandemic response plans in response to H1N1 influenza (swine flu)

Kopoulos says while economies of scale, agility, scalability and focus are tempting, migrating to the cloud introduces new challenges that include security, control, flexibility and availability. However, he notes there is a growing trend towards the visualisation model, in-house. This is effectively a private cloud and, in many ways, can be viewed as a safe and intermediate step towards embracing the greater cloud.

Regardless, given the amount of money invested

by IBM, Microsoft and Google into cloud computing, Kopoulos believes any disadvantages will soon be eliminated. “For businesses, it’s not a matter of if you migrate, it’s a matter of when you'll migrate,” he says.

www.hcamag.com

25

COVER STORY HR past, present and future

2010

n HOT HR ISSUE: Workplace diversity; bullying & harassment WORLD EVENTS »» »» »» »» »» »»

A devastating earthquake in Haiti kills thousands Julia Gillard replaces Kevin Rudd as Prime Minister Mary McKillop becomes Australia’s first saint Pike River coal mine explosion kills 29 in New Zealand The Hurt Locker wins best picture at the Oscars Opera singer Joan Sutherland dies

What are your views on the future of HR as a profession?

26

www.hcamag.com

Rob Hendriks, executive director of HR, ING Direct:

Tim Sprague director, human resources, Macquarie University:

Joanne Allen, head of HR, Citi:

“Customer centricity and operational excellence. Customer centricity for me is key in HR. Becoming a very strong business partner for the business is not new. But putting the customer first in everything we do is really different. It’s not about structure; it’s more about mindset.

Everything you do in HR should add value to the business. We should ask – ‘is it really what customers want, do we know our customers, and is this adding value to the business?’ ”

“When I did my Masters, the argument was about whether HR was a profession. At the time, research suggested that HR was more important in organisations that had industrial disputes.

We still have industrial disputes and we have just gone through a heated period of bargaining and industrial action at Macquarie. But the success of HR at Macquarie and elsewhere will not be measured by our ability to resolve industrial matters alone. The big game is to drive discretional effort – getting staff to do more than the absolute minimum because they respect their colleagues, feel appreciated and engage with the mission of the organisation. In a university, some of this is easy; growing knowledge and new thinkers is laudable. The rest is a work-in-progress. If we get this right, and this is true of HR in any sector, we will have earned our place as an essential part of the organisation.”

“It’s having a commercial bent. We still talk about HR in HR speak when we should be presenting it as business. We run a meeting with the business as a HR meeting, not a business meeting.

Unfortunately, HR has suffered professionally by having people work within it who always viewed themselves as HR-people first and business-people second.

We’ve always struggled to measure ROI. To get good solid metrics is really hard. Yes, you can get numbers but what does that really tell you? The number of people who went to training last year – what does that mean? We must continue to push ourselves into a more commercial direction as well as develop ways of reporting the outcomes, rather than just quantitative stats.”

Alec Bashinsky, national partner, people & performance, Deloitte Touche Tohmatsu:

“I’m seeing two challenges as we head into the next five years.

Firstly, CEOs who don’t get the importance of people to their business and hence hire HRDs as administrators.

Then, the lack of skills, experience and expertise of many HR managers, such as an understanding of the business, and the ability to negotiate and influence, and make good judgments and decisions. In today’s environment, many of the up and coming HR leaders just don’t have the tools in their toolkit to provide people leadership strategies to their CEOs.”

n BEST EMPLOYERS:

EOWA Leading Organisation for the Advancement of Women (>500 employees): Griffith University; #1 Great Place to Work by The Great Place to Work Institute: NetApp Australia

WORKPLACE EVENTS

Federal government announces an investment of $731m over five years to deliver a Paid Parental Leave scheme for the first time, starting 1 January 2011

»» Federal government allocates $3m in funding for enterprises which specifically target job seekers with a disability »» From 1 January, employees have certain minimum conditions of employment, known as National Employment Standards (NES) »» David Jones reels from CEO Mark McInnes’ sexual harassment scandal »» Significant changes made to Australia’s skilled migration program, including replacement of Migration Occupations in Demand List (MODL) with Skilled Occupations List (SOL)

Up for it?

As the Australian media again starts to fill with stories of strikes and industrial action, complementing their current stories on bullying and harassment and of course, dire warnings about talent shortages squandering the boom, it has to be asked whether HR professionals are up to the task.

Do they have the skills?

Quick says HR professionals need to diversify their skills beyond the technical and soft traditional HR skillset; broader knowledge and experience in a general business and commercial environment are also vitally important due to the credibility that is attained as a result. Even a good understanding of financial and accounting principles can go a long way for an HR professional. “Some of the most successful HR professionals I have worked with did not start in an HR role, but had one or more careers prior to moving into the profession,” she says. “It’s important that the education process and tertiary institutions recognise this and provide a diverse and practical program that allows for people to attain these skills.”

HR is not just about contracts, IR and policies; nor is it just about the so-called ‘soft stuff’ (engagement, diversity, etc). It’s about being ingrained in the business and understanding the true mechanics in the provision of initiatives and solutions that support its success. Senior HR professionals are certainly up against it – but they also have the talent and the smarts to get there. HC

What will the next decade bring… for leadership?

By Keith Ayers, CEO, Intégro Leadership Institute I think culture within organisations is the most critical factor in how we move ahead into the future. Coupled with the fact that there is a skills shortage out there, which is likely to only get worse, leaders need to provide a culture and work environment where employees want to work and can provide their best efforts every day.

28

www.hcamag.com

Additional research by Rebeccah Elley

One thing that is having an impact now and into the future is how leaders deal with attracting and retaining Gen Ys. I think there is significant room for improvement for senior executives to support the Gen Ys as they grow and develop in the organisation. It is important that they recognise that every generation shares the need for respect, and must look to develop a culture that supports this, irrespective of generational differences.

FEATURE Pre-employment screening

Getting emotional

about psychometric testing

P

sychometric testing in the workplace tends to bring out strong views. A recent story by a major newspaper saw readers flock to the discussion board. Noticeably, the overwhelming majority criticised the use of psychometric testing in the recruitment process and the companies that use it.

These views have not stemmed the tide of companies and corporations opting to put both potential employees and also their own employees through the tests in order to assess ability and personality. On the conservative side, an estimate of around 30% of medium to large Australian businesses currently use psychometric testing, with sharp increases predicted. It would suggest that, for whatever purpose, companies are finding psychometric testing a useful tool.

Despite a wealth of literature on the topic of psychometrics, it can be difficult to grasp the terminology. In essence, there are two main types of psychometric tests – one to test cognitive intelligence, or IQ, and one to test emotional intelligence, or EQ. While IQ testing refers to assessing skills in areas such as verbal reasoning and numerical skills, EQ testing refers to measuring the ability of a person to cope with stress, behaviours and interpersonal skills. Dealing with such a

30

www.hcamag.com

FEATURE HC ARCHIVES pre-employment psychometric screening testing

subjective concept, it is little wonder that EQ testing attracts the most controversy, which begs the question of how well, if it all, EQ can in fact be measured.

Maryanne Mooney, managing director of Full Circle Feedback, offers an unbiased opinion. Her company does not offer EQ evaluation services, but says within the assessment program her company uses, emotional intelligence is always a factor.

On the question of whether EQ can be measured, she answers: “Absolutely. What you’re actually looking at is people’s capacity to influence others and their ability to forge strong interpersonal relationships. It’s a patented behaviour that employees implement in the workplace when they are interacting. But you can only measure that process if you focus on specific observable behaviours.”

Providers of psychometric testing involving EQ evaluation are well aware of the criticisms levelled at it. Problems vary from unrecognised tests being on the market (there are currently several), through to the manner in which the information is interpreted, to the way that the testing is used. In response to the criticism, the providers advocate the responsible use of the tests and point out that, at the end of the day, the onus is on the client’s company to use the tests in the manner for which they are intended, and the better providers offer full support functions as part of their service.

“What you would never do is take the results of a personality questionnaire at face value,” says Mark McCutcheon, director of CompAssess. “What you would always do is use that information and suggest the places you should go to collect more information.

Personality tests and EQ [tests] are notoriously inaccurate when used on their own.”

Sarah Kearney, managing director at SHL, says that much of the negative media attention that

psychometric testing draws is largely unwarranted.

“There are a lot of people out there who find [EQ tests] really valuable and beneficial,” she says.

“It’s always just the odd case that you are going to hear most about, and that’s going to flavour people’s perceptions about these tests.”

It would seem that uses aside, the biggest issue facing companies wishing to use EQ psychometric testing is finding a supplier that offers an appropriate product.

“It’s very easy to put a questionnaire on the web or say ‘I have a quest to measure that person’, but there are only probably a handful of providers out there who measure personality [EQ] well,” says Kearney. “It [the test] should have been constructed by psychologists and undergone years and years of testing and research. And you would never get your results back, unless they were given back to you via a trained interpreter.”

McCutcheon also recommends serious research before deciding on a test. “You should look at the technological data that comes with a particular test, to make sure the validation studies are being done,” he says, “and look at the reliability of the scales, the job relevance of the tool, and independent studies on whether that tool is professionally recognised or not.”

Like it or not, it would seem that psychometric testing is here to stay. “We now understand that there are strong links between productivity and profitability and we understand that to achieve optimal productivity, people have to be aligned, focused, motivated and positive,” says Mooney. “In an increasingly competitive world, all organisations are looking for that point of difference – a competitive edge. Call it a cliché, but it’s true. There’s an increasing emphasis on EQ testing: it’s not a fad and it’s not going to go away.”

What will the next decade bring … for psychological instruments?

By Cameron Nott, Managing Director, CPP Asia Pacific The last decade has seen a significant growth in the understanding and acceptance of the use of psychological instruments in support of selection and development activities.

Psychological instruments have been valued for providing an insightful lens through which to view an individual, team or organisation, and when used appropriately, can help to maximise performance. This strong foundation

has allowed increasing investments in the development of psychological instruments to meet the demands of the next decade. Indeed, globalisation of the workforce, technological change, social media, and work-life balance are just some of the forces which are shaping the future of psychological instruments. This includes the platforms used for assessment delivery and feedback, the availability of multilingual instruments and the focus of instrument applications. However, ever critical to the future development of psychological instruments is that the research base, supporting their use, continues to be prioritised. www.hcamag.com

31

FEATURE Pre-employment screening

Tell me lies Affectionately known as the ‘Human Lie Detector’, Steve van Aperen shares his insights with Human Capital about detecting deception when interviewing job candidates

Q: How good are human beings at detecting deception?

A: It’s very difficult to spot a liar. Research shows the average person is only accurate at detecting deception between 47 and 53% of the time. That’s because we listen to the content of what people say, but we avoid paying any attention to how the message is conveyed. What we need to do is not put all our eggs in the one basket and just rely on the content, but look at the structure and also the method with which the communication takes place.

Q: You are an expert in interviewing and detecting deception – how can your expertise help HR and recruiters?

A: Firstly, one of the most costly decisions a recruiter or company can make is recruiting the wrong person.

What recruiters need to understand is the fact that people will edit the information they give you through an interview. They are not likely to lie; they are likely to be more evasive, or sidestep the issue.

If you ask a question and the person decides to edit the answer they give, it’s up to you to make sure you probe further. What I teach recruitment companies and managers is firstly how to detect deception.

32

www.hcamag.com

Q: Can you provide some examples of how your work can help in pre-employment screening?

A: What I teach people is how to analyse content and structure. As an example, I watched an interview not long ago and the recruiter said to the applicant, “Give me an example of where you’ve had an underperforming sales team and what you’ve done to resolve the issue.” The applicant said things like, “I would do this, I would do that”, and so on… The problem with that response it he’s telling you what he would do, not what he has done. A key indicator of future behaviour is recent past behaviour.

At another interview, I heard the applicant say, “I studied psychology”. That’s fine, but it’s an incomplete statement or sentence. I would expect somebody to say – if they’d finished – “I have a degree in psychology”. To say “I studied psychology” tells me very little. It may be a truthful statement but it’s incomplete.

Q: It sounds like listening to the language used is important.

A: Language can be used in an effort to be evasive.

One of the things I tell people to analyse is changes in tense and use of pronouns. For example, I’ve got a

HC ARCHIVES pre-employment screening resume which detailed how a number of marketing strategies were implemented. The problem was, all the pronouns he was using were ‘we’. “We did this; we did that…”. So he didn’t take any ownership of his involvement – for all I know, he may have been making the coffee.

Q: Can you mistake nerves for lying?

A: Firstly, what I teach people to do is benchmark behaviours and then look for deviations. So what that means is, when someone walks into the office, I’ll ask them a question – “Tell me, what was your very first job”. Say, for example, they look to the left while they are recalling. “What year was that?” Once again, they look to the left while responding. You should benchmark that behaviour, because it’s likely that if they are embellishing on other questions, they will use the creative side of the brain, the opposite side of the brain, so they might look in the other direction.

Also, when it comes to nerves, someone will be nervous in the whole interview, or won’t be nervous for a particular question, so you need to be able to benchmark between the two. Usually, you’ll find that a truthful person who is nervous will still answer the questions, and won’t be evasive. What I look for is behaviours that don’t match the speech. So if I ask what was the reason for leaving your previous employer and I get the applicant looking off to one direction, shaking their head ‘no’ while saying “there were a number of issues… I felt it was better for me to move on”, it’s clear there is missing information there. It’s also clear that question caused the anxiety or change in behaviour.

Q: What else can you look out for?

A: Look at if they are answering the question, or answering the question with another question.

I interviewed a doctor once in relation to an allegation that he dropped his pants and exposed his backside to a nurse. I said to him, “did you expose your buttocks to a nurse?” His response was, “I never, ever dropped my pants to the floor.”

If we were to analyse that, technically, you can expose your backside without dropping your pants to the floor. So what he said was factually correct, but he didn’t answer the question. That’s one of the things I teach HR and recruitment people and homicide detectives as well. In job interviews, people will often sidestep uncomfortable issues or distance themselves – they won’t lie unless they are actually confronted.

Q: Are there any physical signs which show that someone may be lying?

A: Firstly, microexpressions or distress signals – hand-to-face gestures. Also, movement away from the interviewer – they might push their chair away to create extra space; and defensive and protective gestures such as hands over the lips while talking.

If you watched Bill Clinton when he talked about Monica Lewinsky, he would often put his finger on the top of his lips.

Research has also shown, through the Department of Defence in the US, that when you lie, you secrete a chemical from the tip of your nose, which makes the nose itchy. The Pinocchio theory is not far wrong. HC

www.hcamag.com

33

n In 2007, the human resources outsourcing market in Australia – with aspects including payroll, union agreements, leave tracking, through to some recruitment functions – was worth some $US757m. By 2012, Gartner predicts HRO to be worth $US1.102bn

How recruitment functions are utilised globally De-centralised – 48%

Centralised – 43%

Hybrid – 5%

Outsourced – 4%

Source: Kelly OCG & Human Resources Outsourcing Association Global RPO Report 2010. 536 senior HR professionals from small (<1,000 employees) to large (up to 50,000 employee) around the world were surveyed

34

www.hcamag.com

Inside out T

he end-to-end needs of a company go a long way further than just the need for an efficient recruitment process. They extend to the full range of current HR concerns including retention and engagement – both major battlegrounds in the talent war.

Several major corporations in Australia have started to take back a higher degree of in-house control over recruitment than the trend of just a few years ago. Among these are Westpac, ANZ, Suncorp Metway and Coca-Cola Amatil.

Peter Acheson, Ambit Recruitment Group’s CEO, says: “RPO [recruitment process outsourcing] is still a very new phenomenon to Australia. Some large employers here have adopted managed services agreements for recruitment. These are RPO-like and involve replacing a fee-for-placement model with a monthly managed services fee, and commitments on behalf of the client to recruitment volumes.”

Heather Miles, general manager environment and capabilities, people and performance, at Westpac says: “Recruitment itself is just one end in the entire employee engagement chain. If you disconnect the chain too much – by treating functions like recruitment in isolation – you can break the whole chain.”

An RPO solution may help HR directors of large or complex companies to keep control of the chain and keep it intact. It offers the ability to continue outsourcing the purely ‘process’ parts of recruiting but to keep the actual human contact part of the process in-house. For these HR directors, the adoption of an RPO also has the benefit of allowing them to retain maximum flexibility without closing off any doors to the services offered by specialist recruiting companies.

The question at the heart of an RPO decision, and the question HR directors need to ask themselves, is: ‘Is recruiting a core HR function of this business?’

If the answer is ‘yes’, the next question should be: ‘Are there parts of the function which I must do myself and are there components that can still be outsourced to others?’

HR outsourcing is most effective where the function outsourced is transactional in nature and not a core function of the company. Thus payroll outsourcing, for example, has become widespread and successful.

Recruitment, however, is different. It really forms a shade of grey between what is clearly a transactional and non-core function suitable for outsourcing, and what is clearly a core function of the business. Some parts of recruitment, such as screening a bulk number of job applicants to see who meets the specifications, are clearly a ‘process’ – a transactional function. Other parts, such as securing an in-depth management succession plan, are clearly core.

One note of caution is that the RPO idea involves a definite threshold below which the numbers do not stack up in order to make it commercially viable. If a permanent cell is to be set up in the hiring company, then the savings must be greater than the cost of its operation.

Threshold can be determined by either the volume of workers or the complexity of the business.

Take volume as a threshold indicator. A company with 10,000 employees and a 15% attrition rate needs to recruit 1,500 employees annually just to stay in the same position – that’s 30 per week. Company growth plans usually imply a greater recruitment task.

A company with 100 employees and an attrition rate of 15% would probably not be at the volume threshold to justify an RPO. If complexity is the threshold indicator, the threshold may cut in at a lower volume. Complex appointments include those for sophisticated roles in banking or investment, or in a field like biotech.

Tracey Cooper, managing director of Alexander Mann Solutions, says: “The threshold in a complex work environment may be as low as 150–200 appointments per year.”

HR directors need to address their recruitment volume and complexity in order to determine the point at which a threshold exists for the adoption of an RPO solution.

HC ARCHIVES recruitment

Keeping it in-house at Bupa Australia Group Human Capital: Can you outline how recruitment works at Bupa?

Rebecca Houghton: We have an in-house recruitment team, but it’s just one year old. The team is targeted around 50% of direct hire but they actually perform at around 85% direct hire, and the rest is agency. I guess it’s a hybrid approach.

HC: Has the GFC forced you to rethink that process?

RH: We started in May last year, so it was really a big rethink anyway. We’d never had an internal function before – managers had to fend for themselves. So the GFC probably had less impact than internal factors, given that it was a complete start up.

We were lucky in that we were swimming against the tide last year; we were recruiting very heavily.

The change between last year and this in terms of competition for talented people has been quite marked. That will, of course, cause us to rethink how we operate, probably to depress some of the expectations in terms of direct hire simply because it will become more difficult. Good recruiting firms will become more valuable to us.

HC: You do still use agencies for some work – how do you select them?

RH: We have a new panel that was put in place 1 August 2009. The process we went through was quite robust.

The approach with agencies is that they

are partners and need to be treated like partners, not suppliers.

We set out to work with people who were representative of our values, and who had good reputations. One thing that was really important was our stakeholder group. It wanted to leverage national efficiencies; however, at a local level, it was concerned that big national providers may not have the local presence to add value. So it was a balance between ensuring we had the odd national provider where we could leverage great efficiencies but we also made sure we had some boutiques at local level.

We were very conscious that we went to market in the GFC, and at the time we knew full well we could ask any price we wanted and still have 50% of people come back and say yes. We didn’t take that tack. We knew it was a two-year agreement and we wanted it to be sustainable. We also didn’t want prices to suddenly jump up at the end of that two-year period. We didn’t want to fall off their radar when the market came back, and be forced into a low priority because of price – which is a real danger.

We’re comfortable we put good prices together – comfortable from both ends – in fact, there’s been a couple of suppliers where we’ve put their rates up.

HC: Would Bupa consider more widespread RPO? RH: We did look at RPO. In December 2008 when we put the recommendation together, we looked at master vendor and also on-site proprietary. At Bupa, we love to give our people opportunities and we love to do things ourselves. However, we’re very conscious there is best practice out there and we want to access that; that’s why a lot of what we do in the recruitment space could be considered hybrid – to get the best of both worlds.

Human Capital talks to Rebecca Houghton, national recruitment manager at Bupa Australia Group

Hiring moves online S

ince the birth of the internet, its potential to revolutionise the recruitment industry has never been in doubt. The rise in the number of online employment ads is proof that the medium is finding favour as a hiring channel with a growing number of employers. But for many, question marks remain over the ability of online advertising to reach desired candidates. Nor does it appear that, as once predicted, online recruitment will render traditional recruitment methods, mainly print ads, obsolete.

Ease of use, lower costs, broader reach and speed are the main drivers behind the increasing popularity of online recruitment advertising. But the figures do not always match the hype. Research by Monster.com.au suggests that only 17% of Australian companies consistently use the internet to advertise their job vacancies. Further, a February report by

36

www.hcamag.com

n 79% of jobs advertised in Australia are online n SEEK: 4.245 million total unique browsers* n CareerOne: 1.717 million total unique browsers* n MyCareer: 1.383 million total unique browsers* *Source: Nielsen//NetRatings

Goldman Sachs in the US indicates a drop in the market share of online recruitment companies, a trend it predicts will continue.

This kind of reportage draws a sceptical response from the industry. ANZ chief economist Saul Eslake says the latest Goldman Sachs report should be considered in the context of the US, where the state of the internet advertising market, currently in the doldrums, may be influencing these results.

“IT [information technology] represents a bigger proportion of employment in the US than it does here,” he says. “Since that is still weak, [it] would have affected their internet advertising market more than ours.”

Further, industry observers complain that the methods used to evaluate the respective market shares of print and online advertising in Australia are not yet sophisticated enough to be considered fail-safe.

“One thing that might be important is the difference in the way they are measured,” says Eslake. “I am surprised that our figures have always shown there are more ads on the internet than in newspapers, and while I am comfortable with what our numbers are saying about the rate of growth, I am still not sure about the levels.”

Monster’s Asia-Pacific president Craig Kennedy concurs. “It is almost impossible to measure [the extent of online advertising]. When we can measure correctly the number of vacancies filled by online advertisements, regardless of recruitment companies, then we will be closer.”

Even traditional advertising media, such as newspapers, are moving in to take a slice of the pie.

Fairfax, one of Australia’s best-known publishers, captures both advertising markets with a combined print and on-line approach, via the Fairfax subsidiary mycareer.com.au. The branching out of newspapers into online services was highlighted in the Goldman Sachs report as one reason online recruitment companies have to work harder to win market share.

Online recruitment companies such as Monster appear unconcerned by the encroaching of traditional media onto their turf. They also have a ready answer for critics who argue that online recruitment advertising does not reach the passive job seeker.

Kennedy points to the add-on services currently being adopted by some of the bigger providers, which enable a job seeker to place his or her CV online, sit back and wait for the offers to roll in. He does, however, believe that online advertisers need to become smarter in the way they draw their target markets to online job boards.

HC ARCHIVES FEATURE recruitment

H

R professionals have likely been using professional networking sites like LinkedIn for several years, primarily as a networking tool, and also possibly to engage with colleagues. Increasingly, however, it’s being used as a recruitment tool. This is also nothing new – professional recruiters have counted LinkedIn as perhaps the most valuable tool in their armoury for some time.

For those not yet ‘in the know’, how can LinkedIn be used to optimum effect?

Steve Barham, director, Australia & New Zealand, LinkedIn Hiring Solutions, says that one of the company’s three business lines – LinkedIn Hiring Solutions – is dedicated to helping employers find specialised passive candidates.

The flagship product in this line is called LinkedIn Recruiter. This product, which launched in Australia in April 2010, gives employers the ability to search across the entire LinkedIn membership network (over 70 million professionals). It allows their team to collaborate on an enterprise platform, which looks quite different to the LinkedIn site that everyday users see. The teams can build projects – through which they can easily pipeline candidates – as well as collaborate with colleagues, and set up search alerts.

A second solution is the Jobs Network. Barham says employers are finding it useful to post their openings to LinkedIn. “We’re not a job board but we do have tens of thousands of job postings,” he says.

“The unique advantage of putting a job posting onto LinkedIn is that it’s really the only place where you can post a job opening and have it viewed by passive candidates. If they’re on a job board, by definition they’re active; they’re one of the 5–10% of the workforce that is either out of a job or wants a different job. Posting a job to a job board is only going to attract that audience.”

Job postings can be matched to best fit the members, so when a user logs onto their LinkedIn homepage that day they’ll be presented with the three best job opportunities that fit their profile.

The third portfolio of solutions encompasses employment branding. Companies can create a careers page, which is essentially their portal within the LinkedIn community.

Of course, while all of this costs money, Barham remains optimistic that local employers will be keen to sample at least some of these options. “There’s no such thing as a standard offering,” he says. “For pricing, we work directly with each employer and recruiting organisation to create a solution that’s right for them. It’s not one-size-fits-all.”

Where does this place recruitment agencies?

Are they out of business? It’s a question Barham is often asked. “Recruitment agencies have been using LinkedIn for years – they’ve found it the most powerful tool in their arsenal as well. If recruiters can offer their clients a widely-sourced selection of candidates, then LinkedIn has worked,” he says.

n LinkedIn has 2 million+ members in Australia n 63% of FORTUNE 100 companies in the US are using LinkedIn Hiring Solutions to attract talent

The desert island solution

www.hcamag.com

37

Boardroom buy-in

HC ARCHIVES hr strategy

T

he opportunity for an HR manager to present a case directly to the board is rare and valuable. To achieve success at this level, the HR manager should think of a strategy involving three ‘longs’ and one ‘short’: long research, long preparation, long rehearsal, short delivery.

“Addressing the board is rare for HR practitioners,” says Ryk Bliszczyk, recently appointed to Deloitte’s consulting leadership team and human capital consulting practice. “Make sure you use your time well to present the case in a concise and compelling way when you are given the big chance.”

The advice from John Colvin, CEO of listed Australian recruitment firm Hamilton James & Bruce, is to avoid advocating revolutionary changes.

“Revolutions just do not work in business,” says Colvin. “Look for the incremental change and put this to the board. Most boards will respond to a strategy achievable in stepped phases rather than an organisational earthquake.”

Both Bliszczyk and Colvin are well experienced in the process of achieving HR changes at board level in Asian settings. Bliszczyk’s background includes 16 years as an HR practitioner. Assignments include consulting roles with Andersen Consulting (now Accenture) and Unilever in Bangkok, consulting in Hong Kong with American Express and a consultancy role in Singapore with an Australian bank. Colvin’s background includes nine years in HR consulting roles in Asian countries.

A series of short tips and suggestions follows, taken from the experiences of both men.

Avoid delegating the task

It’s been seven years since this article first appeared in Human Capital, yet with many HR professionals still struggling to get buy-in at boardroom level, these essential tips seem more relevant than ever

“It is most usual that a board presentation be done by a CEO or CFO. But try to avoid delegating the presentation of your recommendation because there is often a chance that a CFO or CEO will dilute the case or skew it slightly to their main line of interest in the board result,” says Bliszczyk.

“Also, a CFO or CEO may not be able to answer all the points of detail or clarifications. When the case gets deferred to come back for discussion at another meeting, it has gone a long way down the track to getting bogged down completely.

“The best option is a direct presentation. This will involve convincing the CEO and the CFO of the cogency of your recommendation, long before the board meeting is even scheduled. Try to make sure that it is you in front of the board – not someone else.”

Practise ‘elevator’ statements One of the aims of ‘the three longs and one short’ is to rehearse the argument down to the stage where the presentation of the ideas can be delivered in simple statements of less than 30 seconds. The www.hcamag.com

39

In HC Online TV’s April 2011 panel discussion, we asked three HR leaders for their thoughts on the future of HR, and whether the battle has been won to gain that executive seat.

Lucinda Gemmell Australia/New Zealand HR director, Diageo “I think as long as we’re still having conversations where HR is a separate part of the business, we’re always going to have HR being a separate part of the business. Certainly in my role I’m expected to contribute equally to the commercial strategy – as would the commercial director or the marketing director or the finance director – and I believe if we think that way then we are leading a business.

Take the functional hat off and it just changes the whole conversation and the way we perceive the value of our function. [It] reminds us that we are part of a business and that we are leading a business, as opposed to an HR team.”

Sharyn Schultz Senior vice president of HR, Luxottica “It is absolutely critical you understand what the business strategy is, and if you are going to focus on a few things, those few things have got to be things that deliver to what the business strategy mentions. It is the language; then the results; and the credibility. We have this philosophy where we have ‘round’ table and ‘square’ table. Square table is where I come to the table and have a conversation with my functional hat on and the round table is where I come to the table and it’s the conversation about the business strategy and what is good for the business; it’s a nice shift.”

Diana Cross HR director, Arup “There are a lot of people within the HR community who do suffer from a lack of selfconfidence in terms of where HR is going and do feel a sense of defensiveness about what they do. I don’t feel that myself, and I think a lot of that is around building credibility of the team and what HR can deliver within business, and demonstrating that very clearly. Once you begin to demonstrate that, I think the need to be defensive goes away. We do beat ourselves up a lot because we [Arup] have a highly intelligent workforce that feels they can do HR better than HR, but they also feel they can do finance better than finance, marketing/comms better than marketing/comms, and legal better than legal.

But HR teams do seem to get a bit more defensive about it. It’s just a matter of saying ‘this is what we do and this is what we can provide’ and not having to demand a seat at the table; just that we are here and this is what we do.”

40

www.hcamag.com

background to the ideas may be complex, and the ideas themselves may be complex, but find ways of expressing them simply. In ‘the three longs’ you should also pre-empt all the possible points of clarification you may be asked. Work out and rehearse ‘elevator’ statements for each of these questions. If you correctly prepare for the meeting, you will rehearse far more questions than you will ever be asked. Anticipate the board. Stay disciplined in the presentation. Stay on message.

Avoid pinning your argument on morality As an HR practitioner, you may have a series of personal views about fairness and equity issues in the workplace. These may be held as a matter of personal philosophy, religious persuasion or political ideology. Do not mount your case based on any of these beliefs. Avoid self-righteousness.

“The HR practitioner may adopt self-righteous attitudes through mixing with like-minded HR professionals: ‘This is obvious!’ and ‘Why can’t everyone see it?’ These attitudes will be death to the proposal at board level,” says Colvin.

Argue the business case The board’s legal duty is to ensure the survival of the entity and the creation of benefits for all stakeholders. This includes workers but also includes, as a high priority, the shareholders. Part of the board’s legal obligation is to ensure a return on investment to shareholders and most boards will give this its priority.

In presenting to the board, HR practitioners must appeal based on the business case for the change.

Use ROI formulae Using simple ROI formulae gives your case credibility. Use your time in the long preparation phase to identify clear cases where HR results can be measured. Spend time researching how your particular recommendation can be measured.

It is not hard to find the business case for many fairness and equity issues. “Once you do the figures, the case is often powerful and compelling,” says Colvin. Turnover and absenteeism are easy to identify and measure in clear dollar terms.

“Take the simple case of staff replacement costs.

HR research shows that it costs a company between 150–250% of an employee’s base salary to replace a person. If we accept that the cost of turnover is 200% of base salary and a company loses 10 people per year at an average base salary of $50,000, the cost of turnover equates to $1m,” calculates Colvin.

A formula such as this is powerful evidence for the board. It is the type of information its members

need to make a decision about an HR matter based on the business case rather than the moral case.

“One major legal firm with which I recently consulted carried out HR changes as a result of a similar formula I presented. In one year, the firm succeeded in reducing its staff turnover from a worrying 37% to a more manageable 15%,” Colvin relates.

Most large companies already have statistics on the cost of training new employees, the cost of acquiring a new customer and a vast range of other such numbers. During your long preparation phase, delve into the company’s statistics. These will help persuade the board – if presented simply!

Use visuals … but sparingly!

A simple pie chart, bar chart or line graph can do wonders. Bliszczyk says that the important thing about the use of charts and visuals is that they should be an aide-mémoire rather than being the argument in themselves. “Do not waste your time showing how clever you are with Powerpoint. Do not use visual aids to support every stage in the presentation. Visuals are powerful – but keep them simple.”

See the world through the board members’ eyes

Where are they now?

Ryk Bliszczyk is now an adjunct professor, Graduate School of Business, RMIT University John Colvin is now executive chairman of executive search and leadership advisory Johnson Executive Search

42

www.hcamag.com

As the legal onus upon public company board members becomes greater, most individuals are acutely aware that they may be personally held liable – even criminally liable – for the actions of the company. Any recommendation that mitigates the risk to the company – and therefore the risk to the individual board members – is likely to create a more attentive audience than a recommendation that ignores this point. Similar hot buttons are issues like compliance and best practice.

“With the issues of compliance and regulation, many boards are wanting to show they are not just meeting the letter of the law, but that they are exceeding their legal obligations. In preparing the presentation, the HR manager should identify how the recommendation mitigates risk, meets compliance and establishes best practice.

“The concept of ‘employer of choice’ is also an appealing idea with many boards. Identify how your recommendation can move the company towards a more favourable employer of choice status. Find ways of measuring the benefits,” Bliszczyk says.

Use inductive reasoning.

Avoid deductive reasoning In presenting your case, avoid laboriously building up its logic in a series of arguments until you come to the final irrefutable conclusion. This is a form of deductive reasoning, where the main point comes at the end of a long argument.

“Instead,” says Bliszczyk, “use inductive reasoning where you state the recommendation upfront and then use key points to support it. This is used in newspaper articles where the main point comes in the first paragraph and the lesser ones follow in subsequent paragraphs. Many newspaper articles can be fully understood by reading just the first few paragraphs. The board should be able to understand your recommendation in the same way.”

Use the long preparation time to do all the deductive reasoning and make sure you understand all the options and why your recommendation is best. Your understanding of the deductive reasoning behind the recommendation is essential for question time, but make sure you rehearse the words you will use to answer questions.

Use leverage of previous success Where your previous HR recommendations have been measurable and successful, do not be afraid to leverage this point with the board.

Avoid detail of implementation The board is there to approve strategy. Management is there to make sure the strategy can be implemented. It is not your role to concern yourself with either strategy or implementation: leave management to the managers and strategic decisions to the board.

Tell a simple story Bliszczyk demonstrates the effectiveness of communication through anecdote. During the Reagan Presidency, a cabinet member, David Stockman, tried to present the President with a case to shave just $124m from the defence budget. He did it in a 45-minute presentation with an exhaustive series of charts and graphs proving that it could be done. Opposing the cuts, Caspar Weinberger took just a few minutes to show the President two images – one was a poorly-equipped US soldier with ill-fitting artillery, the other was a strong US soldier, fully equipped. Weinberger asked, “What do you want Mr President? This? Or this?” Weinberger’s presentation was the winner.

Find some compelling simple stories – or illustrations – to support your case.

Conclusion The opportunity for an HR professional to present a case for change to a board can be a career high point if handled correctly. Your level of professionalism will be shown by the detail with which you prepare but the simplicity with which you present. The board will also be better convinced of your argument and more inclined to implement your suggestions. HC

FEATURE hr strategy

www.hcamag.com

43

THANKING OUR SUPPORTERS 38

BROKERNEWS.COM.AU

BROKERNEWS.COM.AU

39

FEATURE business communication

Video made the HR star The latest technology has transformed video conferencing from the sole domain of executives to a tool increasingly being used by HR departments for internal communication and education. Tim Fulton reports

46

www.hcamag.com

FEATURE business communication

T

he use of video conferencing can be used to improve communication between employees, keep teleworkers engaged, transform internal education programs and help cut down on travel time for staff. Smart HR professionals can play a pivotal role in the use of these systems but they need to know what’s out there and what’s possible.

While the benefits of video communication have been expounded for many years, until recently the experience left much to be desired and was a technology of last resort. With the introduction of new, high definition (HD) video conferencing, video now offers an exceptional quality image over lower bandwidths, making it more accessible for use in home offices and on the road. HD also means that images are sharper and true-to-life and, with proper configuration, lets users see people in full size, replicating the feel of being together in the same room.

In addition to delivering an immediate reduction in travel expenses, companies that implement video communication quickly see gains in productivity and business performance thanks to improved communication, accelerated business decision cycles, increased employee morale and decreased turnover.

Video communication offers broad HR benefits to all organisations, no matter the size. Many companies start by installing HD video conferencing in the locations where employees travel to most, and often find that the systems pay for themselves within three to six months in travel savings alone. Conference rooms, executive offices, field offices and home offices can all be video enabled. The latest technology allows for mobile video devices to be taken on the road or streamed over the web, and for multi-person calls of up to 16 locations without compromising quality.

This is in strong contrast to the days when video conferencing was confined to the boardrooms.

The most exciting aspect of video communications, however, is the way in which innovative HR departments are using it to redefine how their company does business. More and more, HR professionals are looking beyond cost savings and utilising the wider application of video to serve their staff better and more efficiently.

Recruitment Video can enable an HR department to reduce recruitment costs without losing effectiveness.

By using video communication to meet candidates, interview times are not limited by travel or time differences and the team can look further afield

interstate or internationally. Bringing new staff on board and carrying out an effective and personal induction process can involve both HR and other senior managers by remote access.

The adoption of video communication is important for those organisations trying to recruit the best candidates, particularly graduates. The next generation of staff – in particular graduates – are video savvy and used to video communication as a standard; delivering the technology they expect will help attract top people.

Training and staff development Staff development and training are a significant but necessary cost for all businesses. Training courses can mean a few days out of the office, often in other towns or cities. HD video communications allow companies to bring in remote experts for training and continuing education, with instant benefit to the professional development of employees at a far reduced price. The true-to-life experience of today’s video communications also allows highly technical training, such as medical and engineering training, to be successfully conducted remotely. Video enables remote talent coaching and more meaningful and frequent contact between staff and their mentors, no matter the location.

Business and HR communication Business communication doesn’t end at what we traditionally call the ‘office’. New technology now allows video communication to be viewed on any desktop

Slow on the uptake?

Australia’s focus on face-to-face meetings is likely to have a real impact on productivity, with the nation’s workers slow to embrace the collaborative technologies used as everyday tools in other countries. Citrix research revealed: • Audio-conferencing: only a quarter (26%) of Australians use shared phone lines to work, collaborate and share information, versus almost half of Brits (49%) • Web-conferencing: only 10% of locals turn to web-conferencing, against 28% in the US • Video conferencing: despite the enhanced personal interaction offered by video conferencing, only 13% of our workers use video conferencing, compared to 28% in France • Social networking tools: even though we’re the most dominant users of personal social networks like Facebook, only 5% of Aussies use social networking as part of their role, versus 18% in Germany

www.hcamag.com

47

FEATURE business communication

computer, streamed live over the internet or connected through portable devices while out of the office. This enables HR to take business communication to all staff, anywhere – whether they are in another time zone, on the road for business, out of the office sick, or those who may have special needs that cannot be met in a specific business setting.

Important information, multimedia presentations and communication can be shared with all employees

Hard habit to break

Australian workers are wedded to a ‘seeing is believing’ approach to business communication, still using physical meetings as a primary way to collaborate, according to research by Citrix Online. It showed that almost half (45%) of local employees insist on organising face-to-face meetings with their teams every day, even though an increasing number of Australians now work out of the office – either at home or on the road. One quarter (24%) work from home during a typical week, and 15% leave headquarters to go client-side. Only Americans meet more often (51%).

The survey, conducted by Forrester Consulting, explains why more than a third (38%) of the Australian respondents felt overloaded with day-to-day meetings, but find it nearly impossible to break the habit of catching up face-to-face.

An overwhelming majority – 83% – say they prefer to meet in person to build trust, but the findings imply their focus is just as much about monitoring the responses of others: • 77% of Australians believe seeing each other is crucial to encouraging participation • 67% of Australians need to eyeball each other to reassure themselves that people are paying attention Australians are also the most likely to insist on the pre-eminence of body language – 90% say reading each others’ reactions is the reason they see each other. This compares to only two-thirds (67%) of that characteristically more expressive race, the French.

Reviewing the findings, psychologist Jacqueline Saad commented: “Despite having greater access to rapidly-improving technologies, people are clinging to the tradition of face-to-face meetings. This comes as no surprise as Australians love a bit of a chat among colleagues – a reflection of our laid back, friendly nature. It seems Australians betray a lack of confidence in their own abilities and they need to meet in person to ensure people are paying attention.

From a psychological perspective, it allows an opportunity to establish rapport, to assert our personal feelings and opinions and feel connected to both internal and external colleagues. It is a significant forum for communication exchange within an organisation.

“Moving away from traditional belief systems is not always an easy thing to do. The majority of employees have become accustomed to this way of doing business – and will not embrace new technologies if there is no perceived adequate replacement to meet their psychological needs. Technologies where you can physically see someone, however, such as video conferencing, can provide an equally rewarding alternative by allowing individuals to gauge expressions and style of the meeting attendees, fulfilling the need for face-toface interaction, while providing a more time and cost effective option to both employees and their organisation.”

48

www.hcamag.com

through HD video. Technology enables video to be recorded and shared with new staff or replayed repeatedly for those needing to review the discussion.

Rostering and staffing management With HD video communications, staffing is limited only to an HR department’s imagination. Staff at retail outlets can be complemented by having a video communications point at each branch, allowing a staff member at a central location to service customers during busy periods, no matter where they are in the country.

Reducing travel time for staff Each meeting carried out over video conference reduces the need for a business trip. For companies and staff using this technology, hundreds and sometimes thousands of hours are saved through a reduction in travel; the result is greater productivity during work hours and a more balanced lifestyle.

Greater employee collaboration The simplicity of high quality video communications promises significant usage and value; with high level usage comes enhanced organisational communication.

In fact, employees engage in the conversation more than when using just a telephone, so productivity, efficiency and retention are significantly increased.

Team morale Increased collaboration and communication between staff brings with it greater morale amongst workgroups. Staff can feel as if they are part of a larger team and not working in silos, and have more people with which to discuss and share issues and best practice. Video communications also allows for greater and more productive home working, with staff able to make valuable contributions while maintaining a happy work-life balance.

Creative teamwork HD video communication allows geographically-dispersed teams to share everything from rich media on the PC to hand-drawn sketches on a table; thus supporting creativity among colleagues.

With video communications increasingly becoming a vital tool to supporting companies, most often this technology is not being driven by the IT department, but rather the HR team who sees value in better and more personal communication across the business. They are supporting intelligent business growth through the smart use of video, and will continue to be the major driver into the future. HC About the author Tim Fulton is the country manager, ANZ, at LifeSize Communications

FEATURE HR processes and technology

The dustbin of history HR has often been slow to embrace new trends and technology.

To speed things up, Grant Mason has identified six old HR favourites that just won’t cut it in the next decade. These practices must be eliminated because they are “evil”, he says

50

www.hcamag.com

1Performance appraisals

If you do more than one appraisal a year, the worse performance is. If you focus on weaknesses, which is the standard practice in appraisals, it’s the same deal. So let’s re-label the process – the D-Level performance driver process or something more succinct: a complete waste of time.

What feedback can wait a whole year?

Remember the rule ‘no surprises’? So why do it all?

In case the feedback during the year was a lie? To get a score on a page? To feed the SAP or Oracle monster? No-one has ever done anything useful with performance data in SAP or Oracle. It goes in, the SAP or Oracle system recodes it as an excellent reason for a $50m system upgrade, and life goes on.

Feedback must be in real time. Genuine, onthe-field, and in the action. For years, Corporate Leadership Council research has identified informal feedback as the number one performance driver. Instead of building a system to encourage informal feedback, we have spent hours and days tramping up the hallways and sending out hate email to get busy line managers to do their meaningless part, in the worthless charade of performance appraisals.

Now at least a lot of companies have used technology to make it sexier and faster. However, they are still no more worthwhile. Imagine a system where you could monitor how everyone in the organisation is going daily, while conferring with other organisations to help each other improve. Not score a better mark in the SAP/Oracle report card.

surveys – 2 Employee The Nintendo 64 of HR

It is fair to say that when employee surveys first arrived, they were a godsend to HR people. Objective, statistical and targeted. Highlighting where the problem people were… anonymously, of course, and giving HR people slick weapons to expertly diagnose the organisation. Expensive, but worth it. Then year after year, the obvious issue became apparent.

“Doctor HR – please tell me what is the matter this year?”

“My organisational daughter... you are a very sick woman.”

“What can I do?

“Well, I have developed a very flash Powerpoint presentation of what’s wrong with you. I expect you to cascade this down to all of your family and friends in the next two weeks. For the presentation to work, you must watch it in slide show motion.”

Organisations now do not need the same old diagnosis. They need tools to help the organisation change. Not once a year. Not with action plans that unwind with the first organisational or leadership change. But every day. Real change. Fast. Sustained.

We have enough of an understanding of modern organisations from all of our various diagnoses to lock in the key process improvements and manage and measure these on a daily, real-time basis. We know culture is made up of the things we do every day – not the forms we fill out every year.

The Nintendo 64 is still retro-cool, but it will never compete with a Wii or Xbox. In five years, employee surveys will be a distant, warm memory.

FEATURE HR processes and technology

interview – 3 Job STARS to become stars

The biggest evil I faced as a young personnel officer at the Pulp and Paper Mill was ‘jobs for the boys’. I introduced real interviews – Situation Task Action Result interviews (STAR). Apart from hiring my tomboy school friend (Miss Victoria in weightlifting), in the name of diversity, there were to be no favours.

No more uncles or brothers or mates. We were going in objectively, expertly digging into actual historical events through a form of storytelling. Intuitively, I was a young Dr Lightman… looking for clues and facts. While we practised the questions, the answers were rehearsed, too. The results were OK, but to be honest, they relied on rigorous reference checks.

It is extremely ironic that what was once classed as evil – referrals – will be one of the must-have HR practices in five years. Imagine a situation where your personal brand rides upon your skill in referring people. A poor referral stays with you. eBay feedback systems replace the typed-up reference (or its modern equivalent – the indulgent and meaningless LinkedIn recommendations).

So if the referral source knows the organisation and knows the person, the notoriously inaccurate job interview will increasingly bear less weight. To be blunt, why even do it? Take the 10-page template and throw it in the recycle bin. Take the candidate out for coffee, and tell them what they really are in for and what you want. Faster. Honest. Upfront.

matches – 4 Mentoring no more blind dates

Many innovative companies have mentoring programs. Some of these involve gathering up their HR and line leaders into rooms, then plot and plan futures by teaming people for mentoring relationships. Like a match-making, dating company, these experts take into account skill matrices, strengths and development needs, and some may even claim to have a feel for the chemistry created by various mentor-mentee combinations. Trouble is, it rarely works.

Technology will soon allow organisations to open this process up, and let people find each other.

Social networks won’t need the funny little rules that HR people make up. Instead, people will connect themselves.

sessions 5 Moderation and 9 blocks

The dreaded moderation session would have to be one of the reasons HR people are hated.

Clutching their private oracles of career prophecies, HR people compare and contrast, deal and cajole. The good ones usually create a deal of uneasy control and influence through well-weighted behavioural observations and pregnant pauses. If all that fails, there is always the normal distribution curve.

So can only HR people see a future leader?

Obviously not. So why not let the crowd decide?

Create a feedback process where trust levels in a leader can be made transparent.

Imagine organisations that genuinely eliminate the kiss-up, kick-down leaders, as Jack Welch famously called them. No secret 9 blockers. No whiteboards with hinged doors on them. Just clear and transparent evidence of who is genuinely leading the organisation.

6 Job descriptions

The job description business is a multi-million dollar industry. Organisations punish entry-level graduates, and order them to churn out bulk JDs or alternatively, punish overworked hiring managers by blackmailing that they won’t get that requisition signed before the hiring freeze if it isn’t complete. So how are JDs useful?

In attracting a candidate? Perhaps. The first week? Maybe. A year later to push an argument for a smidgen extra of increased salary? Definitely. But do they belong in an organisation that increasingly relies on collaboration and innovation to survive?

The future of work will be more fluid and cohesive.

Imagine an active inventory of what your tasks were to do, that day or week. You could receive daily feedback. Daily development. Work collectively or alone. Enjoy vibrant learning not hamstrung by words on a page that a crafty graduate plagiarised from their industry mentor.

Social media provides the tools that HR has needed to add genuine value to the business. To harness this value and channel the energy within social networks, HR leaders need to reinvent their processes and think outside the square. HC

About the author Grant Mason used to be an evil HR person and is now director of Yackstar, an innovative Web 2.0 enterprise software that harnesses the social energy of your business.

For further insights into HR and technology, visit Blog. yackstar.com www.hcamag.com

51

PROFILE Robert Orth

100

not out

As Human Capital celebrates 100 issues, IBM celebrates 100 years. Iain Hopkins talks to Robert Orth about HR’s role in keeping the company at the forefront of people innovation

A

ny company would be proud to be in business for 100 years, but for a company in the rapidly-changing IT realm, the achievement is all the more remarkable. Such is the case with IBM, which will celebrate its century in June. Starting from humble beginnings operating in just one country as a manufacturer of clocks, scales and meat slicers, IBM now operates in 170 countries and delivers hardware, software and services that are at the heart of millions in business.

Given that IBM also pioneered many aspects of the modern corporation – from equal opportunity, to diversity and accessibility, to employee education – Robert Orth, director of human resources, IBM Australia and New Zealand, is not surprised the company has not only survived but thrived for so long. Asked what the secret to longevity and success might be, Orth cites two common themes: change and adaptability.

“It’s being at the forefront of thinking and constantly trying to innovate,” he says. “Also being clear on what the marketplace needs, but perhaps more importantly, knowing what clients need. We’ve been the sort of business – and still are – that looks at a change or trend and works to get ahead of it.”

Underpinning the ‘think outside the square’ culture are its values. “There’s a very thick culture with strong values that link to people and their focus on clients,” he explains.

A glance at IBM’s history of corporate catchphrases sums it up. For many years, it was

52

www.hcamag.com

simply ‘THINK’, which in one word encapsulated the idea of smart people and innovation. In the 21st century, this has switched to ‘Smarter Planet’, which implies the same theme – where can we take things; how can we move solutions forward?

Tipping points Orth has been with IBM for 28 years and admits he’s “a creature of the place”. It also places him in a unique position to identify any ‘tipping points’ for HR over the past quarter century. Does anything stand out as a defining moment for HR in that time?

“The first one was when personnel moved out from behind those closed doors where secret human resources things happened and then actually sat with their clients in the business,” he says.

More recently, he believes a rallying point for HR has been diversity and flexibility. “The world has changed and it’s changed fast – you better get on with it because you need the best people working for you, and you need them working productively and happily,” he says.

Diversity To get a sense of IBM’s forward-thinking HR policies, one need look no further than company founder Thomas J Watson. He commented in 1935 that: “Men and women will do the same kind of work for equal pay. They will have the same treatment, the same responsibilities and the same opportunity for advancement.”

PROFILE IBM

www.hcamag.com

53

PROFILE Robert Orth

Sadly, this issue of gender diversity is still being debated in the corporate world today. In Australia, it’s been part of IBM’s corporate agenda for many years, alongside all aspects of diversity. As an example of the recognition the company has received in this regard, IBM is one of the few companies to win an EOWA citation for each year the awards have been running.

Although IBM only has a Board in Australia for statutory reasons, and therefore prefers to comment on targets rather than quotas for gender equality, Orth notes that the existing Board is made up of 33% female members, which is above the industry standard. More important, from Orth’s perspective, is the gender diversity across the business – from the percentage of female employee population (targeted at 33% for 31 December 2011, up from 30% in Dec 2010), to the percentage of women in people management positions (target: 32%, up from 28%).

Orth has also spearheaded initiatives for the ageing workforce. He recalls a briefing from a University of Tokyo professor over a decade

“Sometimes business needs to see it in order to get it. Someone asked me how do I sell the diversity agenda to my business?

That’s anathema to me – it’s right there, how can people not see it?”

– Robert Orth

In his own words…

Do you think there’s anything HR professionals need to do more (or less of) to remain relevant to business?

Yes I do. HR has moved to higher value work. I’m now a business consultant, a business advisor, and I provide solutions that are to do with people. That’s become very important because people are a strong differentiator for business these days. The HR professional needs a very firm understanding of the business context.

I said a few years ago, HR’s day has come. But if you work in legal you’re called a lawyer; if you work in finance you’re an accountant. What’s the word for HR? It’s HR professional. But it isn’t – they’re just HR people; they do HR stuff. It’s never had that label. I don’t know how to make one up, but I believe it must go even further towards being highly professional, certified, engaged in the business, and known for its expertise.

Do you believe HR professionals have the right skillsets to move that way?

This is what we’re working on constantly – how we cover the business, how we deal with the business issues while still delivering really good policies and programs. It’s training, getting close to the business, perhaps re-organising HR to line up with the business. It sounds simplistic but businesses don’t present you with a problem where the answer is sitting on your shelf. Maybe sometimes they do and then it’s simple. They might ask for a skills inventory. You say, ‘here’s one I prepared earlier’. But they don’t generally ask for that. They will instead say, ‘this part of the business is low performing, it has these characteristics, and I don’t know what to do about it’. So you’re trying to aggregate around solutions. You need to become efficient at delivering all the normal programs and initiatives, but you must play in the ‘solve things for business’ game.

54

www.hcamag.com

ago, in which the sorry state of the world’s future workforce was laid bare. He recalls everyone’s eyes glazing over. It’s only been in the last five years that executives have suddenly taken notice. “Sometimes business needs to see it in order to get it. Someone asked me how do I sell the diversity agenda to my business? That’s anathema to me – it’s right there, how can people not see it?” he says.

For all these initiatives, Orth says the purpose is never to “win an award”. Instead, his approach is: declare clearly your intent and objective; make it visible, known and understood; get in behind it and decide what actions need to be taken; do some testing and ask what the current situation is.

Benchmarking, he notes, usually results in an award which says, ‘I’ve got there’.

“The corporate diversity agenda boils down to not assuming [we know] where all the good talent is.

The Australian agenda is that we need everyone who can work, working,” Orth adds.

Flexibility While Orth concedes that being a technology company has assisted in workplace flexibility (workfrom-home, hot-desking, flexi-hours), he feels that technology is only an enabler.

“The thing with flexibility is you must declare your intent and objectives. Your objective should be to have a broad policy that gives people flexibility around how they work – and takes account of your demographics and perhaps Australia’s demographics. Everyone should know their numbers.

We know from surveys that 60% of our population has both partners in a relationship working. What does that mean?”

Orth prefers broad policies rather than line-byline rules so that managers can exercise judgment.

He adds that managers shouldn’t be surprised by how employees take up the policies. “When we launched self-funded leave a number of years ago, we thought there would be a reasonable number of women who would use it. We believed they might take the time off when the kids were off from school. So we launched it, and then did our review of everyone who took advantage of it: half men, half women. Half the men were doing exactly what we thought – looking after kids at home. Others were following the rugby on tour, and older employees were taking the time to catch up on things, and so on.”

Despite its undoubted popularity, Orth says it’s not easy for managers to juggle flexibility. At the end of the day, flexibility options need to be applied to the business context and should sit well with the individual, the team and the business as a whole.

PROFILE Robert Orth

“We were perhaps ahead of the curve on flexibility, but we struggled, too. People ask, what changes for HR? Predominantly, the principles of how people are managed don’t change; you just do them differently. You need performance standards or goals, but they’ll move from ‘I need to see what you’re doing at all times’, towards an outcome-based approach,” he says.

Future challenges Orth believes the past 10 years has been big on moves and changes for HR, as well as the expectations from the business about what HR can deliver. Their ongoing challenge, he notes, is to stay on top of how, when and where people work. “I think HR needs to get some big thinking going about practices and approaches – where’s the next level? It’s thinking about the workforce of the future and how you’re going to work with it,” he says.

One recent example: the advent of social technology. Orth believes it is HR’s role to understand and apply this technology. “This is what HR does. The business expects HR to develop people’s capability and provide programs and

initiatives where people can communicate and get their work done. We’re meant to be the ministers of job design: how and where work is done. We logically got into flexibility; now we should logically get into social computing and how people interact,” he says.

This taps into the reality of global business as well. IBM has declared its position on Smarter Planet with the belief that the world is becoming more instrumented (lots of gadgets), more interconnected (lots of networks linking things), and more intelligent (lots of data to make decisions that affect real change). IBM works with governments and businesses across various industries, using IT to improve natural and man-made systems in areas as varied as healthcare, natural resources, transport, banking and provision of water.

Orth says that whether it’s local businesses (like the banks) buying and owning more global businesses, or whether they’re in Australia but participating globally, every business of a certain size is part of a global market – and HR is greatly impacted by that. “It’s another theme for us: how do we marshal ourselves globally, how do we get to all the talent, the smarts and capability, and hook it all together?” HC

www.hcamag.com

55

PROFILE IBM

From punch cards To mark IBM’s 100th anniversary, Human Capital interviewed one of the company’s oldest employees, and one of its youngest, about what has changed (and remained the same) at the company

P

hil Prakesh is one of IBM’s longest serving employees. At 85 years old, he’s been with IBM since 1966, and just last month, he announced his retirement. At one time, he had three generations of his family working at IBM, including seven family members.

Human Capital: What attracted you to IBM in 1966?

Phil Prakesh: My first contact with IBM was through another company which I was working for in India.

We were using IBM equipment for their data processing and monitoring. I came to know more about IBM, and decided I wanted to join them. When I applied for a role through IBM’s personnel dept in 1966, they briefed me about what the IBM culture and policies were. One thing they mentioned was their policy of respect for the individual, which struck me as being something very unique. Eventually, I was successful at getting a job with them. Before I migrated to Australia, I got to know the general manager from IBM Australia, who I was closely associated with through the IBM social club. When I told him I was migrating to Australia, he immediately gave me a letter of introduction to his counterparts in Australia – that’s how my journey with IBM started.

HC: In your time with the company, how has it changed?

PP: The only thing that has changed is the technology. Back in 1969, we had a punch card plant in Lidcombe producing punch cards. Of course, it no longer exists, as we’re in an electronic age where we’re able to work from home using the internet. But IBM’s culture hasn’t changed at all – it consistently respects its employees.

HC: Can you sum up the corporate culture?

PP: We were always on a first-name basis with each other. When I moved from India to Australia, there was still some of the White Australia policy prevalent, but IBM stood apart from that. In fact, on my first

56

www.hcamag.com

day, the chief accountant drove me out to Lidcombe in his own car, to find a bed and breakfast place so I could live close to the company premises. Although I couldn’t get anything immediately, he found lodgings close by in Strathfield, so I could travel to work without difficulty. The other staff showed friendliness and a desire to help.

HC: Do you have any anecdotes you can share about your time at work over the years?

PP: We had a lot of social interaction in the company.

We used to run an IBM social club with a cricket team, where our families would join in. It was a friendly competition, and after the match we’d have a few drinks.

My first experience of Aussie culture was at IBM, every Friday after work, where we’d troop off to the pub. As it was my first week there, it was my turn to buy the drinks. My colleague said, “Phillip – your shout”. I didn’t understand what he meant by the word ‘shout’ – so I started talking very loudly!

HC: How has your interaction with HR – or personnel – been during your time with IBM? PP: HR has been very perceptive. If you have children, they provide flexibility to make your work easy. They match your personal family requirements to the needs of the business. You’re not expected to clock in your average weekly hours; they give you the flexibility to work how you want.

HC: As a mature-aged worker, what have you learnt from younger workers? And what do you hope you have you passed onto them?

PP: I have definitely passed on a sense of work ethic.

As you’re there every day (unless you have some family issues), the younger workers think ‘if this old guy can come to work every day, so must I’. I also get on well with the younger generation, and I’ve had the opportunity to communicate with them and pick up their lingo, their language.

PROFILE IBM

to microchips D

aniel Bese, 20, has been with IBM for just over 12 months, as an intern in the Global Technology Services division. He will be moving into a graduate position later this year.

Human Capital: What attracted you to IBM? Daniel Bese: The thing that attracted me was the formal partnership that my university – Monash – had developed with IBM, called the IBM-Monash Future Leaders Scholarship Program. A main initiative of this program is to bridge the gap between university students and full-time effective employees. This program was created to enhance prospective grads and make them as effective in the workplace as soon as possbile. So I undertook a six-month, full-time internship with IBM, but also involved myself in a range of extracurricular activities on leadership, communications and business etiquette – essentials for entering the workforce. I was so grateful to have been selected into the program, and I’ve remained on as a parttime intern at IBM. I’ll continue to work with IBM in a grad position from August.

HC: Why do you think IBM has survived and thrived for 100 years?

DB: One of the main reasons is the original mission on which the organisation is based, and that was to encourage all IBMers to be innovative.

It’s a message which still rings true today.

HC: Can you describe the IBM culture to me?

DB: The IBM culture is all about hard workers. I enjoy being surrounded by driven, motivated and intelligent people. It provides the opportunity for further personal development and career progession within the company. In saying that, it’s also a very relaxed culture, and I always feel I can approach almost anyone, irrespective of where they sit in the organisation.

HC: Do you use any of IBM’s flexible work practices?

DB: At the moment, my internship is part-time; I come into the office two days a week, and I have remote access to all the IBM systems at home, which has helped me balance my study and personal life with work. It’s made it much easier for me to continue working while I finish off my undergrad studies this year.

HC: What is your perception of the HR department?

DB: I’ve had a lot of interaction with the HR department throughout my short time here.

The HR department has been dedicated to communicating a lot of information to interns about their jobs, and about the organisation itself. Coming into an organisation like IBM can be overwhelming, so having that constant communication has helped me to settle into my position.

There is also an HR rep who looks after all the IBM interns, and we have the opportunity to go to that person if we have any questions about the job or need advice on any situation. There’s also an intern network, run by interns themselves, which provides event and information sessions for us.

“The IBM culture is all about hard workers. I enjoy being surrounded by driven, motivated and intelligent people” – Daniel Bese

HC: Where do you think you’ll be when you’re Phil’s age?

DB: I have no idea where I’ll be at age 85! I know by that time, though, there are many things I’d like to have achieved. But at the moment, starting at IBM has been a great decision because of all the opportunities the company can provide.

www.hcamag.com

57

IN BRIEF news

Managing depressed workers Australian workers have a high level of awareness about depression and anxiety disorders but insufficient training on how to help or identify a colleague who is experiencing depression, according to a new survey.

The survey of 18,000 professionals was conducted on behalf of beyondblue and found one in four people feel uncomfortable working with a person experiencing depression.

Only 51% of those surveyed said they would feel comfortable managing the work performance of someone with depression or an anxiety disorder.

The survey found that training and or a previous experience with mental illness were the two most important factors in helping workers deal with an ill colleague.

Those aged 20–29 were the least likely to be proactive in helping a colleague with depression and may even stigmatise an affected person.

Performance coach Andrew May said depression and anxiety are often undiagnosed, largely due to the sense of shame tied up with these conditions.

India for resources skills gap Indian graduates may be a solution to skills shortages in Australia’s booming resources sector.

The Australian Financial Review reported that Australian and Indian officials have started talks with tertiary institutions and training bodies in both nations about opening up Australia’s training system.

The plan would see as many as 100,000 Indians trained to work in both countries and up to 30,000 Australiantrained graduates recruited locally.

They would be trained to Australian standards and employed on the same conditions as Australians, under existing immigration rules. Fragomen’s migration lawyer Teresa Liu said the greater issue is how the immigration program can attract overseas skilled workers to Australia, retain its Australian employees and attract skilled Australians overseas back home.

The government called on businesses to lift their game in training more local staff in exchange for an increase in temporary migration in the federal budget.

Better vocational education to tackle skills shortages The vocational education and training (VET) sector needs to be shaken up to tackle looming skills shortages, according to a report by Skills Australia.

The report warned that Australia risked losing the economic opportunities of the resources boom unless it addressed demand for skills. Greater investment in skills was vital to address the ‘structural mismatch’ between job growth and stubborn levels of unemployment and underemployment.

It is estimated the nation will need an additional 2.4 million skilled workers by 2015, growing to 5.2 million by 2025.

The report says this will require funding for the sector to grow at 3% a year, starting with $310m in extra funding in 2012–13, growing to $12bn in additional funding by 2020.

A recent Productivity Commission report outlined 19 recommendations it wants the federal government to adopt, including efforts to boost workforce numbers and improve their qualifications, while keeping a closer eye on their progress.

Budget promises 500,000 jobs in three years

Fast fact In May’s Federal Budget, the current statutory rates for determining the taxable value of vehicle fringe benefits were replaced with a single rate of 20% that applies regardless of the distance travelled

58

www.hcamag.com

The 2011 Federal Budget has a heavy emphasis on employment participation, migration and getting the unemployed back into work.

Treasurer Wayne Swan said the $350bn budget would enable the economy to create 500,000 jobs over the next three years, with the unemployment rate expected to average 4.5% by mid-2013.

A $3bn training plan coupled with incentives and penalties to get more people off welfare and into work – including teen parents, the disabled and long-term unemployed – would ensure the nation did not “waste a single pair of capable hands,” the Treasurer said. Skills shortages in aged-care and construction will be the immediate focus, with more than 130,000 new training places to be created over the next four years.

The new training places will come from the National Workforce Development Fund, which will match industry investment to train their prospective workforce.

Skilled migrants will be encouraged to work in rural areas as part of the plan to boost regional Australia. The number of permanent migration visas will be increased to 185,000 in 2011/12, with about two-thirds aimed at plugging skills shortages in regional areas. Overall, the government has flagged new spending of more than $19bn. It promises to have the budget back in the black in 2012/13, forecasting a modest surplus of $3.5bn.

IN BRIEF news

Shake-up of professional coaching industry

Standards Australia have said they will release guidelines on professional coaching. The guidelines are being drafted by a committee of leading corporations, universities and groups from the HR, education, psychology and adult learning fields.

Committee chair Ann Whyte from AHRI welcomed the guidelines. “The demand for coaching is growing but it has been an unregulated activity in need of better standards.”

Whyte said while the professional associations that represent coaches have codes of ethics, many coaches are not members of such associations and therefore are operating without a formal link to a code of ethics.

However, Natalie Ashdown, CEO of The Open Door Coaching Group, said the coaching industry is in no need of regulation: “Organisational buyers are requiring coaching qualifications, credentials, experience and senior level business acumen in their coaching service providers; this creates a form of ‘regulation’ in itself.”

Semi-skilled workers ditched by technology boom Semi-skilled workers are losing jobs due to technological advances and automated workplaces, resulting in an ‘hour glass’ shaped labour market, according to recruitment firm Hays’ report, Creating Jobs in a Global Economy, 2011–2030.

Those at the top of the income distribution have seen their wages rise over the last decade, while the middle group has experienced stagnation.

Jobs that involve routine actions have commonly been replaced by automated machines, while service sector jobs such as bookkeeping, data processing and call centre operation are also under threat.

Demand for labour in routine, lowskilled occupations has remained unaffected. Jobs in cleaning, building and driving have increased, as machines cannot replace workers in these sectors. This results in the ‘hour glass’ effect, with employment rising at the top and bottom ends of the skills ladder, while the semi-skilled workers in the middle are being squeezed out.

NBN: video conferencing to more workplaces

The new National Broadband Network (NBN) is set to improve video conferencing, allowing more people to work from home and increasing the country’s productivity, its chief executive says.

NBN Co head Mike Quigley appeared before a federal parliamentary inquiry where he spoke about the nine-year project to build the network. He said his own office had installed video conferencing equipment and that the network saves money in the long run. “Video conferencing … saves us getting on planes,” he said. “More of our people will telework from home – that will keep people off the roads, which means less money needs to go into normal infrastructure.”

Quigley said video was an overwhelming driver behind demand for more bandwidth. “It’s not just about entertainment, it’s about video conferencing, it’s about medical imaging, it’s about remote education.”

NBN Co’s $36bn mission is to reach 93% of Australian homes.

Fast fact

‘Social media managers’ the key to future recruitment

Companies are being urged to start appointing dedicated ‘social media managers’ if they are to continue to attract a talented workforce.

Travel and hospitality recruitment firm TMS Asia Pacific commented that companies with a social media manager on the HR team will have a definite advantage in the ‘war for talent’.

“Gen Y candidates are attracted by organisations that empower them to be individuals, are socially responsible and promote work-life balance,” said CEO Andrew Chan.

Chan said the key advantage of using social media as a recruitment channel was that it was instantaneous, was extremely cost effective and, importantly, gave employers the opportunity to interact with potential candidates via far richer and more highly targeted media than traditional channels.

Managing director of HR Partners David Owens is not surprised that the role of dedicated social media manager is on the agenda, nor that it has fallen under the HR umbrella.

“I think we’re seeing a lot more involvement in communications by HR professionals, particularly internal comms and externally around employer branding,” he said.

“It doesn’t surprise me at all that social media should be a concept that’s discussed and/or influenced somewhat by HR professionals.”

Owens was quick to point out the benefits of having a dedicated position to manage all social media activity, rather than spreading the work between several employees.

60

www.hcamag.com

The increasing popularity of online shopping could result in the loss of 50,000 jobs over the next five years, according to the National Retail Association

THE LAST WORD compiled by Suzanne Mercier

n The Conference Board, an organisation that conducts research into CEO perceptions of key business issues, released its figures for 2011. The number one priority was business growth and number two priority was talent.

Source: Wall Street Journal

n While employee engagement in the Australian workforce has increased over the past three years from 26% to 36%, the number of employees determined to leave has increased from 11% to 15% in the same time period.

Source: Blessing White Employee Engagement Report 2011

n According to a September 2010 report sponsored by the Society for Human Resource Management, 28% of survey respondents say their company will use IT and social networking tools to tap into the global talent pool over the coming decade.

Source: Monster Thinking

5 minutes with...

Junita Mushenko

Standards Australia, head of people & culture What is the greatest HR lesson you’ve learned so far?

Over-engineered solutions create unnecessary complexity. My biggest lesson has been to keep it simple and fit for purpose. It’s critical to know your business and people. The best way to do this is to walk in their shoes – spend time at the coal face and be curious about how HR can contribute to business results.

How does the HR function differ in NFPs compared with traditional organisations?

NFPs are often under-resourced and while it’s challenging to be constrained, entrepreneurial muscle and creative thinking are honed. Because NFPs are commonly cause-based, they don’t have to work as hard on intrinsic motivation. The challenge then, is more about building commercial acumen and adding rigour to processes.

What is your view on the current hot issue of gender diversity?

I believe in merit-based selection and promotion. Having said that, we’re reaping the rewards that diversity lobbying groups have campaigned for. It is important to educate and be persistent, as change does not automatically follow.

What is your favourite management tip?

Rose Clements, Microsoft HRD, said

Quote of the month “The greatest discovery of my generation is that human beings can alter their lives by altering their attitudes of mind” – William James

everyone deserves a fantastic, competent manager. With our managers, we emphasise keeping it real, and humanising interactions. We encourage investing quality time with staff, discussing expectations and negotiating the relationship early on.

What career advice would you give ambitious HR professionals?

Do the basics well – the mechanics of HR systems and programs – in order to gain credibility. Then tackle the more complex issues.

What are the main challenges facing the HR industry right now?

The talent shortage still exists. We need to retain, nurture and value the talent we have, as people are still an organisation’s competitive advantage. Also, HR needs to become a critical business partner in order to get a strategic seat at the table.

How could HR professionals overcome that challenge?

Most HR people have high EQ and understand business strategy. The skillset we tend to lack is interpreting financials, which would give us a full suite of appropriate business skills.

Can you believe it?

A candidate was shown into the conference room and announced he was going to set the table for success. He pulled out a table cloth, napkins, silverware, wine glass and other table accessories. At the conclusion, he announced that he wanted the recruiter to remember him as being VERY HUNGRY for success. Certainly a memorable presentation!

www.hcamag.com

63