Aussie Painting Contractor December 2020

Licensing or Franchising Growing your business

9 Things you need to remember

Negotiating Contracts

Hiring & Managing MIL L ENNIAL S They are what we have...

Starting a Painting Business

Important steps to starting your painting business

www.aussiepaintersnetwork.com.au

Many great careers start with a Pathway. Whether that be, beginning your Apprenticeship whilst still at school, or by finding an employer ready to take you on from the very start.

Become a Painting Apprentice

A painting apprenticeship takes 3 to 4 years to complete dependant on the individual student. They get paid as they learn rather than building up a debt by going to university. An apprentice learns the theory behind painting as well as the practical application of working with others on the job.

Become a Qualified Painter

After completing an apprenticeship, you become a qualified painter. You can continue working for painting companies or building companies on wages for as long as you like. Your wage should increase as you now have your qualification.

Become a Painting Business Owner

After completing your apprenticeship this is where you take the leap of working for yourself and potentially put on staff and your own apprentice. At this point we recommend that you contact Aussie Painters Network as well as other organisations and associations.

Are you running a Painting Business?

See how we can assist you in growing your business with apprentices!

CONTRIBUTORS • Adrian Camilleri • Anthony Igra • Brendan Coates • Hal Pawson • Helen Kay • Jim Baker • Leo Babauta • Matthew Cowgill • Monroe Porter • Nat Kassel • Robert Bauman • Sandra Price • Tim Helm • Vanessa Petch

EDITOR

From the Editor Hey Everyone, Welcome to the 99th Edition of the Aussie Painting Contractor Magazine.

With everything that has been going on in the world for 2020 it is so refreshing to hear that the industry is booming.

We are getting daily calls for assistance in finding apprentices and staff. As I continually tell everyone it is a matter of doing the work you can and not stressing about the work you can’t get to yet. Sometimes putting on more staff can be more of a problem.

From reports, apprentice numbers have grown dramatically over the last couple of months and I think its going to continue within businesses. Contact us if you are looking for an apprentice as we have many looking and we might just have one in your area. In the last month we have placed about 30 in trials with the majority being signed up to start a career in painting.

From APN, I wish everyone a Merry Christmas and happy and safe holiday season. Bring on 2021!!

Nigel Gorman EXECUTIVE EDITOR

Till next month, Happy Painting!!

Caroline Miall GRAPHIC DESIGNER J. Anne Delgado

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

Contents 06

Investigating a Workplace Complaint

09

JobMaker is nowhere near bold enough.

Here are four ways to expand it

14

Growing your business through Licensing or Franchising

18

A Guide to Being in Action

20

‘Why’ Employ an Apprentice? and ‘Why’ UP-SKILL?

26

Starting a Painting Business

32

Dealing with Part Payments

35

Is financial reporting like climbing Mt. Everest for you?

40

9 Things you need to remember while Negotiating Contracts

43

How to choose the right CHRISTMAS GIFT

46

Hiring & Managing Millenials

48

Industry Idiots

49

Important Contacts

Tips from psychological research

Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and the Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you may incur directly or indirectly as a result of reading Aussie Painting Contractor Magazine. Reproduction of any material or contents of the magazine without written permission from the publisher is strictly prohibited.

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1800 355 344 / 07 3555 8010 info@aussiepaintersnetwork.com.au aussiepaintingcontractor.com,au

Investigating a

Workplace Complaint Have you received a complaint from an employee and you don’t know how to deal with it? Don’t worry, you’re not alone. In the last week, we have been contacted by small business employers who had received a sexual harassment complaint, a complaint of racist and offensive behaviour and bullying and harassment.

This can be quite overwhelming for a small business employer who doesn’t have prior experience in dealing with these types of complaints.

If the complaint is serious and an apology isn’t going to fix things and / or you’re thinking that an employee may be terminated if the allegations are substantiated, then you will need to launch an investigation.

The first step is to listen. It can be exceptionally nerve racking for an employee to make a complaint and its normally something they’ve sat on for a number of hours or days, so listening to them can make them feel a lot better.

During the investigation, the person leading the investigation should meet with the employee making the complaint (complainant) asking them clarifying questions about the complaint, including witnesses, location, where people were positioned when the event talk place, what was said, body language etc.

The next step is ask them to put it in writing. This helps you and the employee making the complaint be clear on what the issue is and makes it easier for you to know how serious the complaint is and what steps you should take next.

The next step is to ask what resolution the employee is seeking. Many employers make the mistake of asking this at the end of the complaint process but if an employee is only asking for an apology then it may be unnecessary to launch a full investigation. An apology and a commitment by the other party involved to change their behaviour is very often all an employee is seeking.

6 | Aussie Painting Contractor

You can do an investigation in house but sometimes it may be appropriate or easier to have an external investigator come in. A good HR consultant will be able to help you out with this.

After meeting with the complainant, the investigator may then meet with the witnesses to ensure the incident is substantiated before then presenting the allegations to the respondent. These should be provided to the respondent in writing and they should be given a reasonable timeframe to respond to the concerns, normally a day or two. It may be necessary to suspend the employee on full pay during the investigation, this allows the respondent plenty of time to prepare their responses. It also mitigates the risk of the respondent and the complainant working together or respondent influencing the complainant or witnesses.

Once you’ve received the respondent’s responses and held a meeting with them to ask any clarifying questions, then its times to make a finding. Unfortunately, its rarely a black or white situation with someone clearly in the wrong and all of the facts lining up.

This can be the hardest part and one of the benefits of using an external investigator. We’re not emotionally connected to any of the parties and don’t carry any preconceived notions or biases. We’re also used to having difficult conversations and making difficult decisions.

Unsubstantiated - No, on the evidence we have in front of us, we don’t believe the incident occurred.

Insufficient evidence– this is when you cannot make a finding either way due to a lack of evidence.

Once a finding has been made, then a decision needs to made about the what action the company will take in dealing with the parties. These actions can include: • Training regarding workplace polices or acceptable behaviours • Mediation between the parties to resolve their differences • Change in reporting structure or working patterns to limit contact between the parties • Disciplinary action including a formal warning, reassignment or demotion of duties or termination of employment.

Navigating a workplace complaint can be difficult and overwhelming if you would like assistance then please reach out to Vanessa from HR Maximised on 0418 190 106 or vanessa@hrmaximised.com.au

When making a finding in a workplace investigation, then the findings open to an employer or an investigator are: Substantiated - Yes, on the evidence we have in front of us, we believe the incident occurred.

2020 December Issue | 7

8 | Aussie Painting Contractor

JobMaker is nowhere near bold enough.

Here are four ways to expand it The government has targeted its JobMaker Hiring Credit too narrowly.

But Australians aged 35 and younger make up less than half of those on JobSeeker.

The scheme to go before the Senate this week will give employers who take on someone aged 16 to 29 years who has been on JobSeeker or a related benefit a bonus of A$200 per week, and a bonus of $100 per week if the person is aged 30 to 35 years.

Most – about 800,000 of the 1.5 million – are older than 35.

New hires older than 35 won’t attract a bonus, and nor will new hires who have been out of work but not on JobSeeker.

The bonus will last for up to a year.

There are reasons to focus on young people. Youth unemployment is 14.5%, almost double the economy wide average, and young people have lost more working hours than older people.

Also, young people will arguably be scarred for longer by the experience of unemployment (although many older people will be scarred for just as long or longer, never returning to work).

With Victoria reopening, summer coming and the treasurer talking confidently about “fighting back”, it is easy to forget how serious our unemployment problem is.

2020 December Issue | 9

Unemployment is at 6.9%, the highest it’s been this century. If the thousands working zero hours on JobKeeper were included, it would be higher still. Even without including those people, treasury the unemployment rate to reach 8% by Christmas.

Official forecasts say unemployment won’t fall to 5.5% for three-and-a-half years, until mid 2024, an extraordinarily slow recovery by the standard of previous downturns.

job, it is likely to ultimately put an unemployed person into work.

The goal ought to be to strengthen overall labour demand, not to encourage only the subset of job creation where the new job happens to be a good match for someone presently unemployed.

3. Allow more employers to use it

Read more: In defence of JobMaker, the replacement for Job-

The scheme requires employers to demonstrate that new hires have boosted payroll beyond where it was in the three months to September 30 2020.

JobMaker as presently configured won’t do enough to speed it up.

But the payroll baseline is defined as including jobs supported by JobKeeper.

The budget speech said the hiring credit would support around 450,000 jobs , but treasury has since told a Senate hearing that only about 10% of those jobs will be jobs that wouldn’t have been created anyway – about 45,000.

As firms become ineligible for JobKeeper, and the payment rate is reduced in January and again in March, many businesses that relied on the payment will have to lay off staff. As a result, they will have an actual payroll bill well below where it was in the three months to September 30 2020.

Keeper: not perfect, but much to like

In our submission to the Senate inquiry into JobMaker we recommended four fundamental changes.

1. Open it to all ages Opening the scheme to new employees of all ages, not just those age 35 or younger, could more than double the reach of the scheme.

It would also roughly double its cost, from $4 billion to roughly $8 billion, but that cost would remain modest in the context of the government’s stimulus spending to date.

Targeting younger workers would make sense if expenditure needed to be highly constrained, but with a need for more government spending rather than less there is no point in making the subsidy available to only some of the people who could benefit from it.

2. Extend it beyond the unemployed Limiting the credit to jobs filled by new hires who have been on JobSeeker or a related payment is unnecessarily constraining.

If the most suitable candidate for a role is already employed, hiring that person provides an opportunity for someone else to fill their old position. If it is a new

10 | Aussie Painting Contractor

Read more: Budget 2020: promising tax breaks, but relying

on hope

This will effectively exclude them from the scheme, giving them no extra incentive to retain staff as they come off JobKeeper, or to increase working hours or hire more staff as conditions improve.

The government should ease the criteria to require employers to only demonstrate that they have boosted payroll net of JobKeeper receipts.

4. Ban ‘harvesting’ The test should be more demanding. As designed, employers can claim back up to 100 per cent of an increase in their payroll, which creates incentives for employers to “harvest” credits by converting fulltime jobs to part-time.

As an example, an employer who reduces the hours of an existing employee from 40 per week to 20, while hiring two new employees at 20 hours each would be able to claim the hiring credit twice – despite total hours worked and wages paid increasing by only one 20 hour job.

This could be fixed by requiring each new hire to boost payroll by a multiple of credit paid.

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2020 November Issue | 11

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Sources: Fair Work Commission, ABS and Grattan Institute calculations

A better, simpler model

A better model would be to simply pay employers a proportion of their payroll growth, as proposed by economist Peter Downes.

Our estimate is that an extra $50 billion would drive unemployment down to 5% and kickstart wage growth nearly two years ahead of the government’s schedule.

There are plenty of good options for doing it, and a Our calculations suggest that as presently designed more ambitious JobMaker is one of them.

JobMaker will skew employment towards lower-wage, -----------------------------------------------------------------------part-time jobs.

A rebate on additional payroll would instead encourage Brendan Coates employment growth of all types – full-time as well as Program Director, Household Finances, Grattan Institute part-time, and extra hours worked by existing staff.

Matthew Cowgill

But even such a better-designed credit won’t help much Senior Associate, Grattan Institute if there’s weak demand for workers. To get it, we will need more stimulus, more government spending.

Tim Helm Either way, we’re going to have to boost the economy.

Senior Associate, Grattan Institute

2020 December Issue | 13

Growing your business through

Licensing or Franchising

Now is a really great time to think about branching out through franchising or licensing your already successful business model. Many of the people who are unfortunately made redundant when the Government stimulus finishes will be looking to buy ‘a job’ and low investment franchise or license businesses will be an attractive proposition.

If you want to make more money from your painting business and brand and are seriously thinking about growing your business, you may choose licensing and not franchising because people have told you it is cheaper and easier.

License Agreements A license agreement generally gives the ‘Licensee’ (the person who buys the rights to use your brand) the right to your intellectual property (trademarks, designs or technology), to use in the Licensee’s own ventures. It is traditionally a hands off approach in terms of what a Licensor can control in terms of the Licensee’s business operations. There is no performance criteria to report back to the Licensor. It also avoids many of the formalities and costs involved with franchising.

It is, but don’t get caught out by setting up a license business model when it could in fact be a franchise by default. It may be cheaper and easier to set a license model but serious consequences can apply to those who mistakenly or purposefully dress up a franchise as a license.

An example of this is business program software that is licensed out to other smaller businesses. The Licensor only has control over the intellectual property, not the overall running of the Licensees business operations.

Here are some key differences you need to know to steer clear of trouble.

A franchise agreement allows someone the right to operate under an already existing brand and will set out systems and rules that the Franchisee must abide by. The Franchisor possesses much more control over the Franchisee’s business than in a license agreement. This includes control over what goods and services are sold, marketing plans, advertising, branding, training, operating systems, shop fit-outs, uniforms and more. A Franchisor will also monitor the Franchisee’s performance and has the right to audit records and accounts.

What is the Difference between a Licence and a Franchise?

It really all comes down to how much control you want to retain. While the models are often considered to be similar, they follow very different control structures, with different fees and regulations involved.

14 | Aussie Painting Contractor

Franchise Agreements

There are also stricter regulations in place for franchise agreements. If your business model meets the following criteria you are running a franchise business and you will need to make sure you are in compliance with the ACCC’s Franchise Code of Conduct by ensuring: • You have an agreement, written, oral or implied • You have granted to another person the right to conduct a business offering, supplying or distributing goods or services under a system or marketing plan substantially determined, controlled or suggested by you • The business will be substantially or materially associated with a trademark, advertising or a commercial symbol owned, used or licensed by the you or specified by you • Before starting (or continuing) the business, the Franchisee must pay or agree to pay the Franchisor a fee. The fee can include an initial capital investment, payment for goods or services, or a royalty fee. It excludes payments for goods or services supplied on a genuine wholesale basis or repayment of a loan.

An example of this is Jim’s Group. Jim’s Group provides a two-week training course, operating systems, ongoing support and most importantly the use of the established brand name. In exchange, the Franchisee puts up the initial capital, pays license fees and strictly adheres to the business processes as setout in the operating manual. This includes acquiring Jim’s identifiable logo.

Consequences

People think it’s easier and cheaper to license, however if you get it wrong you could be exposing your business to hefty fines. Failure to comply with a penalty provision in the Franchising Code could result in the ACCC taking court action seeking a financial penalty, or issuing an infringement notice for the breach.

Avoid facing penalties for non-compliance by being able to detect when your licensing agreement is so closely linked to a franchise agreement that it blurs the line between the two.

What you need to do...

Let’s Talk! A free consultation with us can help to tackle your legal issues.

Typical Legal Disclaimer! …

Unfortunately, there is never a ‘one size fits all’ formula to apply. Every situation is unique and it can be tricky to wrap your head around some areas of the law. To ensure you are setting yourself and your business up for success, it is always best to consult a legal professional with expertise in the field and a tax expert for your tax advice.

0402 318 033 helen.kay@riselegal.com.au

2020 November Issue | 15

13 62 60

www.oldfields.com.au

16 | Aussie Painting Contractor

Get our full price list showing members discounted prices!

CLICK HERE

A Guide to

BEING IN ACTION I have a couple of clients who’ve been stuck in inaction for months now, and they’re desperate to get into action.

So we’ve set up structure and training so they can train themselves to be in action much more of the time.

It’s trainable, if you’re willing to commit yourself.

There are lots of other possibilities, but the important thing is to connect to yours, before you even take on a task. And reconnect when you’re feeling like not doing it.

Then commit to creating that possibility, even if it feels difficult or scary.

In this short guide, I’ll talk about how to train.

Commit to Possibility When we are not feeling motivated to take action, and we’re feeling burdened or bleh about a task … it’s because we aren’t connected to some possibility in our lives.

What is it that you want to create in the world? What do you want to change in your life, or in the lives of others?

If you get clear on that possibility, and feel connected to it, you’re going to feel much more energized and inspired to tackle your tasks.

Some examples of possibility: • Create an income with my new business to support me and my family • Help people overcome their feelings of inadequacy • Help my team feel more energized and connected to meaning • Help keep my family safe and happy • Help 100 million people change their lives with uncertainty training (my mission)

18 | Aussie Painting Contractor

Create Daily Structure Once you’re connected and committed to that possibility, it’s important to have some structure. Some examples: • A schedule with blocks for your meaningful tasks • Accountability with a group of people • A session at 10am every day where you write for an hour • A video call every day at 8am with an accountability partner, where you do 2 hours of focused work on the call together • A commitment to check in with a coach, and a consequence for not doing your commitment • What structure will help you be in action?

Create it for yourself, and then train.

Train Your Action Muscle This is the important part: you can connect to possibility and be committed, create a structure … but then you have to actually put it into action. Nothing else matters but this.

So train yourself for a week, and each day be in action.

Be doing stuff. Get shit done.

Take on the hard tasks, in small chunks. Check things off your list, while feeling the meaning and possibility you’re creating.

Be in action, over and over, and you’ll train the action muscle.

After a week, review: how did it go? What needs to be adjusted? What did you learn? How can you keep the training going?

So with this in mind: what would you like to commit to today?

--------------------------------------------------------------------

Leo Babauta

a successful ‘simplicity’ blogger and author from California, the creator of top 25 Blog

ZEN HABITS

‘Why’ Employ an Apprentice? and ‘Why’ UP-SKILL? For most of us these are, ‘no-brainer’ questions, but for some, it takes a little convincing to explain the benefits.

I have written about both of these subjects in previous articles but I wanted to reiterate on it again as I was quite annoyed of what was said to me last week.

I told a painting colleague (who I won’t mention) who is a supervisor for a mid-sized painting company (that I definitely won’t mention either) that ‘Construction Skills Queensland’ was funding the ‘Painting and Estimating Course’ that I am the trainer for. This was forwarded on to an apprentice (who recently won an award for ‘Apprentice of the Year’) and is very keen to do the course and doesn’t mind paying the Enrolment fee of $80 (normally $380). I told him he should get his boss to pay for it but he replied back saying ‘He wouldn’t pay for that’. This is so sad when an employee, especially an apprentice, wants to voluntarily ‘Up-Skill’ themselves in their own time and the boss can’t see the value to him in paying for it.

There are many others too that think, ‘Is it really worth up-skilling or training someone? It will cost me time and money and then they may leave.’

The actual training of an apprentice is one of the main reasons why employers do not want to employ them. They don’t want the responsibility or they feel there is too much effort involved. Well! I must em-

20 | Aussie Painting Contractor

phatically disagree with this way of thinking. In the first few months of employment, an apprentice is generally doing basic things. These are simple tasks to pick up and not really time consuming for the employer. If you look at it another way, it saves having a qualified tradesman doing this work.

If you manage your apprentice correctly, you will see a monetary benefit within a very short period.

When they are into their 3rd year, they should be at the stage where they are doing the same work as a tradesperson. Also by taking on a new apprentice, you will be training them your methods and the way you want. ‘But they will leave when they finish!’ you may ask. Well you could be lucky and stay as long as my second apprentice who was with me for 20 years. And even if they do leave your employment, you may find they will come back. You know the old saying, ‘The grass isn’t always greener on the other side’. But, ‘What if they start up their own business?’

Even better as you can use them as sub-contractors.

You know what their work is like, so use it to your advantage.

Don’t just take my word on the benefits and advantages of up-skilling and employing apprentices. I will let Gen Frunz, (a lovely lady I met in person after she posted a query on the APN Facebook page) to give her personal opinion and thoughts on the subject.

But first; a quick introduction of herself and her two employees Gen (age unknown as I am polite and didn’t want to ask) is married with two children, has three horses, some dogs and cats and lives on acreage on the north-side of Brisbane. She began her painting career in 2011 and became a qualified licensed painter in 2019 after completing a twelve month RPL course.

I have seen her work and must say I am impressed.

She is very meticulous and takes great pride in her work.

TJ was actually the last apprentice I employed in my business. The way our paths met was that she phoned me in December 2016 enquiring if there were any positions available to take her on as an apprentice.

As I had just signed off another apprentice in that year, I really wasn’t looking for a replacement, but I said I would phone around to see if anyone would be interested. Come the following January, she phoned me again. Her eagerness and passion to find employment, stirred something inside me to think, ‘This is a good choice. Take her on.’ I never regretted that decision. In February 2019, TJ became a fully qualified painter. Soon after she took a short break from painting and then earlier this year, I referred her to Gen as a potential employee. When I saw her at work this week, I asked what it felt like when I signed the completion papers of her apprenticeship. She replied, ‘I have accomplished a life goal to finish a trade I love’.

I could tell she was extremely happy which in turn, made me extremely happy too.

James recently joined Gen as a mature age apprentice. He is 24, married and has two children. Eight years prior, he did some odd jobs here and there. He completed a Certificate 1 qualification in Construction and as painting was one of the subjects taught and liked it, he expressed his interest in doing a painting apprenticeship. As Gen was looking to take on her first apprentice at that same time, she fortunately found him through a third party.

Although Gen was only considering in taking on an apprentice, what helped her make the final decision was the substantial Government incentives in place.

This is all to do with the 2020 Covid 19 crisis and the need to get people back into work. Apart from the standard $4,000 Government Grant that has been in place for over 20 years, apprentice wages are now subsidised by 50% for the first year (this offer is only available for a short time). Also, in Gen’s

case, she qualified for another $10,000 payment for employing a mature-age apprentice (please check the criteria if you are eligible for this). To top it off (here in Queensland), Workers Compensation is also funded.

Now add all this up and tell me it’s not worth it!

All Gens’ work derives from word-of-mouth as her reputation has spread around quickly, which is the reason she needed to employ people. Her main lesson though to herself is, ‘Apart from applying paint to substrates it is the consideration and nurturing of employees for them to achieve whatever goals they set. It gives me great pleasure that James can have security in work to feed his young family and in regards to TJ, her work ethics are outstanding. She sets goals and heads straight for them.’

She adds, ‘My opinion on having a trade or knowing how to ‘run a successful business’ is the responsibility we have in the circle of life. I believe that if you have a set of skills you are proud of, use certain tactics or methods that have led to your own success, then that should be passed on. Passed on to the next generation, as it has been done for 100’s of years. It’s a craft; it’s a culture; it’s a meaning: A tribal leader takes great pride in showing a young person how to make the perfect spear. He doesn’t say, ‘Sorry mate. I make the spears around here, and no one will ever know my secret’. That person will never be remembered. They will be lonely, resulting in the perfect spear to disappear forever.

To take the purest form of a person, (this is someone who has no idea about anything but a will and ability to learn) encourage and nurture them to understand and achieve high quality results, is leaving your legacy.

It would be utterly selfish of a high quality tradesperson not to want to instil their qualities in a younger generation.

The teaching is so rewarding. To see the light bulbs of ‘Why?’ go on; to see the self-assessing (my big one); to see the pride; but also to feel your own pride within you. That is your reward. It’s like raising children.

And it should be done in every workplace.

Bit by bit they learn ‘your’ way, then they learn to question ‘your’ way, and then eventually, establish ‘their’ own way. Gradually you release their dependence on you. You are taking on the responsibility of a young adult: offering life advice; being a role model; teaching, ‘How to be’.

2020 December Issue | 21

50 YEARS A HOUSE PAINTER

This book contains 36 topics of industry related knowledge and information which will help you in the way you operate your business.Topics under headings of; Business Checklist, Staff, Marketing and Sourcing Customers, Professional Behavior, Successful Operation and Looking Ahead.Highly recommended by Jason Osborn, Dulux Business Development Executive as; ‘A very easy interesting read, that combines industry facts and great topics.’

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22 | Aussie Painting Contractor

My greatest achievement in this trade will be, via my own attained skill set, when my qualified painters and decorators have the skills and confidence to successfully run their own businesses, only then will my work will be done. I can become an ‘elder’, someone they can come to for advice, like ‘Jim Baker’. If I make money along the way, then I’m doing everything right.

I asked the question to Gen, ‘What are your thoughts on if your employees leave you to go somewhere else?’

Her reply was, ‘Of course they are going to leave! It’s like not wanting children because they might move out. It’s ‘who’ leaves you that’s important’.

Next I asked what she thought of the employers that are not interested in training their staff. ‘I think there are two types of painters/tradies. The ones who beats the pig with a stick to get it over the sty and get those wonderful shiny $$ coming in. Ultimately, they have sent that pig to market.

Then there are the artisans who are the ones that feed the pig correctly, build it a gate for it to pass thru and let it return at its will. Those pigs bring prosperity because they know lots of other happy pigs and spread the word.

My final question to Gen was the future of her business and if she intended to expand. She said, ‘I am comfortable with how my business, ‘Dare You Design’ is operating and I am fully happy to keep it just

to the three of us. I want to concentrate on the quality of work and the welfare of TJ and James. Good, reliable and happy employees is what makes a successful business.’

Footnote: In my 37 years of being in business, I have put through ten apprentices. I feel proud of how they have matured into becoming husbands, wives, mothers and fathers, but all-in-all, simply adults. When you have people as young as seventeen working for you, you become an important part of their life. You are with them (in most cases) eight hours a day, five days a week. Some may have troubled upbringings and don’t have close family connections, so what you do and say has a huge impact on them. Yes! This can be a big responsibility to an employer and I know not many are interested in taking that role, but all you have to do is be supportive and be understanding.

Train them with respect and you, like myself, will see the rewards.

I would now like to thank Gen for her time to write her views on the value of employees. It is so inspiring of how she values them. If only more could feel the same way.

----------------------------------------------------------------------------

Jim Baker

www.mytools4business.com

2020 November Issue | 23

What exactly do you receive as an

Aussie Painters Network Member Work, Health and Safety Management Plan Job Safety Environmental Analysis

Incident Investigation Forms Incident Investigation Form Register

Toolbox Meeting Record Form Template Rate Guide and Calculator

Quotation Tools Profit / Loss Per Job Tool

National Codes Of Practice State Codes of Practice

Aussie Painters Network have developed the tools to assist you to become more profitable.

When you Join you will be sent a mixed bag of goodies made up of some of these to the value of $200!!

Become a member today to get $200 worth of Welcome Gift!

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JOIN NOW AND BE AN AUSSIE PAINTERS NETWORK MEMBER TODAY!

Starting a Painting Business For many painters, the ultimate goal is to start your own successful painting business.

for a single job you’ll need to be licensed.

More information: Fair Trading NSW

Whether this is working for yourself and being content as a sole trader, or building up to a big team of painters, many of the steps to getting started are the same.

Victoria There does not appear to be any requirement for painters to be licenced in Victoria, however this is changing. Click here for more info.

In this guide we’ll run through some of the important steps to starting your painting business.

Some of the topics we’ll be touching on include: • Licencing • Business Structure • Industry Associations • Insurance • Legal • Marketing • Budgeting • Licensing Whether or not you need a licence will depend on the type of work you’re doing, and more specifically, the value of that work.

For states which do require a painting licence you will typically find that a Certificate III in Painting and Decorating is required in order to qualify for the licence.

Queensland If the total value of the work exceeds $3,300 (including GST) you are required to hold a licence through the QBCC. More information: QBCC New South Wales If you’re undertaking work where the value of the labour and materials exceeds $5,000 (including GST)

26 | Aussie Painting Contractor

South Australia According to Skills Certified there is no specific painting licence in SA, however painters are required to hold a Building Work Contractors licence.

More information: SA.GOV.AU Western Australia If the value of any painting work you undertake is more than $1,000 you’ll need to be registered as a painting contractor.

More information: DMIRS Tasmania According to Licensed Trades there is no requirement for painters to be licensed in Tasmania.

More information: https://www.licensedtrades.com. au/licensed/painter Northern Territory According to Licensed Trades there is no requirement for painters to be licensed in the Northern Territory.

More information: https://www.licensedtrades.com. au/licensed/painter Australian Capital Territory According to Licensed Trades there is no requirement for painters to be licen

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OR CALL 1300 229 757 2020 December Issue | 27

BUSINESS STRUCTURE

INDUSTRY ASSOCIATIONS

Many painters start their first business as a sole trader. It’s certainly the cheapest and easiest option, but it’s not necessarily the best.

Although it is not mandatory to do so, you might choose to join one of the painting associations in your state.

You can register an ABN for free, register for GST if appropriate and register a business name if you’re not trading under your own name.

Showing your membership of an industry association such as Master Painters can give your business a more professional and reputable look to potential clients.

Getting your business structure right from the get-go is important, and there can be major consequences if you get it wrong.

We’ve put together links to the various Master Painters Associations in each state: • Queensland & NT • New South Wales & ACT • Victoria & Tasmania • South Australia • Western Australia

The common options for starting your painting business including the following: • • • •

Sole Trader Partnership Company Trust

Sole trader or partnership is the cheapest and easiest, but also provides the least amount of protection and flexibility.

Setting up as a Pty Ltd company or a trust is a little more expensive and time consuming but can also provide more protection for your personal assets, along with more flexibility in tax planning.

We have a more comprehensive article on sole trader and company structures that is worth checking out, and we also recommend speaking with a trades specialist accountant.

ACCOUNTING

After you have your business structured you’ll also need someone to look after your bookkeeping and accounting.

If you’re operating as a sole trader you can do your own bookkeeping and tax returns, but it’s worth thinking about outsourcing this so that you can concentrate on winning and completing jobs.

If you’re going with a company or trust structure you can do your own bookkeeping, but you’ll need an accountant to do your tax returns.

There are a number of cloud accounting options to help with your bookkeeping. At Trade Risk we use Xero, whilst MYOB and Quickbooks are other popular options.

28 | Aussie Painting Contractor

INSURANCE

It’d be easy to think that painting is a relatively lowrisk trade, but accidents can happen no matter what your trade is, and they can get expensive.

Business insurance can help to protect you in the event that something does go wrong.

We have a comprehensive painters insurance guide that is worth checking out, but here’s a quick summary to get you started.

First up you’ll be wanting public liability insurance.

This will be the one that protects you if you spill a tin of paint and ruin a carpeted floor, or get overspray on a nearby car and have to pay for the clean-up.

Depending on the circumstances, it might also cover you if something as wild as this happens…

Aston Martin splattered with paint It’s also a good idea to check out personal accident insurance.

This is the one that will save you if you fall off a ladder and can’t work for a couple of weeks or months.

Trade Risk can help with both public liability and personal accident, along with any other forms of business insurance you need.

LEGAL

Getting things sorted like your contracts, along with terms and conditions, might seem like an unnecessary expense when first starting out, but it could save you a heap in the long run.

A lawyer can help you to draft up such documents, and it could pay for itself pretty quickly if you have a job go sour in your early days as a business.

Logos are cheap and easy to get online these days. At Trade Risk we used 99designs to design our logo back in 2010, and ten years later we still love it!

MARKETING

They have custom logo options for well under a thousand dollars, and in our opinion a good logo can have an impact on your business.

It’s all good and well to start your painting business, but just as important is keeping your painting business going!

To do this you’ll need to be getting opportunities to quote and win jobs, and that’s where marketing comes in.

If you’ll be getting all of your work from subcontracting to builders, you might not need to worry about marketing.

In this case you’ll probably want some business card as a minimum, but websites and advertising probably aren’t a concern.

But if you’re planning on dealing direct with the public, you’ll definitely need a way for them to find you.

We’d recommend the following as a minimum:

LOGO

Website Business cards Social media Logo

WEBSITE

A website for a typical painting business can be quite basic, and therefore inexpensive.

Given that so many people Google a business now before they use them, it’s definitely worth having a website that will at least show up when people Google your business name.

2020 December Issue | 29

BUSINESS CARDS

You’ll see that some pages only share photos of their work, some share more about their personal lives and some share a mixture of both. It’s all about how you want your business to be perceived.

The design work is relatively inexpensive, and you can typically bundle it with your logo design. Here at Trade Risk we still design our own business cards using Photoshop!

BUDGETING

Business cards are another relatively inexpensive item that can help to give your business a professional look.

Printing costs for business cards are miniscule. We use a local printing business by the name of eprint (they also ship Australia-wide) and we’re only paying 16c per card. You can find cards even cheaper, but we like supporting Australian owned businesses!

This isn’t the most exciting topic, but it could be important to ensure the viability of your business.

Here at Trade Risk we get to see the highs and lows of trade businesses, and sadly we do see a lot of businesses that shut down within their first year or two due to financial reasons.

Before starting your own painting business, it’s worth looking at your financial situation to ensure you can get through the first six to twelve months knowing that you might not be at your full earning capacity.

It’s no good spending tens of thousands of dollars on getting your van fully wrapped and having hundreds of stubby coolers made up if you then run out of money six months into the business…

MORE INFORMATION

We recommend contacting specialists in each field as part of starting your painting business.

For accounting and business structures contact an accountant, for legal matters contact a lawyer and for business insurance, obviously contact us at Trade Risk!

SOCIAL MEDIA

With painting being such a visual trade, social media is a fantastic way to showcase your business.

Facebook is a good start, and we’d highly recommend Instagram.

Instagram is particularly good for painting businesses, and will enable you to showcase your work to potential clients, as well as connecting with builders who could be a good source of business.

Here are a couple of painters we follow on Instagram who are worth checking out out for some inspiration for your own account: @refinedpaintingprojects @a.r.paintingsolutions @tlcpaintingandwaterproofing @hps_painting @full.coverage.painting

30 | Aussie Painting Contractor

www.traderisk.com.au 1800 808 800

Dealing with

Part Payments Most of you would wonder what could possibly be a problem with getting some money. Even if it’s not all you have claimed, surely it’s better than nothing.

a separate contract, your client has decided to treat you as a ‘single account’. I bet the contract doesn’t allow that.

Yes it is better than nothing, but it can cost you more than what you’ve been paid.

Now even though accepting these payments is good news, (you get cashflow) it carries with it a number of threats that you must be aware of. Let’s take a look at the problems, and then the solution.

Consider this scenario that is very common in contracting; Steve is a roofer and has been doing a number of jobs for the one client simultaneously. Let’s call the client ‘Orange Constructions’ and each job as Job A, Job B, and Job C. Each job has been separately quoted, and has its own Purchase Order.

Each month Steve is issuing invoices for the work done on each job. That is, each job has its own Tax Invoice. But Orange Constructions is not paying each month. Instead every now and then Orange send Steve a ‘random’ payment of $30 000, then some time later he might get $25 000 and so on.

What’s happening here? What is happening is that while you are managing each job separately and as

32 | Aussie Painting Contractor

You’re setting a bad expectation If you quietly accept these random part payments without a word you are telling your client that he can dictate how and when you are to be paid regardless of what the contract says. And that is the thin end of the wedge. Now he will see what else he can get away with. I suggest zero tolerance; the contract states when you are to issue invoices and when your client needs to be paying them. Further, your client must pay the invoiced amount for each job. Not some undefined lump sum. Don’t let this rot set in. It will only get worse.

In a Security of Payment adjudication, a Part Payment allows your client to reduce your Claimed Amount.

This is perhaps the biggest threat. This is how it works.

As above, lets says our roofer Steve has seven invoices outstanding for a total of $67 892.56 as follows: Job A: $32 000.00 Job B: $23 450.00 Job C: $12 442.56

final settlement. Of course the contractor argues that this is a lie, but the only record is that the payment was made and accepted.

So what do you do with a Part Payment that has not been directed to any of your invoices? Here’s a 2 Step plan;

Orange Constructions pays him a part payment of $25 000.00. Steve puts that payment against the two invoices outstanding against Job A. So Steve’s accounts now look like this:

1. Oldest invoices first: Apply the payment starting with the oldest invoices first. Often clients tend to think that really old invoices are no longer in play. They don’t matter. Dispel that notion straight away. After doing this, some invoices will be fully settled while others will be part paid.

Job A: Still owing $7000.00 Job B: $23 450.00 Job C: $12 442.56

2. Document it to your client: Fax your client a detailed description of what you have done with their part payment.

Steve serves Orange with a Payment Claim under the Security of Payment Act for the $23 450.00 owed on Job B. Orange sends him a Payment Schedule stating that they do not owe him anything as they already paid him $25 000 for that job. Orange provides a copy of the cheque and bank statement as proof. Steve argues that he put that money against Job A. Orange said they meant for that money to go to Job B only.

Note the date you received the part payment, how much it was, and how it was received (Cheque, EFT etc)

Furious, Steve serves Orange with a Payment Claim for $32 000 for Job A. Orange states in its Payment Schedule that they do not owe $32 000. They only owe $7 000 because they have already paid $25 000 for Job A.

Request that in future all payments fully reconcile against issued invoiced amounts only.

You see what’s happening here? Because that payment of $25 000 does not have ‘a home’ it leaves it open for Orange to move it around to whichever Job suits it at the time.

I once did 5 claims across 5 jobs for a plumber against a builder who had made a part payment of $20 000 and tried to apply that payment to each of the 5 jobs.

That is the builder tried to get $100 000 credit for a $20 000 payment.

Set out which invoices the payment has been applied to, and which Job. Attach copies.

Note which invoices remain only part-paid, and which are still totally unpaid. Attach copies.

Fax all the above to your client and keep the fax transmission report so you have evidence that this was sent and when it was sent. OK. Now you’re covered. If you look at the problem scenarios above, you will see that this plan of action addresses each one successfully.

So now when you get a part payment, instead of sighing in relief you should take a good long hard look at how to handle it. It is cash, but is could also be a curse.

This is why you need to stop the rot early and make sure every payment is nailed to the right job.

A Part payment can be argued as full and final after an ‘agreement’.

I have seen a client argue in an adjudication that the only reason a lump sum part payment was made was because the parties ‘agreed’ on that figure as full and

2020 November Issue | 33

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Is financial reporting like climbing Mt. Everest for you?

I think we’ve all met someone who complicates things beyond belief. What should be an easy answer to a question is being turned into something that looks like having to climb Mt Everest. It’s not dissimilar to what I sometimes hear from my clients who are scrambling to get their financial reporting to the QBCC in on time.

When you know your business numbers, QBCC reporting will never again be an issue for your business. It will be like getting ready for your quarterly BAS to the ATO. Let’s have a look at three of the most critical numbers that flow into your QBCC reporting.

If you’ve been in the building game in Queensland for a while you know that without your QBCC licence your construction or painting business cannot survive or even exist. Sure, the changes that were introduced by the QBCC in the last couple of years to tighten up oversight of the construction industry were substantial. However, they have also exposed business operators who haven’t got their bookkeeping in order, let alone have a handle on their business financials.

I know I’m stating the obvious by saying that for your business to survive, you need to produce an adequate Gross Profit Margin. To know exactly what this number is, you’ll need to track your income and expenditure for each job you do. Not every job carries the same margin, which makes it even more important to track your sales and business performance.

I’ve heard many complaints about the Minimum Financial Requirements (MFR) from clients in the industry. But you know what? Most of them are not worth listening to. If you want to play in the sandpit with the big boys, you need to have your shovel and bucket at the ready. In the case of your business and MFR, this means that you need to know your numbers.

1. Profit margin and markup

Most people understand that Markup in business is what defines the profit margin further.

As a business owner you will want to apply a Markup to the products or services you sell that will allow your business to thrive. A thriving business will attract tax liabilities which you can legally minimise by following a Tax Plan.

2020 December Issue | 35

The opportunities presented in the extraordinary response by Government to the Covid-10 pandemic are there for the taking.

Knowing and controlling your margin and markup will enable you to pull certain levers that impact on your revenue, which is one of the critical figures you’ll need to report to the QBCC. With a proper accounting setup and a timely bookkeeping regime, you can produce these numbers at your fingertips.

2. ROI on business marketing activities Whether you’re a one-man show or have a few employees, every business needs to have a marketing plan. Moreover, you also need to know the Return on Investment (ROI) that your marketing plan achieves.

Monitoring your ROI is critical to understanding whether the time you invest in your activities is going to contribute to the profits of your business, or if it’s just draining your resources. Simply put, marketing is about creating more sales opportunities, and they come at a cost. Your marketing costs are tax deductable and therefore have an impact on your taxable income.

their impact on maximum revenue they are some of the building blocks of QBCC reporting along with asset reporting and depreciation assessments. The two most critical numbers you need to know for QBCC reporting are 1. Your current assets, and 2. Your net tangible assets.

Changes to these figures will require a QBCC license holder to report their financial information or show their continued compliance again, for example: • when the business Maximum Revenue requires adjustment the license holder needs to provide the self-declaration form to the QBCC. • mid-sized companies (Categories SC1 to Category 3) will continue be required to report decreases in Net Tangible Assets of 30% or more.

Keep your business compliant to keep your assets safe Sometimes we don’t know what we don’t know.

We’ve developed a check list that highlights some important areas you need to know about to keep your business and personal assets safe. Click here to download your Business Compliance Check to see where you’re at.

On the other side of the ledger successful marketing can lead to more sales and profits for your business.

And it’s this information that feeds into the QBCC reporting again. Even if you only break even with your marketing plan a couple of times, it will affect your bottom line.

3. The two critical numbers you need to know for QBCC reporting So we’ve discussed margins and ROI which all feed into the QBCC reporting regime indirectly. Due to

36 | Aussie Painting Contractor

If you have doubts about meeting the QBCC Minimum Financial Requirements, call my office on 3399 8844 and we’d be happy to help you with a FREE QBCC Compliance Check.

You can visit our website at www.straighttalkat.com.au and complete your details on our Home page to request an appointment.

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2020 December Issue | 37

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9 Things

you need to remember while

Negotiating Contracts

40 | Aussie Painting Contractor

There are several aspects of business that can only be learnt through actual experience. One of them is negotiating contracts.

Several people fear the negotiation process because it is an intrinsically uncomfortable process. Asking for more money or making personal demands doesn’t come naturally to everyone. But with the right toolkit, you can breeze through contract negotiations. And you’d better get used to it, because you’ll have to handle a lot of contracts whether you’re a business owner or a company employee.

Having the right mindset is critical to contract negotiations. You have to believe that you are going to get your way. Bring a positive attitude and a smile to the table. You’re not signing contracts with the enemy. The people you’re negotiating with are going to be your business partners in one capacity or another.

Let’s take a look at some things you need to remember when you’re in the process of negotiating contracts.

over the language. If you’re unsure about certain things in your contract, pick up the phone and have a conversation. It will help sort things out.

1. Be patient

7. Don’t fret too much about the first draft

Don’t rush to get a contract signed. Rushed contracts usually leave one or both parties dissatisfied. It’s understandable if you want to get the negotiation done with, but taking the extra time to examine your contract will benefit you tremendously in the long run.

2. Involve an expert You might know what you need from a contract in terms of an overall business output, but you could get trapped by the legalese. Get a lawyer you trust on board to frame the wording in a way which protects your overall interests. Even if you’re good at negotiation, involving an expert is always a good idea.

The first draft of your contract is just a starting point.

Don’t be alarmed if there are certain things in there which aren’t to your liking. It’s called a ‘negotiation’ because you will be changing certain aspects of the contract.

8. If you can’t make the tough calls, get someone who will If you’re not a naturally assertive person or find it difficult to be demanding when the situation calls for it, ask for help from someone who is capable. It could be your business partner or even a spouse.

3. Don’t forget term sheets

9. Do your research

Term sheets are basically a broad overview of the terms of your contract. Before you get into the specifics, it’s a good idea to make sure all parties involved agree on the big picture.

You don’t want to make outlandish demands that the party you are negotiating with simply can’t afford. Take some time and do your research. See what similar services or products cost in the industry. Ask some experts for advice.

4. Take it one step at a time Negotiating a complex and lengthy contract is an inherently tedious process. In the beginning, make sure you’ve got the basic details agreed upon. Making some headway is crucial to the overall success of the negotiations. After you’ve established a rapport with the other party, you can dive into the deeper, more difficult issues.

Negotiating a contract is like a very slow game of chess, except both parties need to come away from the table victorious. Before you begin the process, figure out what your short and long-term goals are.

If you have a clear vision, it will help you navigate the tricky waters of contract negotiation better.

5. Think about the specifics The flowery language on a contract might make for good reading if you’re of a certain leaning, but you need to understand what it translates to in the real world. How much will you be making?

6. Use the phone Emails are notoriously difficult to decipher at times.

You aren’t aware of the body language of the sender and sometimes people can word things in a confusing manner because they don’t have the best command

Sandra Price www.tradiebookkeepingsolutions.com.au Facebook : Tradie Bookkeeping Solutions

2020 December Issue | 41

How to choose the right

CHRISTMAS GIFT Tips from psychological research Christmas is a time of celebration, relaxation and gift giving.

The following graphic illustrates the problem (with myself as the example recipient).

But choosing gifts can also make it a time of stress and anxiety. The wrong gift can actually do more harm than good.

Here is some advice, based on decades of research, on how to side-step such pitfalls.

Why do we give gifts?

Research into the psychology of gift-giving suggests there are two goals to consider when giving someone a gift.

The first is to make the recipient happy. That mostly depends on whether the gift is something they want.

The second is to strengthen the good relationship between giver and recipient. This is achieved by giving a thoughtful and memorable gift – one that shows the giver really knows the recipient. Usually this means figuring out what someone wants without directly asking.

The best kind of gift is one both desired by the recipient and is thoughtful. For me this might be a custom t-shirt printed with an in-joke.

The worst kind of gift, on the other hand, is neither desired nor thoughtful. For me, this might be a pair of socks.

Then there are desirable but unthoughtful gifts, such as cash, and undesired but very thoughtful gifts, which for me would be officially naming a star in my honour. I love astronomy but this just isn’t for me.

Navigating social risk

You can see the conundrum.

This is why buying a gift can be so anxiety-inducing.

There is a “social risk” involved.

To get someone the gift they most desire, the obvious thing to do is ask. This approach can achieve high marks on desirability. But it is set up to fail on communicating thoughtfulness.

A well-received gift can improve the quality of relationship between giver and recipient by increasing feelings of connection, bonding, and commitment. A poorly received gift can do the opposite.

2020 December Issue | 43

This has been shown by research. A 1999 study asked 129 people to describe in detail a situation in which they had received a gift. Ten people reported gifts that weakened the relationship. Two people actually ended the relationship after the gift.

In Chinese cultures, cash is given in a red envelope to decommodify the money by literally enveloping it in a symbol of good luck. If you’re going to give cash, think about doing it creatively, such as through clever origami or in some other way that personalises it. This will show a degree more thoughtfulness.

The closest alternative to cash is the gift card. The main benefit is that it requires some effort and allows some thoughtfulness in the selection of which gift card to purchase. Nevertheless, the research suggests the gift card is often reached for as a last resort.

The best gift of all The thought doesn’t count as much as you think. Gift givers tend to overestimate how well unsolicited gifts will be recieved.

How much does the thought count?

Research also shows people tend to overestimate their ability to discern what a recipient will like, and therefore what gifts will lead to a strengthening of the relationship.

A 2011 study asked respondents to think back to either their own wedding or a wedding to which they were a guest. Gift recipients were asked to rate how appreciative they were of gifts either listed on the gift registry or not. Guests were asked to estimate how well they thought gifts were received.

Gift recipients strongly preferred gifts on their list.

However, gift givers tended to wrongly assume unsolicited gifts (those not on the registry) would be considered more thoughtful and considerate by their intended recipients than was the case.

Gift givers also tend to overestimate that more expensive gifts will be received as being more thoughtful. But it turns out gift recipients appreciate expensive and inexpensive gifts similarly. In reality, they actually feel closer to those who give convenient gifts, such as a gift certificate to a nearby ordinary restaurant rather than a distant upscale restaurant.

The psychology of cash

What about simply giving cash?

If you want to have a wrapped gift under the Christmas tree and haven’t been tipped off on exactly what the recipient wants, go for something practical with a personalised touch. If you really are struggling, then a thoughtful card together with a flexible gift card is a safe option.

But the main takeaway from the psychology of giftgiving research is that, if your goal is to strengthen your relationship with the recipient, give them an experience.

A 2016 study asked people to give a friend either a “material” or “experiential” gift (valued at $15). Material gifts included things such as clothing. Experiential gifts included things such as movie tickets. Recipients of the experiential gifts showed a stronger improvement in relationship strength than recipients of the material gifts.

The most precious gift you can give a loved one, though, is actually quite simple: quality time. In a 2002 study involving 117 people, more happiness was reported from family and religious experiences than from events where spending money and receiving gifts was the focus.

So this Christmas, grab a drink, sit down and have a conversation. Get to know each other. If done well, come next Christmas, you’ll both know exactly what gift to get each other.

--------------------------------------------------------------------

Adrian R. Camilleri

Senior Lecturer in Marketing, University of Technology Sydney

After all, the recipient can buy exactly what they most desire. But cash is considered unthoughtful because it requires no effort and seems to put a dollar value on the relationship.

44 | Aussie Painting Contractor

Hiring & Managing

MILLENNIALS I am in no way an expert on millennials but I do know they represent a different way of thinking. The 2015 US Census estimated millennials as the 75.4 million people between the ages of 18-34. Various surveys and industry articles point out the unique ideas and principles of this group. Information readily available on the internet suggests that the vast majority of millennials are looking for job development, a chance to do something special, have a strong desire to fit in and want to feel part of a collaborative effort.

We can complain that millennials were raised with poor work ethic and unrealistic work expectations. However, they are what we have and not too many fifty-year-old people are actively looking for contracting jobs. What do we expect from a generation that was given participation trophies and coddled? The situation is a lot more complicated than that. Even kids know winning is more important than a participation trophy. It seems to me the millennials grew up with a strong desire to fit in.

Lots of soccer, youth groups, and other group activities.

Employers need to give them a chance to belong.

Research shows that millennials want to participate and be part of something. They also grew up in a household where they could readily express their opinion, so it can tough for them to understand why they can’t express an opinion in the workplace. Yes, some are lazy but all generations have had lazy people.

46 | Aussie Painting Contractor

In many ways, the problems facing contractors are just a continuation of their being stuck with their outdated school depression era ways of managing employees. Here are some of the philosophies that will not work with millennials.

“Do what you are told. Because I said so.” Today’s younger workers are highly social and merely telling them to shut up and do something rarely works. They want to know why doing something a certain way is so important. The “why” is very important to them.

“If I wanted your opinion, I’d ask you.” Millennials grew up communicating their opinion and want to participate and collaborate. Their parents allowed them to express an opinion. They don’t understand why they can’t do so at work.

“You gotta pay your dues to work here.” Millennials are impatient and want to move forward. Remember, they are the group whose parents told them they can be anything they want to be. They need to see a path to follow and are impatient to get to the end of the path. Ambition is not a bad thing. Don’t interpret this as disrespect. It is simply how their values were developed and how they see the world. Remember this is the generation that grew up with tech and instant information. Why would they be patient? Their world is instantaneous.

Phones and the internet is part of their DNA. You will not separate them from their phone and they may see many of your systems as archaic and outdated. Paper, what’s paper? They use screens and key boards. Email? They text everyone. If your company is not up to a certain tech standard, don’t be surprised when millennials don’t see it as a good place to work. Tech is the norm to them. They are good at it and have no fear of it.

Young people are good for any organization. They can be enthusiastic and a breath of fresh air. Having someone that wants to improve, participate and be part of your company is not a bad thing.

Millennials want to be part of something.

What does your company do to include them?

They want a career path. Are you clearly laying out steps for advancement and what they have to do to advance?

They want feedback. Do you have a system that regularly offers feedback?

Millennials want to give feedback. What systems do you have in place for them to offer feedback?

I know what you are thinking. Why should the company change? Why should millennials dictate your culture and what you do? Because there are 75m of them and they represent the prime hiring target for your company. You are a contractor and contractors need labor. Don’t be disillusioned thinking that minorities and Hispanics are immune to the millennial bug. If you were educated in this country, you are a millennial because all of your friends and fellow students practiced this culture.

Everywhere you look, businesses are looking for employees. The labor market is very competitive.

Contractors must change their ways and be more progressive. Contracting profits are driven by a contractor’s labor force. Contractors make things and you need employees to make things. Ignoring millennials just does not make any sense. You have to hire from the pool available and change your culture.

Don’t be surprised if you enjoy working with young people. It’s not all bad.

Monroe Porter

is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors.

www.proofman.com

2020 November Issue | 47

The Industry Idiots

48 | Aussie Painting Contractor

IMPORTANT

Contacts

Aussie Painters Network aussiepaintersnetwork.com.au

Ph. 0430 399 800

National Institute for Painting and Decorating painters.edu.au

Ph. 1300 319 790

Australian Tax Office ato.gov.au

Ph. 13 72 26 / Ph. 13 28 65

Award Rates fairwork.gov.au

Ph. 13 13 94

Fair Work Building & Construction fwbc.gov.au

Ph. 1800 003 338

Mates In Construction matesinconstruction.com.au

Ph. 1300 642 111

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2020 December Issue | 49