7 ways to build trust

In the backwash of the banking royal commission, the investigations into paedophilia in religious institutions, ongoing domestic violence and gender inequality, much publicised cases of underpayment of wages by rogue employers and gig businesses and rorts by members of parliament and government officials, there is a lot of talk about “trust” and Australia having a “crisis of trust”.

Interestingly, one of the primary qualities that great employers have is trust and there is a great opportunity for businesses to make a difference in our community by leading change through the practice of trust.

Are there things that you as an employer can do differently to be more trusting in your people and to be more trusted by your people?

Here are a few suggestions for any leader.

 

Respect my views

Seek my opinions and ideas, listen to any concerns I have and always ensure that you understand what I am saying and why. Respond to me in a timely, polite and constructive way. Never leave me wondering where I sit with you and any issues of concern.

Believe in me

I want to do a good job and want you to help me do that. Accept that sometimes I might make mistakes but that, with your help, I will learn from them. See me as someone worthy of investment and optimism rather than through the lens of risk and micro management.

Let me be myself

All of us have our own styles and strengths and that diversity is powerful. Give me opportunities to use my strengths so that I can enjoy and succeed in my work, grow in my own way and enhance my value to the business.

Let’s get to know each other (appropriately)

If we understand who each other is, what each other’s strengths are and what we rely on each other for, we have the foundation for building a positive and constructive relationship. I may be able to help you with something that you are struggling with just as I expect you as my employer to support me.

Give me clarity

I want to know where we are going and what it is that you need me to do to help you get there. Put a plan in place and help me to do my part by having clear goals and responsibilities and a plan of action. Catch up with me regularly to coach me and support me to deliver on the plan. Celebrate successes and capture the improvement opportunities.

Give me a sense of belonging

Have clear statements of purpose and values that tell me what the organisation stands for (ie why it exists and how it behaves). Engage me by living that purpose and values every day in every way so that I am inspired to perform for you and go the extra yard.

Believe me

If I tell you something, believe that I am telling you my truth. If I tell you I can’t come in today, believe that I have a good reason for that. If I tell you that I am unwell, don’t make me go to the doctor to prove I am unwell – let me get better. If I am struggling to get the desired outcome with something, accept that I am trying my best and look at how you can help me to deliver what you want.

Our EngageMentality coaching and organisational development model focuses on peoples’ strengths and building respectful and productive relationships in the workplace. Building trust is a central element of the process. To find out more, call Peter Maguire on 0438 533 311.

New leave to deal with family and domestic violence

All modern awards have been varied with effect from 1 August 2018 to provide all employees including casuals with an entitlement of up to 5 days unpaid leave per annum to deal with family and domestic violence.

Read more

More changes for employers

The changes keep coming in the field of workplace relations:

Annual Wage Review

There are a number of changes taking effect from 1 July 2018 as a result of the decision in the 2017-2018 Annual Wage Review as follows:

  1. The national minimum wage and award rates have been increased by 3.5%.
  2. The filing fee for dismissals, general protections and anti-bullying applications made to the Fair Work Commission increased to $71.90.
  3. The high income threshold in unfair dismissal cases increased to $145,400 and the compensation cap to $72,700.

Penalty Rates

The next wave of Sunday penalty rate reductions flowing from last year’s penalty rates decision also take effect from 1 July 2018 as follows:

Fast Food Industry Award 2010

  • Level 1, full-time and part-time employees: 145% > 135%
  • Level 1, casual employees (including casual loading): 170% > 160%
  • Other levels: no change

Hospitality Industry (General) Award 2010

  • Full-time and part-time employees: 170% > 160%
  • Casual employees stay at 175% including casual loading

General Retail Industry Award 2010

  • Full-time and part-time employees: 195% > 180%
  • Casual employees (inclusive of casual loading): 195% > 185%

Pharmacy Industry Award 2010

  • Full-time and part-time employees: 195% > 180%
  • Casual employees (inclusive of casual loading): 220% > 205%

Extension of ATO’s contractor reportable payments scheme 

On 9 May 2017 the Government announced that from 1 July 2018 businesses that supply courier or cleaning services will need to report payments made to contractors if the payments are for courier or cleaning services.

These payments must be reported to the ATO each year using the Taxable payments annual report.

Businesses in the building and construction industry have been subject to this requirement for a number of years.

Labour hire licensing

The Victorian Labour Hire Licensing Act has been passed by Parliament and is expected to come into effect by no later than 1 November 2018.

This means that labour hire firms will not be able to legally operate in Victoria unless they have a licence having passed a fit and proper person test and satisfied a number of other requirements.

Similar legislation is already operating in Queensland and in the process of implementation in South Australia.

Long service leave

The Long Service Leave Act 2018 makes a number of changes to long service leave entitlements in Victoria. These include:

  • Employee access to long service leave after 7 years of eligible service (down from 10 years).
  • The existing entitlement to payment in lieu on termination of employment after 7 years’ eligible service remains.
  • Unpaid parental leave will count as service (whereas currently it does not count but doesn’t break service).
  • If an employee resigns and is reemployed within 12 weeks, service will be deemed to be continuous (currently that only happens if the employee is dismissed and reengaged within 12 weeks).
  • Long service leave service will transfer from one employer to another where there is a transfer of tangible and/or intangible assets and the employee performs duties in connection with those assets (currently only tangible assets matter).
  • The method of calculating entitlements where there have been changes in an employee’s working hours is changing.
  • The ability of an employer to apply for an exemption will be abolished.
  • Penalties for non-compliance will go from being civil penalties to being criminal penalties.

This legislation is expected to come into operation on or about 1 November 2018.

Portable long service leave in some industries

There is already a statutory portable long service leave scheme in the construction industry – see Coinvest.

The Victorian Long Service Benefits Portability Bill 2018 (Bill) will, if passed, extend portable long service leave benefits to employees in the the community services, contract cleaning and security industries.

In essence, this means that a worker in those industries will be eligible for long service leave once they have 7 years’ industry service regardless of how many employers that might be with.

Employers will have to contribute to a fund run by a statutory authority which will manage workers’ entitlements.

Domestic Violence Leave

The Fair Work Commission has approved an award entitlement to unpaid domestic violence leave of up to 5 days per annum as part of the 4 year review of modern awards. More to come on this regarding when it will take effect but it should be some time soon.

Casual Conversion

The Fair Work Commission also made a decision on a model clause for conversion of casuals to full-time or part-time employees in 2017 but it is yet to be flowed on to awards. Again that is something that should happen soon.

Conclusion

There is a lot that has changed and a lot more coming employers’ way. We will be issuing regular updates on new developments so please subscribe if you want to be kept informed. Scroll down to the right bottom of the page to do that.

Significant non-compliance in local government security supply chain

The Fair Work Ombudsman has reported on an Australia-wide audit of the security service supply chains of 23 local councils with key findings as follows:

  • non-compliance with workplace laws in the supply chains of 14 (61 per cent) of the 23 councils, with breaches primarily relating to underpayment of minimum award rates as well as under- or non-payment of applicable penalty rates and overtime;
  • 63 per cent of subcontractors were found to be non-compliant compared to 42 per cent of principal contractors, who had a direct relationship with the council.
  • the Fair Work Ombudsman issued 26 formal cautions, 15 compliance notices and four infringement notices to non-compliant contractors and subcontractors.
  • A total of $72,250 was recovered for underpaid workers.

The full media release can be accessed here.

The Fair Work Ombudsman, Ms Natalie James also stated:

“While it is the primary responsibility of the employer to ensure compliance with workplace laws, it is clear that councils could – and should – be doing more to keep tabs on what is going on in their security contracting networks.”

“We’re recommending that local councils amend their security services tender documents to reflect best practice on contracting labour and ensure that the amounts paid in their contracts are sufficient for contractors and subcontractors to cover employee entitlements.

“We also expect that councils are proactive in monitoring their security supply chains, including by requiring contractors to regularly report on their compliance with their workplace obligations.

“Beyond such measures being in line with community expectations, councils should note that it is not just employers who can be held liable for breaches such as underpayments occurring in a supply chain – in certain circumstances councils themselves may be held legally responsible when their contractors or subcontractors are not complying with the law.”

With penalties of up to $630,000 per offence for a corporation and up to $126,000 per offence for an individual, there are also strong commercial grounds for local councils and their officers to follow the Fair Work Ombudsman’s advice.

Ridgeline HR provides tailored, thorough and affordable workplace relations compliance and audit programs for franchise groups and supply chains. 

“Ridgeline HR has  recently completed a very thorough confidential assessment within our wider franchise network to check understanding of workplace laws and minimum standards.    This has also involved the provision of a comprehensive compliance kit.   Peter Maguire (Practice Leader) has a very thorough knowledge of workplace relations within Australia, provides an excellent service and brings a very practical approach.   I would warmly recommend them.”

Leida Meijers, HR Director, Europcar

How mature are your HR practices?

Questions are often asked about the value of HR to an organisation and the level of influence that the HR function has on overall business direction and decision-making.

More recently, with the disclosures of corporate malpractice and unethical executive conduct in the finance industry in particular, there are significant questions about the culture of the organisations concerned and, by extension, as the culture custodians, where were HR in all of this.

The truth is that HR can look very different in different organisations and is more often than not reflective in style of the mindset of senior management. Is the focus compliance or is it about real employee engagement? Is it about risk management and enforcement or is it about leadership and values-based behaviour? Or is it just a processing function administering operational procedures and conflict transactions?

Where does HR sit on the scale of maturity in your organisation?

Back in 2005,we developed a maturity model based on our experience in dealing with hundreds of organisations and this 4C model is a core part of our consulting and coaching offerings. While in our consulting, we focus on “People and Culture”, you can apply the methodology to any business function.

Here is what it looks like:

C1 = Commitment: this is the ground floor, the point at which an organisation makes a specific commitment through a vision statement or a values statement or a set of goals in a business plan or a policy statement or a contract which sets out an obligation that the business commits to.

C2 = Capability: this involves the organisation investing in the resources needed to give life to the commitment including the right people, processes, tools and equipment.

C3 = Competency: here the organisation has invested in the learning and support that people need to effectively play their part in utilising the resources and they are delivering good outcomes in the area of the commitment.

C4 = Culture: where the commitment has been fully embedded in everyday activity in practice, people believe it and they are consistently delivering high performance outcomes.

A lot of the organisations that we have worked with in our compliance activities are at C1 to C2 level and a significant number are quite limited in the breadth or range of commitments that they have made in real terms. Managing people is an ongoing challenge for these businesses.

Then there are the others who aspire to be employers of choice and really get the connection between employee engagement and wellbeing and high performance. With the right leadership, a positive mindset and values driven behaviours, those aspirations can be realised. Our 4C framework provides a simple and effective roadmap for getting there.

If you look at the people and culture practices in your organisation, where do you sit on the 4C scale?

6 tips on effective communication

Why is it that, whenever you conduct an employee survey or business diagnostic, communication comes up as one of the key areas for improvement?

In part, it is because we are human and we each deliver and receive and interpret information in our own individual way.

In part, it can be because, as business owners and managers, we are technically competent in what our businesses do but we are not necessarily trained or skilled in communication techniques.

In part, it is also because, in any business, the timely and accurate flow of the right information to the right people is critical for getting work done efficiently and optimising job satisfaction for the people involved.

In part, it can be because we don’t think through the actions that we are taking or changes that we are implementing by consciously considering who is affected and needs to be communicated with.

And, in part, it can be because in the everyday hurly burly of running a business, we can forget to communicate or have trouble listening to others who have something to say that is significant for them.

So what can you do to improve communications in your business?

  1. Project positivity from the top.
  • Be honest and transparent
  • Be clear about the purpose
  • Set good practice standards in policies (not just consequences for breaches)
  • Ensure that all of your managers/leaders believe the message and “sing from the same hymn book”
  • Be timely
  • Be responsive
  • Celebrate successes
  1. Define the audience on 3 levels

Tailor your message to people to take account of:

  • Whole of business communications (what everyone needs to know)
  • What particular teams might need to know about the impact for them and
  • What individuals need to know about the impact for them

Consider other stakeholders as well eg customers, suppliers, contractors, etc and what you need to tell them if they are (potentially) affected in some way

  1. Build it into project management
  • Identify stakeholders in each project up front
  • Identify key points and messages to be given in the project
  • Build these communications into the project plan
  • Make sure it happens
  • Review the effectiveness of communications as part of the review process on project completion.
  • Learn from that and continuously improve
  1. Validate understanding

This is about ensuring that the people concerned “get the message” and know what it means for them. It is really just a question of asking them what it means for them, ensuring they understand and observing what is happening in practice

  1. Give your people genuine voice

This is probably the improvement opportunity that comes up most often in employee surveys and there are lots of options such as:

  • Set up a staff consultative committee or representative workplace improvement team
  • Do regular employee surveys to get people’s views and spot check progress
  • Have a publicly committed to improvement plan for people and culture
  • Ensure that you have trusted and effective grievance and suggestions processes in place
  • Give people regular and balanced feedback about how they are going
  1. Make sure you have the capability

Continuously work on your communication processes and skills as a core business competency that impacts critically on all aspects of running a business.

If you don’t have the strengths internally, look externally to get help in communications design, positive policy writing and coaching for people in your business who play key roles in communications.

The spin offs are higher efficiency, happier people and a more profitable business.

Ridgeline HR offers a variety of coaching, consulting and contracting services to assist businesses with consultation and communication requirements and enquiries can be directed to Peter Maguire on 0438 533 311 or email pmaguire@ridgelinehr.com.au.  

 

Is an enterprise agreement right for your business?

It is now over 25 years since enterprise bargaining became an option in the Australian industrial relations system, first introduced via the Prices and Incomes Accord between first the Hawke and then the Keating Governments and the ACTU.

Unfortunately, over the years, unions and employers with unionised workplaces have dominated the enterprise bargaining space and there are few examples of genuine change delivering benefits for both employers and their people. They have really been just about negotiation of over award pay and conditions.

That is why many corporates are stepping away from enterprise agreements now – they don’t see them as offering productivity and flexibility benefits, notwithstanding the fact that they don’t see modern awards as positive alternatives either.

So why would any employer want to have an enterprise agreement today?

Ridgeline HR Practice Leader, Peter Maguire, who has been involved in enterprise bargaining since the early 1990s, offers some options for you to consider:

  1. “The first enterprise agreement that I negotiated was nominally about pay and conditions but what it was really about for me was enshrining a requirement that any matter requiring a vote by employees had to be by secret ballot. Why? Because the women who made up most of the workforce were intimidated by a small group of males backed by male hierarchy in the union and the blokes would hold sway if the vote was just by a show of hands. The union said the agreement wouldn’t get up – the secret ballot delivered an 87% approval by employees. We gave the women their voice and they backed us and that was a significant cultural change for them and the business.”
  2. “25 years ago, I participated in the process that developed the so called skills based classification structures that grace our modern awards today. The reality is that those structures were primarily the product of  industrial relations negotiations so they were mostly flawed from the outset. The world of work has also changed dramatically since then and it should be no surprise that they are not a great fit with the skill sets and talent hierarchies that exist in lots of businesses today. So, if your business is paying your people significantly above award, why wouldn’t you put in place the classification and pay structure that makes sense for your business and your people in today’s world.”
  3. “There are some award provisions that are just wrong. For example, the Building and Construction General On-site Award has an Industry Specific Redundancy Provision that gives employees who leave after their first year ‘other than for reasons of misconduct or refusal of duty’ a redundancy payment of up to 8 weeks’ pay. In the civil construction industry that means that a Plant Operator or Labourer or Traffic Controller would receive that benefit if they resign or are sacked on other grounds eg performance grounds. Other staff in civil construction such as engineers, administrative people, truck drivers etc don’t get those benefits. That is just not right or fair and can be addressed by including the National Employment Standard on redundancy for all employees regardless of business size and employee occupation.”
  4.  “The pay structures in some awards are extremely complex with a combination of base rates, allowances, penalty rates and loadings and, in some cases, specific clauses on annualisation of salaries all of which can be hard for small business owners to get their heads around. An enterprise agreement can help to make that all a lot simpler by redefining how all of that works in simple and easily understood terms and in the context of normal business operations. For example, you might typically work a 40  hour or 45 hour or 50 hour week and would like to be able to just pay a flat rate or an annual salary for doing that. That can be done in an enterprise agreement by striking flat rates that factor in all of monetary award rates, loadings and allowances with a caveat that, if you go outside the prescribed arrangement, there are extras that come into play and they are defined in the agreement as the exception rather than the rule. This ensures that your people are still better off overall and you know just what you need to do to safeguard that outcome and stay compliant.” 
  5. “Principals in supply chains and head contractors on major projects like to be assured that they will not be subject to operational disruptions caused by protected industrial action. That assurance can come from the delivery partners or sub-contractors having their own current enterprise agreements and this provides a resultant advantage when your business is bidding competitively for work.”
  6. “Enterprise agreements sit in the public domain on the Fair Work Commission’s website and so serve as both a demonstration of your business’s compliance with workplace laws and your value proposition as an employer. This sends positive messages to both the labour market and the regulator. ” 

So perhaps there are some benefits to having an enterprise agreement after all.

If you would like to explore the opportunities that enterprise agreements offer, give us a call.

 

Lessons from the 2017 Corporate Health and Wellbeing Summit

I recently attended the Corporate Health and Wellbeing Summit in Sydney and thought that I would share some of the key learnings from what were a great set of presentations.

I have selected three – one from a regulator’s perspective, one from a manager’s perspective and one from a consulting psychologist.

Lucinda Brogden, Commissioner,

National Mental Health Commission

 Lucy presented some startling statistics on mental health and its impact on productivity such as:

  • About 1 million Australians live with depression and about 2 million live with anxiety
  • 8 Australians (of whom 5 are men) die of suicide every day
  • Mental health conditions cost Australian businesses $10.9 billion per year
    • Compensation claims: $145.9 million
    • Absenteeism: $4.7 billion
    • Presenteeism: $6.1 billion

She recommended 6 ways in which businesses can improve mental health in the workplace:

  1. Smarter work design
  2. Promoting and facilitating early help seeking and early intervention
  3. Building a positive and safe work culture
  4. Enhancing personal and organisational resilience
  5. Supporting recovery
  6. Increasing awareness of mental illness and reducing stigma.

Stephen Scheeler, Former CEO, Facebook ANZ

Stephen spoke about the challenges he had joining the organisation in his 40s when the average age of Facebook employees is 26. He said he had been there about a week when the HR Manager gave him some feedback “You need to smile more, don’t look so serious”.

He also spoke about the importance of being positive in line with the values of the organisation which was going through massive change e.g.:

  • Revenue of $1.58b in 2012 to $27.6b in 2016
  • Facebook users from 0.9b in 2012 to 2.0b in 2016

Steve cited this comment by Facebook Chief Operating Officer, Sheryl Sandberg as a real indicator of their attitude to their people:

“Bring your whole self to work. I don’t believe we have a professional self Monday through Friday and a real self the rest of the time. It is all professional and it is all personal.” 

Dr Aaron Jarden, Psychologist, South Australian Health and Medical Research Institute

 Aaron described his goals as follows:

“Within an organisational setting, it’s to enable organisations to invest in creating more rewarding, happier jobs for their people. To create positive workplaces where people are able to do meaningful and enjoyable work that taps into their greatest strengths and their most important goals. To capitalise on the unique intellectual and personal strengths of each employee by focusing less on getting employees to do their work and fixing problems and more into promoting excellence by enabling them to do good work; their best work.

He advocates that one size does not fit all and workplaces should be looking to utilise peoples’ strengths to optimise engagement, job satisfaction and productivity.

Aaron introduced the audience to a free strengths survey tool (VIA Survey of Character Strengths which can be accessed at http://www.viacharacter.org/www/Character-Strengths-Survey) as a way for people to identify their key strengths.

I recently participated in an exercise using this survey tool in a committee of volunteers and found it to be very useful in identifying my key strengths, comparing mine to those of others on the Committee and looking at how we can best deploy each others’ key strengths to get optimal results.

Aaron emphasised that positive leadership is crucial – “Leadership involvement was cited as the most effective factor for a successful wellbeing program by 59 percent of employer respondents. (State of Workplace Wellbeing Survey).”

In 2018, Ridgeline HR will be launching a Better Workplaces Project which will utilize positive psychology principles and a strengths-based approach to achieving improvements in employee wellbeing, engagement and productivity.

Contact Peter Maguire on 0438 533 311 or email pmaguire@ridgelinehr.com.au if you would like more information.

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.