Joint Chamber Business Group Networking and Special Fair Work Briefing

Where: Realm, Ringwood Town Square, 179 Maroondah Hwy, Ringwood.

When: Wednesday, 18 October 2017 from 5.30 PM to 7.30 PM

This is a special event bringing together four local business groups and a local charity for extended networking and a special briefing on important employment matters including:

  • “How to avoid unfair dismissal claims and what to do if you get one” – Emma Watt, a former Ridgeline HR associate works as a Conciliator on Unfair Dismissal Claims in the Fair Work Commission and as CEO of the Timber Merchants Association
  • “Increased exposures and penalties for Fair Work breaches under the new Fair Work Amendment (Protecting Vulnerable Workers) Bill which takes effect soon – Chris White is a Ridgeline HR Associate based in Geelong and was formerly National CEO of the Civil Contractors Federation and General Manager of Skills DMC, a national industry training body
  • News and where to go for more information on modern awards and Fair Work Ombudsman activity including the new “Record My Hours” app and online tools and calculators – Peter Maguire, Practice Leader of Ridgeline HR, a member of Croydon and Ringwood Chambers and outsourced workplace relations service provider to members of the Civil Contractors Federation across Victoria.

The event is free, generously hosted by Maroondah City Council and it is also supported by:

Croydon                               Ringwood   Whitehorse                             Manningham

Footmen                          Ridgeline

Places are limited.

BOOK HERE

Changing gears for a winning culture

There is plenty of research out there that tells us that the 1900’s command and control approach to management just doesn’t work in the modern world where change is constant and people want answers and results now.

If we are going to get true employee engagement and high performance with today’s and future generations, we need to fundamentally change the management model to one based on leadership and values-based behaviours that deliver trust and inspiration rather than just process control and risk management which really only deliver compliance. This is what study after study tells us.

It means business leaders need to change gears and in doing so reimagine their business culture and language from:

  • human resources to human beings
  • risk control to trust
  • process control to relationship optimisation
  • management to leadership
  • tasks to behaviours
  • outputs to outcomes
  • compliance to engagement
  • command to inspiration
  • structure to flexibility
  • reactive to resilient

It is a big adjustment and it is easy to fall back into the traditional management norm that has been drummed into us for all those years.

That is why it is so important to have a clear vision about where you are going and clear values and behaviours that say how you are going to go about doing that and then holding everyone accountable for modelling those every day, most importantly yourself.

Be prepared to challenge and be challenged, listen to what your people have to say and learn from that. It is amazing what a difference it can make to performance, engagement, innovation and wellbeing.

Ready to change gears?

 

Ridgeline HR educating young people on workplace rights

This morning, we ran the first of our “Your Workplace Rights” briefings for secondary students and first up were Year 10 students at Melba College about to go out on work experience.

The briefing covered pay and conditions, National Employment Standards, Modern Awards and Enterprise Agreements and the roles of the Fair Work Commission and the Fair Work Ombudsman. The presentation included links to online information resources, tools and calculators that anyone can use to be better informed about their rights, entitlements and obligations.

This pro bono service has been launched for all Maroondah secondary schools as part of our contribution to improving community wellbeing in the City of Maroondah.

Improving people performance in 7 simple steps

Do you do performance appraisals in your business?

If so, how productive are they?

Here are some ideas on how you can improve the quality and outcomes of your performance and development conversations with your people.

  1. Define the purpose

Be clear about what you are trying to achieve.

You have made an investment in people and you want to get the optimal return on that investment, don’t you?

So the process should be about how you work with your people to improve their performance thereby improving business performance, shouldn’t it?

  1. Connect the dots

This is about “getting people doing what you need them doing in the way that you need it done all of the time”. Provide that alignment by “connecting the dots” for people and teams:

  • You have a business strategy (vision, values & plan) which sets out your goals and how you are going to achieve them – .the BUSINESS plan
  • You have teams which are established to execute specific elements of your business plan – the TEAM plan and
  • You have people who are engaged to execute specific elements of their team plan – the PERSONAL plan
  1. Keep it simple and practical

What you need is a simple process that is logical, easy to use and applied consistently in practice eg a basic Action Plan model for BUSINESS, TEAM & PERSONAL plans which set out:

  • WHAT is the goal? Ensure alignment between business, team and personal goals
  • HOW are we going to achieve it? Detail the activities and the learning required to achieve the goals.
  • WHO is going to do it? Make teams and people accountable for delivering the expected outcomes but also recognize supports they require.
  • WHEN is it going to be done by? Set realistic timeframes.
  1. Make the time

Just as you need to continuously monitor and review your business plan (because things change), so you need to ensure that your teams and your people are adapting to any changes required.

Have regular meetings at each level to review progress against the plan, confirm outcomes, identify areas for improvement and make any necessary adjustments. At the personal level these should be at least quarterly.

  1. Manage the time

How do you get the most out of the time together?

Start with being structured – allocate a specific period of time for the meeting and have a simple agenda which might be:

  1. Review progress against the plan
  2. Identify any changes that are required
  3. Congratulations on achieving outcomes
  4. Confirmation of areas for development and focus,
  5. Set next meeting date

And stick to the commitments – if your people are your greatest asset, why wouldn’t you!

  1. Have balanced and transparent conversations

People value constructive feedback which is balanced giving hem recognition for their achievements, clarification with improvement requirements and support with learning.

It is very important that you listen to what others have to say and give them constructive feedback including the reasons why you hold a particular view whether or not that accords with theirs.

Above all, there should be honesty and no unpleasant surprises.

  1. Change the language

Drop generic HR terms like “performance appraisal” which, over time, have too often been associated with ineffective practice and unwanted events.

Be innovative and think about words that resonate with your business goals and values integrating them into the process.

Get these 7 steps right and you’ll enjoy both the process and the results!

New bill set to raise Fair Work penalties by 900%

The federal government recently presented the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 to parliament and it is expected to pass into legislation with bipartisan support.

This bill has far reaching consequences with the proposed changes to the Fair Work Act 2009 including:

  • Introducing a higher scale of penalties for ‘serious contraventions’ of prescribed workplace laws up from $54,000 to $540,000 per offence for a corporation and from $10,800 to $108,000 per offence for an individual
  • Increasing penalties for record-keeping failures.
  • Making franchisors and holding companies responsible for underpayments by their franchisees or subsidiaries where they knew or ought reasonably to have known of the contraventions and failed to take reasonable steps to prevent them.
  • Expressly prohibiting employers from unreasonably requiring their employees to make payments (e.g. demanding a proportion of their wages be paid back in cash).
  • Strengthening the evidence-gathering powers of the Fair Work Ombudsman to ensure that the exploitation of vulnerable workers can be effectively investigated.

Particular attention is also being given to exploitation of migrant workers so businesses need to ensure that visas are in order and any work limitations are complied with.

Ridgeline HR offers a range of services to support businesses in getting compliance right and minimising risks internally and across franchise groups and supply chains.

Fair Work Ombudsman’s new “Record My Hours” App

The Fair Work Ombudsman has released a new “Record My Hours” app to enable workers to automatically record their hours of work using geofencing technology.

In essence, what happens is the worker enters the location of their workplace and the app will automatically track and record the hours that they spend in that location.

The Fair Work Ombudsman has done this to tackle a problem that they commonly encounter in investigating underpayment of wages complaints and that is the employer’s failure to maintain or produce adequate or accurate records.

Between 1 July 2016 and 31 December 2016:

  • 64% of the court cases initiated by the Fair Work Ombudsman involved an element of alleged record keeping or payslip violations and
  • 347 infringement notices with on the spot fines ranging from $540 to $2,700 were issued for record keeping and payslip contraventions.

Employers should ensure that they are doing the right thing with payslips and record-keeping to ensure legal compliance, minimise risks of fines and, of course, because that is all part of looking after your people.

Information on pay slip and record keeping requirements is available here.

Protecting against accessorial liability

The Fair Work Ombudsman has been very active in pursuing individuals who it believes have reasonably been a party to contraventions of minimum wages and conditions whether overtly in action or by omission or failure to exercise due diligence.

Investigations into cases involving large businesses such as Coles and Woolworths and Myer who contract work out to other entities which do not meet their compliance obligations have been undertaken from the perspective that the principal in the supply chain should have known and acted to prevent the non-compliance even though it was not the actual employer.

This raises questions about who might be considered an accessory to a contravention and here is what the Fair Work Ombudsman recently had to say about that.

Section 550

Under section 550 of the Fair Work Act; a person who is involved in a contravention of the Act is held responsible for that contravention. A person is involved in a contravention if they:

  • have aided, abetted, counselled or procured the contravention; or
  • have induced the contravention, whether by threats or promises or otherwise; or
  • have been in any way, by act or omission, directly or indirectly, knowingly concerned in or party to the contravention; or
  • have conspired with others to effect the contravention.

What does this mean for individuals?

Anyone who is found to be involved in a contravention of the Act can be personally liable for compensating employees and paying penalties imposed by the court. The Fair Work Ombudsman has used this provision to hold company directors personally accountable for the actions of their companies. This effectively means that liquidating a company is no guarantee of avoiding the consequences of non-compliance with the Act.

But section 550 can extend to anyone involved in a contravention. This can include human resources and payroll officers, line managers, accountants and advisors.

What does this mean for companies?

If a company, as the employing entity, contravenes the Act: that company is automatically responsible for that contravention and may have penalties imposed by a court. But under section 550 a company that is not the employing entity, may be found to be involved in a contravention and may also have penalties imposed by a court.

This is important for companies to consider especially in their supply-chain and procurement processes. Effectively it means that companies cannot outsource their non-compliance. For example if one company contracts another company to supply cleaning staff; and those cleaners are underpaid: both companies may be held accountable by a court. 

This has broad implications for businesses that use outsourcing, franchise arrangements or complex supply-chains. The full scope of section 550 in these types of arrangements has not been settled by the courts, however, the Fair Work Ombudsman is determined to take action to ensure a culture of compliance is established and maintained broadly across all businesses.

You should also note that fines of up to $10,800 per offence can be imposed on individuals and up to $54,000 per offence can be imposed on companies.

What you need to do

Firstly, if you are an employer, ensure that you are aware of and comply with your own obligations as an employer and that these are properly documented in employment contracts/letters of offer etc.

Secondly, if you contract work out to another party, verify that that contract enables the other party to be capable of meeting its employment compliance obligations and that that other party actually does so.

Thirdly, if you are an internal HR Manager or other Manager, ensure that you have processes in place that genuinely test whether work contracted out is conducted in accordance with employment obligations (ie people are contracted and paid appropriately). This needs to be more than having the contractor just tick a box

Fourthly, if you are an external business advisor, ensure that the advice that you provide is competent and, if you are not confident of your competency in employment matters, engage a delivery partner to provide that competency.

Ways that we can help

Ridgeline HR has been providing just that sort of advice since we started in 2000. We have done this with hundreds of clients across all sorts of industries throughout Australia. We have serviced the members of an industry association and the clients of accounting firms for many years and we have been recognised by federal government agencies in the past for our expertise.

We now also offer a supply chain education and audit service which in essence involves us auditing supply chain participants’ compliance and advising them on any areas that they need to fix. This proactive approach to assuring downstream compliance provides a simple and practical approach to managing the risk of accessorial liability.

If you are interested in exploring ways in which we might be of assistance in these areas, call Peter Maguire on 0438 533 311 or email peter@ridgelinehr.com.au

Will your termination pass the “3 tents test”?

Having been in the field of human resources management for over 30 years, there have been plenty of occasions where I have had to consider disciplinary action and termination of employment as remedies for misconduct.

In doing so, we need to consider fairness from a couple of angles:

  • Substantive fairness which requires that the action taken would not be harsh, unjust or unreasonable and
  • Procedural fairness which is about ensuring that due process has been followed and the principles of natural justice have been complied with

A process that I use to consider the substantive fairness of an action is to assess them against the “3 tents” namely:

  • Content: what actually happened, ensuring that you are aware of the facts of events that have given rise to consideration of action?
  • Intent: was the action or dereliction of duty or other offence deliberate or was it due to a misunderstanding or a heat of the moment thing and is it in or out of character for the individual concerned?
  • Extent: what was the effect of the action or dereliction of duty or other offence on the business and/or employees and/or other parties?

Of course there are the procedural elements to attend to as well but ensuring that the action that you propose will stand up to the “3 tents test” is a good start.

7 steps to effective policies

One of the most common requests we get at Ridgeline HR is for assistance in developing HRM policies and procedures for our clients.

Many businesses think that simply having a policy is enough to demonstrate compliance but there is actually a lot more to it than that as businesses too often find out the hard way.

It is not much good having a policy if it is not practised in fact and the fact is that, if a business doesn’t follow it’s own policies, it automatically has a compliance problem.

And there is quite a bit of work involved in ensuring that policies are both appropriate and managed in the right way to achieve their objectives.

There are 7 steps to effectively implementing policies:

  1. Be clear about why the policy is necessary(and, if it isn’t, don’t do it).
  2. Ensure that the policy aligns in content and presentation with your vision, values and strategy (don’t create contradictions).
  3. Communicate the policy appropriately to everyone to whom it has application (on launch and progressively through inductions, refreshers etc as necessary).
  4. Train people who have roles to play in application of the policy in how to perform those roles in the right way.
  5. Assess risks (eg people who might have potential to breach the policy or need additional support to comply with it) and implement appropriate risk management strategies.
  6. Consult people and review practice regarding the policy to ensure that it is working as intended.
  7. Review the policy annually to take account of any legislative or best practice developments as well as organisational experiences to continuously improve it and ensure ongoing compliance – return to Step 1.

Perhaps the thing that I find most remarkable about most organisations which focus on risk management is that they don’t actually assess risks that exist in their organisations when they implement a policy. See Step 5 above.

There is too often a mentality that, if the rules are communicated and an individual then doesn’t follow those rules, the risk is transferred from the business to that individual.

For organisations that might be in that space, I suggest that you consider why the policy is needed in the first place – ie what purpose (other than complying with a legal obligation) does it serve in the management of people?

Or, to put it another way, why did it become a legal obligation in the first place?

Do your policies exist for policies’ sake or do they have a positive impact on your people and culture?

Why does HR struggle to impact organisational performance?

This is a question often asked and, from my perspective, one not often answered well.

That’s because there are a number of factors at play here and here are some that come to mind.

You get what you ask for

The first hypothesis that I want to put to you is that the HR function (it’s focus, responsibilities, purpose, activities, relationships etc) is the product of the business owners and/or board and/or senior executive – their philosophies, priorities and perspectives on what HR is and is there for in the context of the particular business setting.

For example, on my first day as HR Manager in one business, my boss, the Manufacturing Manager, said to me “It is great to have you on board, we have missed having someone to get us out of trouble!” “Ouch!” but clearly the focus for the business and the bulk of my activities were going to be on risk management and conflict resolution. That proved to be the case.

What that means is that the business gets exactly what it asks for in HR and, most of the time, that is not what (or not all of what) the business really needs.

The HR hierarchy

Having worked with hundreds of organisations over many years, I have identified 4 tiers of HR (the 4Cs which underpin our consulting model at Ridgeline HR) and these are:

C1:  Commitment – we do what we need to provide direction and meet legal obligations

C2:  Capability – we have implemented systems to assist in HRM

C3:  Competency – we have trained our managers to manage their people appropriately

C4:  Culture – we have strategies which engage and develop our people to deliver results

This leads me to my second hypothesis – 80% of Australian businesses have not progressed beyond C1/C2. Their focus is on compliance and risk management, on record keeping and avoidance of complaints, unfair dismissal claims etc, rather than on organisational development and employee engagement.

What that means for most HR Departments is that compliance is the focus and HR is therefore seen by the business as a compliance cost and not a value adding performance enabler. It is hard to get excited about cost!

I am a human being!

Now to my third hypothesis – we are human beings (not just human resources) and we want to do a good job. We want to have a sense of purpose, we want to feel that we are contributing to and are part of something worthwhile, we want to have dignity and pride in our work regardless of our station and we want to feel valued and recognized for our contributions.

Bearing this in mind, let’s revisit the 4Cs looking at them from an employee’s perspective:

C1: Commitment – I know what is expected of me.

C2: Capability – I am provided with the tools, equipment and systems I need to do my job.

C3: Competency – I receive the training and support that I need to do my job well.

C4: Culture – I understand how I contribute to our success and I am empowered to do it.

Again, I believe that most Australian employees would see themselves as being at C1-C2 because that is where their employers position them and these are the key HR messages being sent to people – comply, do what is expected and we won’t have any problems with you. Not really inspiring stuff, is it?

What this means is that organisations’ expectations and HR messages to its human resources are far too often at odds with our needs and values as human beings – and that is why we don’t get good employee engagement.

And we are not learning

There is a huge body of research which tells us emphatically that the key to productivity improvement, in generating that discretionary effort on the part of our people, in encouraging innovation and discovering new and better ways to work in all sorts of fields is employee engagement.

Yet our current national debate on productivity is centered firmly on employment laws and costs rather than contemporary thinking on what makes a productive business and a great workplace and the importance of good leadership and employee engagement in this regard.

If our national industry leaders don’t get it, it is no wonder that HR Departments struggle to engage with it, let alone deliver it!

Do we have the will?

It is much safer to stay in the compliance space – after all:

  • It is the law or the customer or the government or someone else who makes the rules, isn’t it, and therefore they (not us) are responsible for the rules, right? and
  • If we have told everyone what the rules are and they haven’t complied with them, that is their fault (not ours), right?

Or are we prepared to take on the realities of what our people really think about our organization and do something constructive about it?

Are we prepared to consult with people to inform them, to obtain their input into decision-making and to get them engaged in conversations as part of the culture or will we continue to just consult them as and when required to under employment and workplace health and safety laws?

Are we prepared to invest in their development and wellbeing in a meaningful way as opposed to just doing what we have to in training and workplace health and safety?

I could go on but you get the picture, I’m sure.

So are you in the 80% who need to change and, if so, do you have the will to make it happen?

Things won’t turn around overnight but they will turnaround if you have the will to persist.

There are plenty of good tools and resources around to help and a couple of my favourites are https://www.investorsinpeople.com/https://www.investorsinpeople.com/ and www.engageforsuccess.org. All free stuff – enjoy.