Human Capital magazine issue 8.2 by Key Media

human capital

HC issue 8.2

Teambuilder:

Profile:

mCDONALD’S

deLL

Renewal Top HR strategies for growth »» eBay AUSTRALIA »» Woolworths Limited »» Carnival Australia »» St Vincents & Mater Health

HRSUMMIT2010

EXCLUSIVE COVERAGE

EDITORIAL “You’re hired!” A

nyone who had the misfortune of watching the Australian version of The Apprentice on television last year would know that finding talent is tough. On that show, a group of upcomers must work together on corporate projects every week, and are then assessed on their efforts by the CEO – in this case finance guru Mark Bouris. Each week the ‘weakest link’ is fired. Transfer that scenario into the real world. Imagine if a new executive team was to be pulled together from a group of current employees. Would anyone from HR make the grade? Or would the tried and tested route be taken by advancing people with finance, legal or marketing backgrounds? Of course it depends on the competency of those involved, the culture of the organisation and, to some extent, the leanings of the CEO when it comes to people matters. It would certainly be a foolhardy CEO to knock back any of the profiled HR professionals in this issue of Human Capital. While it’s true that broadly speaking most HR practitioners can still be divided into those with a strategic mandate and those with a transactional mandate, the people profiled in this issue operate side by side with the executive team. It’s inconceivable to consider HR absent from these executive teams. Indeed, for these HR professionals the argument over whether HR should be at the executive table is stale. Instead, it’s about proving why they should stay there. To quote Karl Solomonson of Dell: “The days of HR demanding a seat at the table are long gone. We have to be able to deliver value to the business. For me that’s delivering value through people-based strategies that are aligned to our company strategies.” 2010 will hopefully provide the right environment for HR’s stars to continue to shine.

Winner!

For taking part in our 2009 readers’ survey, Jon Nolan, HR director Asia-Pacific, Ansell Healthcare, receives a $150 voucher from de Groots Best Gift Certificates.

In the first person… “Those organisations that took a short-term view and cut jobs, pay and benefits will struggle because that only serves to disengage people” – Kim Schmidt, HR director, Woolworths Ltd, on the benefits of long-term HR policies (page 14)

“You don’t want your new employee floating around in a haze of ambiguity wondering if they are doing ok” – Lenore Lambert, director, Exit Info, looks at onboarding (page 38)

“Any company is only as good as its people. It’s relatively easy to build bricks and mortar but without the people, they remain only bricks and mortar” – Tim Fenton, President, Asia-

editor’s letter issue 8.2

managing director chief operating officer editor journalist production editors contributors marketing manager marketing coordinator traffic manager design manager designer photographer senior web developer it/is manager sales director

Mike Shipley George Walmsley Iain Hopkins Daniela Aroche Carolin Wun Katrina Fox Moira Daniels Carroll & O’Dea Lawyers Chifley Business School The Next Step Chandler Macleod Group Danielle Tan Jessica Lee Stacey Rudd Jacqui Alexander Paul Mansfield Thilo Pulch Kevin Kim Colin Chan Justin Kennedy

Editorial enquiries

Iain Hopkins tel: +61 2 8437 4703 iain.hopkins@keymedia.com.au

Advertising enquiries Sophie Knight tel: +61 2 8437 4733 National Commercial Manager, HR Products sophie.knight@keymedia.com.au

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Pacific, the Middle East and Africa (APMEA), McDonald’s Restaurants, talks teambuilding (page 52)

“The days of HR demanding a seat at the table are long gone. We have to be able to deliver value to the business. For me that’s delivering value through people based strategies that are aligned to our company strategies” – Karl Solomonson, Dell HR business partner for public sales Asia-Pacific and Japan, on the current status of HR (page 48)

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this issue

inside HUMAN CAPITAL

HC ISSUE 8.2

TEAMBUILDER:

PROFILE:

MCDONALD’S

DELL

14 Cover story:

Back on track

As organisations inch towards recovery, Iain Hopkins interviews four top HR professionals about the year ahead, their greatest challenges and why they still get a kick from HR

Renewal Top HR strategies for growth    

EBAY AUSTRALIA WOOLWORTHS LIMITED CARNIVAL AUSTRALIA ST VINCENTS & MATER HEALTH

HRSUMMIT2010

EXCLUSIVE COVERAGE

corporate prisoner 44 The The realities of the global recession have switched attention to the core HR issues of performance and engagement. Ian Gooden outlines why some employees may not be along for the road to recovery

the mask 32 Behind “One may smile, and smile, and be a villain.” Although Shakespeare wasn’t referring to shifty job candidates, his observation is valid when it comes to pre-employment screening. Human Capital outlines how to weed the villains from the heroes

The crucial piece

28 2

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Still wondering about screening for cultural fit? Where does psychometric testing fit in, and how does it serve to enhance corporate culture?

regulars 4 In Step

9 Corporate culture

6 Legal

10 HR technology

8 Training & development

Letters to the editor Do you have a burning HR or people management issue you would like to share with others? Would you like to share your thoughts on the challenges you’ve faced and how you’ve overcome them? Want to kick off some debate about your industry? If so, Human Capital would like to hear from you. Send through your comments to editor@hcamag.com

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instep HR Career Experts

Page 4

OD – Back In Business

here were we before we were rudely interrupted by the GFC? … ah yes, that’s right … worrying about retention, productivity and creating a positive workplace culture! It is abundantly clear that in 2010 we are going back to this agenda with the marketplace and the business revisiting organisational culture and performance improvement as major issues. This is a far cry from some of the priorities in 2009. In this month’s Instep, we look at the already strong focus back on OD in the market and some of the challenges that this specialist area of HR has in being recognised by the market and acknowledged for the complexity of its work.

Market perception of OD

If many in the business community don’t know what work HR generalists do to improve business performance, what chance do they have of understanding the OD space? At its most simplistic, there is an element of the business community that views the OD space as simple training programs. In its 21 January 2010 edition, the BRW – in dealing with organisation culture – focused its attention on teambuilding activities. It warned its readers of the perils of teambuilding, predicting an increase in the use of these activities as organisations had been through a period of hardship and difficulty. The article then took the reader through a confusing meander from teambuilding to other areas such as EAPs (Employee Assistance Programs) and organisation culture surveys. How these are linked is anyone’s guess – no wonder the business community is confused about the OD space! To be fair, the article did eventually offer a ray of light at the very end. It mentioned that one of the interviewed consultants, “does not offer teambuilding, but does help with organisational change and making executives more effective”. There was no mention of how they might do that.

HR’s perception of OD

Even within the HR profession, OD is seen differently from one organisation to the next. Often, there doesn’t appear to be a good appreciation of the OD space and the work that an OD expert

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specialist can achieve. Most of the other specialist areas of HR don’t seem to suffer from this sort of identity crisis. For instance, in Remuneration it’s more black and white. You have either run the Rem review, managed STI/LTI programs or designed executive packages for a large public company or you haven’t – end of story. The same applies to areas such as OH&S, IR and HR technology. So why the confusion? The reality is that OD is complex and there are many shades of grey.

OD – an area of great complexity

To design and execute the right OD/Change initiative in a commercial organisation that is in competitive markets with constantly shifting priorities is hard. Most organisations aren’t static case studies. Areas such as Change Management, Leadership Development, Succession Planning, Organisation Analysis and Design, and Organisational Engagement are easy to list on a CV, and most HR generalists would probably say that they are also across these areas. The reality is far from the case. To have the knowledge and the tools to deploy the right strategy, at the right time, in the right way to get maximum traction, requires an OD specialist. Just the same way that designing an executive compensation system to link with shareholder value creation requires a Rem specialist. For instance, would the average generalist have the experience and knowledge to design an organisational-wide competency framework and integrate this with the performance and talent management, and succession planning programs? Or to conduct a review and assessment of the calibre and effectiveness of the company-wide sales force, management and processes and make key recommendations that are adopted as part of the overall business plan? An OD expert is realistically required to deliver these types of projects and others that are wide in scope and far reaching in terms of their impact on organisational performance.

The future for OD in 2010

In a survey conducted in December 2009 of almost 2,000 HR professionals, only 8.5% identified themselves as working in the OD space. With this as a backdrop and a strengthening of market conditions, OD professionals will be in demand. The question still remains, if the work and the results that can be achieved by employing expert OD professionals aren’t well understood by the business community and some in HR, how many mis-adventures will be experienced by badly conceived and managed OD type projects? At their worst, the unintended consequences can actually be organisationally negative and even destructive. Let’s hope that there are enough good OD professionals to go around! Craig Mason is a Director with The Next Step, a specialist consulting practice in the human resources market. For information call (02) 8256 2500 or email cmason@thenextstep.com.au website: www.thenextstep.com.au

Recent HR Market Moves supplied by The Next Step

Goodman Fielder has appointed Fiona McGregor as Director Organisation Development. Prior to this, Fiona worked with CSR Limited and Sinclair Knight Merz where she held senior HR and OD roles.

Malcolm McDonald has recently joined Aon Holdings.

Previously Malcolm was with Electrolux Major Appliances and Philip Morris International Inc where he held senior HR roles in Australia and internationally.

Steve Schofield recently accepted the role of General Manager HR Australia Pacific with Komatsu. Prior to this Steve was with Goodman Fielder as HR Director, Fresh Baking.

BT Financial Group has appointed Phoebe Ryssenbeek as Lead Business Unit Consultant. Phoebe’s most recent role was with Telstra as Head of OD & Communications, Talent & OD.

Greg Kiddle has recently been appointed as General Manager

for Remuneration Benefits with Perpetual. Previously Greg held a senior Remuneration & Benefits role with AMP. OneSteel has appointed Jennifer Todd-Wilson as Senior HR Manager. Previously Jennifer was with PPG Industries as HR Manager – Operations.

Melanie Jones has joined Campbell Arnott’s as Learning

Organisational Development Manager. Melanie’s most recent role was with Prudential M&G as Learning & Talent Development Manager. Lend Lease has appointed Michael Vavakis as the new Corporate Head of HR. Michael’s most recent role was with Hewlett-Packard as Head of HR for Asia Pacific.

Dianne Silvestro has accepted the role of HR Manager for CSG Ltd. Dianne’s most recent role was National HR Manager for Care Connect.

Emma Ludvigsen has accepted the role of HR Relationship

Manager with American Express. Previously Emma held senior HR roles with Samsung Australia and General Pants Group. Kennards has recently appointed Paul Eagle as their Group Head of HR. Previously, Paul was Area Head of Organisational Development with British American Tobacco.

Peter Hanlon has recently taken the role of Group Executive,

People & Transformation with Westpac. Prior to this, Peter was Head of the Retail & Business Banking Group at Westpac. Hyundai has appointed Tony Swift as General Manager HR. Prior to this, Tony was Asia HR Operational Services Manager & ANZ HR Manager with Dow Corning Corporation.

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

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Legal Experts

Page 06

THE NATIONAL EMPLOYMENT STANDARDS – THE DEVIL IS IN THE DETAIL!

central feature of the national industrial relations system proposed by the Rudd Labor Government was the establishment of certain minimum employment standards applicable to all employers and employees within this national system. This feature is now found in Part 2-2 of Chapter 2 of the Fair Work Act 2009 (Cth) (“the FW Act”) and became operative on 1 January 2010, at the same time as the Government’s national system of industrial relations came into effect (with some minor exceptions in Western Australia).

The NES applies to most employers across the nation

If an employer is covered by the national system (and the overwhelming bulk of employers are) then that employer must comply with the minimum standards prescribed by the NES from 1 January 2010, whatever industrial relations rules and regulations, contracts or arrangements that employer has in place. And no exceptions or special rules for “small business” (however defined)!

Are you “NES compliant”?

All employers should be checking that what they provide in their workplace is “NES compliant”. If they do not, or just assume that what they have got will be OK, they risk three things: • Running up unfunded liability; • Incurring penalties (including for directors) and back pay orders if the Fair Work Ombudsman does an audit of the employer or investigates a complaint (and be warned -- the “FWO” is proving to be a very proactive investigating body); • Becoming uncompetitive in the labour market.

The 10 NES

Here are the 10 subjects covered by the NES: (i) maximum weekly hours of work; (ii) request for flexible working arrangements; (iii) parental leave (and related entitlements); (iv) annual leave; (v) personal/carer’s leave and compassionate leave; (vi) community service leave; (vii) long service leave; (viii) public holidays;

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(ix) notice of termination and redundancy pay; (x) fair work information statement. In this short piece, the details of the 10 NES cannot be provided or even summarised. But even if that could be done here, nevertheless every employer should check the content of all the NES (easily available on the Fair Work Australia website) against their own arrangements and, to be safe, get professional advice.

It is imperative to check the detail

Compliance with the NES is, generally speaking, not too hard for most employers– the standards are in many respects on a par with or even less than what many employers already provide. But there is “devil in the detail” that all employers need to get across, to avoid future problems. That is why it is so important NOW to check your arrangements before a problem arises much later on. Here are some examples of the ‘devil in the detail’ – ie some new aspects that are now minimum standards but not that widespread in private sector workplaces.

“Cashing out” annual leave

Under the NES, an employee who is not covered by an award or an enterprise agreement (eg a managerial or professional employee) can now “cash out” his or her annual leave accrual provided that the employee has a written agreement with the employer for each occasion of “cash out” and the employee keeps a minimum balance of four weeks leave.

Termination of employment and redundancy

The NES imposes a new obligation on every employer to give an employee written notice of termination - hitherto, notice could be given orally and still be a lawful notice. No more. The NES also gives every employee minimum redundancy pay entitlement in the case of termination due to redundancy of the employee’s position. So employees who did not hitherto have such a right now have a right to redundancy pay (although it is being phased in over time).

The right to request flexible working arrangements

Under the NES, any employee with the care of a child under school age, or a disabled child under 18, is entitled to request in writing from his or her employer flexible working arrangements. The employer must respond in writing within 21 days, with refusal only allowed where the employer provides “reasonable business grounds”. These are a few of the details in the NES that are new minimum standards. Employers cannot be complacent about being ‘NES compliant’ – the comparisons have to be done, and inferior conditions corrected. Remember, the obligations apply from 1 January 2010. Peter Punch Partner Head of Employment & IR Group Level 18, St James Centre 111 Elizabeth Street Sydney NSW 2000 Phone 02 9291 7100

www.codea.com.au

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Training & Development

Page 8 Professional Development Experts

A VALUED WORKFORCE IS A WELL-POSITIONING WORKFORCE

s governments announce major infrastructure projects to support billion-dollar resource sector developments, and banks increase their interest rates beyond the Reserve Bank benchmark, employees start to get increasingly de-motivated and stressed. During the economic downturn, employees were told that their jobs were linked to the organisationâ&#x20AC;&#x2122;s survival. Draconian working arrangements ensued: reduced working hours, enforced leave, unpaid leave and wage reductions. And employees were told that they should be grateful they were still working. But now that the indicators show an upturn in economies across the world, employees find that managers are slow to reverse the reductions in their conditions of employment. Employee surveys show that there is a far greater proportion of the workforce than ever before who are looking for jobs outside of their current organisations. If this movement of employees eventuates there will be a significant disruption to the operations of organisations. Smart employers used the economic downturn to build stronger relationships with their employees. They acknowledged the cyclical nature of the economy and knew that times would improve â&#x20AC;&#x201C; particularly with growth in China and India and their reliance on resources exporters. These employers focused their energies during the quiet period on attracting and retaining employees, developing their internal capabilities and positioning themselves to take advantage of the better times they had forecasted. They had made some very clever investments for the future. The challenge for organisations today is to work out the type of workforce

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they have. Are they highly motivated, with the right skills and development to take full advantage of the opportunities ahead? Or will they be faced with the dire prospects of skills shortages as they lose employees to competitors? Unfortunately, organisations in the latter category have very little to look forward to as it is highly unlikely they will be able to attract the talent they need. They may also find that the boom times ahead cause greater problems than the recession they left behind. Organisations need to have people management as a strategic initiative alongside its product development, market segmentation and financial management. Managers have to recognise that one of their key roles is motivating, engaging and supporting their employees. They have to look at some of the untapped components of their workforce such as women and young people, and design their work around these invaluable resources accordingly. Working arrangements are a good starting point: greater flexibility in working hours, staggered hours, periodic or project employment, and so on. Offering incentives such as child-care facilities and travel allowances also play a big part in gaining employee loyalty. Above all, employees must feel respected and valued. No amount of incentives or initiatives can persuade an employee to stay with an organisation as much as this. Contributed by John Taya John Taya is Unit Chair for Contemporary People Management for Chifley postgraduate programs.

Phone 1300 CHIFLEY | 1300 244 353 Visit www.chifley.edu.au

Workforce Advisory & Management Page 09 Evolving Your Workforce

Keep your eye on the talent horizon – times are a-changin’

hile operational efficiency is key to any organisation’s success, many companies are starting to review the management of their most valued and precious asset – their people – with the changing economic climate influencing this dramatic facelift of the workforce frontier. Leading companies over the past 18 months have focused on gaining control over product and service delivery. Today they are revolutionising the way they manage their workforce. These companies will confidently compete in the new world of business through implementing just-in-time workforces (JIT). JIT workforces embody a proactive mentality where customer demand drives the workforce planning process, resulting in an agile, more optimal workforce poised to deliver bottom-line results. The ultimate goal of JIT workforces is to maximise revenue, quality and productivity while keeping costs under control, relative to productivity and demand. Using this concept, a company can better meet customer promises and satisfy employees by anticipating and preparing for fluctuations in business volume. Quality and timeliness – both imperative for customer loyalty – can become differentiators for a business, as the organisation optimises staffing levels and worker qualifications, given market demand, changing work requirements, or simply customer need. The JIT workforce helps companies minimise problems with overstaffing, payroll errors, unneeded overtime and contingent staffing, as well as compliance with complex union rules. It can even dramatically reduce absenteeism and employee turnover. The greatest impact that JIT workforce management has on an organisation is that it helps align the workforce with changing demand in order to optimise cost, quality and timeliness of delivering products or service to the marketplace. A challenge for employers, however, is the need to identify the skills mix they need to effectively compete and maintain operational cost efficiencies over the short and long term. Undertaking organisation-wide skills mapping against the company’s strategy and key projects will facilitate an understanding of what JIT workforce structural changes can be implemented to accommodate the ever fluctuating market demands.

With growth comes competition, and with so many organisations playing on the same field, the demand for talent and competitive advantage has never been stronger. As organisations navigate the new commercial, talent retention and attraction environments, sourcing staff who have the technical, cultural and flexible approach to work to suit the new world is critical to the long-term future of companies. The shift in employee sentiment around the probability of seeking and sourcing a full-time role with all the benefits of yesterday is supportive of JIT workforces, with 88% of job seekers (63% of whom are currently employed and actively seeking a career change) indicating in CMG’s Post GFC Candidate Study Report that the current economic environment has forced them to be more flexible and less selective in the roles they are applying for; 29% are looking to shift from full-time employment to contract roles in response to the changing environment. The benefits of JIT workforces being experienced by a number of large multinational US companies exceed pure operational cost savings. Revenue is also enhanced through greater customer satisfaction. A JIT workforce is better able to deliver products and services when customers need them at the quality they demand, as opposed to overtime or contingent workforce, where quality can suffer simply because the workers don’t have the required skills or time to pay attention to quality. As employers become more attuned to the shifting workforce frontier, candidates are starting to set their thinking towards a change in work lifestyle, setting the stage for employers to revolutionise the way they approach their workforce structures.

Craig McCallum

www.chandlermacleod.com

General Manager Marketing: Specialist Recruitment & Consulting Services Tel: 02 9269 8879 Craig.McCallum@chandlermacleod.com

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issue 5.10

international

HR TECHNOLOGY

Page 10

Your HRIS as a Source of Truth Question:

Our organisation is currently reviewing our HRIS and other business systems. It has been suggested that we should implement systems that support ‘single source of truth’. Could you explain what this means and the benefits it may offer our company?

Answer:

The usability of data often relates to its accuracy. In many organisations the same information may be stored in disparate systems in varying formats. As the information ages, updates do not always occur in every location where it is stored. For example, if you use disparate systems, when a candidate applies for a position within your organisation their details are stored in the Recruitment application. Once employed, personnel details are entered into your payroll system. If HR is not integrated, on-boarding details are input and are manually passed to IT who need to input the information again in order to set up system access! Every time the information is entered it takes time and is prone to errors. Employees are likely to keep payroll updated with current information, which ensures their payroll details are correct. But as time goes on, the information in the other systems may become outdated. As the term ‘single source of truth’ suggests, the information is input and stored once for different applications to access. It can relate to just one system or across the enterprise. Referring to the previous example, employee information is input and stored once, then accessed by Recruitment, Payroll, HR and IT, etc. This approach provides productivity savings and ensures consistency across data. To fully harness single source of truth many organisations are adopting Identity Management which allows employees to have one log-in and password across enterprise applications – this approach streamlines on-boarding procedures and reduces help desk requests for lost passwords. Today’s collaborative work environments are particularly well suited to single source of truth – it integrates information across the enterprise, protects data integrity and unites stakeholders. Due to the growing demand for information-based decision-making in large organisations, single source of truth is rapidly becoming best-practice enterprise data management and an important consideration when changing systems. It is

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essential to review and understand your business processes when implementing single source of truth, ensuring full understanding and compliance in terms of data storage methodologies. For example, there are many ways a name can be stored, so understanding the needs of all stakeholders when capturing and storing information will ensure the viability for core and adjacent business services. Business Intelligence systems often refer to single source of truth, and your HRIS is an excellent platform to build upon. Much of the information required by management relates to the workforce, and Payroll usually contains the most up-to-date information on employees and their movements. Most payroll systems offer web-based employee self-service systems that provide access for employees to maintain their own information, which further ensures its accuracy. To ensure consistency with workforce data it is important that your HRIS only stores employee data once across Payroll, HR, Recruitment, Performance Management, Learning and Development, as well as OH&S. While your HRIS is a great place to drive your single source of truth initiatives, integration with other systems facilitates organisation-wide adoption and allows you to leverage this data for other systems (time and attendance, mail and security, etc). An open system architecture that supports integration with your other lines of business applications will ease enterprise-wide adoption of single source of truth. Identity Management and the use of Single Sign On or Same Sign On technology are key benefits to be achieved from these initiatives. Extensive time and productivity savings can be obtained by including system and building access requirements into your on-boarding procedures, ensuring nothing is overlooked when your new employees arrive for their first day of work. Payroll is often the first to know when employees terminate. Single source of truth together with integrated systems will ensure that employee access to key enterprise data and facilities is terminated on the day their employment ceases. While there are many benefits to integrated systems, their true power can be harnessed when integration or interfaces occur automatically. The ability to schedule the many processes that bring your internal systems together will save time and utilise your system resources more effectively when scheduled during non-busy times (usually overnight). Lastly, the primary benefit that single source of truth will provide to your organisation is accurate information to support business decisions and optimise your investment in corporate data. It is imperative that your reporting tool is easy to use for managers, which will allow them to effortlessly access and utilise the data. When changing report writers, look for a drag and drop tool that is easy to learn and use. This will ensure they can easily locate and use the data they need.

Nick Southcombe General Manager Frontier Software Pty Ltd (03) 9639 0777 www.frontiersoftware.com

news issue 8.2

NEWS Planning increases but ROI still hazy

he number of organisations engaged in workforce planning increased to 60% in 2009, representing a rise of 10% over 2008. Of those not yet conducting workforce planning, one quarter anticipate introducing the practice within the next 12 months, while 29% intend to do so within the next one to two years. Only 13% of organisations have no plans to introduce workforce planning. The findings were released in an annual survey into workplace planning practices, Workforce Planning – Securing HR’s Role in the Business, conducted by HR consultancy, Infohrm.

The overwhelming majority of respondents believe that workplace planning provides a positive benefit with 81% of respondents suggesting the practice is moderately or highly valuable to the business. Eighteen per cent attribute the value mainly to HR while 1% of respondents stated that workforce planning was “not very valuable”. Sixty-eight per cent also stated that workforce planning provides them with a competitive advantage. Beyond perception, however, evaluation of workforce planning implementations remains a concern. A failure to measure the impact of workforce planning was one of the main findings identified in the 2008 Infohrm survey and it continued to be an issue last year with 55% of organisations as yet unable to demonstrate the impact of their workforce planning implementation. Not only are organisations struggling to demonstrate an impact of workforce planning but the ability to identify the true financial return from such a practice is still uncommon. Only 6% of organisations indicated they could confidently assess the monetary value or ROI of their workforce planning efforts, while 15% stated they could “somewhat” do so.

Post-GFC workforce changed forever

s many employees return from their summer break this month, a new survey from Chandler Macleod Group (CMG) has revealed a contrast between business optimism and employee disillusionment post GFC. According to CMG’s Post GFC Candidate Study Report, there is an underlying lack of trust among those surveyed towards their employers. A good proportion of those who stayed and endured tough times feel they were not sufficiently supported and are now tired and disillusioned. CMG’s survey of over 930 candidates reveals that 95% are looking for work, of which 73% are actively looking and 22% are passive or open to offers, with most candidates (57%) optimistic they will find a role in the next three months (32% of which are very optimistic). David Reynolds, executive general manager consulting for CMG, said a number of employers are likely to see a

mass exodus of staff in February or early March as businesses look to secure good talent unsettled by current pressures and expectations of their current role following the downturn. There is also likely to be a second round of job departures towards the end of April or early May. “The fact that 72% of candidates are looking for work outside their current (or most recent) industry and 62% are looking for work outside their current specialty will come as a shock to many employers and reflects, in part, the level of disengagement experienced by many employees. Now the crisis is easing there is a perception the job market has improved and employees are looking for opportunities that better suit their needs,” he said. Top reasons given by candidates for seeking new jobs were limited career opportunities (41%), feeling undervalued (24%) and losing faith in the current organisation (18%).

Traditional recruitment in danger of extinction?

f recruiters do not choose to adapt, recruiting in its current state has about as much life expectancy as “a buggy whipmaker did in 1915”, according to a speaker at the ‘Social Media: A Recruitment Revolution’ conference late last year. In his keynote opening session, Mark Pesce, futurist and panellist on ABC television’s The New Inventors, discussed the effect social media is having on the recruiting industry and how recruiters should respond. “There are still a few years left in which recruiting will be a profitable business, but after that it will simply be overwhelmed by social networking tools. “People will begin to ask why they need recruiters … as they see the social network providing the same capabilities – and for free …” Pesce said. He suggested that recruiters should utilise a range of social media tools to help them stay relevant and productive. “As we transition from the Rolodex to the social network, more and more business will go to the well-networked. So really, there is no choice: adapt or die. “To keep up with social media, recruiters need to shift from a top-down recruiting style to a bilateral one. Allowing conversations to happen between networks like this will provide recruiters with new and valuable candidate insights,” Pesce said. “People don’t want to get spammed. They don’t want to hear your marketing messages over a communications channel that they consider personal – don’t think of the Web as an advertising medium.” Pesce suggested the following rules for embarking on a social media recruitment strategy. »» Only go where you’re invited. No one likes a salesman who sticks their foot in the door »» Participate in a conversation from a place of authenticity. Let people know who you are and why you’re there »» Spend time building relationships. Social media is a lot like friendship – it takes time and investment and a bit of love to make it work »» Be consistent. Invest time every single day or at least with regularity. If you can’t do that, it’s probably better you do nothing at all www.hcamag.com

issue 7.7

ask the experts

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ask the experts

issue 8.2

Need advice?

Ask the experts! We would all like to have experts on hand when we need information. This month, Ari Kopoulos from EmployeeConnect outlines some key HR technology trends

Q A

What are the three most important trends in HR technology for 2010?

One thing by its very nature will never remain constant is technology. The innovation brought on by raw processing power and near perfect communication is radically altering our lives. As a business, you need to embrace this innovation to ensure you have the solutions that fuel productivity and creativity. The past decade saw self-service solutions putting the employee in the driver’s seat. Disparate databases and HR modules were integrated, with automation and workflow being the norm. Moving forward, HR technology is facilitating strategic decision-making by becoming more intuitive, comprehensive, and predictive. As we herald a new decade, here are the three top trends that I believe will make the biggest impact in HR technology. Perhaps the biggest trend is gathering momentum alongside the continual evolution of the web itself. With connectivity of 1 megabit, the workforce is communicative and connected 24/7. This is the realm of social media that facilitates sharing, collaborating and forming virtual communities on any topic. These social networks are slowly being integrated with HR technology and, as an example, an approved recruitment request can be workflowed directly to a job board and the applicants placed back into the HR system. But it’s not stopping there. You can soon expect your recruitment request to match you with the perfect candidate. Social networking is not a new concept. Conversations sharing knowledge, opinions and collaboration have been around for thousands of years. It’s just that the process of having these conversations is now

near perfect. This brings unprecedented opportunities, as well as challenges that will force revision of HR policies. Consider the employee who is not accepted as a friend by other employees on Facebook: is this discrimination? Talent management is perhaps the next biggest trend. The value proposition of an integrated talent management strategy is quite compelling, empowering your business with insight, agility, and efficiency in supporting your strategic objectives. As such expect to see a shift away from single module solutions, towards solutions with a holistic approach. These deliver a central framework of tightly integrated HR processes, such as recruitment, onboarding, learning, performance, remuneration and succession. It’s this central framework that enables the exchange of talent supply with business demand. This is the currency between capabilities and needs, integrating all the HR modules. As an organisation you will need to develop meaningful and standard definitions of competencies, behaviours, and skills required throughout the organisation and relate those to a unit of demand such as a person, position, job, projects and training. Finally, software as a service (SaaS) is gaining more and more favour. As the name suggests, it involves vendors delivering ondemand software across the internet. The vendor provides all maintenance, security

and support as well as regular updates. You pay a monthly click rate for use, thus avoiding the heavier licences and hardware purchases. In this regard you don’t actually own the software but, ‘rent’ it. Data security, perhaps the biggest argument against SaaS, has been addressed by vendors through heavy and continual investment in security of their platforms and applications. Some of the main benefits include rapid deployment, accessibility, security and cost savings. We have always used our technology to extend our physical and mental reach, and we are now heading to a state where information converges into a virtual collective intelligence that truly solves problems. For the HR professional to take advantage of this brave new world, we need visionary vendors that are flexible and reactive in order to deliver, and HR professionals driving the need. The good news is, vendors are listening.

About the author Ari Kopoulos is national sales and marketing director for EmployeeConnect. For more information on EmployeeConnect, visit www. employeeconnect.com

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As organisations inch towards recovery, Iain Hopkins interviews four top HR professionals about the year ahead, their greatest challenges and why they still get a kick from HR

ccording to a recent Access Economic Report, the cruise industry remains the standout performer in the Australian tourism sector, with its contribution to the national economy increasing 54% to $1.2bn in 2007-08. The report predicts that the cruise industry will achieve annual growth of 7% over the next decade, significantly outperforming the Australian economy. Simone Shugg, director of people & performance at Carnival Australia (operators of P&O, Princess and Cunard Cruise Lines), admits that although 2009 was a bumper year for the company, the challenges of the preceding three years are still top of mind.

Former Westpac CEO Ann Sherry joined Carnival three years ago and has transformed the company in that time. It has been up to Shugg and the HR team to keep pace with the changes. Shugg herself has been with Carnival for 18 months, but prior to that she was instrumental in setting up the HR operations for Bankwest’s ambitious move into the eastern states. That experience provided a solid grounding for the challenge she faced at Carnival, where she was tasked with shifting HR from a transactional support function to one that truly adds value to the organisation. “HR back then was really about organising the social functions and writing contracts. We had no L&D and no recruitment team. People didn’t understand the value of HR across the organisation and there was little structure around reward and recognition or performance management. Managers simply didn’t have the tools or the skills to manage performance,” she says.

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Simone Shugg, director, people & performance Organisation: Carnival Australia Industry: Travel and tourism Most satisfying career achievement: The experience at Bankwest was something quite unique – being part of a vision and then being there when we launched our first store on the east coast. I’m going through the same thing at Carnival – I seem to always be at organisations going through huge transformation.

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Biggest career challenge: Moving to Carnival. At Bankwest I was in the HR leadership team and it was a large organisation. When I moved to Carnival I found myself in the most senior HR role. In HR roles you’re privy to confidential information and relationships. A lot of what we do at the senior level is about managing the relationships and you’re often the confidante across many people on the executive team. I found that challenging and stressful. It was a challenge not having someone to confide in myself. The way I dealt with that, and one of the reasons why I’ve been able to embrace it, is because I’ve been part of the HR Directors Forum. I’ve got the support I need and the ability to bounce ideas off a peer group outside the organisation. See Simone Shugg talk about boosting productivity and performance through engagement at HR Summit Sydney, 28–29 April

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The pressing need to change was highlighted by a Hewitt survey conducted soon after Shugg joined, which revealed an “indifferent” engagement score. Shugg organised focus groups across the organisation to develop five priorities designed to lift engagement. “One thing I’ve learned is to be realistic, don’t have too many priorities, and also be aware of the capacity to deal with change. If you try to deliver too much change you will find people switching off,” she says. A key area of focus was performance management. At the end of 2008 the company implemented an online performance management system. Shugg set herself a KPI that 100% of people throughout the organisation would have KPIs set, and 100% would have a mid-year and end-of-year review. “We did lots of work in 2009 on having performance reviews. We didn’t focus so much on what the KPIs were. We honed in on performance conversations. It wasn't about the actual performance review, but about knowing how to manage performance. We had a culture where people who weren't performing weren't getting the feedback they needed. Managers didn’t manage it. We coached managers to have those conversations and it was quite surprising the number of individuals we were able to turn around.”

“One thing I’ve learned is to be realistic, don’t have too many priorities, and also be aware of the capacity to deal with change” – Simone Shugg Shugg adds that managers at Carnival are now being held accountable for their team’s performance, and this has been built into their KPIs. “In the past, people would avoid those tough conversations and say, ‘go and see HR’. That was wrong. We can coach you and give you the skills and help facilitate it, but it’s not our job,” she says. The focus for the first quarter of 2010 is to set the KPIs, which Shugg feels is crucial to engagement. “The feedback was: ‘I don’t know what’s expected of me, I don’t know when I’m doing a good job, I don’t know how my performance links in with business performance, and I don’t even know what the business objectives are’." Shugg notes the plan is to pull everything back to basics, to communicate what the organisational strategy and business objectives for the year are and then cascade these through the organisation. “We’ve also done training to keep it simple. You should only have five to eight KPIs. They’re not just waffle KPIs – they're clear, and there are clear measures at the end of it,” she says.

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As for proving HR effectiveness, Shugg admits it does help having a CEO who moved up through the HR ranks, but she does not believe in ramming HR metrics and statistics down the throats of executives. “I believe in a lot of reporting, but it’s more for me to make sure I’m on track. HR has been compelled over the last couple of years to ram all these stats back to the business, and the business won’t even look at it. Know your customer, know what they want, and what information they require – and then keep it simple.” Shugg also doesn’t go in for the “HR lingo” of that elusive but rather meaningless concept of ‘high performance teams’. “I think if you’re doing all the important things right, if managers are setting clear expectations, if people understand what they need to deliver, if expectations and what’s required links into the business strategy, and if you’re also providing development to help bridge the gaps, then you’ll get there. It’s the outcome of doing everything else right,” she concludes.

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Solterbeck

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Fe at u r ed Sp ea k er

Kim Schmidt

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he size and complexity of a large organisation can be daunting to new employees, and that fact is not lost on Kim Schmidt, HR director at Woolworths Ltd. Across divisions such as Woolworths Supermarkets, Big W and Dick Smith, the organisation employs upwards of 190,000 people. Schmidt, who joined the retail industry in South Africa (coincidently at a retail chain called Woolworths – unrelated to the Australian operation), realised early in her career at Woolworths Australia that while some policies and initiatives do touch all 190,000 employees, it was an impossible task to meet and interact personally with everyone. “Instead you focus on those things you know are going to make a significant difference at the strategic level,” she explains. “Having been here nine years, I can see the size of the organisation could be overwhelming. However, we don’t have a huge support office infrastructure, so you can pretty much get to know the key people easily.” As such, Schmidt concentrates her efforts on building meaningful relationships with the senior HR team, which includes national HR managers in each of the key business areas, as well as a corporate team of six direct reports, a national payroll team, and a team of 55

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Kim Schmidt, director of human resources Organisation: Woolworths Limited

That makes you feel like you’re making a real contribution.

Industry: Retail

Biggest career challenge: All jobs carry their own challenges – and the last year has been interesting not just because of the global financial crisis, but because we’ve also had huge changes in ER, legislation, and executive remuneration. Personally, my biggest career challenge was around cultural change. In South Africa I had an opportunity to work for an organisation during the time when we were experiencing the change of government at the end of Apartheid – that was immensely challenging but probably one of the best learning experiences of my career. Coming to Australia, having to understand some of this country's cultural nuances and adapting my learning and experience to this environment was also very challenging. See Kim Schmidt talk about HR leadership and alignment with business strategy at HR Summit Sydney, 28–29 April

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Most satisfying career achievement: HR can be a tough job but hopefully in your career you'll have a lot of satisfying and rewarding experiences to keep you going. For me, personally, it’s anything I’ve been involved in that has made a direct and meaningful contribution at the individual and organisational level. An example of that was the introduction of paid maternity leave. At an individual level that has already affected over 1,000 employees. At an organisational level it’s had a large impact on how we are viewed as an employer. We are now able to draw in a lot more female talent to our business. While my current role has been very challenging, it has also been the most satisfying because I’m able to influence and impact on the organisation’s success.

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that provide shared services to the overall business in the training and academy space. She relies on these business leaders to cascade HR initiatives through the organisation. “I like to get a lot of input from that team for the development of our strategies to ensure they are relevant and meet the requirements across the entire business,” she says. Schmidt believes it is crucial for HR to be aligned with business strategy. “In those organisations where HR is strongly aligned you see HR playing a key and active role in the strategic directions of the business. They have a seat at the table, they are respected, they are relevant and they are making a substantial contribution. To be frank, in organisations where HR is not aligned to the business, I don’t think they’re doing their job. All they’ll be able to do are transactional activities – the operational side of recruitment and training. If people are a critical part of an organisation’s success – and I am a strong believer that they are a key competitive component in successful organisations – then HR leadership needs to understand the business they are in. In large complex organisations the talent component is critical. If we don’t understand what our business is going to be doing, how can we respond appropriately with the right strategies?” she says.

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It’s a strategy that has paid off. During the GFC the organisation remained focused on the long-term strategies, and HR was able to hold the line by creating new jobs and investing in training and development – especially in the leadership area. “We actually used this – almost like being in the eye of a storm – to consolidate a lot of what we were doing in HR. Eighteen months ago a lot of organisations in Australia were trying to source people – we had a talent shortage – and I think that’s what we’ll be faced with in the next

and mentoring executive women and ensuring the availability and support of flexible work policies and paid parental leave benefits. As a result, 34% of internal executive promotions and 45% of external appointments at Woolworths were women. Schmidt’s efforts were recognised by the Equal Opportunity for Women in the Workplace Agency in 2009. “I’m passionate about equality for two reasons,” she says. “Firstly, it’s about talent. In our business we want the best talent available. Why would you exclude 50% of

“Those organisations that cut jobs, pay and benefits may struggle to keep talent due to a decrease in employee engagement…” – Kim Schmidt 12–18 months. Those organisations that cut jobs, pay and benefits may struggle to keep talent due to a decrease in employee engagement as a result of these actions,” Schmidt says. Schmidt will not only be keeping a close eye on external factors, she will also be indulging her passion for workplace equality. She has been instrumental in leading initiatives such as the Women in Management Working Group, developing

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the talent pool based on gender? It doesn’t make sense. The second reason is around business performance. I’m a strong believer in greater diversity in an organisation and the leadership team. It means greater opportunities to be innovative, to be more creative in problem solving and being more open to fresh perspectives. Whether it comes from gender or simply from people with different backgrounds – at all levels it adds value to your organisation.”

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JXT Consulting

NorthgateArinso

JXT consulting specialises in e-recruitment applications & solutions. They have been providing end-to-end solutions in local and international markets for many years. JXT consulting has gained an enviable track record of successfully creating a next generation job board solution called ‘ATEMO’ (www.atemosoftware.com). By optimising individual job advertisements, ATEMO makes your jobs visible to the 20,000,000+ job-related searches conducted every month on Australian search engines. This will generate 1,000s of one-way links to your website, crucial for building your brand.

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When Schmidt refers to strategic level planning she’s referring to plans that stretch out to five or six years down the track. For Schmidt it’s not just about numbers, but knowing what the organisation is going to look like in five to ten years' time, what skills are going to be needed, and ensuring that existing employees are kept upskilled and relevant to undertake those future roles. She cites one example from the retail sector: “It takes at least seven or eight years to grow and develop a good store manager. If we’re not thinking about how many stores we’re going to have, what they’ll look like, what we expect from our store managers, how we train and develop them to ensure they have the skills we’ll require in the future, we’re missing the boat,” she says. “When senior management sits down to discuss strategy, some of the potential limitations are focused on whether we will have the right people with the right skills. If not, where will we get them? Those conversations occur right at the start of the strategy, not in retrospect.” From there, strategic HR can be taken a step further to ask what sort of working environment is desired, what the leaders will look like in that environment, and then what leadership characteristics will be required.

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“U

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ltimately a business only has a few levers to pull to dramatically affect the performance of the business – marketing, sales, product development, and people,” says Klaus Duetoft, senior regional HR director at eBay & PayPal Asia Pacific. While this may be true, it also depends on how the lever is pulled. Duetoft, who has HR experience in government and pharmaceutical FMCG organisations, has witnessed firsthand the dramatic growth of one of the world’s most recognisable brands for seven years. “eBay was client number two for the outsourced HR company I set up and I worked with them in an outsourced capacity for five years. eBay are flexible and very relaxed. Every year they would ask, ‘do you want to come and join us?’ I wanted to build my company and they understood that. When I did join them two years ago, not a lot changed. In some ways I still operate as I did as a consultant. As a consultant you can cut through the political bureaucracy, cut to the chase, and there’s independence and objectivity. I think I’ve kept that style of operating, which works so well in the business,” he says. Duetoft’s responsibilities cover the full range of HR duties across Australia and Asia. First and foremost, Duetoft says

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Exhibitor

Insync Surveys

API Leisure & Lifestyle

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API Leisure & Lifestyle is the leading provider of employee benefits programs with over 90 years experience in implementing sophisticated and successful systems Australiawide. API’s programs provide an extensive range of over 1200 lifestyle and financial benefits designed to enhance the employment value proposition and assist with the retention of quality employees.

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Contact: Dick Servin, NSW practice leader P: 02 8081 2000 E: dservin@insyncsurveys.com.au W: www.insyncsurveys.com.au

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Industry: Online retail Most satisfying career achievement: I would say building the Asia Pacific HR team itself. If I think about where the team was a couple of years ago, it was much more about individual contribution; we now operate as a cohesive team and our affect on the business is much greater and our business ownership and alignment is very clear. The business does not give a second thought to the fact that HR is there at the table as a business partner, and the passion that I hopefully speak with, I also hear in the team. Part of my job as a manager is to help tap into the potential in my team, so that’s satisfying. I think everyone wants a golden period in their career, when you look back and think ‘that time was really good’. My time at eBay will be one of those golden periods – and my intention is that my team looks back at their time on eBay and says ‘that was awesome’.

Biggest career challenge: People management. Before I started my consulting role, I went into a HR leadership role where I thought I had the capability and maturity, whereas in reality I didn’t. It was challenging to say the least to realise I was not succeeding in something. I was fortunate that the business I worked for ‘bent over backwards’ and recognised I had potential and allowed me to take the time to recognise what was important to me and where I wanted to be. I came back and was on fire. I heard the feedback, recognised the truth of it, and decided what I wanted to do. I could’ve jumped either way but I realised it was the wrong job, wrong time, wrong me. It taught me a valuable lesson in terms of people management, holding people accountable, being clear on expectations, and also having the tough conversations. See Klaus Duetoft talk about strategies to build longterm productivity through the empowerment of your team at HR Summit Sydney, 28–29 April

Exhibitor

EmployeeConnect

Ergoworks Consulting

EmployeeConnect has grown to become the best of breed of Human Capital Workflow Solutions. With core products that include, Self Service, HRexpress, HRpro & HRenterprise, EmployeeConnect transforms traditional human resource functions into an integrated, enterprise wide, human capital program delivering strategic, financial & competitive benefits.

Ergoworks Consulting is a nationally established ergonomics consultancy that provides assessment, training and elearning software packages to its clients. A complete network of qualified ergonomists and physiotherapists allows Ergoworks to offer a range of services throughout Australia.

Contact: Ari Kopoulos, national sales & marketing manager P: 02 8288 8028 E: info@employeeconnect.com W: www.employeeconnect.com

Ergoassess® (an Australian first) is a proven online training and assessment package that many of Australia’s leading organisations have turned to, to conduct workstation assessments in a cost effective and time saving manner.

ergoworks PHYSIOTHERAPY AND CONSULTING PTY LTD

Contact: Marnie Douglas or Luke Byrnes P: 02 9251 0822 E: marnie@ergoworks.com.au or luke. byrnes@ergoworks.com.au W: www.ergonomics-ohs.com.au

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that HR must be aware of how to drive profitable growth within an organisation. “Everything my team does focuses on how we deliver that growth,” he says. “Whether that’s talent acquisition, optimising the way the organisation operates, or ensuring that people deliver against commitments.” Duetoft notes that everyone in eBay has a “roll up your sleeves” as well as a strategic element to their job. He notes that while he’s involved in the day-to-day acquisition, building and leveraging of talent, he’s also charged with forecasting where the business will be five years down the track and whether it will have the type of culture “that allows people to succeed and engage in, is motivating and sticky”. This also means determining the likely level of resilience in the workforce. “As our market and our competitors change so rapidly we really look to evolve rapidly as well. If you have the right people in place and they are aware of the changes and it’s communicated well, and you support them through that, it’s an incredibly exciting dynamic,”he says. Understandably, Duetoft believes in hiring people with the traits or skills that underpin resilience. His mantra is to hire smart, passionate, driven people – and they’ll always succeed. “We’ve proven that time and time again,” he says. “We give a level of responsibility to staff that

Klaus Duetoft, senior regional HR director Organisation: eBay & PayPal Asia Pacific

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most businesses wouldn’t do. We could easily have a 27-year-old running a $50m business. If those people are in the right culture they will do amazing things.” The key to resilience, Duetoft believes, is the ability to adapt and to bounce back from setbacks. “Whether the team gets it right or wrong is not the point. I’d much rather the team get things wrong and learn from it, bounce back, figure out what you need to do differently and go do it. It’s self

needs to be done. People lose sight so easily on an issue and it becomes more dramatic than it needs to be.” Goal setting is also important. “Goaloriented people are often resilient because they can look beyond the here and now. When something goes wrong you typically don’t lose sight of what it is we’re trying to do long term. It’s just a setback,” he says. Does self-managed accountability assist with employee productivity? Duetoft

“I trust my team – I don’t get them coming to me saying ‘I can’t do this’. Instead we have conversations around ‘How can I do this? What are the alternatives?’ ” – Klaus Duetoft

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confidence. I trust my team – I don’t get them coming to me saying ‘I can’t do this’. Instead we have conversations around ‘How can I do this? What are the alternatives?’ If there’s a safety net in place it greatly increases resilience. People feel they're supported and have a safe environment to test the boundaries,” he says. He also believes in keeping things in perspective. “Take a breath. Step back and look at the real issue and understand what

believes it does, but it’s a hard correlation to make. “Self-managed accountability reduces that white noise of wasted time that goes on in companies when no one steps up and takes accountability. There’s probably an increase in engagement and productivity because you remove some of that dead time. One of the things that struck me when I first joined eBay was how incredibly proud people are. I think pride then drives belief and passion in the brand.

I realise it’s a sexy brand and that has an impact, but a lot of that pride comes from ownership. When you own something people will go above and beyond.” Not surprisingly, Duetoft has definite ideas about the future of his profession. He believes there are two possible paths. One group will continue down the path of how many HR professionals operate today: control oriented, wanting to affect the business but not wanting to be part of the business. “They’re gatekeepers, administrators,” he says. “That path will lead to a marginalisation of HR.” The other camp, which Duetoft believes is getting more airtime but still has a way to go in order to embed itself, is more commercially oriented, more conscious of the value that HR adds to the organisation, and less control oriented. “I was told by a mentor in the pharmaceuticals sector that I should never forget that first and foremost I am a business manager. My job is to drive profitability and growth … The people that are doing it well do see themselves as a critical part of the business, and the business perceives them as that. They don’t see the things the business does as obstacles or constraints, or challenges to the status quo – they see it as the business trying to flex itself to deliver business outcomes,” he says.

Exhibitor

Frontier Software

Human Synergistics Australia

Frontier Software is a leading specialist HRMIS vendor offering an integrated HR, payroll and ESS across all industries. Founded in Australia 1983, Frontier Software now has offices in Australia, NZ, UK, India, Singapore and Malaysia. Products include chris21, HR21, eR21, Executive Reporting and L&D21. Services include full implementation support, training and helpdesk. Frontier Software also offers full and partial payroll outsourcing solutions.

Human Synergistics is an expert culture consultancy that transforms organisations, helping them to become more constructive and improve overall performance. Human In Australia and New Zealand alone, over 1,700 organisations have benefited from the experience and expertise of Human Synergistics by changing their cultures to create high performing organisations.

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Contact: Nick Southcombe, general manager P: 03 9639 0777 E: nicks@frontiersoftware.com.au W: www.frontiersoftware.com.au

Contact: Mary Megalaa, business development manager P: 02 9271 5945 E: Mary@human-synergistics.com.au W: www.human-synergistics.com.au

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issue 8.2

HRSUMMIT2010 Fe at u r ed Sp ea k er

Kerrie Field

Exhibitor

Luna Park

Mind Resources

With spectacular views of the harbour, Sydney’s much-loved Luna Park is a superbly restored 1930s amusement park where everyone goes...just for fun!

Mind Resources is a leading global provider of learning content, solutions and training that transforms the performance of organisations by improving and developing your most important asset - your people. Their learning solutions and training resources are available in a variety of formats, including: Online Streaming Video, E-Learning, DVDs, Workshops, Events, Profiling & Assessments, Training Text and Props & Accessories.

Take on crazy rides like the Tango Train or nostalgic favourites such as the beautifully restored Ferris Wheel. Win fabulous prizes on the Laughing Clowns and enjoy all your carnival favourites including hot dogs, fairy floss, ice-creams and more!

Contact: John Spencer, group sales manager P: 02 9922 6644 E: jspencer@lunaparksydney.com W: www.lunaparksydney.com

Contact: Michael ter Haar, CEO P: 02 9291 4241 E: info@mindresources.net W: www.mindresources.net

HRSUMMIT2010

Photo: Thilo Pulch, www.pulchphotography.com

hen it comes to sourcing the best talent locally and overseas, how does a local organisation become global? This was the challenge facing Kerrie Field, general manager of human resources & media solutions, St Vincents & Mater Health. “We didn’t think direct advertising would work. If you do a Google search, thousands of health-related results come up. So the question was how do you target potential candidates? We had to think of something else,” she says. That “something else” was a strategy called Global Collaboration. It involves setting up strategic connections with overseas hospitals across three levels – research, education and employment. “If you look at healthcare professionals, especially nurses and to a lesser extent allied health professionals, they travel quite a bit. Our question was, how do we position ourselves globally so that people know, ‘Sydney St Vincent’s? Yes, that’s where I want to be’. We looked at a range of strategies in relation to advertising and expos, etc. Then we came up with our Global Collaboration Partnership. We wanted to work with like-minded organisations that shared our values.” While Field and her team are still finalising those partnerships into formal agreements, they have already

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issue 8.2

cover story

Kerrie Field, general manager, human resources & media solutions Organisation: St Vincents & Mater Health Industry: Healthcare

HRSUMMIT2010

Most satisfying career achievement: I’ve been very fortunate to work with a number of very successful CEOs in my career. The standout for me is the opportunities that are created when you work in an environment that accepts HR and accepts it as a strategic partner in the business. It makes such a difference. The one fantastic thing about working at St Vincent’s – and this would be why it’s such a highlight of my career – is because there is the opportunity to make such a difference at a strategic level. The HR relationship with the Board is also critical and I guess I am privileged and lucky to work with a Board that really understands what HR has to offer.

Biggest career challenge: My biggest challenge was the transition into the healthcare environment from a non-healthcare background. That was a challenge because the majority of people in health are healthcare professionals and usually have built a career in the one sector. Healthcare is very insular. Most industries, and most organisations, have people who move in and out of the organisation and even the industry, so they are exposed to different philosophies, cultures, etc. In health it’s all about healthcare delivery, and it’s common to have people with 40 or 50-year careers in healthcare. Bringing in innovation from a nonhealthcare professional and getting acceptance by key stakeholders and peers was an interesting challenge. See Kerrie Field talk about innovative international candidate sourcing strategies at HR Summit Sydney, 28–29 April

undertaken a leadership, culture and language exchange program with Bangkok hospitals. “We’ve developed a program where they send their staff to us for three months where their nurse managers learn about the cultural aspects of Australian healthcare. They participate in the leadership program, we do conversational language classes, and we allow them access to mentors to observe what goes on in our hospitals from a number of levels.” The arrangement is reciprocal, with four Australian nurse managers recently returning from Bangkok where they undertook a similar program. In addition, Field notes that a crop of nurses in their final stages of clinical placement currently undergoing Bachelor of Nursing degrees in the UK have come out here and done clinical placements with St Vincent’s. “We have a sister organisation in Ireland where we’re looking to do the same thing. So part of the reciprocal arrangement is partnering with another like-minded organisation and saying, ‘this can be arranged, we can facilitate it through electronic media and then give you research and education opportunities’.” Further enhancements to the program may allow fresh graduates from the UK and Ireland the chance to do their graduate year with St Vincent’s under a sponsor

Exhibitor

Quest Serviced Apartments

Rookie Recruits

Quest Serviced Apartments - Your accommodation solution for relocations and secondments.

Rookie Recruits is an early career placement & development specialist.

Quest will endeavour to assist you in accommodating your staff in over 120 properties throughout Australia and New Zealand. Allow Quest to custom make programs specific to your requirements for your global mobility workforce.

They support employers in the selection, placement & development of the very best young talent.

Quest, specialists in extended stay accommodation.

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Contact: Adam Strauss, extended stay manager P: 03 8699 1521 E: astrauss@questapartments.com.au W: www.questapartments.com.au

Born out of a deep belief that attitude & natural talent dictate potential, as opposed to skills or experience, every candidate is enrolled in a unique 12-month personal development program that helps to realise their full potential.

Contact: Jason Murray, senior talent consultant P: 0404 893 240 E: jasons@rookierecruits.com W: www.rookierecruits.com

cover story

“If you do a Google search, thousands of health-related results come up. So the question was how do you target potential candidates?” – Kerrie Field

say I’ve had 15–20 people come from one particular country in this point in time – but we are mapping that through our careers website.” While this will continue to be a focus throughout 2010, Field will be shifting gears to also concentrate on another key aspect of her job (her role also encompasses media solutions). “I’m looking closely at the role of HR and communications in the company, particularly e-communication,” she says. “The technology age is something

that challenges most HR professionals, especially around social networking, and how you harness that and use it to a positive advantage rather than negative. It opens up questions about where confidentiality starts and finishes, and where employee responsibilities fit in relation to communicating on social networking sites. We’re looking at developing some policies to address this in 2010.” Field will also be working on the development opportunities that exist within the healthcare framework. She currently holds HR responsibilities for over 6,000 employees across six hospitals in Australia (three private, three public). “My role is really about strategy, it’s looking at future opportunities that exist in HR, and looking at development opportunities that address the future needs of healthcare. This focus on development is all about value and contribution to the organisation,” she says. “It’s not performance management in the traditional sense; it’s about creating a development opportunity dialogue. It looks at how we develop people in line with the organisation, and how we manage that talent and develop that talent to meet the changing demands of the healthcare environment. This will ensure we have future sustainability.” HC

Exhibitor

STE 1300apprentice

TAFE NSW – Sydney Institute

STE 1300apprentice is a group training company committed to sourcing quality host employers to facilitate on-the-job training for their apprentices and trainees. STE 1300apprentice operates across NSW and the ACT and currently employs around 300 apprentices and trainees in approximately 40 different vocational areas. STE 1300apprentice will organise your complete apprenticeship and traineeship needs including recruitment, administration, OH&S, training and mentoring.

TAFE NSW – Sydney Institute provides training solutions! They identify your training needs and tailor training to meet your requirements. You determine where TAFE NSW delivers the training and they base the timetable around your availability. The cost of training can be reduced through their ability to access government funding and they provide recognition for your staff’s previous work and life experience.

Contact: Samantha Leet, business development P: 02 9715 7344 E: s.leet@1300apprentice.com.au W: www.1300apprentice.com.au

Contact: Cam Jobbins, director, national business P: 02 9217 3536 E: camden.jobbins@tafensw.edu.au W: www.sit.nsw.edu.au/employerservices

HRSUMMIT2010

visa. Moves are also afoot to join forces with a UK university where St Vincent’s will provide the mandatory 12 week training program for those Australians looking to practice in the UK. While Field maintains that such programs provide employees with obvious overseas work and educational opportunities, she also believes it provides a strong link between employer and employee. “It creates loyalty through an experience rather than through a service,” she says. “If we look at the total service offering from the organisation and we have someone who leaves us to work in another country through an introduction that we’ve set up for them, the value they feel from that introduction and the service we offer in turn has an impact on them when they decide to come back to Australia.” Field admits the program has taken a lot of hard work and negotiation, and doesn’t necessarily provide the magic pill to solve the healthcare sector’s tough skills market. “It’s one of those things that has a slow take up. You can’t say if you engage in an advertising campaign you might interview 50 nurses and then get four of them to come to Australia. This is about getting our brand out there and getting a profile where we can accommodate interest from a number of different sources. I can’t

issue 8.2

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expert insight

THE IMPACT ON BUSINESS OF CHANGES IN WORKPLACE LAW The Fair Work Act 2009 and the new federal workplace relations system create a raft of obligations on employers and are impacting businesses now. Recent research suggests that more than 50% of businesses are not prepared to meet their new obligations. Unfair dismissal All employers, regardless of the size, are now covered by the unfair dismissal laws. Employees terminated due to redundancy may make a claim and the small business fair dismissal code applies to employers with less than 15 employees. Developing a fair process for dealing with dismissals is essential to avoid falling foul of the laws.

HRSUMMIT2010

General protections The new general protections regime (which provides for a new discrimination jurisdiction and prescribes a range of conduct that is unlawful) enables

employees to make claims during or after employment, and they can even be made by job applicants. The onus is an employer to disprove the employee’s allegation, so it is important that employers have good documentation that shows the true lawful reason for their conduct. Awards Employers must now work out what new awards apply to their business, make adjustments to ensure compliance and navigate their way through the phasingin payment arrangements. National Employment Standards The National Employment Standards is 10 minimum employment standards, which includes a right to request flexible work arrangements. Prudent employers will review processes, practices, policies and contracts to ensure compliance with the standards.

Agreements and union access The way that 'Enterprise Agreements' are negotiated and approved has changed, and rules relating to union access to the workplace and right to bargain have been modified. Even employers who are well practised in this area will need to update their knowledge in order to be compliant with the laws. What you do now may have a lasting impact on your business. Australian Business Lawyers can provide you with advice in relation to the new laws or any workplace law matter. Australian Business Lawyers Sharlene Wellard Partner sharlene.wellard@ ablawyers.com.au (02) 9458 7622

Exhibitor

The Coaching Room The Coaching Room specialises in Leadership, Executive & Management Coaching as well as Leadership Training for C-Suite Executives, new & current Leaders & their organisations in Sydney, Melbourne, Hobart, Brisbane and the Gold Coast. Our internationally experienced and accredited Neuro Semantic Leadership coaches have been facilitating transformational & generative change with C-level leaders including since 2003.

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HRSUMMIT2010 ASIA-PACIFIC’S LEADING HR and management EVENT

sydney28-29 April 2010 Crystal Palace luna park sydney Proudly supported by Human Capital magazine

Contact: Jay Hedley – CEO Joseph Scott – Director of Coaching & Training P: 1300 858 089 E: enquiry@thecoachingroom.com.au W: www.thecoachingroom.com.au/ executive_leadership_coaching_index.html

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issue 8.2

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issue 8.2

Pre-employment screening

The

Still wondering about screening for cultural fit? Where does psychometric testing fit in, and how does it serve to enhance corporate culture?

crucial “P eople make cultures and personalities make people so you could logically conclude it’s the personalities of the people you employ that make the culture,” says Mark McCutcheon, practice leader for assessment, Chandler Macleod Group. “When you’re looking at cultural fit there are two sides to the ledger. One is you need to have a very clear view of the culture that an organisation has now or would like to have, and then part of your hiring is to get cultural fit as right as you possibly can. That’s not just the role of a psychometric test or assessment; it’s something that should permeate your process right from when you present the role to people – so if people don’t like the culture they can select out.” Psychometric testing is used to measure a number of factors: personality or behaviour – preferred style of operating in the workplace. Eg, the interviewee may be asked which statement is most like themselves: I get nervous before a formal situation; I like selling things to people; I’m interested in understanding what drives people.

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piece

ability – the underlying cognitive skills someone might require for the role – whether that’s verbal reasoning, numeric reasoning. Eg, to assess numerical reasoning, there might be a graph with inferences to be made from accompanying data. motivation – the elements that will most likely motivate someone in the workplace. Eg, on a scale of 1–5, how important is having your own office? How important is it for your salary to match what you think you should be earning?

“Initially we say it’s very important to define what you’re looking for first. As far as personality goes, what are the actual behavioural preferences that you’d be looking for someone to exhibit in the role? For example, a sales position would be very

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Pre-employment screening

different from a business analyst. For the sales role you might be after someone who’s a risk taker, highly persuasive and influential, but not necessarily high on the detail. A business analyst, on the other hand, must be absolutely rigorously stuck on the detail and using data to make decisions,” explains Stephanie Christopher, national director, SHL Australia and New Zealand.

Online or in person?

There’s still debate about how psychometric tests are best handled. McCutcheon notes that most organisations will now separate the personality assessment from the cognitive assessment. He notes there’s a level of comfort about doing the personality assessment online, unsupervised. However, while better tests are coming onto the market, most organisations still prefer the cognitive assessment be done under supervised conditions. “Obviously, there’s a risk that people might get some assistance with the cognitive test – and you can’t discount that – but there’s not a lot of evidence that happens. The other problem is that people may do the cognitive test in an environment that isn’t conducive to good results. They might get onto the internet having a glass of wine or watch TV – so they’re not doing themselves a favour. It’s not so much about cheating but making sure you get the most accurate result from the candidate,” he says. Generally, personality tests are hard to fake. First selection testing is the recommended approach, whereby the candidate makes forced choice responses. “Generally, you have four statements and you have to say what’s most like you and what’s least like you. You do that over 100 times. It’s hard to fake those things,” says McCutcheon.

Broader implications

Is it important for employers to consider the broader picture – for example, are the skills required for a recovery different to those skills required during tough financial times? Christopher believes so. “Talent in an organisation during the upturn may be different to the talent they need during tough times. For example, thinking about what talent looked like in the financial services sector over the last three or four years, in the good times it might have looked like a high achieving, risk taking ‘out there’ person. Then during the downturn you may have looked for someone who had strong adherence to rules and principals. During the upturn it may be a bit of both.” McCutcheon adds that fundamentally every form of assessment – whether it’s reference checking or behavioural profiling – is attempting to predict a person’s behaviour. “The personality-based assessments are trying to look at behavioural preferences: does someone prefer to be motivated by deadlines, more money or reward & recognition? Cognitive tests are trying to predict how well they will be able to cope with the problem solving and decision making demands of the job. Most of the research shows that cognitive tests will measure whether someone can do the task elements of the job, whereas the personality side is more about the style of person you want in the job.”

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Stephanie Christopher

“If you can’t offer bonuses and pay rises… Look at the other things … like personal growth or teamwork”

It’s also worth noting that while a person’s personality may not change a great deal in their lifetime, their motivations probably will. A major life event might shake up preferences, making motivation more contextual. “Perhaps at one period in your life you’re more interested in personal growth or working with people. Then perhaps life might change and you find it’s money that gets you out of bed every morning,” says Christopher. Something that has occurred with greater regularity in the recent economy is that an organisation’s offerings may change also. “If you can’t offer bonuses and pay rises, or hefty commissions, what else does your organisation have to offer? Look at the other things that motivate your employees, like personal growth or teamwork,” says Christopher.

Where and when?

Where should such screening take place? Christopher notes it may depend on the volume of recruitment. For large quantity recruitment where 5,000+ applications may be received, she suggests undertaking psychometric testing right at the beginning, once the gross disqualifiers such as ‘are you able to work in Australia’ are covered off. “Some sort of sifting tool might be used so you’re putting your investment, which is your time, towards people who are already pre-qualified,” she says. “Some organisations might get 6,000 people so they could screen on ability upfront to make sure people have the underlying aptitude to do the role. Further down the track, closer to interview they might do personality. For a call centre role or blue collar transport role you might use a different type of sifting tool upfront. What’s the likelihood they’ll take unscheduled leave and sickies? How about attitudes to safety?” There is, of course, a broader issue to consider: does the employer want to be known as an organisation that screens people out on the basis of a single test? “There’s that employer reputation to bear in mind,” says McCutcheon. “That said, if you have vast numbers of people applying for a role then you need an efficient and objective way to get that number down, so it’s a reasonable thing to do. And the sooner you do them the better, really. If you wait till right at the end and it’s a role where, for example, you need good numerical skills and you find out right at the end that the person’s in the bottom 10% compared with other managers, then it’s back to square one.” “It’s one piece of evidence – a very valid, scientifically tested piece of evidence – that puts together a whole picture of someone you’re hoping to employ,” Christopher adds. HC

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Pre-employment screening

he drivers of growth for the candidate verification industry are obvious. Still wary after the corporate governance failings of the Enron collapse, the 9/11 terrorist attacks and subsequent ‘war on terror’, and the rising prevalence of identity theft, it’s hardly surprising that employers have stepped up their pre-employment screening efforts. There are also increasing numbers of court cases in the US focusing on negligent hiring whereby employers are being sued in class actions brought by employees who are victims of unsafe working environments. While this extreme is yet to occur in Australia, it’s a possible portent of things to come. Yet with hiring practices expected to revive in the new year, organisations that had their HR functions cut down to bare basics during 2009 face a problem: do they have the resources to run the rigorous pre-employment background checks of the past? And if they don’t, what’s the alternative? From full medical and drug/alcohol checks through to qualification checks and online psych testing, pre-employment screening has become a lot more sophisticated than mere referee checks. There are now over 30 background checks available, and when combined with detailed psych or behavioural profiling (outlined on page 28), separating the wheat from the chaff has

never been more involved – and with good reason. As tempting as it is to think only the best of people, there are many costly examples of candidates who exaggerate, omit key information and tell outright lies when applying for jobs. “Irrespective of how good the behavioural interview is, there are things you cannot ascertain. You cannot ascertain whether or not they missed out on the degree, or fudged that membership, or have the credit rating they specified – that’s where we come in,” says Greg Newton, MD of Verify.

The basics

When it comes to due diligence in hiring, Newton notes that every client is different. Some will insist that, as a bare minimum, criminal checks be undertaken, while other industries such as financial services legally require AFS licence checks. As a recent example, in 2008 an amendment to the Aged Care Act 1997 required that all employees and volunteers with unsupervised access to patients under care have a police check. “Sometimes it’s external legislation that governs your industry, or sometimes it’s for auditing purposes like the US Sarbanes-Oxley Act. Finally, at the end of the day, employers are also realising they can’t take a CV at face value,” says Newton.

Behind the

mask “One may smile, and smile, and be a villain.” Although Shakespeare wasn’t referring to shifty job candidates, his observation is valid when it comes to pre-employment screening. Human Capital outlines how to weed the villains from the heroes

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Pre-employment screening

An example of how his company’s services are used is when Verify is engaged to do shortlist screening, bringing candidates down to four or five, which the client will then interview. The client notifies Verify of the one or two candidates they are most interested in, and alongside online psych testing, a verification process will be carried out, which will include drivers licence, degree or qualifications, two reference checks, identity check, criminal record check, visa or right to work check. Then there’s drug and alcohol and medical tests (including inoculations). “We send the candidates in squeaky clean,” he says. “When that person starts with the organisation it means they’ve been totally verified. They are who they say they are, they are fit to do the job, and they have all the qualifications and skills.”

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First steps

As employers have found in 2009, one of their most daunting challenges is the sheer volume of applicants. Despite e-recruitment technology that can pull competencies out of resumes, phone interviews are often required to delve deeper into those competencies. “If the key competency is leadership we’ll explore how many people they’ve supervised, their method of leadership, how they went about reviewing people, training people, etc. We’ll conduct telephone screening to make sure they meet the first line criteria. If they don’t we’ll reject them, if they do we’ll put them into the bundle to send to the clients,” says Newton. “It’s a bit different to reference checking: you’ll actually have a set of competencies that are designed for that job that we’ll screen for and apply a rating from high to low. It’s a simple process of competency checks through a five-minute phone conversation.”

Screening

From there, final applicants will be thoroughly screened. The list of screening methods is becoming both more expansive and more sophisticated. Verify recently upgraded its identity checks to include 140 points of identity verification (passport, drivers licence, utility bills). The company also offers fingerprint verification, and

“If the key competency is leadership we’ll explore how many people they’ve supervised, their method of leadership, how they went about reviewing people … etc”

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Pre-employment screening

iris and DNA checks are just around the corner. “Anyone with a criminal record has been fingerprinted. Over time, as iris testing and DNA testing becomes more common in Australia, those are the technologies we’ll use,” says Newton. Medical checks remain popular, but Newton notes that these are usually undertaken by operational staff handling machinery rather than executives (although this does occur). In 2010, Newton anticipates that Verify will undertake over $10m in medical checks alone. Drivers licence checks are also a growth area. “It’s not uncommon to find sales reps without drivers licences. Reps tend to be younger these days – they may be into alcohol or recreational drugs and it’s quite common to find a conviction in the past for DUI or similar offence,” Newton says. In an age of internet diplomas, qualification checks are also becoming more prevalent. There are two sides to this. Firstly, if the organisation desires a certain qualification in the job then employees should have it. Secondly, in order to practice in some jobs employees are mandated to have a qualification. For example, in some finance roles an employee may need to have a degree and also be an ACA member. Increased licensing requirements, especially when it comes to jobs involving the provision of financial advice or loans, means there is thorough probing of APRA records or AFS disqualification checks. “It’s essential the organisation protect itself against litigation by ensuring that the individual in that job has the qualification required under the law to practice that job. It’s just like driving a vehicle. You have a rep on the road and you haven’t checked if they have a current drivers licence and they kill or injure someone – you very well may have substantial liability,” Newton warns.

Police and identity checks

Alongside education/qualification and employment checks, Newton says that police checks are the most common background checks undertaken. “What we’re looking for are previous crimes that are relevant to the role that the individual is going for. In the financial services sector there are particular roles where you can’t have a criminal history. Acts of dishonesty are a big thing to look for. In addition, a candidate going for a role in the transport industry as a driver could have been charged with multiple DUIs. Or you may want to be a financial controller but you’re guilty of theft, embezzlement or fraud. Or you want to work as a sales rep for a pharmaceutical company but you’ve got a drug-related crime on your record.” Newton says it’s not unusual to uncover criminal convictions that should have been disclosed. “We find an average of 7–8% of candidates will have disclosable outcomes,” he says. “However, the Spent Convictions Scheme says that if you committed a crime longer than 10 years ago and you haven’t committed the crime again, then it’s not disclosed to anyone.”

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Effective probing Human Capital presents five top tips for effective reference checking:

At interview stage confirm with the candidate who is the appropriate person to call. Do not rely on who is written on the resume. Ask specifically who the role reported to, who is currently in that position and how long they reported to that person

If the referee to call is not the person noted on the resume, ask the candidate why and ask for written permission to contact the referee

Ensure you identify the person you are talking to; never conduct reference checks on mobile telephone numbers. Phone the reception of an organisation to confirm the name and title of the person

Often during the interview process we are trying to dig up information that we can ask further questions on during the reference check, as you may have standard questions to ask. Dates of employment might be one – do not ever offer the dates but get the referee to offer them

Ensure the questions are relevant and open-ended. You may need to do more than one reference check at a single organisation to rule out any personal issues or ill-feeling between people

Other checks

Among the more unusual checks available are: »» A media search which looks at the reputation of a candidate »» Bankruptcy checks for those providing financial advice »» Directorship or significant holdings search to identify conflicts of interest. For example, government officials or an applicant going for a senior marketing role with Telstra while still holding a large parcel of shares with Optus »» Identity checks. According to Michigan State University, 51% of identity theft occurs in the workplace. Closer to home, Operation Hickey was set up by federal police in 2007 to investigate the manufacture of high quality counterfeit documents, including Medicare cards, passports, bank cards and drivers licences. Twelve arrests and 520 charges were laid »» Passport verification »» Anti-money laundering and counter-terrorist finance checks and checks for politically exposed persons – including global watchlists issued by government agencies such as the FBI and ASIO

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Pre-employment screening

Greg Newton

“In the financial services sector there are particular roles where you can’t have a criminal history”

A screening broker

Of course, it’s probably not feasible for time-poor internal HR teams to conduct all these checks. A company like Verify, which Newton describes as “essentially a broker”, has relationships with everyone from CrimTrac and ASIC through to the Attorney General’s Department. “We have a team of around 40 agencies who provide their services to us as the second party. We collate this information so the client can see it instantly online. For $200 we can do a drivers licence, identity, criminal record and reference check, and those things are a fraction of the recruitment cost.” Indeed, with the average cost of recruiting, hiring and training an employee ranging from $10,000 up to several hundred thousand dollars, a complete background check – which typically costs less than 1% of the hiring expense – is money well spent.

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Newton is still amazed at some of the stories he hears from clients. For example, after only cursory background checks, a large finance firm hired a head of credit. After the fact, Verify was called in to undertake checks on all employees, and as a matter of course they checked the new head of credit. Their discovery was cause for alarm: the employee had just been released from jail after serving time for embezzlement. “He was doing a brilliant job but they’d never checked him. It’s not to say he would have done that again, but there’s a strong chance,” he says. Third party providers must operate with strict adherence to Australian privacy laws and cannot conduct any private domain background investigation without the person’s authorisation (public domain searches, via Google or Google Academic, can still produce results). Verify offers online consent for over 50% of its services, which significantly speeds up the process for all parties and enables faster recruitment decisions. As a final tip, Newton recommends organisations create guidelines around what is included and what is excluded from background checks before introducing the process. “There must be a clear reason for doing it and it should all tie back into the inherent requirements of the job. Be careful about the moral judgments you are making and decide if it [the disclosable outcome] is relevant to the job, what was the context and how long ago it occurred,” he says. HC

Healthcorp - advertorial

issue 8.2

The challenge of CPR QUALITY CPR training comes to life

How to adopt cutting-edge CPR training while saving costs and time… Historically, CPR training has been very difficult to validate and time consuming, taking up to four hours to learn. The next generation of First Aid training does not have to be mundane. Instead, it brings the experience back to the basic idea that First Aid is an important life skill that can save lives in the workplace, not only an OHS requirement. This can now be truly validated by using revolutionary technology providing measured learning outcomes within a course that can be delivered in a 1.5hour intensive format, proving more effective than ever in relation to level of competencies achieved. Options are now available to introduce online CPR training combined with ‘hands-on’ testing accurately validated using Prestan’s revolutionary new CPR rate Monitor Manikin. The online component of the CPR course is based

on Australian Resuscitation Council Guidelines and combined with practical hands-on skills using the Prestan Manikin. Trainees are required to achieve a minimum 80% score on both the theory (25-question multiple choice exam) and practical. Only then can a certificate be issued. Results in the corporate sector show that success rates of 100% have been achieved using this system. “Prestan’s revolutionary new CPR Rate Monitor Manikin compares real-time performance against the current guidelines and has a unique way of monitoring both the depth of compression and the rate of compression using an advanced electronic system indicating the students’ skill level with realtime feedback,” says Rhonda Walck, Registered Nurse, Master of Nursing Clinical Practice and clinical education manager at Device Technologies. We decided to combine online training with this groundbreaking technology

to validate skills because it works. Research has shown that these lifesaving procedures can be taught effectively in as little as 20 minutes. Having skills validation finally lets us know exactly how each trainee performed, allowing for immediate improvement, which leads to potentially more lives saved and improved competency levels in the workplace. Additionally, the HR manager will be given the option to customise the course. For example, many organisations are now deploying automated defibrillators in the workplace, therefore defibrillator training competencies should be made available as part of the CPR training. This will save the company time and additional training costs. Today’s training providers are now expected to raise the bar for customer service and reporting functionality. The human resources or learning and development manager should have realtime access to their corporate training data or at the very least be able to import data into their LMS system, with no data entry at the client end. New turnkey corporate training portals are breaking new ground, making this level of service a reality and ensuring a dramatic improvement in customer service, administration of training and reporting.

Roger Wilson is the Managing Director of Healthcorp Pty Ltd. roger.wilson@healthcorp.com.au Visit www.healthcorp.com.au for more information

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issue 8.2

Onboarding

“You don’t want your new employee floating around in a haze of ambiguity wondering if they are doing ok” – Lenore Lambert

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Onboarding

issue 8.2

Get

onboard

t’s fair to say most new hires are nervous, unsure if they are in the right place, and possibly uncomfortable in not knowing anyone or ‘how things are done’. When that natural apprehension is compounded by a security pass that does not allow them access to the office, a work station that has the previous occupant’s name tag, and fellow colleagues who have no idea who this new person in their midst is, it’s no surprise that one in four new employees will take a week or less to determine if they will stay with an organisation.* At its most fundamental level, onboarding (or induction) is about managing the experience and relationship between the employer and employee at its earliest – and most crucial – stage. Author and thought-leader Stephen Covey talks about that employer/employee relationship in terms of human relationships, or the emotional bank account. People usually come to a new job with a certain number of deposits in the account – they have high hopes, and they’re willing to put their best foot forward. Then over time, from the employer’s first point of first contact, each touchpoint along the way has an impact on that commitment. The classic example is this: the candidate has a great interview, the job sounds great, and they are assured a decision will be made on Thursday. Thursday comes around, then Friday, then Monday, and still the candidate is left hanging. All of a sudden the candidate is withdrawing from that emotional bank account – and they haven’t even started work yet!

With organisations making tentative moves back to hiring new staff in 2010, one crucial step in the process – onboarding – should not be overlooked. Human Capital looks at what’s involved

Why onboard?

Onboarding plays a crucial role in ensuring that bank account remains topped up for the crucial early months of employment. “It’s about reducing uncertainty. You reduce the stress and ramp up productivity if you do it well,” confirms Leslie Alderman, partner, career management services, Chandler Macleod Group. “The individual connects with their employer, their manager, their team – so you actually have a higher engagement level from day one. You want them excited about the role even prior to day one rather than stressed and anxious. Most people after a week know if they will stay or not. If you can get the commitment before they start, you’re already ahead of the game.” So what’s involved? Most organisations will have formal and informal elements in their onboarding process. The formal side can be easily taken care of by checklists, which incorporate everything www.hcamag.com

issue 8.2

Onboarding

from the preparation of the work station to ensuring passwords and security clearances are made, to finetuning the details of what to do on the first day. This can be extended to a checklist for managers to ensure that policies and procedures are covered, and administration, payroll and housekeeping items are outlined – the dress code, the recycling plan, etc. “It’s the meet and greets, the paperwork and the orientation side of onboarding,” notes Alderman. Beyond the formalities, there are all sorts of intangibles that new hires need to master when they join an organisation – everything from knowing what’s expected of them, through to the dos and don’ts of polite chit-chat before a meeting, and onto the more complicated office politics. “Onboarding can play an important role in this, but I would argue that it goes on before the onboarding as well, to make sure candidates have a clear understanding of what the role is, what they’re getting into. Countless times people come into a role and it’s not what they thought it was,” says Alderman. Lenore Lambert, director, Exit Info, adds that informal induction may include: ensuring the new hire is given a sense of who the other teams on which they are dependent are; meeting the people they need to know; getting a sense of the culture of the team; knowing what’s expected of them; and being clear on what the manager hopes to see from them at the three-month mark. A lot of the uncertainty felt by new hires can be countered by a buddy or mentor system. Ideally that person should be someone who is seasoned, confident, experienced and knowledgeable. It must be someone at the same level or above, and preferably from another division. “For cultural and political issues, particularly at the senior executive level, if you’ve got someone who says, ‘the best way to deal with this person is to develop a business case and then talk about your numbers’, then that gives you so much knowledge that you can position whatever it is you want to move forward with. Most organisations let people find out the political lay of the land themselves rather than providing these insights,” says Alderman. The higher up the corporate ladder an employee moves, the more likely they will need to be aware of delicate political relationships and alliances. These subtle (and not so subtle) power plays can be difficult to figure out, yet the sooner the newcomer is aware of them, the more successful and fruitful their early days will be. For example: »» Do you have polite chit-chat prior to a meeting or do you get immediately down to business? »» What is appropriate e-mail behaviour? »» Should you be contactable 24/7? »» Can you leave at 3pm on a Friday? Lambert adds that buddy systems can be helpful but implementing them properly is crucial. “A number of organisations in my own career had a buddy system, and you met with your buddy for the first week and that was the last you saw of them. They can tick it off and say ‘buddy allocated’. But the poor buddy is not really told what to do or what the expectations of them are. It’s great to have as many support relationships in place as possible but

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First impressions count Chandler Macleod’s 2007 Workplace Barometer Report on Employers of Choice asked both employers and employees about the most effective approaches towards onboarding. The results are below: Tie the orientation or induction to more than just benefits, forms and policies – ideally it should reflect the mission, values and culture of the organisation Get new hires to their worksite as quickly as possible – introduce them to colleagues and key people they will be working with Use a staggered approach to induction – conduct meetings over several weeks in different areas of the business Ensure employees are aware of all the different activities that are going on in the organisation Give new hires a goal they can reach within the first couple of weeks or even days Tee them up with a buddy or mentor – someone with plenty of experience in the company, ideally from another division of the business

Onboarding

only if they’re implemented properly and have the enthusiasm of the parties taking part,” she says. Lambert says that simple goal setting for the first couple of weeks of employment is important, as is a benchmark to aim for. “You don’t want your new employee floating around in a haze of ambiguity wondering if they are doing ok. Perhaps instruct them by the end of the probation period to build good constructive relationships with this person in finance, this person in marketing, etc. Or ask them to be involved across all the recruitment processes – or whatever it is – to give people a sense of knowing what they are shooting for and how they should be getting there.”

Strategic tool

Beyond merely providing a ‘welcome mat’ for new hires, onboarding can act as an important strategic tool for HR. While exit interviews can shed light on problems after the fact and are useful for spotting trends, a more immediate tool is the ‘stay interview’, which can be conducted just before the end of the probation period. “Stay interviews are much more targeted and focused on the individual. You’re trying to keep that individual before they become a flight risk. It’s too late to help someone at exit interview stage. The information is still invaluable because you’re identifying

issue 8.2

the real drivers of turnover and preventing it for the future, but with onboarding you have a chance with this new employee to turn them around if things aren’t going well,” says Lambert. While new employees are often reluctant to speak up – they don’t want to be seen as a squeaky wheel or high maintenance – it’s important to open the channels of communication. The stay interview can be used to shed light on the entire attraction, recruitment and selection process. What was it like for the candidate? What attracted them to the organisation in the first place? Was the induction satisfactory? “The real beauty of this practice is it hones in on early problems. You’ve put all the money into attracting, selecting, onboarding, getting them up to speed in their job. Then if they walk out, the above and below the line cost of turnover is massive. Depending on

“It’s about reducing uncertainty. You reduce the stress and ramp up productivity if you do it well” – Leslie Alderman

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issue 8.2

Onboarding

Don’t forget the temps! A Manpower survey conducted in 2009 found that more than a quarter of employers worldwide do not expose their contingent employees to the same induction and assimilation processes as their permanent employees. Lincoln Crawley, managing director, Manpower Australia & New Zealand, suggests that successfully engaging contingent workers rests largely on integrating them fully into the workplace and keeping them integrated.

instance, should be given the hardware, software and network access they need to become as productive as possible.

Consider a training program for the permanent workforce to foster better integration of contingent employees. Managers need to understand the expectations and behaviours of the various segments of contingent workers (contractors, temporary employees, outsourced workers, consultants). Permanent employees need to understand that contingent workers play an important role in meeting company goals. They should be encouraged to welcome contingent workers and treat them as a valued part of the organisation.

Remove the unnecessary barriers that keep contingent workers from feeling part of the team. Excluding them from corporate communications, newsletters, company events, intranets etc. can do real damage to morale and the effects can be easily remedied.

Many temporary workers feel like outsiders and much of this feeling can be minimised with basic engagement strategies, including:

Improve induction and orientation processes for temporary workers. No matter how elaborate the process, the key is to communicate the mission, vision and values of the organisation. Ensure that temporary workers have the tools and resources needed to do their jobs. Office workers, for

The stay interview can be used to shed light on the entire attraction, recruitment and selection process … was the induction satisfactory?

the job, it can take six to 12 months to get fully productive in a new role, so to lose them before they get to that point is such a waste. Around the three-month time is the right time – the manager should be having conversations with them anyway, but having a formal check is also important,” says Lambert.

Be careful

Alderman warns of induction fatigue, especially for temp or parttime workers who may have been through multiple inductions in different organisations. This can have serious repercussions in terms of safety and OH&S at work. “It has to be very specific and targeted,” she says. “We recently had an internal transfer of a graduate moving from recruitment to consulting. I put together an onboarding program for this individual that spanned over a

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period of time: a week of structured, scheduled meetings, training, and morning teas; and then we met informally weekly to see how everything was going; then we did a one, two and three-month review to keep a close eye on how everything was tracking. The induction we did for this person was not about the company, the vision, the mission; it was about the job and the division she would be working in. That took time to develop, but for me it was a terrific return on investment.” Another concern is information overload. Alderman relates one of her own onboarding experiences which involved a 14-hour day, seven-day residential program including shared accommodation with other new hires. “I was left scratching my head, asking if that’s what I signed up for,” she laughs. Yet, handled effectively, the power of effective onboarding should not be underestimated. “I had a very senior individual mention to me recently that when she came into the office five years ago she recalled exactly who escorted her in and how she was looked after. You can vividly remember some things because of all the emotions that go with it. It’s worth making the time and effort to do it well,” Alderman concludes. HC *Chandler Macleod’s 2007 Workplace Barometer Report on Employers of Choice

LDN International - advertorial

issue 8.2

SUCCESS WITH

ONBOARDING

Human Capital talks to Hilary Sayers, managing director at LDN International, about the importance of effective onboarding and how the right onboarding program can ensure success from the start. Human Capital: Why is there a growing interest in onboarding? Hilary Sayers: The early days in a job are challenging for newly appointed leaders. They have a lot to learn about their organisation, its people and its market. Many believe they can do this intuitively; after all, they have been successful in previous roles. It is tempting for new leaders to put effort into ‘what to do’ at the expense of how to go about it - they need to take time to understand the culture, clarify stakeholder expectations and identify areas for personal development so they can be highly effective. Research shows up to 40 per cent of promoted leaders fall short of expectations in the first eighteen months and the figure is higher for newcomers to the organisation. There is a growing awareness that the cost of failure is too great to leave successful transitions to chance. Onboarding programs improve retention and reduce the risk by providing a formal process beyond orientation, giving new leaders the best start possible.

job and measure their capability against those demands. By increasing their self awareness they are better able to deploy their strengths and make the personal changes necessary to do well. The result is the 90-Day Plan™, a proven framework for managing leadership transitions. It is a structured, yet flexible, approach to accelerating integration and building skills for success.

HC: How has LDN International approached onboarding? HS: Over the last eight years our team in Australia and New Zealand has refined a process to help executives and managers assess the demands of a new

HC: How are you measuring the success of the program? HS: The 90-Day Plan™ is designed to have an immediate and ongoing impact on new leaders as well as lasting benefits for the organisation.

HC: How is the 90-Day Plan™ delivered? HS: The 90-Day Plan™ is available in two formats. The 90-Day Plan™ for executives is delivered as an individual coaching program over an agreed number of sessions. An experienced business-oriented coach provides confidential support during those allimportant early days. The 90-Day Plan™ for managers is available in a mix of self-paced learning and short workshop sessions. Typically, this is integrated into existing organisational development systems and may be delivered in whole or in part by in-house practitioners.

We have tracked its specific outcomes through detailed feedback from participants and their key stakeholders. We will continue to do this to ensure we are meeting the evolving needs of participants. HC: What benefits have been gained? HS: A global company reported much higher satisfaction levels with the performance of incoming executives after the program was introduced. The executives themselves were favourably impressed by the company’s obvious commitment to their career success. A financial institution found the 90Day Plan™ had a profound effect on the way development was perceived. Participants really engaged with the program as it offered a critical development opportunity at a time when they were most receptive to it. One executive found the tools in the program so useful he decided to use them to align and develop his new team. The program has since been adopted for all new executive and managerial appointments. HC: How can organisations find out more about the 90-Day Plan™? HS: They can contact LDN International on +61 3 9667 9100 (Australia) or Business For Life on +64 9 307 0910 (New Zealand) or visit www.ldninternational. com for more information. www.hcamag.com

issue 8.2

employee engagement

The corporate The realities of the global recession have switched attention to the core HR issues of performance and engagement. Ian Gooden outlines why some employees may not be along for the road to recovery

n working with organisations to assess the true engagement and capability of their teams we have increasingly become aware of a group of employees that represent a true risk to organisational performance: ‘corporate prisoners’. These individuals create drag on organisational performance – yet they are often unrecognised and, more importantly, ignored.

Who are they?

A corporate prisoner is someone who stays with an organisation without being fully engaged. Their personal aspirations and needs

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are no longer aligned with those of their employer. Rather than seeking a new role or organisation, the corporate prisoner stays. Some out of choice; and others for reasons beyond their control. The corporate prisoner exists in a ‘cell’ confined by a combination of motivation, situation, capability and flexibility. They are trapped in a role where their performance potential is limited by one or more of these dimensions. It is important to recognise that some prisoners are exactly where they want to be. In a traditional employee satisfaction survey they might be among the most positive respondents.

employee engagement

issue 8.2

The corporate prisoner model

Economic prisoners

Prisoners of circumstance

Escapers

prisoner Yet the reality is that they may have found a way where they can ‘do the minimum to survive’. They often operate below their full potential and resist working beyond their job description. We have developed a model that helps organisations think about corporate prisoners using two key dimensions: Desire to stay is a function of attachment, not engagement. It reflects how much an individual wants to stay in a role, department or organisation – not whether that desire is appropriate or beneficial to the organisation. Individuals with a very low desire to stay will explore ways to exit – and can be expected to do so when the opportunity arises. They may not broadcast their intent – and may, particularly in a climate of limited external job opportunities, broadcast messages designed to camouflage their intentions. Potential to perform is a measure of the long-term value of an individual made up of a combination of capability, willingness to grow (both in terms of skill and accountability), energy and

Prisoners of consience low

low

Lifers

potential to perform

Visiting stars

high

Chiumento has combined two dimensions – ‘desire to stay’ and ‘potential to perform’ – to create a four-box model that helps organisations to think about their own workforce. Each of the four quadrants of this model contains potential groups of Corporate Prisoners. Each poses a potential risk to organisational performance and requires a different talent management strategy to ‘release’ prisoners either back into the workforce or into the external job market.

high

desire to stay

motivation. It recognises that people can be developed – but that they must also be motivated and energised to convert potential into performance. Individuals with low potential to perform can be defined by both behaviour and capability. For example, they may have high capability but be resistant to developing new skills or taking on wider responsibilities. Equally they may have all the core capability and training to be a potential high performer – but fail to achieve that potential because they are not motivated by their role, their leader, or the organisation itself.

What do corporate prisoners look like?

The truth is that corporate prisoners are often hard to spot. Their true level of engagement is low – but they don’t often make any public show of disloyalty or dissent. Some thrive by fading into the background. As Norman Stanley Fletcher (of BBC’s Porridge fame) www.hcamag.com

issue 8.2

employee engagement

… organisations that grasp the new opportunities will be those with engaged employees ready to respond quickly and flexibly to a changed environment

The Visiting Star He or she arrived in your safe haven to ride out the economic storm or make a quick jump on the career ladder. They are that too-good-to-be-true candidate, adding pace and transferring skills. Plan now for their departure. Around 12% of workers fit into this category.

might have said, “keep your head down, serve your time”. By being invisible they avoid direct challenges about their performance. Traditional performance management approaches can fail to identify and deal with corporate prisoners who are happy with a ‘just satisfactory’ rating, which presents real challenges to an organisation that needs everyone to ‘step up’. In a recovering economy, organisations that grasp the new opportunities will be those with engaged employees ready to respond quickly and flexibly to a changed environment. Those with a workforce that ‘goes through the motions’, resists change, and fails to pick up the pace will see opportunities slip by. We have clustered corporate prisoners into well-defined groups that are more easily recognised and managed. Deep down, we all know that prisoners exist in most organisations. Most of us can think of past colleagues who have stayed in a job long past the point where it was beneficial to employee, organisation or both.

The six key categories of corporate prisoner Chiumento has identified six core types of corporate prisoner:

The Escaper One in five employees fall into this, the largest group. Hard to spot, escapers are planning to leave as soon as there is another job to go to. When the economy picks up, escapers will move on, driving up recruitment costs. The research suggests that almost a fifth of the workforce will start job searches in the next six months and a further third plan to move on within two years.

The Economic Prisoner One in 10 workers fit this category. Keen to protect their position, economic prisoners can’t afford to move because their pre-recession pay and benefits could never be matched elsewhere. While they stay, potentially more able employees are held back from promotion. Over time their loyalty centres on reward rather than true engagement. Prisoners of Circumstance Chiumento’s research suggests that over one in 10 workers fit this category. They may be stuck with a poor leader, with a need to work locally, or to work limited hours. The danger is that this lack of individual choice can lead to alienation and a decline in performance. Prisoners of Conscience A small proportion (just over 4%) of respondents fit this category. They love what they do, they believe in the cause, but they have reached the limits of their abilities. Their commitment keeps them loyal, keeps their engagement high, but does nothing for the business’ performance. The Lifer A surprisingly tiny proportion – just 3%. Most organisations willingly accept a proportion of Lifers as they provide stability and act as the corporate memory bank. They are unlikely to be particularly open to the kind of change needed to overcome the challenges organisations face over the coming months. As organisations come out of recession, most will find a mismatch between the tasks they have to undertake to grow again and the talent they have. Plans for recruitment, talent management and restructuring should be revisited now to ensure they release their corporate prisoners and attract the right people for the long term.

In summary… Chiumento has defined six categories of corporate prisoner based on two factors – ‘desire to stay’ and ‘potential to perform’. The six categories can be summarised as follows: Category

Desire to stay

Potential to perform Core capability

Desire to grow

Energy and motivation

Escapers

Low

Variable

Low

Economic prisoners

Low

Variable

Lifers

High

Variable

Low

Variable

Prisoners of conscience

High

Low

Variable

High

Prisoners of circumstance

High

Variable

Visiting stars

Low

High

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employee engagement

Liberating the prisoners

Resourcing teams play a key role in reducing the prison population – by ensuring that organisations hire the right people not just for today, but for the future. Many categories of prisoner (such as Lifers and Prisoners of conscience) are created – albeit inadvertently – by a short-term view of recruitment success. Today, many recruitment functions are still judged primarily on very short-term targets (cost per hire, time to hire, etc) that encourage equally short-term approaches to talent acquisition. Failure to assess the long-term potential to perform may be creating tomorrow’s prisoner. We need a new set of recruitment success criteria that cover long-term engagement, performance and career progression. We need to equip organisations to be agile and work at full pace. This includes the ability to change the profile or deployment of their workforce quickly. In turn, resourcing teams need to make better use of short-term resources such as interim managers. Hiring permanent staff who cannot evolve as the business does has undoubtedly increased the level of redundancies around the world. This often results in organisations shedding resources in one area only to hire elsewhere. In some cases the staff being released are relatively new joiners – reflecting how far resource planning had become dislocated from business reality. This demands a more pragmatic and future focused approach to resource planning.

issue 8.2

come to move on or out of an organisation. By enabling people to take control of their careers you avoid lengthy performance discussions and at the same time often empower people to move on to roles in which they will be more successful – and satisfied. Career management needs to address topics such as career downsizing and managed exits. It needs to be bold and open about discussing futures and options. It should allow people to say ‘I want to go’ and help them on their way professionally and ethically. The career management agenda should also address issues such as selection for redundancy and redeployment. Long-term potential to perform must be part of the decision-making process on who stays and who goes. A career management strategy is also about getting employees to take ownership of their own professional development – recognising it is an investment in their own future and not the responsibility of their employer. HC

About the author Ian Gooden works with Chiumento, a leading UK talent consultancy. Chiumento is part of the Arbora partnership, which regularly partners with Audrey Page & Associates in Australia

Talent management strategy

Now more than ever, organisations need to ensure their people are engaged. It’s about far more than satisfaction – it means having people who will invest energy, emotion and capability in achieving organisational performance. It’s about people who will grow and evolve with the organisation – seeing a mutual interest in success. Organisations need to tackle those who are performing poorly. They need to review reward strategies that create Economic prisoners while at the same time unlocking the potential of Prisoners of circumstance by developing leaders who motivate and inspire their people and policies that embrace diversity without compromising business priorities. Many managers have struggled to deal with average performers who outstay their usefulness in a specific role and need to move on to enable others to grow and accelerate the pace of change. Managers should be given the courage, skill and tools they need to talk about careers and encourage honest and frank feedback on career potential. Lifers need to be re-engaged – or helped to take a route out of their role or even the organisation. Managers need to lead their teams into, through and beyond change. Few organisations will be immune to the economic challenges of the coming months. Your people are already likely to have seen valued colleagues leave the organisation. The talent agenda has to support and re-engage survivors – rebuilding trust and commitment in the process.

Career management strategy

Organisations need to help people take positive action to manage their own careers. This includes recognising when the time has www.hcamag.com

issue 8.2

profile

hen asked at a recent new hire induction at Dell why he’d remained with the company for so long (nine years and counting), Karl Solomonson had to think quickly before responding. “No one had asked me that question before,” he says. “It’s obviously an amazing company to work for, but for me personally it’s about my career. I can’t count how many different roles I’ve had in the organisation. I’ve had roles spanning the Australia-New Zealand business, senior HR roles looking after HR for South Asia, looking after different segments of the business through AsiaPacific and Japan, through to my current role as HR business partner for our public sales organisation in Asia-Pacific and Japan. My message to the new hires was this: Anything is possible in this company, and there are no barriers to your success. Dell paves the way but it’s up to you as individuals to go wherever you want to go.”

Early career

Solomonson has been a passionate advocate of the HR profession for many years, yet his career could have easily taken a different path. Despite leaving school with the intention of becoming an accountant, a switch towards organisational behaviour/personnel

management and IR subjects while undertaking his Bachelor of Business put HR firmly on his radar. Solomonson’s first job out of university was a cadetship with diversified manufacturing company CSR. His primary focus was industrial relations. “I found myself partnering with the senior IR team and being an advocate in front of the industrial tribunals and commissions. I really enjoyed the thrill of putting the company’s position forward in an industrial tribunal and negotiating with unions. That’s where I learnt my bread and butter, and it’s carried me all the way through my career,” he says. After a six-month run in CSR’s IR team Solomonson was encouraged to move into the broader field of personnel management. Through the company he moved to Adelaide and spent the next six years in a variety of roles, including heading the personnel management function for the sugar refinery. “That was a heavily unionised environment but I learnt that it wasn’t just about having a win, it was about win-win. I discovered how people could contribute to the overall success of organisations and we did some remarkable things back then in terms of working with the unions for a common cause. The factory was targeted to be shut down but by working with our people and the unions we extended the life of that factory considerably. I found myself using those skills not in opposition but in alignment with the leadership of the organisation,” he explains. Over the following years Solomonson moved into HR roles in manufacturing, stevedoring, IT distribution, and finally technology with Dell.

What crisis?

Dell Australia has bucked trends over the past 18 months. Not only has it hired upwards of 150 new employees, it has continued its run of impressive financial results – all the while maintaining its envious employee engagement levels. Iain Hopkins reports

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Thilo Pulch, www.pulchphotography.com

profile issue 8.2 “The days of HR demanding a seat at the table are long gone. We have to be able to deliver value to the business. For me that’s delivering value through peoplebased strategies that are aligned to our company strategies” – Karl Solomonson

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issue 8.2

profile

In his own words What do you consider to be your greatest career achievement so far? It’s about flexibility and adaptability. In a previous company I worked for I was recruited into the organisation to close down and relocate one of its manufacturing facilities. That’s not a fun thing to do. We had almost 100% success rate in finding roles for the majority of people in that facility with other manufacturers in the area. I also had to put myself out of a job as well. I took on a different role in that organisation and that role was to become the training director. Part of that role was technical training, not training in leadership, etc. I had to learn how to engineer a paper manufacturing machine and then I had to teach that to engineers. What that means is in order to be successful in HR you’ve got to be able to get to know the business – whether that’s becoming a subject matter expert on a particular piece of engineering equipment or understanding the finances of the organisation. What has been the biggest challenge you have faced in your career? This is a word of advice to other HR practitioners or people in general. A long time ago I was asked to do something by my then current manager which I felt was not in keeping with my values. I felt that potentially that request was in violation of the company’s ethics and code of conduct, but as a young HR practitioner I was under a lot of pressure to do as I was told. At the end of the day I stood up and said no. At the time I didn’t have the leadership capability to draw upon to help manage that situation so I just followed my judgment – and my judgment was correct. That person left the organisation soon after. I didn’t compromise my values and I didn’t put the company at risk. Where do you see HR as a profession heading? It’s summed up in my current title. I’m called a business partner. Often I will be called into a discussion with my VP that has nothing to do with HR. I’m always in conversations regarding all sorts of things, whether they’re to do with the way in which we compensate individuals through to the way in which we approach a customer issue. All HR practitioners are able to take a different perspective on things. The days of HR demanding a seat at the table are long gone. We have to be able to deliver value to the business. For me that’s delivering value through peoplebased strategies that are aligned to our company strategies.

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HR at Dell

Globally, Dell is segmented into four businesses: large enterprise, public sales, small-medium business, and consumer. HR is aligned to those four business segments. In keeping with this global approach to HR, Solomonson currently holds dual roles at Dell. In his regional role as an HR business partner he supports the vice president of public sales for Asia-Pacific & Japan (APJ). He’s also the site leader for the Australia-New Zealand business. As head of the HR function for public sales, Solomonson does not have any direct reports but he does work with the HR field services team in each country to roll out initiatives developed in consultation with the company’s ‘centres of excellence’. The APJ public sales role entails responsibility for some 2,000 employees, while the Australia/New Zealand role includes responsibility for 1,000 staff. “As a support function we’re aligned very closely with the four global entities,” he says. “The reason for that is we’re a customercentric organisation. This structure allows us to work directly with our customers in those areas of business. Each of our respective HR organisations partners with each of those businesses. We develop strategies, solutions and programs that are aligned internally and externally to our customers. It’s not a one-size-fitsall approach for HR in Dell; it’s based on the requirements of each of those business units. However, there are core programs, and underpinning everything is our strategic plan for the corporation.”

A key HR strategy

For the second year running, Dell Australia has been recognised by the Equal Opportunity for Women in the Workplace Agency (EOWA) for driving change towards a more equitable workplace. Joe Kremer, CEO and MD of Dell Australia, is a particularly passionate diversity advocate and was recognised as the Leading CEO for the Advancement of Women in the 2009 citations. Solomonson recalls sitting down with Kremer not long after he joined the Australian team to discuss talent requirements: “At the time we were in growth mode and needed to make sure we were bringing in the right level of talent into the organisation. We realised that we could continue to develop our diversity program to bring the best talent into Dell – whether that is male or female talent. That started the journey and I now look at this as the key strategic item in my people plan.” Kremer has also been instrumental in setting up Women In IT Executive Mentoring (WITEM), which is positioned around accelerated development of senior women within the IT industry. Since its establishment four years ago, over 100 pairs of mentors and mentees have taken part, hailing from the IT industry (including vendors such as Dell), as well as IT executives and CIOs from different industries including financial services, manufacturing and legal. The 12-month program consists of senior-level executives volunteering to act as mentors to upcoming senior managers. The mentor is able to nominate

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issue 8.2

one senior executive from their company to be mentored, who is then matched with a CIO from an alternate company. “WITEM is the external arm of our executive women in mentoring program, but parallel to that we built our internal strategy around diversity,” says Solomonson. “We’ve built career development programs and also reassessed our employee benefits. We’ve introduced workplace flexibility such as job sharing, part-time hours, work-from-home options and greater leave allowances. Whatever we do we’re focused on equal opportunity. Predominantly, these programs were designed to further the careers of women, but they also benefit the entire employee population.” Indeed, Solomonson confirms these initiatives form a key part of the company’s branding and Employee Value Proposition (EVP). “I have to say it’s a strong selling point for us. Candidates do look for it. We’ve hired countless individuals into the organisation, male and female, because the values of Dell fit in with their values.” Perhaps even more crucial, Solomonson has found the flexible work options contribute to overall employee engagement. The company’s internal ‘Tell Dell’ culture surveys and three successive Hewitt Best Employer awards confirm this, but so do the financial results. “It’s clearly working for the company. We’ve hit our targets for the last 12 quarters in Australia and New Zealand. We haven’t missed a beat,” Solomonson says. “Over my nine years at Dell one of the key priorities has been maintaining employee engagement. That’s part of the reason why we introduced our family-friendly policies and started to emphasise how people could make a career in Dell. We introduced our annual HR planning session with not only our local leadership but also our regional president, who set aside two days of his time to come to the Australia/New Zealand operations to speak about people issues. We really put people on the agenda.”

Still hiring

As for the future, Solomonson maintains there are two key areas to focus on: attracting talent and building leadership capability. To the first point, unlike countless other organisations, Dell has had stellar performance over the past 12 months and has in fact been hiring. “The key focus area for me in 2010 will be to continue to attract talent to our organisation. That’s why our equal opportunity strategy is so crucial. We also need to build our leadership capability by not only bringing in external leadership talent but also developing talent within the organisation.” Does Solomonson believe the past 18 months has only been a brief reprieve in the talent war? “I believe so, yes. I was at a senior HR networking forum recently and the two areas of concern for just about every HR professional at that event was talent attraction and talent retention. The problems all organisations faced 18 months ago with talent attraction will return before too long.” HC www.hcamag.com

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No more

McJobs People on all corners of the globe have encountered the McDonald’s brand. Human Capital talks to the leader who unites some of its key business regions

n a sweltering day in Bangkok, it’s easy to crave a hot fudge sundae. There are thousands of families throughout the Middle East for whom a ‘Happy Meal’ is a weekly treat. And who hasn’t taken the fast-food breakfast option on a busy morning? McDonald’s Restaurants hardly need an introduction; the fast-food chain features in the weekly routines and overseas experiences of millions of people worldwide. Universality is the key factor behind the brand. Most customers walk in, ready to order, without so much as a glance at the menu. But fans of McDonald’s may not be as familiar with the name Tim Fenton. As president of McDonald’s in Asia-Pacific,

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the Middle East and Africa (APMEA) he works behind the scenes to keep McDonald’s the biggest name on the world’s fast-food map. Within the APMEA regions, 37 countries and territories host over 8,400 McDonald’s outlets. Eight hundred languages and dialects are spoken across 16 time zones. The numbers are dizzying, Fenton says, especially given the company’s commitment to maintaining high standards for training, recruitment and retention policies. In such a situation, consistent branding is both a challenge and an important goal. Fenton says the various cultures and attitudes towards work influence the way staff approach their roles in the

organisation. And that can sometimes conflict with the company’s broad international policies. Take the Middle East region for example. Women are a significant minority in several of the national workforces there, yet a disproportionate employee gender ratio is hardly ideal in a corporation that champions diversity. Fenton says he works to adjust the McDonald’s culture to the much stronger cultural circumstances of the country, without compromising its own values. It’s a strategy that requires a certain amount of finesse but this is where his role is at its most pronounced. This involves a great deal of travel. Fenton looks to constantly update his

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understanding of the differences between cultures, so he can better bridge the gaps with the company’s own philosophies. He says successful businesses, leaders and staff are those that can find equilibrium between the two forces. McDonald’s does its part also by shaping a corporate culture which is inclusive of differences while holding the same core set of employee values constant, he says.

Kelvin Cheung

People first

No matter the magnitude of McDonald’s business plans, Fenton says the organisation always strives to put people first. “Any company is only as good as its people,” he reminds his HR teams across the globe. “It’s relatively easy to build

bricks and mortar but without the people, they remain only bricks and mortar.” The statement is not always easy to abide by. The company employs approximately 1.5 million people – more than the US Army. Ensuring a universal understanding of roles and upholding expectations across such a wide and diverse range of people is one of Fenton’s biggest challenges. Soldiers at least enjoy a common nationality.

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McDonald’s key strategy involves a strong focus on career progression. Fenton says he ensures staff are trained, nurtured and have access to opportunities to take on more responsibilities within the business. If employees want to continue to build a career in McDonald’s – and many do – their expectations need to be aligned with HR strategies.

“Any company is only as good as its people. It’s relatively easy to build bricks and mortar but without the people, they remain only bricks and mortar” – Tim Fenton www.hcamag.com

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Advancing women

In late July, Tim Fenton, president, Asia-Pacific, the Middle East and Africa (APMEA), McDonald’s Restaurants, addressed the organisation’s first ever APMEA Women’s Leadership Network meeting. Two hundred and seventy highachieving and high-potential women from throughout the organisation attended the Singapore event, sharing experiences and developing strategies to enhance female participation and advancement.

Fenton says he has taken a particular interest in this part of the talent development equation. While in the past two years, his company has gone from having no female directors in its region to three, he agrees there is still a long way to go. “As a company where we have as many women restaurant managers as men, we have a huge interest in those women being able to rise through the senior management ranks in the same proportion,” he says.

Travelling up the career ladder in any company provides insight – those who move to the top can better relate to those in more junior positions because they have been in their shoes. Fenton says this mobility is even more important within the McDonald’s family because of the leaps that staff can eventually make from crew to management. The roles and responsibilities are vastly different at each rung. Fenton emphasises the message that the company values its employees’ growth. “For so many young people, we are their first job. They learn many essential skills from us,” he says. It’s something he knows a lot about. Fenton’s is a celebrated story within the organisation, spanning 35 years and the full range of career rungs. Beginning as a young crew person in a New York state McDonald’s, he worked his way up to be manager of the same restaurant. From

managing one outlet, he took on regional roles covering several. And then larger and larger responsibilities up to his current position leading several international regions. He presents himself as a product of a system which allows those with drive and talent to rise all the way to the top. Employees and job candidates are encouraged by stories like Fenton’s, partly because it is not completely unique. He says

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“For so many young people we are their first job. They learn many essential skills from us … We like our people to progress” – Tim Fenton

60% of McDonald’s senior management and franchisees began their McDonald’s journey as humble crew members, making hamburgers and cleaning restaurants. Fenton says the statistics form one of the organisation’s best recruitment and retention tools. “We like our people to progress,” he says. “Our continued success depends on it.” Of course, skills aren’t the only thing needed to excel to the top of the golden arches. Given that many managers step into their roles at a relatively young age, Fenton says the organisation needs to make sure they are up for the challenge. This means training and proper guidance, allowing them to assume their responsibilities within what is a fairly unique context. Fenton emphasises the importance on HR knowing the “right” people to hire and promote. These are people who don’t just have the right skills, but also display commitment to the organisation and a drive towards personal growth.

Repositioning the brand

The upward mobility opportunities certainly give credence to McDonald’s strategy of creating a rewarding work environment. But what may seem like a fairly simple employee attraction strategy is actually a clever manoeuvre to boost the company’s employer brand, which has not always enjoyed success. The term ‘McJob’ – slang for a lowwage and directionless job – once tarred all potential employment within the organisation. While the word could apply to a number of employers, it was clearly derived from the fast-food chain’s own marketing and obviously made the biggest impact on its employer brand. Fenton says it took an organisation-wide effort to combat the low esteem McDonald’s jobs once held in the wider employment market. He says McDonald’s now combines its staff incentives and career progression initiatives with its overall employment branding efforts. The issue highlighted HR’s importance to the entire organisation. “They [HR] are the very heart of the business,” he says. “They are a key part of our strategy debates.” He says the current teams operate robust systems with special attention to talent management. “They are always looking ahead for talent to feed into the pipeline.” HC

5 minutes with: Colleen Harris, NAB

the back page

issue 8.2

Executive general manager, Human Capital Strategy

What’s the greatest HR lesson you’ve learned so far? That people strategy should always reflect, support and have clear links to the business strategy – not be an adjunct to or something completely separate. This keeps the function relevant and an essential part of core business strategy. What’s the main challenge facing the HR industry now? Making sure your organisation builds the right capability and skills for the future is becoming increasingly relevant as the world changes.

Fast facts:

Compiled by James Adonis

How should HR professionals overcome that challenge? At NAB we have developed a capability framework to capture and understand the capabilities that are essential for our business and to establish a common language. The framework is a practical tool that helps our people identify the core capabilities for a particular role and how they can be developed through on the job experience, coaching/mentoring, or formal education.

Can you believe it? It started as an ordinary day for taxi driver, Mohammad ‘Mukal’ Asaduzzaman, but ended in him driving around New York for nearly 80km in a desperate search to find an elderly woman who left $21,000 in the back seat of his cab. Thankfully for the woman, a 72-yearold Italian grandmother, Quote of the Month

“Leaders must be close enough to relate to others, but far enough ahead to motivate them” – John Maxwell

5,000

95%

Source: Domino’s Pizza

Source: Chandler McLeod Group

Australians in a survey have revealed that nearly one in 10 people from NSW, Queensland and Victoria admit to secretly stealing a workmate’s lunch. Tasmanians were the most honest, where not a single respondent owned up to being a sandwich stealer.

Mukal eventually found a Long Island address in her purse, and drove all the way there to drop off the bag of cash which also contained jewellery. Mukal has refused to accept any reward. He told the New York Post that he lived by his mother’s philosophy which was to “Be honest, work hard and you will raise your station.”

of employees are keeping their eyes open for a new job, with 73% admitting they’re actively searching for one. A survey of over 900 people found the most common reasons given by job seekers were limited career opportunities (41%); feeling undervalued (24%) and lost faith in the company (18%).

60%

of 2,000 uni graduates from a nationwide survey plan on working outside of Australia at some stage during their career; 30% plan to stay with their employer for 3–5 years upon completion of the graduate program; and 23% expect to be in a managerial position within four or five years of entering the workforce. Source: OneTest